For the first time since Platinum Eagles were introduced, the United States Mint will not produce platinum bullion coins. This comes after nearly a year of suspension and uncertainty.
The American Platinum Eagle was introduced in 1997 as the first and only investment grade platinum coin issued by the United States Mint. Sales of the coin began strong, with more than 300,000 ounces of platinum sold in the first three years of the program. The US Mint offered a range of weights to accommodate different investment levels. This included one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce coins. During these early years of the program, the average price of platinum was below $400 per ounce.
As the price of platinum began to move higher in the following years, the US Mint sold fewer and fewer Platinum Eagle bullion coins. Between the years 2003 to 2007, less than 10,000 of the one ounce bullion coins were sold each year. Sales figures finally perked up in 2008, after the price of platinum fell by more than half. After selling more than double last year’s level of coins, the US Mint announced the depletion of their inventory and the delayed release of the 2009 coins.
Last week, the 2009 Platinum Eagle bullion coins were finally announced as canceled. In contrast to the actions of the United States Mint, the Royal Canadian Mint actually revived their platinum bullion coin program beginning in 2009. They had previously canceled the program in 1999, citing low demand for the products. The line was quickly revived this year when the RCM recognized a high level of interest from distributors. Sales of the 2009 Platinum Maple Leaf have reportedly been strong throughout the year.
Despite the cancellation of the bullion version of the coin, the US Mint will offer a collectible proof 2009 Platinum Eagle. These coins are minted for collectors and sold at a higher premium to the precious metal value compared to the bullion coins.
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