So, from a business perspective, what would happen to the USMint's Authorized Purchasers (APs)

Bochiman

if the USMint revoked their status with the mint so that they were no longer able to get the preferred treatment, but were treated as a "normal" dealer?

From the mega hockey puck thread, it seems pretty obvious that, at least Gold Center, abused the system and did not stay within the mint's directive on the sales. So, they should lose their status, imho. What would that do to their business? For the quick profit the owner was making from his abuse, was it worth it if he lose's his status?

Can the mint revoke the status for any reason or would he be likely to sue them and say that he did stay within their rules (ie...have a list of made up names that could be checked if audited)?

Seems to me that being first to get the bullion pieces (SAEs, GAEs, etc), and the price they pay, and then get paid, is a pretty big benefit right now when bullion is going crazy (30-40 million SAEs sold last year) and that it would be stupid to risk for something like this.

BigE

Perhaps the owner was thinking of retirement anyway, take the quick 2 million and put it with the other 2 already saved and kick back on a island somewhere with some fresh boobies and margaritas-------------------BigE

PinkFloyd

I have my doubts that any of these APs will be kicked off the list. But the mint's going to have to do something or they're going to look like a bunch of pushovers.

RWB

If the 5-oz pieces were all designated "numismatic items" then they would not go through the wholesalers.

The wholesale companies do not want individuals to order - they deal in tens- and hundreds-of-thousands of pieces.

Bochiman

<< <i>If the 5-oz pieces were all designated "numismatic items" then they would not go through the wholesalers.

The wholesale companies do not want individuals to order - they deal in tens- and hundreds-of-thousands of pieces. >>




Doesn't matter, in the scheme of this, as they were given rules to follow and at least 1, if not more, did not follow it. They had the opportunity to decline to participate, so if they did participate, and not follow the rules, they are wrong.

RWB

I agree about not following the agreement. Removal would be the obvious route, and recovery of the excess profits.

fcloud

The best way to sell these should have been one coin set per address through the US Mint's website. It would have been more of a lottery and they wouldn't have had to force the authourized dealers to sell at what the mint felt they should have sold for.

They just can't seem to get anything right.

I wouldn't have ordered anyway, but they turned it into just another mess.

LindeDad

The mint should just cut them out of the loop for the rest of the program (All of them) the mint handled the UHR better but not much better there selves and there were more coins in the program.

If those kinds of profits are makeable then make then there selves it might make a dent in the deficit. A very small dent but it’s there to make and needs to be made.

PTVETTER

The wholesale companies do not want individuals to order - they deal in tens- and hundreds-of-thousands of pieces




I know that for a fact the mint put them in a position they should not have been in the in fisrt place.

smokincoin

<< <i>I know that for a fact the mint put them in a position they should not have been in the in fisrt place. >>


No, they, the APs, had the choice themselves!

PTVETTER

The mint is a goverment agency and like all goverment agencys they have a hard time getting things right ..

The mint sent my 2010 proof silver eagle order to someone else and I (if I do get them) it will be in months, not days or even weeks.

MsMorrisine

They would lose the ability to purchase large quantities at the lowest prices.


The approved firms will also be required to agree that:

Disputes concerning the purchase of coins under the agreement will be resolved by the United States District Court, District of Columbia, according to federal law, and that the jurisdiction and venue of that court is agreed to by the AP.

Failure to adhere to the terms and conditions of the agreement may result in immediate unilateral termination of the firm as an AP of silver bullion coins. In addition, the United States Mint reserves the right to discontinue selling silver bullion coins to an AP if, in the judgment of the United States Mint, the best interests of the U. S. government and the silver bullion coin program so indicate.


IX. RIGHT TO MODIFY PURCHASER CRITERIA
The United States Mint reserves the right to modify the qualifying criteria for APs of silver bullion coins as deemed necessary for the successful continuation of the silver bullion coin program. The criteria for the silver bullion coins are not issued for the benefit of the public and do not create any right of action in any federal court or in any administrative body.



This could wind up in court, and we see how the gov't has been with the Langboard suit: tenacious. The court could issue a stay to prevent a revocation of the AP status while the case is heard.

BigE

<< <i>The wholesale companies do not want individuals to order - they deal in tens- and hundreds-of-thousands of pieces




I know that for a fact the mint put them in a position they should not have been in the in fisrt place. >>




Actually, Congress made a law that put the Mint in a bad position, and the whole thing rolled downhill from there-------BigE