Past Time for Lotteries for Limited Mint Issues …. How It Could Work and Not Work

Likely the Mint will eventually institute a lottery system for limited issues. Folks could sign-in and get a lottery number assigned starting 2 weeks prior to sale deadline … one number per account. Then have one week after the deadline to check if they are a winner and buy. Then for any coins remaining due to failure to buy, go down list and allow new winners a week to buy. Continue until sold out.

And yeah, dealers and flippers would still use hired surrogates to have more lottery numbers under their control. However, the likelihood of success of a particular surrogate would be less. The reason is the surrogates now probably get tips to maximize chance of success in the frenzy or may be provided with a script bot. With the right internet setup and a good script bot, the dealer’s IT folks can do it all … the surrogate does not have to get into the frenzy. They just have to receive the coin, if a winner, and turn it over to the dealer. With a lottery, the tips and bots lose their advantages.

And yeah, ordinary folks like me would have relatives or friends get lottery numbers. Beyond limiting number coins sold to an address, not much can be done about that.

I would guess the senior IT folks at the Mint aren’t too happy with the way it’s done now. Servers become more vulnerable to hacking if they are overloaded or crash. It may have happened already, which is another explanation as to why some dealers and eBay sellers have multiple coins to sell soon after the closing date. Although contracting surrogates and using script bots is more likely and legal. Some of the Mint’s web services are contracted to outsiders, including Facebook, so maybe the Mint IT dept doesn’t worry about it much.

For those who like conspiracies: If their servers did get hacked for the purpose of allowing sales to whomever the hackers chose and the Mint discovered it, would they have much motivation to make it public? After all, the Mint got its money. Why go public with something embarrassing?

Anyone know if any members of Congress are collectors?

Cal

 

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"Likely the Mint will eventually institute a lottery system for limited issues."

Source?

 

My eternal optimism.

Cal

 

I'm pretty sure I could find more members of congress who are collectors. This came up when I typed in coin collectors who are politicians.

Frank Lucas (R) Oklahoma’s 3rd congressional district

https://www.rollcall.com/2011/05/18/congress-coin-collector-views-currency-as-history/

The Financial Services Committee has jurisdiction over mint-related issues; these articles have a complete list of members. However, the 117th congress will be seated on January 3rd of 2021, so the committee roster will likely be shuffled.

https://en.wikipedia.org/wiki/United_States_House_Committee_on_Financial_Services

https://en.wikipedia.org/wiki/United_States_Senate_Committee_on_Finance

Edit: You may also wish to try Mark Amodei (R) Nevada's 2nd Congressional district. His district includes Carson City and numerous silver mines. Amodei has also introduced and sponsored numerous pieces of legislation pertaining to coins.

https://www.congress.gov/member/mark-amodei/A000369?searchResultViewType=expanded

 

The only way they'll institute a lottery system is if they see profit in it; charge everyone a fee for the chance of being one of the lucky ones.

 

Please don't give them any ideas.

 

Oh, I can go one better than that.

"Mintage for this coin is limited to 1000. Production for the packaging is unlimited. Buy this package for $99.95, and you'll get a chance at a coin. If fewer than 1000 sell, you're guaranteed a coin. If 2000 sell, you have a 50% chance -- for each package you buy. Household limit 100. Orders open at noon..."

 

This is exactly what I have suggested. Allowing a 48 hour period for people to log on and claim a lottery position, allowing it to be a "first come first serve" in a way, while not screwing collectors and downing servers. Who knows if the mint will do this, though.

 

I see a problem even with that. It can't be "first come first serve", otherwise the system will crash with everyone logging in as soon as they open the lottery. Now if it is a random lottery where you have weeks to log in and get a lottery number then when you log in won't matter.

 

That would be one special package for $99.95; a signed picture of the mint director and a reverse proof Lincoln.

 

And what would that do? You can bet that members of congress already have a source to get ANY coin issued.

 

If a system is rational and fair you can bet that the US Government and their subsidiaries will have nothing to do with it.

 

Why not a raffle?

 

it is a lottery at their website and casinos are known for not paying out.

it is the luck of the draw as to who gets these coins. if the mint allowed certain people or businesses exclusive access to their inventory before the sale then yes maybe...but that still wouldn't stop the mint from selling presales to select groups

 

I mean first come first serve in the sense that the people who don't log on within 24/48 hours don't get a chance to buy them, allowing a distribution of the traffic over a much larger time period.

 

You wouldn't even have to go that far. If you win, you get notified that the mint has charged your credit card and the coin is in the mail. No need for customers to do anything other than sign up for the lottery (and leave payment info).

 

LOLOL! I love the honesty of that answer.

 

Why not an auction?

Hey, maybe they could work a special deal on the fees with eBay and auction them all off there! Half of them wind up there anyway, and eBay's website runs RINGS around that clown show that the US Mint is operating!

 

I’ve got a wild and crazy idea. Why not just mint to the demand on special issues at least? Wouldn’t the mint stand to make more money and more people would be happier?

Say 150k got a V75 silver eagle and they charged $100 for it. Pay in advance before they’re even made. It’s still low mintage. The mint would make a fortune. People would be happier just paying the $100 to the mint instead of $500 to scalpers who do this just to be a greedy pain in everyone’s......butt.

 

Unfortunately, there are generally two types of buyers for these mint products; those who are collectors and want to add to their sets and those who want to flip them for profit. This definitely would probably eliminate the flippers since they would not know the mintage up front and probably wouldn't be interested in buying the product for little or no gain.

Minting coins on demand would most likely be more costly for the mint; they would have a lot more set up time involved. So, collectors would most likely have to pay more for a product.