Collecting State Quarters

by Don Mesler (scripophile)

Introduction

The 50 State Quarters Program's objective is to commemorate the each of the states of the Union through U.S. coinage, specifically the quarter dollar.  A new quarter will be issued, one after another, to commemorate each of the 50 states.  They wiil be issued in the order that the states were admitted to the Union.  The program began in 1999 and will end in 2008.  Quarters for 5 new states will be minted each year, approximately 10 weeks apart. 

The mint releases the quarters to the Federal Reserve Banks and other institutions on its distribution list.  The mint also sells the quarters in bags and rolls to interested parties.

After approximately 10 weeks have elapsed, the mint ceases production, sale, and distribution of the state which made up that run.  The mint then gears up for the production of the next state on the list.

The U.S. Mint on its web site estimates that there are 155 million collectors of state quarters.  One would be wise to put this number in perspective.  Some of the collectors are avid numismatists making complete sets of uncirculated mint state coins.  Some of them are dealers holding in inventory roll after roll of mint state coins.  Some of them are investors trying to capitalize on supply, demand, level of interest, perceived scarcity, etc. to turn a profit.  And some have no particular numismatic interest.  They are just savers of shiny new coins.

However, even a fraction of 155 million is a lot of interested people.  It is worthwhile to at least understand the phenomenon and it might be wise to go one step further and take an active role in stashing away some of the items.   

Design Concepts

The legislation for the new quarters took the existing Washington quarter and modified it so that the obverse contained all the information critical to a U.S. coinage and the reverse got almost all the area devoted to the state that is represented.

To get these ideas fixed in memory, it pays to examine the Washington Quarter now being replaced by the State Quarter.  On the preexisting quarters the obverse contained a portrait of George Washington, the words LIBERTY, the words IN GOD WE TRUST, and the date (the year minted).  On the preexisting quarters the reverse contained a spread eagle, the words UNITED STATES OF AMERICA, the words E PLURIBUS UNUM, and the words QUARTER DOLLAR.

The original legislation authorizing the the 50 State Quarters Program made some exceptions to the the traditional execution of the quarter's design to maximize the room on the reverse of the quarter to allow execution of the state's unique design.

The image of George Washington was made slightly smaller.  The words UNITED STATES OF AMERICA and the words QUARTER DOLLAR were moved to the obverse.  The date of the coin was moved to the reverse.

In anticipation of the state's upcoming quarter, designs are sought from the residences of that state.  Various avenues lead to the final design which upon selection is executed by the mint.

                       
      
Progress of the the 50 State Quarters Program to Date

At the conclusion of 2007, State Quarters had already been issued for 45 states. These states are listed below.  Each group of 5 states is followed by an image of the quarters in those states.

 1999 DE PA NJ GA CT

 2000 MA MD SC NH VA

` 2001 NY NC RI VT KY

 2002 TN OH LA IN MS
  
 2003 IL AL ME MO AR

 2004 MI FL TX IA WI
 
 2005 CA MN OR KS WV

2006  NV  NE  CO  ND  SD

2007  MT  WA  ID  WY  UT

All of the quarters so far minted are grouped in the following image:

The quarters remaining to be minted are as follows:

  2008   OK  NM  AZ  AK  HI

Buying and Selling State Quarters

As stated previously, the State Quarters are minted in the order of the state's admission to the Union.  They are minted for a period of approximately 10 weeks.  During that period, the mint releases the quarter to the Federal Reserve Banks and its other distributors.  At that time, the mint also sell rolls and bags of the quarters being minted to individuals, dealers, coin wholesalers, and other interested groups.  The mint charges a premium over face value for this service.  Eventually, the Federal  Reserve Banks release the coins to commercial banks which in turn release them to the public at face value.  Unfortunately, uncirculated coins, either individually or in rolls, are generally difficult for collectors of small amounts to obtain from the sources supplied directly by the mint at the time of issue.

After the 10 week mintage period has run its course, the mint's involvement in that state's quarters ceases.  At that time it is up to interested persons to acquire the quarters from the commercial banks (at face value) or in the secondary market created by the mint's other distributors (perhaps at a premium to face value).

An active market, both wholesale and retail, has developed for all of the quarters thus far minted.  This includes individual coins as well as rolls and bags.  It also includes sets grouped by the issuing mint (P or D), the year of issue, or collections in their entirety (75 quarters as of the end of year 2005).
 
Sources of Supply for State Quarters

Many dealers serve the public marketplace for coins in bags, in rolls, in collections, and also in individual coins.  One class of dealers concentrates mainly on bags and rolls.  These are among the cheapest sources of State Quarters provided you need a single roll or more.  Generally recently minted quarters are available the the range of $14 per roll. The highest price roll in the series is the Tennessee (P-mint) which sells for about $40.  Rolls of other State Quarters are priced in the range of $14 to $40.  Coins are heavy, so be sure to factor in the delivery charge when considering a purchase.

Full service coin dealers frequently handle State Quarters rolls, especially current releases.  Be prepared to pay considerably more for these rolls from this source.

The coin has a face value high enough ($0.25) that a markup by sellers which yields a nice profit margin, is  tolerated by buyers.  The full service firms (and some bulk dealers) offer State Quarters individually.  Generally, the range in price is from $0.55 to $1.60, depending upon the issue.

Offerings of State Quarters on eBay are all encompassing including mint wrapped rolls, bank wrapped rolls, sets grouped by year of issue, and complete collections ranging from State Quarters of the Original 13 States to collections containing all state quarters so far issued (P-mint issues, D-mint issues,or both). plus albums to house the collections. 

Albums to House State Quarters

More than half a dozen albums designed to house collections of state quarters have been printed by various publishers.  They are available from coin dealers, numismatic supply houses, and conventional booksellers.

Th albums range from cheap to dear, simple to exotic.  One of the simple ones has 50 holes supposing the collector needs just one quarter from each state, either mint being satisfactory.  Most albums have 100 holes, two for each state (1 for each mint).

The most exotic albums have holes covered on each side by mylar.  The mylar on one side is removable so the the coin can be placed between the two transparent sheets offering protection for the coin while making both sides visible.

Sizes for albums vary as well.  Most are book size, opening in 2 to 4 folds to as large as 9" x 24."  Some albums are printed as maps and have holes over each state for the correct quarter.  These maps can be as large as 13" x 16" folded and 24" x 16" when opened.

The covers of the albums as well as interleaving pages supply all sorts of information on matters related to the states that the coins represent.  Statistics include the date of entry to the Union, geographical area, state bird, state flower, state capital, state song, and state nickname, to name a few.

Conclusion

The 50 State Quarters Program marks a new era in U.S. coinage.  Prior to this program, commemorative coins were special productions, struck in proof condition only by the San Francisco Mint.  The commemorative coins were not intended for general circulation.  The 50 State Quarters Program changed all that.  Each of the 100 quarters produced (50 P-mint and 50 D-mint) are intended for general circulation. 

The success of the program has spawned several similar programs:

1.  The first is pending legislative approval.  It will extend the original program by one year to allow the production of quarters for the District of Columbia and the U.S. territories.

2.  The second is the Westward Journey Nickel Series, a series of commemorative coins celebrating the the Louisiana Purchase and the Lewis and Clark Expedition.  The final outcome was the revision of the 65 year old Jefferson Nickel.

3.  The third, launched in 2007, is the Presidential Dollar Program (38 total at the rate of four per year) and extending until 2016.

4.  The fourth is the President Lincoln Bicentennial Birthday commemorative to be launched in 2009.  It consists of five new coins in total, four honoring various stages in Lincoln's career plus one final cent honoring Lincoln's total contribution to this country.  This final Lincoln issue will be a permanent change and will be used far in to the future.

5.  The fifth is the Sacagawea Native American Indian Commemorative Dollar series to be lauched in 2009.  This coin will replace the current Sacagawea Golden Dollar.  It will bear the current Sacagawea obverse but the reverse will be changed on an annual basis to a design reflecting American Indian heritage.  The program will remain in effect until the expiration of the Presidential Dollar program (until 2016 or 2017).

Not to be overlooked is seigniorage.  That seldom used term refers to the profit resulting from the mintage of coins.  It is the difference between the value of the bullion used and the face value of the coin.  Seigniorage for the 50 State Quarters Program is substantial.

In conclusion, the 50 State Quarters Program has been an unqualified success.  It has shaped the look and feel of U.S. coinage for years to come.