Free gold offer at the US Mint?

TopcatCoin · August 1, 2022 7:31AM

24-Karat Bonus Offer Add Two Gold Coins to Your Collection for the Price of One
For a limited time, when you buy the award-winning 2017 American Liberty One Ounce 225th Anniversary High-Relief Gold Coin at regular price, you will receive a companion 2018 One-Tenth Ounce American Liberty Gold Coin at no additional cost. The price for both coins together will be the same as the price for the one ounce version by itself.

Both coins were struck in 24-karat gold and feature the design that won "Gold Coin of the Year" at the International Coin of the Year awards.

There is no household limit on this special offer, but quantities are limited to in-stock inventory. So don't miss out! Offer expires on August 15 and is on a first-come, first-served basis.

Goldbully · August 1, 2022 7:39AM

What's the point?

https://catalog.usmint.gov/american-liberty-gold-coin-2017-2018-24-karat-bonus-offer-22ALB1.html?cm_mmc=ExactTarget--Campaign--20220801AmericanLiberty1718GoldCoin24KaratBonusOfferEmail1_Purchasers-_-24KaratBonusOfferCTA&cm_mmca1=Marketing&cm_mmca2=Purchasers&cm_mmca3=22ALB1&cc=ALHR

derryb · August 1, 2022 7:55AM

still overpriced. I can buy a one oz gold eagle or buffalo ms70 for far less than that.

3stars · August 1, 2022 8:06AM

Still a ~30% premium

TopcatCoin · August 1, 2022 8:15AM

Agreed that this offer is still overpriced but it amazing to see the Mint resort to this. These items must be collecting dust. TC

TwoSides2aCoin · August 1, 2022 8:25AM

You got that right. Odd marketing scheme , especially for that arm of the government. Why not give twenty loaves of bread, instead ?

Kidding and ranting, in the same sentence and question. Just read ( in the fake news) a loaf of bread is pushing ten bucks.

As coins go , though.... I must side with derryb.... I'd prefer a one ounce eagle and 4 tenth ounce coins for the money. True: they're not 24k, but still 1.4 oz.

Kliao · August 1, 2022 8:31AM

The mint really does not want to melt these for some reason. I would think any other precious metal product that old would have been melted by now.

telephoto1 · August 1, 2022 8:48AM

Simple reason... they are overpriced as heck, thus they aren't selling and they think this will help. It won't. The coin hasn't sold well since it's inception. The reason for not discontinuing them? They don't want bad pub.

fathom · August 1, 2022 8:49AM

Melt 'em.

pmh1nic · August 1, 2022 8:54AM

Not a fan of the design or the price.

PhillyJoe · August 1, 2022 9:05AM

Five years later and they’re trying to move it to the discount rack. Why not just lower the price? How is the 2018 a companion for the 2017? Funny.

Goldbully · August 1, 2022 9:26AM

@PhillyJoe said:

How is the 2018 a companion for the 2017?

Precisely.

Halfpence · August 1, 2022 10:04AM

Strong pass.

BStrauss3 · August 1, 2022 10:07AM

The Mint plays games with inventory... from the 2018 Annual report

INVENTORY
The components of inventories at September 30 are summarized below:

(dollars in thousands) 2018 2017
Raw Materials $111,858 $171,225
Work-In-Process 126,289 268,883
Inventory held for current sale 139,547 231,839
Total Inventory $377,694 $671,947

Raw materials consist of unprocessed materials and by-products of the manufacturing process and the metal value of unusable inventory, such as scrap or condemned coins, which will be recycled into a usable raw material. In addition, as of September 30, 2018 and 2017, the inventory includes $144 million and $443 million, respectively, which are the market values of the silver hedged. Additional information can be found in Note 20. Work-in-process consists of semi-finished materials.

The Mint leases platinum and palladium to avoid the effects of fluctuating metal costs as a result of the changes in market prices. The Mint leases platinum for a fee of 1.2 percent of the asset’s value and leases palladium for fees that range between four and 10 percent. The Mint takes physical possession of the metal to manufacture the bullion coins. Upon sale to the customer, the Mint purchases the metal from the lessor on the same day for the same market price. In FY 2018 and FY 2017, the Mint paid $535 thousand and $507 thousand in leasing fees for platinum. In FY 2018 and FY 2017, the Mint paid $890 thousand and $438 thousand in leasing fees for palladium.

Goldbully · August 1, 2022 10:53AM

Notice the Mint doesn’t use the word ‘free’ as in the OP. It’s an ‘expression of our appreciation for your loyal support.’
😅

jwitten · August 1, 2022 11:11AM

What awards did the 2017 win?

jmlanzaf · August 1, 2022 11:55AM

@jwitten said:
What awards did the 2017 win?

It's in the OP: Gold Coin of the Year

jmlanzaf · August 1, 2022 11:57AM

I find the crustiness of this thread a little odd if not unusual. If you were going to buy the medal, you get a free bonus. Win. If you were on the fence, maybe the $175 effective price drop makes the difference. Win. If you were never going to buy it, you still aren't. No change.

What's the negative?

RYK · August 1, 2022 11:57AM

Dreck

jwitten · August 1, 2022 12:29PM

@jmlanzaf said:

@jwitten said:
What awards did the 2017 win?

It's in the OP: Gold Coin of the Year

I guess I shoulda read better 😂. I didn’t even know they had coin awards like that

3stars · August 1, 2022 1:30PM

@jmlanzaf said:
I find the crustiness of this thread a little odd if not unusual. If you were going to buy the medal, you get a free bonus. Win. If you were on the fence, maybe the $175 effective price drop makes the difference. Win. If you were never going to buy it, you still aren't. No change.

What's the negative?

Suddenly your glass is half full...

fathom · August 1, 2022 1:40PM

If I am a loyal customer and I bought that coin earlier full price then I would not be pleased they are in a sense closing them out.

Overproduction hurts. It hurts the loyal customer, it hurts the current perceived value and it hurts the reputation of the Mint that they are marketing items that will hold their value down the road.

There is nothing positive about this scenario if you are enrolled in items in the future. Or if you care that the Mint should produce to demand, keeping the market appetite at as high a level as possible.

jmlanzaf · August 1, 2022 1:59PM

@3stars said:

@jmlanzaf said:
I find the crustiness of this thread a little odd if not unusual. If you were going to buy the medal, you get a free bonus. Win. If you were on the fence, maybe the $175 effective price drop makes the difference. Win. If you were never going to buy it, you still aren't. No change.

What's the negative?

Suddenly your glass is half full...

Lol. Mine is always half full or I would have offed myself years ago.

I'm just not sure why everyone seems mad about it. Retailers do it all the time: buy chips get 50% of dip, etc. It's gold, you can always just sell it for cash.

BStrauss3 · August 1, 2022 4:01PM

The engineer's answer is "too much glass"

Halfpence · August 1, 2022 4:17PM

@jmlanzaf said:

@3stars said:

@jmlanzaf said:
I find the crustiness of this thread a little odd if not unusual. If you were going to buy the medal, you get a free bonus. Win. If you were on the fence, maybe the $175 effective price drop makes the difference. Win. If you were never going to buy it, you still aren't. No change.

What's the negative?

Suddenly your glass is half full...

Lol. Mine is always half full or I would have offed myself years ago.

I'm just not sure why everyone seems mad about it. Retailers do it all the time: buy chips get 50% of dip, etc. It's gold, you can always just sell it for cash.

I don’t read anyone as being mad about anything. People’s reaction to the product are easy to summarize if you read the posts. At least 5 posts think it’s overpriced, even with a freebie. Pretty straightforward.

Fraz · August 1, 2022 4:57PM

I think that it is a good thing that a branch of the U.S. government attempts to profit by marketing non-business strikes—1) it adds revenue, 2) the money people spend on fractal variations does not compete with my money, 3) their grandchildren might benefit.

Goldbully · August 1, 2022 5:04PM

Just checked availability.....2,093 pieces.

Numismetal · August 1, 2022 5:28PM

@Goldbully said:
Just checked availability.....2,093 pieces.

Is that 2093 pieces of the 1 ounce and 1/10 combo offer? Where did you check that?

spyglassdesign · August 1, 2022 5:31PM

@BStrauss3 said:
The engineer's answer is "too much glass"

As an engineer... This lol

Goldbully · August 1, 2022 5:38PM

@Numismetal said:

@Goldbully said:
Just checked availability.....2,093 pieces.

Is that 2093 pieces of the 1 ounce and 1/10 combo offer? Where did you check that?

I assume so.

It's now 2,082 available.

smuglr · August 1, 2022 8:10PM

I'm a little put off by it as I purchased them individually. I think they should have melted the leftover years ago.

SilverEagle1974 · August 1, 2022 8:32PM

Wouldn't melting the rest actually improve the overall value of the coin ?
Other than the price of gold actually going up a bit over the last 5 years, the coin may receive a bit more respect.

Seems people don't like the design, so what is the incentive of buying a coin, even if you do get a "free coin" ?

Chris

jmlanzaf · August 2, 2022 3:24AM

@SilverEagle1974 said:
Wouldn't melting the rest actually improve the overall value of the coin ?
Other than the price of gold actually going up a bit over the last 5 years, the coin may receive a bit more respect.

Seems people don't like the design, so what is the incentive of buying a coin, even if you do get a "free coin" ?

Chris

Melting them costs money.

Namvet69 · August 2, 2022 3:30AM

Not quite the BOGO it should be.

ricko · August 2, 2022 6:33AM

@TwoSides2aCoin... The listing says 99.99 pure gold, 24 Karat gold. Still, priced high, not a good deal. Must be an inventory flush, but without attractive pricing. Cheers, RickO

TwoSides2aCoin · August 2, 2022 6:53AM

A government backed gold > @ricko said:

@TwoSides2aCoin... The listing says 99.99 pure gold, 24 Karat gold. Still, priced high, not a good deal. Must be an inventory flush, but without attractive pricing. Cheers, RickO

I said that, RickO. I compared having the 1.4 oz of 22k AGEs to 1oz of 99.99 Liberty coin and 1/10th oz 22k I'd prefer straight bullion. I know you get your tenth oz for free. ( side bar.... re: giveaway ).
For the money...sell me the eagles in an open market.

ricko · August 2, 2022 7:21AM

@TwoSides2aCoin .... I was referring to the last line of your post " True: they're not 24k, but still 1.4 oz.". Cheers, RickO

telephoto1 · August 2, 2022 9:39AM

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

cagcrisp · August 2, 2022 11:21AM

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

The 2017 coin was originally sold for $1,640.00.

And the Mint made money at $1,640.00 with Total production cost.

Today the Mint sells the exact same coin that was profitable @ $1,640.00 for $2,665.00 (tomorrow afternoon they will sell for $2,715.00). IF you melt them they will be worth spot Gold which is approximately $1,770.00

SO...Sell them for $2,665.00 or $2,715.00 or melt them down (at a cost to the Mint) and have them worth $1,770.00...

Numismetal · August 2, 2022 11:23AM

What price would it be worth it to buy this coin assuming there needs to be a premium higher than what you'd pay for a bullion coin? These coins are not marketed to bullion investors.

cagcrisp · August 2, 2022 11:25AM

Since the offer was first published sales have Increased by 126% over the previous average weekly sales for the past two years...

cagcrisp · August 2, 2022 11:30AM

What the Mint is giving away originally sold for $215.00 and was profitable for the Mint at the $215.00 price...

telephoto1 · August 2, 2022 11:32AM

@cagcrisp said:

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

The 2017 coin was originally sold for $1,640.00.

And the Mint made money at $1,640.00 with Total production cost.

Today the Mint sells the exact same coin that was profitable @ $1,640.00 for $2,665.00 (tomorrow afternoon they will sell for $2,715.00). IF you melt them they will be worth spot Gold which is approximately $1,770.00

SO...Sell them for $2,665.00 or $2,715.00 or melt them down (at a cost to the Mint) and have them worth $1,770.00...

...and then remake them into other pieces which are just as if not more profitable, and easier sells.

cagcrisp · August 2, 2022 11:42AM

@cagcrisp said:

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

The 2017 coin was originally sold for $1,640.00.

And the Mint made money at $1,640.00 with Total production cost.

Today the Mint sells the exact same coin that was profitable @ $1,640.00 for $2,665.00 (tomorrow afternoon they will sell for $2,715.00). IF you melt them they will be worth spot Gold which is approximately $1,770.00

SO...Sell them for $2,665.00 or $2,715.00 or melt them down (at a cost to the Mint) and have them worth $1,770.00...

...and then remake them into other pieces which are just as if not more profitable, and easier sells.

The Mint has ~ $375.00 an ounce of production cost (Non Gold related) in every Gold coin they produce.

So..No...Even the 1/10 oz. American Gold Eagles Proofs do Not have the profit margin the 2017 American Gold Liberty currently has.

The 2017 American Gold Liberty is the most profitable Gold coin the Unites States has minted in the past 10 years...

telephoto1 · August 2, 2022 11:53AM

@cagcrisp said:
The 2017 American Liberty Gold coin has the Highest profit margin from ANY Gold> @telephoto1 said:

@cagcrisp said:

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

The 2017 coin was originally sold for $1,640.00.

And the Mint made money at $1,640.00 with Total production cost.

Today the Mint sells the exact same coin that was profitable @ $1,640.00 for $2,665.00 (tomorrow afternoon they will sell for $2,715.00). IF you melt them they will be worth spot Gold which is approximately $1,770.00

SO...Sell them for $2,665.00 or $2,715.00 or melt them down (at a cost to the Mint) and have them worth $1,770.00...

...and then remake them into other pieces which are just as if not more profitable, and easier sells.

The Mint has ~ $375.00 an ounce of production cost (Non Gold related) in every Gold coin they produce.

So..No...Even the 1/10 oz. American Gold Eagles Proofs do Not have the profit margin the 2017 American Gold Liberty currently has.

The 2017 American Gold Liberty is the most profitable Gold coin the Unites States has minted in the past 10 years...

Hmmm. Then your position is that the Mint is making so much profit on these, they don't care how long it takes to move inventory? If true, then why do they feel the need to give away bonus gold coins to help get rid of them? Also, business 101 tells us that everything that sits in someone's inventory also builds overhead... are you factoring that into the equation since these have been around since 2017?

jmlanzaf · August 2, 2022 11:59AM

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

Which is why they are trying to move them...

telephoto1 · August 2, 2022 12:03PM

@jmlanzaf said:

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

Which is why they are trying to move them...

Yes- they're trying to move a coin no one apparently wants very badly by giving away a bonus coin no one apparently wants either.

cagcrisp · August 2, 2022 12:18PM

The United States Mint had a 2019 American Gold Liberty coin that launched August 2019 that they disposed of completely differently than the 2017 American Gold Liberty.

The 2019 had Total sales of 12,002 for 97 weeks and then on week #98 the United States Mint Sold 12,608 coins or 105% more coins sold in one week than in the previous 97 weeks...

jmlanzaf · August 2, 2022 12:57PM

@cagcrisp said:
The United States Mint had a 2019 American Gold Liberty coin that launched August 2019 that they disposed of completely differently than the 2017 American Gold Liberty.

The 2019 had Total sales of 12,002 for 97 weeks and then on week #98 the United States Mint Sold 12,608 coins or 105% more coins sold in one week than in the previous 97 weeks...

They are ignoring your facts...

jmlanzaf · August 2, 2022 12:57PM

@telephoto1 said:

@jmlanzaf said:

@telephoto1 said:

@jmlanzaf said:

Melting them costs money.

Melting does have associated costs, but so does having them languish in inventory building up overhead.

Which is why they are trying to move them...

Yes- they're trying to move a coin no one apparently wants very badly by giving away a bonus coin no one apparently wants either.

And it is working... see @cagcrisp post.

fathom · August 2, 2022 2:34PM

Nobody cares if the sales are up or if they can accumulate huge profits.

I want the items to retain value and know the current or next product will not be overproduced to force discounting and closeouts.

Overproduction is toxic to perceived value.

Free gold offer at the US Mint?

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