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The US Mint has halted production of 1/10 oz AGE
nibanny
Posts: 2,761 ✭
I noticed this morning that Provident increased their premium on tenth ozer gold eagle.
Now, they have posted on Facebook that the US Mint has halted production.
Does anyone have more info about this?
Now, they have posted on Facebook that the US Mint has halted production.
Does anyone have more info about this?
The member formerly known as Ciccio / Posts: 1453 / Joined: Apr 2009
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Submitted by Tyler Durden on 04/23/2013 15:28
We have been reporting extensively on the terminal disconnect between the paper gold market, which tumbled ten days ago for a variety of reasons, and the physical gold market which one can safely say, has seen a record surge in demand by those who wish to take advantage of the tumbling prices, depleting inventories of gold and silver in virtually all jurisdictions, and leading to the a record purchase of gold in the US mint a week ago as also reported here.
Today, we learn that, as expected, none other than the US Mint has officially run out of small denomination gold coins, in this case One-Tenth ounce American Eagle gold bullion coins. We are confident this incontrovertible proof of soaring retail demand for physical will somehow result in JPM or another bullion bank dumping a few extra thousands ounces of paper/electronic gold or silver to further disconnect the paper price from what is actually going on with physical demand. As for the US Mint, first it's fractions of an ounce: look forward to the mint running out of all bullion denominations in the coming days and week, first in gold, then in silver as well.
From Reuters:
The U.S. Mint has temporarily suspended sales of its one-tenth ounce American Eagle gold bullion coins because of inventory depletion due to strong demand, but continues to offer the one-ounce, one-half ounce and one-quarter ounce coins.
In a memo to its authorized purchases late Monday, the Mint said that gold coins sales in total ounces has been up more than 100 percent year to date over the same period last year.
We, for one, can only hope that the idiotic smashdown of spot paper gold continue and the price is sent to $0 or negative, while the last remaining physical ounce in inventory disappears at any price.
At that point the exchanges will have quite a few anxious people to answer to, the second someone demands even one bar in delivery.
Also, learn the words: "forced cash settlement."
I just checked the bullion sales on the US Mint website.
They sold 30,000 tenth ozers this year. Last year they ran our in November after having sold 31,500 coins.
Silver Eagles sales are interesting as well to be compared to last year!
Apmex is out of stock.
Goldmart and Goldeneagle coins (together with others I checked) probably didn't get the memo yet!
$175.55 @ Gainesville
$175.53 @ Provident
Only Gold has them listed at $0.00 not sure if that means they are out or if they are in the process of repricing.
$158.45 @ Liberty
Looks like some of them have not heard the news.
I knew it would happen.
<< <i>Watch the 2013 W Gold Eagle Proofs this year....I just have a feeling on these.... >>
Proof Eagles have low mintage limits.
20,000 for Full and Tenth. 10,000 for Half and Quarter.
20,000 Sets as well.
These are the lowest mintage ever, if I am not mistaken.
GOLD EAGLE mintage
2012-W Proof AGE Mintages (includes all sales options):
1/10 oz - 20,637
1/4 oz - 13,926
1/2 oz - 12,919
1oz - 23,805
In fact, the fractionals all had significantly lower numbers than the previous low mintage years, by as much as a 25% margin and a 43% margin in the case of the 1/2 oz.
(The 1 oz. was only about 750 coins lower than 2001, and if you count the 2006 Reverse Proof, it's actually only in 2nd place, by a long margin.)
I knew it would happen.
<< <i> The premiums always deter bullion-minded buyers from loading up on them. Coinboy knows, donch'a Coinboy?
you know it, too, jmski52
This marks the first time it has stopped selling gold product since November 2009, dealers said. A spokesman for the Mint did not return calls seeking confirmation of that milestone.
The U.S. Mint, one of the world's leading gold and silver coin producers, halts coin sales from time to time as it runs out of coin blanks to meet increases in demand.
So far in April, the U.S. Mint has sold 175,000 ounces of American Eagle gold coins, putting it on track to challenge a high of 231,500 ounces set in December 2009.
Since last Monday, U.S. gold coins have been flying off dealers' shelves as retail investors snap up bargains after bullion's historic plunge in price and into bear territory.
Michael Kramer, president of Manfra, Tordella & Brookes (MTB), a major U.S. coin dealer in New York, has been inundated by orders from existing and new wholesale and retail customers.
"It's panic. This is one of the busiest times in quite a while. People think gold's at the lows and they want to take advantage," he said in an interview.
In contrast, investors bought bullion coins after the 2008 economic crisis for fears that they might miss out on gold's next rally.
Even after a small recovery this week from two-year lows of $1,321 per ounce, gold prices are down 16 percent year-to-date and are off 26 percent from the record highs of $1,920 per ounce set in September 2011.
In a memo to its authorized purchases sent late Monday, the Mint said that it continues to offer the one-ounce, one-half ounce and one-quarter ounce coins.
While the one-ounce American Eagle gold coins remain the most popular size, year-to-date demand for the one-tenth ounce coins has been up over 118 percent compared to the same period in 2012, the Mint said.
The spike in gold coin sales often reflects a desire among mom-and-pop investors to have physical metal as a store of value in troubled economic times.
Many analysts expect bullion to post its first annual loss after 12 consecutive years of gains as investors seek out better returns in other assets. U.S. equities have hit record highs.
Gold exchange-traded funds (ETF) have also been hit by a big wave of redemptions as institutional investors pull cash out of precious metals and retail investors seek physical coins and bars.
In addition, the Mint has been allocating its silver coins since late January due to strong demand and limited inventory.
(Reporting by Frank Tang and Josephine Mason; Editing by Gary Hill and Bob Burgdorfer)
Read more: http://www.foxbusiness.com/news/2013/04/23/us-mint-suspends-some-gold-coin-sales-after-demand-surge578046/#ixzz2RLStuCXZ
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