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SUSAN TOMPOR: State-themed coins losing popularity; program rolls on

July 23, 2003







BY SUSAN TOMPOR
FREE PRESS COLUMNIST




The economic slowdown has hit clothing, car sales, trips to the mall and nights on the town. So why wouldn't the superstar of U.S. coins be effected: the once wildly popular state quarter?

Yep, we're not flipping out over collectible change like we used to.

In 2000, the U.S. Mint made more than a billion of each of the five state quarters issued that year. And the latest 2003 issue, the Maine quarter? A mere 449 million werestruck.

It's another sign of the slowdown in commerce -- and the fact that some folks are no longer hoarding Delaware quarters and other state treasures like they did in the good old days.

All this could put a crimp on the Michigan quarter, which will roll out in January. The design is expected to be finalized by September.

How many Michigan coins will clink into cash registers and pockets next year will depend on how well the economy is chugging along.

2003 coins released
The Illinois quarter, featuring a young Abraham Lincoln and the Chicago skyline, was the first quarter of the 2003 lineup. The U.S. Mint struck 463 million. Production fell to 457 million coins for Alabama quarters. They highlight state native Helen Keller and are the first circulating U.S. coin to feature braille.

Maine's quarter shows a schooner at sea and the Pemaquid Point Light.

The 2003 quarters are chump change next to the state quarters' billion-plus heyday. Nearly 1.6 billion Virginia quarters were minted in 2000.

Why the slowdown?

"The primary driver of coin demand is the economy," said Michael White, a spokesman for the U.S. Mint in Washington, D.C.

When the economy runs slower, he says, the production of quarters lowers. Two quarters set to be released this year -- Missouri and Arkansas -- will likely be in the 450- to 500-million minting range.

What about Michigan's? If the economy picks up steam, White said, the total production could be above or around 500 million. Or it could be lower.

Quarter craze dies down
We also need fewer coins because the money mania is over.

Remember when people tried to triple their money by collecting anything? Beanie Babies. Dot-com stocks. And, yes, state quarters.

Once we had talk of the great quarter shortage. Some said it was virtually impossible to find a Delaware quarter in circulation -- the first in the state quarter program. The U.S. Mint issued nearly 775 million Delaware quarters in 1999.

Think about it; 775 million of something? And these things were rare? Talk about nutty times.

You'd hear stories of some folks paying $60 for a roll of Delaware quarters, said Pat Heller, owner of Liberty Coin Service in Lansing. A roll based on face value alone is worth but 10 bucks. If you're cheap and patient, you could collect all 50 state quarters through 2008 for a mere $12.50.

The Internet buzz a few years ago said that in 10 years, one uncirculated state quarter could be worth $100.

Check your change now. Spot any Delaware quarters?

Michele Orzano bets that you do. Over the last few weeks, Orzano, who writes about state quarters for CoinWorld, the bible of coin collecting, has seen a lot more Delaware quarters than in the past.

"My guess is people have been saying, 'What am I going to do with these?' " she says.

During the peak of the quarter frenzy, Orzano remembers many people buying new state quarters by the bag full. Now, during far less ebullient economic times, all those coins can cover a few trips to vending machines or the corner store.

A new state quarter is worth, well, 25 cents. If you can't wait for someone to hand you a Maine quarter in your change, you could pay 25 cents to 50 cents for a new one at a coin store.

And an uncirculated 1999 Delaware quarter? You can get one at a coin store for $1.25.

"We're at that side where the demand has fallen off, where people realize they're not going to double their money in two months," Heller said.




Contact SUSAN TOMPOR at 313-222-8876 or [e-mail].


http://www.freep.com/money/business/tompor23_20030723.htm