US Mint halts some American Eagle coin production
Arizona Coin Collector
http://africa.reuters.com/wire/news/usnN07435260.html
US Mint halts some American Eagle coin production
Tue 7 Oct 2008, 12:02 GMT
NEW YORK, Oct 7 (Reuters) - Unprecedented demand for precious
metals and volatile markets forced the U.S. Mint to cease
production for the half-ounce and quarter-ounce popular
American Eagle gold coins for the rest of this year and to
supply other bullion coins on an allocation basis.
"Due to the extreme fluctuating market conditions for 2008,
as well as current market conditions, gold and silver
demand is unprecedented and the demand for platinum is
unusually high," the U.S. Mint said in a Monday memorandum
to its authorized coin dealers.
"The U.S. Mint has worked diligently to attempt to meet
demand, however, blank supplies are very limited and it is
necessary for the U.S. Mint to focus remaining bullion
production primarily on American Eagle Gold One Ounce and
Silver One Ounce Coins," the Mint said.
The Mint said it would continue to supply one-ounce American
Eagle gold coins and one-ounce American Eagle silver coins
on an allocation basis to coin dealers.
For half-ounce and quarter-ounce American Eagles, the Mint
said that inventory was depleted last week and no more coins
would be produced for 2008.
Produced from gold mined in the United States, the American
Eagles have been novel items among collectors and investors
since their introduction in 1986. Each coin has a face value
of $50 but it is sold by authorized dealers at a premium
to the price of gold.
Coin dealers from the United States to Canada have recently
reported a surge in buying of bullion coins and other gold
products as a worsening crisis in the financial markets
prompted people to seek a safe haven in precious metals.
(Reporting by Frank Tang; Editing by John Picinich)
...
oly
Honestly, if the government were run for the benefit of "the people",
the U.S. Mint ought to be making the small gold coins and stop making
the one ounce gold pieces for the time being. The profit margins
ought to be better on the small coins (although granted that
production costs are higher too). But by limiting the production to
the big coins, little people trying to protect themselves get shut
out.
I suppose that since the U.S. Mint is incapable (utterly incapable, I
might add) of making the blank planchets, they have to strike whatever
they can get.
Another score for the Royal Canadian Mint, most likely.
oly