U.S. Mint Makes Drastic Cuts to Its Collector Gold & Platinum Coin Offerings
Arizona Coin Collector
The U.S. Mint press release is below the story from Seeking
Alpha.
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U.S. Mint Makes Drastic Cuts to Its
Collector Gold & Platinum Coin Offerings
by: Michael Zielinski November 11, 2008
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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FROM:
http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=955
United States Mint Embarks on Major Update
of Its Numismatic Product Portfolio
Monday, November 10, 2008
WASHINGTON - The United States Mint is conducting a
comprehensive, top-to-bottom review of its numismatic
product portfolio to focus next year on those products
collectors most appreciate and order most often.
"We are responding to the collector community which
has spoken loudly and clearly," said United States
Mint Director Ed Moy. "Customers have told us there
are just too many products. We agree, and it's
time the United States Mint trims down and
concentrates on the products our customers love
most."
Trimming the 2009 portfolio will afford the United
States Mint the opportunity to focus resources on its
core products. It will spotlight offerings with
broad appeal, such as its annual United States Mint
Proof Sets. With fewer products to manufacture, the
United States Mint will be able to offer proof sets
and other products earlier in the calendar year
beginning in 2010, making them available for
customers to purchase for more occasions.
The United States Mint relied principally on the
number of units sold in determining which products
or product lines have been most popular with
collectors and other customers. More than 550
individual coin and medal products were
evaluated; nearly 200 of those coin and medal
products will remain in the new portfolio.
The United States Mint will analyze its products
each year to ensure the best portfolio is
maintained.
Contact: Press inquiries:
Michael White (202) 354-7222
Customer Service information:
(800) USA MINT (872-6468)
.
mazorj
"Arizona Coin Collector" <nos...@nospam.com> wrote in message
news:c9CdnYodPaLiDITU...@earthlink.com...
> Hello
>
> The U.S. Mint press release is below the story from Seeking Alpha.
>
> --------------------------------------------------------
>
> FROM:
> http://seekingalpha.com/article/105329-u-s-mint-makes-drastic-cuts-to-its-collector-gold-platinum-coin-offerings
>
> U.S. Mint Makes Drastic Cuts to Its
> Collector Gold & Platinum Coin Offerings
I just received the 2008 Mint Gift Catalog. All the gold Buffalo,
American Eagle, Bald Eagle and First Spouse coins were featured in all
denominations, with proof and uncirculated versions where applicable.
Ditto for the platinum series. All said to check the website for
current pricing except the Bald Eagle gold $5, listed at
$319.95/$309.95. The 2009 Double Eagle was illustrated, with price
"to be determined".
Conspicuously absent were the silver Walking Liberty $1 coins in any
form.
Looks like they're just cleaning out existing stock before they
discontinue a lot of these offerings? Are they going to have enough
of all of these in stock to warrant the big full-color spreads in this
catalog?
I wonder if they're going to cut back on medal offerings. Probably
not, if they're mandated by Congress, but a medal presumably takes as
much design and production work to get it to the coining stage as a
coin. There are a lot of medals in their current offerings, some of
which are of extremely limited interest.
Frank Provasek
is sucked out of the market by people who want one of everything the
U.S. Mint sells..must be at least $10,000 a year. When I started
collecting in 1966., the ONLY thing the mint sold was a Special Mint
Set..total $4.
--
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Member TNA, ANA, PCGS, NGC - Full Time Since 1991