U.S. Mint Makes Drastic Cuts to Its Collector Gold & Platinum Coin Offerings 13 comments
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Yesterday the United States Mint announced some sweeping cuts to the number of products that it will offer to coin collectors. The deepest cuts take place in the US Mint’s offerings of collectible versions of gold and platinum bullion coins.
Most people know about the US Mint’s bullion coin offerings. American Eagle coins composed of gold, silver, and platinum are sold to the public through a network of authorized bullion dealers. In recent years, American Buffalo Gold coins were added to the lineup. These coins are bought and sold primarily as a means of investing in precious metals.
Since 2006, the US Mint has also offered so-called “collectible” versions of the popular bullion coins for sale directly to the public. The coins have been available in fractional denominations, four coin sets, and one ounce sizes. They are differentiated from the “non-collectible” bullion versions by carrying a “W” mint mark. The coins are also struck on specially burnished blanks and come in custom Mint packaging. In addition, the US Mint has offered proof versions of bullion coins, which have been sold to collectors for many years.
The US Mint’s discontinued products (via Mint News Blog) will include:
- American Buffalo Uncirculated Gold Coins - These are the collectible versions offered by the US Mint. All fractional denominations, 4 coin set, and the one ounce coin will be discontinued.
- American Buffalo Proof Gold Coins - The fractional 1/2 oz, 1/4 oz, 1/10 oz coins and 4 coin set will be discontinued.
- American Platinum Eagle Uncirculated Coins - These are the collectible versions offered by the US Mint. All fractional denominations, 4 coin set, and the one ounce coin will be discontinued.
- American Platinum Eagle Proof Coins - The fractional 1/2 oz, 1/4 oz, 1/10 oz coins and 4 coin set will be discontinued.
- American Gold Eagle Uncirculated Coins - These are the collectible versions offered by the US Mint. The fractional 1/2 oz, 1/4 oz, 1/10 oz coins and 4 coin set will be discontinued.
Why are these products being discontinued?
The US Mint would likely cite low sales figures for the offerings, but that doesn’t get to the root of the problem. Basically, the US Mint has had a disastrous time selling the products over the past few years. This was due in large part to the way the US Mint was required to set prices combined with the extreme fluctuations of precious metals prices over the past few years.
The US Mint is required to publish prices for upcoming collectible coin products in the Federal Register. This process seems to take about 30 days. As a result, every time these pseudo-bullion coins went on sale, prices were based on precious metals values from up to 30 days ago. Any time the US Mint wanted to change prices, coin sales had to be suspended for at least 30 days while the publication process took place.
Throughout 2006 and 2007, sales of these “collectible” bullion coins were suspended numerous times as precious metals prices climbed. Premiums above the precious metal value were in constant flux, since coin prices were fixed and precious metals changed. Typically, premiums would be high at the start of sales, but then lower as precious metals prices climbed. If you timed your purchases right, you could buy the coins for around the same price as the regular bullion coins.
During 2008, the “collectible” bullion offerings were priced early in the year when precious metals prices were at their highs. As precious metals prices dropped from their peaks, coin prices remained the same, making premiums extraordinarily high. For example, the 2008-W 1 oz. Uncirculated American Gold Eagle is currently priced at $1,119.95 (see US Mint website). Compare this to the gold value of $742. This premium is ridiculously high for a product slightly better than a bullion coin.
The only prices that were actually lowered this year were for the platinum products. Following nearly two months of suspension, platinum coins returned with prices approximately halved. Even after the reduction, prices still reflected huge premiums. The 2008-W 1 oz. Uncirculed Platinum Eagle is priced at $1,214.95 (see US Mint website). Compare this to the platinum value of $837. Another ridiculously high premium.
On the upside, this represents the end of a bad experiment in precious metals products from the US Mint. On the downside, this represents one less way for people to acquire precious metals.
Disclosure: Long physical gold and platinum.
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This article has 13 comments:
The 'complaint' argument is preposterous.
That's not welcome at this time.
On Nov 11 11:14 PM TERN wrote:
> The real reason for withdrawing this non-productive investment vehicle
> from the available investment options of the general public is that
> not- circulating, hoarded wealth can no longer be multiplied in economic
> activity.
>
> That's not welcome at this time.
>
Consider: I submit that the new 'Bretton Woods' summit starting this weekend is planning to start the process to back a new world currency with gold. Now, more and more articles are saying much the same thing. If so, where is that gold going to come from?
Then, Joe Biden came out with his statement that early in the Obama administration there would be a huge crisis, and the actions they take would be unpopular with the people, but that they should bear with the administration. I contended that what this crisis would be a default of the American dollar and the switch to a new, gold-backed world 'dollar.'
Now we learn that the U.S. Mint is starting to discontinue producing gold coins popular with private collectors. Why continue to produce gold coins that soon may (will) be outlawed for private citizens?
The longer gold behaves contrary to all laws of economics, due to heavy manipulation by the mega-bullion bankers backed by the government, the more I believe it precedes the outlawing of privately held gold. Governments know that they would have an instant revolution if the just confiscated privately held gold, so they are artificially reducing the spot price of gold to be able to 'buy' yours, mine, and everyone else's gold for $500 (or whatever) instead of its true worth of $1,200, $1,500, $2,000 or whatever it really would be within the laws of economics.
Keep watching . . .
Ha ha ha. We used to call it 'savings'.
One of the main reasons why it isn't circulating is because there isn't very much of it. The majority of what's circulating is debt based coupons, not savings.
bowman makes an interesting point. Do you have any sort of link to a recent Biden statement to that effect?
"Mark my words. It will not be six months before the world tests Barack Obama like they did John Kennedy," Biden said in Seattle. "The world is looking. Watch, we're gonna have an international crisis, a generated crisis, to test the mettle of this guy."
to keep the citizens in line, and letting precious metals serve as money would foment HONEST commerce and might lead to independent thought. So just be good little sheeple, bow your heads, and stay on the gov'ment plantation.
A collectors question. The one ounce gold American Buffalo proof $50 coin has been produced for the last 2 or three years. However, I believe 2008 is first year the 1/10,1/4, 1/2 ounce American gold proof buffalo and four coin set has been produced. Do you know the estimated mintage on these proof coins. The US Mint web site is showing today that the 1/10 ounce American buffalo proof is no longer available, except in the four coin set. Prices have been reduced since yesterday, although still outrageous with gold dropping today. Do you know or could speculate on whether the US Mint will reduce prices further for the moving sale starting saturday. Thanks.
2008 Buffalo proof Gold (have the "W" mint mark): -
1/2 oz 1,495 (that's fourteen hundred & 95).
1/4 oz 3,355.
1/10 oz 9,224.
1 oz 10,527.
4 coin proof set 6,458
4 coin uncirculated set 4,694
=====================
On Nov 13 01:36 PM Wahootom wrote:
> Mr. Z
>
> A collectors question. The one ounce gold American Buffalo proof
> $50 coin has been produced for the last 2 or three years. However,
> I believe 2008 is first year the 1/10,1/4, 1/2 ounce American gold
> proof buffalo and four coin set has been produced. Do you know the
> estimated mintage on these proof coins. The US Mint web site is showing
> today that the 1/10 ounce American buffalo proof is no longer available,
> except in the four coin set. Prices have been reduced since yesterday,
> although still outrageous with gold dropping today. Do you know or
> could speculate on whether the US Mint will reduce prices further
> for the moving sale starting saturday. Thanks.
>