US Mint pricing of numismatic products

Comments

• DeepCoin Posts: 2,781 ✭✭✭

  September 27, 2008 3:59AM

  That is a standard accounting statement. You need to know how much gold was when you bought, and then you value it at the lower of what you paid for it or current market value. When prices are rising as they have for a good while, then it is no big deal. However, when PM prices decline, the value is then the market value.
  
  For example, if the Mint bought gold at 930, they have to value it at 880 or whatever the closing London fix is on Sept 30, the end of their fiscal year.
  
  I hope that clarifies things for you

  Retired United States Mint guy, now working on an Everyman Type Set.

  0
• DeepCoin Posts: 2,781 ✭✭✭

  September 27, 2008 4:02AM

  I forgot the weighted average inventory part. The cost basis is determined by how many you have and what you paid for them. For example, if you bought 10 oz at 930 and 20 oz at 900, then the weighted average cost for all 30 is 910 (10 x 930 = 9300 + 20 x 900 = 18000, 9300 + 18000 = 27300, 27300 / 30 = 910)

  Retired United States Mint guy, now working on an Everyman Type Set.

  0