The Liberty Coin Act, otherwise known as the Statue of Liberty-Ellis Island Commemorative Coin Act, was sponsored by Idaho Senator James McClure, and signed by President Reagan in 1985. This Act allowed miners to sell surplus silver to the federal government. It spurned the creation of the one-ounce American Silver Eagle coin. The Gold Bullion Coin Act passed in the same year.
While Idaho is known for its potatoes, it also produces silver. Senator McClure thought that this Act would help his state while also providing a fair value coin for the country. This law allowed not just the purchase of the silver, but it also allowed the new coins to be minted in U.S. Mints.
Main Provisions of the Liberty Coin Act
The most known part of this Act is that it allowed the minting of commemorative coins in U.S. mints. It also allowed the U.S. government to purchase excess silver supplies. The Act requires that all designs and themes require approval. This cleared the pathway to the minting of popular commemorative coins such as coins celebrating the United States Army, Apollo 11, Benjamin Franklin, and the Civil Rights Act of 1964.
A Brief Overview of the Other Provisions
- How the profits from the selling of coins are allocated is controlled.
- Mintages must be limited.
- Details such as coin size, weights, purity, and artwork are specified and quality is closely monitored.
- Duration of the authorization is defined, authorization is reviewed, and program effectiveness evaluated.
- Reporting and accountability measures must be in place.
- Act may be amended or reviewed when needed. Updates may also be put in place to address emerging issues.
The final approval of coins is the responsibility of the Secretary of the Treasury. Members of Congress, the House, Senate, or committee may suggest commemorative coin considerations and associated legislation.
Why this Act Matters to Coin Collectors and Investors
The Liberty Coin Act matters to coin collectors and investors because it provides a structure for issuing and managing commemorative coins. These coins offer historical and cultural significance, potential appreciation, and portfolio diversification benefits.
Historical and Cultural Value
Collectors may appreciate the opportunity to celebrate a cause or historical event that they care about.
Limited Mintages
Limited mintages help protect the value of the coins. It limits how many coins can be minted and whether an extended or new mintage will be authorized. Limited mintage also provides the opportunity to take advantage of secondary market demand.
Appreciation
In most cases, coins will appreciate over time even if it is just for the bullion value.
Diversification
Commemorative and or American Eagle coins can help diversify an investor’s portfolio.
Intrinsic Value
Besides potential numismatic value, the bullion is usually steadily gaining value.
A Bit About the American Silver Eagle
This coin was first released in 1986 right after the passing of the Liberty Coin Act. The Silver American Eagle is composed of one troy ounce of.999 fine silver and it celebrates Ellis Island and the Statue of Liberty. The coin features Adolph A. Weinman’s Walking Liberty. This is an extremely popular coin. While they have a limited mintage, the mintage is high. Nearly 25 million of the standard version, and over 700K of the proof version were minted in 2023.
Popular Commemorative Coins Released Under the Liberty Coin Act
Besides the Silver American Eagle and the Gold American Eagle, which are released yearly, these commemorative coins have also been popular.
- 1989 Congress Bicentennial Coin: This coin was designed to celebrate the 200th anniversary of Congress.
- 1992 Olympic Coins: These coins celebrate the summer games in Barcelona.
- 2001 American Buffalo Silver Dolar: Tribute to the Buffalo Nickel.
- 2014 National Baseball Hall of Fame Series: Commemorates the 75th anniversary of the National Baseball Hall of Fame.
- 2016 Mark Twain Commemorative Coin: Honors the life and legacy of Mark Twain.
- 2019 American Legion Centennial Coins: Celebrates 100th anniversary of the American Legion.
Besides providing the opportunity for the U.S. government to purchase silver, the Liberty Coin Act also supported numerous commemorative coins, and the extremely popular American Silver Eagle.
