I just noticed an ad for some bronze us mint medals. So I clicked on it as I have bought some that were in the ad before. It listed them at $160 each. I had to check but in October 2017 I paid $39.95 for one. that's quite a rise in prices (4x in 5 years) for a bronze medal that they probably made a bunch of and is just sitting in a warehouse. especially since on eBay they are selling for much less than what I bought mine for. Yikes, I'm glad this is a hobby. If they sold on ebay for $160ish I probably would sell mine. My truck needs some gasoline. LOL
The mint has gone crazy with its prices on medals. If the quality was like it was in the 19th century, it would be worth it, but it's not. I guess they figure the cost of production with the multiple strikes it takes to make most medals justifies the high prices. Here's what I mean about the 19th century versus the modern finish. Modern finish, Jefferson Indian Peace medal, "yellow bronze." 19th century Jefferson Indian Peace medal, "mahogany bronze.” This is certified, which is the way I bought it. I am not a fan of certification for these medals, but it costs too much to have it slabbed again, so I’ve left it. This piece was struck circa the 1860s. You can tell because the reverse die is broken. That die was used to strike the original pieces that went with Lewis and Clark, which makes it neat. It was replaced not too long after this one was struck. Here's another "mahogany bronze" piece without the plastic covering it. This is a Charter A. Arthur 19th century mint medal. Arthur is not on the "A-list" among presidents. Therefore there are not that many Arthur items available.
The prices were increased by the mint starting January 1st, 2021. The reasoning given was that they were losing money on them. Here is a coin world article about it: https://www.coinworld.com/news/us-coins/price-for-3-inch-medals-to-quadruple-to-160-dollars
And they can't lose money selling them if they price them so high that nobody buys them, right? Right?
so this basically all comes down to making each product profitable on it's own. Covering the overhead cost of design and engineering based upon the quantity manufactured and sold. That's a lot of money for bronze and derivatives vs Silver and Gold coins/medals which probably have a much higher sale rate thus a lower cost per coin/medal of overall production. Looks like the cases are separate now if I recall mine came with presentation cases.
The mint increased many items in 2021 (silver, gold, and non-precious metal). It seems like they have become more conscious of covering overhead. As far as the cases, I know the small medals didn't come with any when I bought one years ago. I'm not sure about the larger ones.
Au contraire mon frère. If you're the manufacturer, as is the US Mint, if you don't sell something you do lose money. The cost of material, labor, overhead, design, etc. However, you're correct if you're the consumer.
You might end up with an overall loss at the end of the year (based on labor and other manufacturing costs) but you still have the "asset" on the books. If they melt it for under cost or sell it for under cost, then there is a loss on that item.
Yes...you are correct. It is known as the Chapter 11 Eventuality Model. Our Federal Accounting System supports this Model.
My first job after I finished undergraduate school was as a cost accountant for a chemical company. I will use some of those skills to give you the mint’s rational. Striking 3 inch medals is much more involved than making coins. The piece must be struck multiple times to bring up all of the detail. The piece must be heated between each strike to soften the metal. That costs money. Here is a process set for the 1989 George H. W. Bush inaugural medal in bronze. The first piece is the blank planchet. The next five are the consecutive strikes that are needed to bring up the detail. The last two are the application of finish and then the finished medal. This work was done by a private business, the Medallic Art Company. This represents the direct costs of making the medal. The step that is left out is rolling ingot of metal and punching out the planchet. Fixed costs include designing and making the two dies that strike the piece. Overhead includes the machinery involved and the building that houses it. There is also the cost of management to consider. As you produce more metals, the overhead and fixed costs are spread over more pieces. One of the problems with medals is that the market for them is almost always much smaller than the market for special coins, like Proof sets and specially made Uncirculated coins. There for the fixed costs are spread over fewer pieces. I am surprised that the mint is covering its costs with the $165 price given the low volume of sales at that price. As the mint raises prices, fewer pieces are sold. It is a vicious cycle. Still, I am not aware that the Medallic Art Company has raised its prices as high as the U.S. Mint. They are a for-profit company so they must be covering their costs.
