1984 Olympic Commemorative Coinage

GAO discussed the need for an effective strategy to market coins commemorating the 1984 Los Angeles Summer Olympic Games. The House passed a bill to mint 50 million $1 silver coins and 2 million $10 gold coins; the coins are to be sold within the United States by the Secretary of the Treasury, while the rights to market the coins outside the United States will be assigned to a private marketing organization. GAO believes that a well-designed coinage program can provide important financial support for the 1984 Olympic Games and U.S. amateur athletics, and it identified an effective marketing strategy directed toward developing new demand and participation by investors of modest financial means. This strategy includes issuing the coins: (1) in a price range affordable to most American families; (2) with artistic beauty, commemorating an important historical event, person(s), or a place; (3) with a high percentage of bullion purity and in easily tendered amounts, creating a buyback market; (4) bearing the year of mintage and in a condition similar to that of other coins issued for general circulation, giving them the appearance of money; and (5) through an economical, readily accessible, and simplified distribution system. According to GAO, market analysts agreed that the coins should be distributed without the necessity of order forms and special packaging, but suggested that a percentage of the coins could be marketed as proofs at premium prices to numismatists. The silver coin's diameter, total weight, and metal composition coincide with traditional silver dollars while the gold coin's technical specifications coincide with the Coronet and Indian Head gold eagles. This should both make the coins easily tendered and create a resale market. Despite all these apparent advantages to an effective Olympic coinage program, market analysts believe that the success of any coinage program is contingent upon an economical, readily accessible, and simplified channel of distribution. GAO believes that a successful Olympic coinage program may require that sales be conducted through commercial banks as well as through interested retailers.