May 22, 2026

US Mint Added New Silver Blank Supplier in 2010

January 18, 2011 by Leave a Comment

For much of the past three years, the United States Mint has struggled to keep up with the boom in demand for physical precious metals. Although they have been required to mint and issue American Gold and Silver Eagle bullion coins in quantities sufficient to meet public demand, they have often fallen short of this mandate, resorting to sales suspensions and rationing programs.

The US Mint’s 2010 Annual Report details some of the specific steps they have taken to increase the quantity of precious metals blanks that they are able to acquire:

  • The US Mint worked with their existing precious metals blanks fabricators to revise delivery schedules to fit production levels. Level loading materials allowed these fabricators to increase productivity and increase output.
  • A new silver blank fabricator began delivering blanks late in the fiscal year. The US Mint also continues to pursue additional suppliers. The reliance on a small number of foreign suppliers was previous noted as the “heart of the problem” in the US Mint’s struggle to manufacture sufficient gold and silver bullion coins.
  • Productivity and efficiency enhancements were implemented at the West Point Mint. Coin encapsulation and packaging processes were automated, employees were trained to handle more areas of responsibility, and coordination with suppliers allowed continuous assaying, inspection, and coin production to take place.

The US Mint cited the results of their efforts during the year:

  • The average monthly supply of all gold and silver blanks from vendors increased from 2.6 million ounces to 4.1 million ounces.
  • Output at the West Point Mint increased from 175 ounces per labor hour to 215 ounces per labor hour.
  • By August 2010, the US Mint had sufficiently expanded supply to remove order limits and fully satisfy demand for silver bullion coins by August 2010.
  • Popular numismatic products like the 2010 Proof Gold Eagles and 2010 Proof Silver Eagles were launched in October and November 2010. These offerings had been canceled in the previous year.

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US Mint 2011 American Silver Eagles Selling Quickly

January 13, 2011 by Leave a Comment

United States Mint bullion coin sales remained robust for the two available options. In the prior week, authorized purchasers ordered 1,322,000 ounces of American Silver Eagles and 25,000 ounces of American Gold Eagles.

For bullion coin programs, the US Mint does not sell directly to the public, but distributes the coins through a network of authorized purchasers. A group of 11 primary distributors can order coins in bulk quantities from the Mint based on the market price of the precious metals, plus a mark up. In turn, they resell the coins to other precious metals dealers, coin dealers, and the public, as well as facilitate a two way market for the bullion coins.

The US Mint began sales of 2011-dated Gold and Silver Eagles on January 3, 2011. Because inventory of 2010-dated coins remained, the Mint required authorized purchasers to order the newer coins on a ratio basis. For every five 2011 Silver Eagles ordered, they were required to take one 2010 Silver Eagle. For Gold Eagles, the AP’s could order four 2011 coins for every one 2010 coin.

At this time, the US Mint only has available one ounce 2011 Gold Eagles, with fractional weight coins planned to be issued later in the year. The American Silver Eagle is only produced in one ounce size. The release dates for the 2011-dated American Platinum Eagle and 24 karat American Gold Buffalo coins have not yet been announced.

So far, the month of January 2011 is shaping up to be a strong one for silver bullion sales. The past week’s orders for 1,322,000 ounces, bring the monthly (and year to date) total to 3,407,000. In January 2010, the US Mint had sold 3,592,000 ounces for the entire month.

US Mint Mint Bullion Coin Program Sales 1/12/2011 (ounces)

Prior Week Year to Date
American Silver Eagle 1,322,000 3,407,000
American Gold Eagle 25,000 43,500
American Platinum Eagle 0 0
American Gold Buffalo 0 0

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Gold and Silver Recap: Back to Work

January 9, 2011 by 2 Comments

Another Precious Week

So the holiday season, with decent job creation statistics, has seen some uncustomary cheer for the dollar, and on the face of it this seems to be the main driver for the weakness of gold and silver prices.  After all if you’re priced in dollars, and the dollar goes up then your price goes down.  The last week has been particularly bad for gold, with a 3.5% fall (the figures below cover the whole of the holiday period) which is the largest week on week fall for six months.

The long term trend still looks like it’s going to be up, as the Central Banks are starting to buy gold, apart from the Fed – although if Ron Paul gets his way then Uncle Sam may stop being a hold out as well.

Precious Metals Prices
Fri PM Fix Since Last Recap
Gold $1,367.00 -1.50 (-0.11%)
Silver $28.39 -0.39 (-1.36%)
Platinum $1,735.00 +39.00 (+2.30%)
Palladium $754.00 +16.00 (+2.17%)

Gold-Silver Ratio: 48.15 (was 47.55)

So far the Central Banks that are buying gold are the scary ones; Russia, China and Venezuela.  But one of the more interesting things is that they are doing this in secret.  If it was an attempt to finish off the dollar then this would be in the open.  No, they are seeing gold as an integral, and underweight part of the reserves that are going to underpin their currencies in the future.  In other words an unofficial, secretive return to the gold standard.  This sort of thing is not a long run dampener on the gold price.

Silver also did badly, which was shown in a rather big slip in the gold silver ratio.  If the idea is that silver is priced around a third of its long term price when compared to gold, well it shouldn’t be going in this direction.  Now I don’t fully buy the idea that silver has got to come to around fifteen ounces to an ounce of gold, or at least any time soon.  But it hard to deny that it is out of balance.

What is even odder is that platinum and palladium have seen a large rise over the holiday period.  While gold can have a life of its own, and it’s true that palladium can have more to do with what the Russian ministry of mines is up to, silver and platinum are quite similar.  While platinum and palladium have seemed to be riding the same industrial metal climb as copper, silver seems to have decoupled with the feeling that perhaps we’ve overestimated the inflationary potential for the dollar with the classic inflation hedge of silver taking the hit.

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Gold and Silver ETF Holdings Mixed Amidst Price Decline

January 6, 2011 by Leave a Comment

Over the past week, gold holdings in the SPDR Gold Shares Trust (GLD) fell, while silver holdings in the iShares Silver Turst (SLV) rose. These changes occurred amidst a decline in the price of the metals and a buoyant stock market.

The iShares Silver Trust, which represents the largest exchange traded fund backed by silver, increased by 13.85 metric tons from the previous week. Total holdings are now 10,917.19 metric tons, or 350.996 million ounces.

Holdings within the SPDR Gold Trust fell by 11.38 metric tonnes in the past week to 1,272.68. Trust holdings had reached a record high of 1,320.47 on June 29, 2010. The decline in holdings from the high is now 47.79 metric tons, or 3.6%. During the same period the price of gold has risen by more than 10%.

GLD and SLV Holdings (metric tons)

Jan 5, 2011 Weekly Change YTD Change
GLD 1,272.68 -11.38 -8.04
SLV 10,917.19 +13.85 +4.38
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US Mint Platinum Bullion Coins a No-Show for 2010

January 6, 2011 by 1 Comment

For the second year in a row, the United States Mint did not offer platinum bullion coins for precious metals investors. Bullion products available from the US Mint during 2010 included only gold and silver coins.

The American Platinum Eagle was last available to the US Mint’s network of authorized purchasers in November 2008 when the last 800 one-half ounce coins available had been sold. Immediately following the sell out, the Mint announced the delayed launch of 2009-dated bullion coins, including the Platinum Eagles.

Since that time, Platinum Eagle bullion coins have not been available in any format. When the coins were previously available, authorized purchasers were able to buy the coins from the Mint based on the market price of platinum plus a mark up of 4%, 6%, 10%, and 15% for one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce bullion coins. Of the United States Mint’s eleven authorized purchasers, five are approved to order platinum coins.

Collector versions of the American Platinum Eagle have been available for the past two years in limited quantities. The one ounce 2009 Proof Platinum Eagle went on sale December 3, 2009 and sold out of the maximum authorized mintage of 8,000 coins within a week.The coins were priced at $1,792 each.

The 2010 Proof Platinum Eagle was offered on August 12, 2010 with a maximum mintage of 10,000. Priced at $1,892 each, these coins also sold out in about a week.

Will the US Mint release 2011 Platinum Eagle bullion coins? Or will the coins fail to make an appearance for the third year in a row?

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US Mint Sells 1,429,500 Ounces of Gold Bullion During 2010

January 5, 2011 by Leave a Comment

The United States Mint sold less gold bullion during 2010 than the previous year, as measured in ounces. Across their offerings of American Gold Buffalo and American Gold Eagle bullion coins, sales reached 1,429,500 in the current year compared to 1,625,000 in the prior year.

The American Gold Buffalo is struck in one ounce of 24 karat (.9999 fine) gold and carries James Earle Fraser’s classic design from the Buffalo Nickel. The 2010-dated coins were first available on April 29, 2010 and remained available for ordering by authorized purchasers until late September 2010.

The American Gold Eagles are struck in a composition of 22 karat ( .9167 fine) gold and carry the obverse design of Augustus Saint Gaudens’ classic double eagle. A range of weights are available to provide greater investment flexibility. The one ounce 2010 Gold Eagle went on sale January 19, 2010, with the one-half ounce, one-quarter ounce, and one-tenth ounce size coins on sale June 10. The coins remained on sale through the end of the year.

For the calendar year, the US Mint sold the following quantities of gold bullion coins:

Coins Total oz.
American Gold Eagle 1 oz 1,143,000 1,143,000
American Gold Eagle 1/2 oz 46,000 23,000
American Gold Eagle 1/4 oz 62,000 15,500
American Gold Eagle 1/10 oz 390,000 39,000
American Gold Buffalo 1 oz 209,000 209,000
Total 1,429,500

The drop in total ounces sold from the prior year is 195,500, representing a decline of about 12%.

Despite the drop in ounces sold, there was likely an increase for the year based on total dollar sales due to the higher price of gold. For 2010, the price of gold was up more than 27%.

Authorized purchasers are allowed to order gold bullion coins directly from the US Mint in minimum quantities of 1,000 ounces. The price paid is based on the London PM Gold Fix price following the day of order.

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US Mint Sells Record 34.6 Million Silver Eagle Bullion Coins

January 3, 2011 by Leave a Comment

Demand for physical precious metals continues to drive United States Mint bullion sales to new heights. The American Silver Eagle bullion coins sold a record 34,662,500 coins during 2010.

The previous record for annual sales was achieved in 2009 when 28,766,500 coins were sold. This sales level was surpassed in November of this year, so the only question was how far into record territory sales would eventually extend. The final numbers for 2010 represent a rise of 20.50% from the previous record.

Each American Silver Eagle bullion coin contains one troy ounce of .999 fine silver. The coins have been offered by the United States Mint annually since 1986. By law, the coins must be issued in quantities needed to meet public demand, which means that production fluctuates from year to year to meet this target. At some times during the past three years, production has fallen short of meeting full demand, which has necessitated sales suspensions and rationing programs.

From the start of the program in October 1986 through December 31, 2010, total Silver Eagle bullion sales have reached 241,277,000.

Today, the US Mint began accepting orders from authorized purchasers for 2011 Silver Eagle bullion coins. According to the US Mint’s website, opening orders total 1,696,000, although this might include some remaining 2010-dated coins.


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2010 Gold, Silver, Platinum, and Palladium Price Performance

December 31, 2010 by Leave a Comment

Precious metals delivered another year of strong performance, with double digit percentage gains for gold, silver, platinum, and palladium.

Palladium led the pack with an increase of 96.77% for the year. The metal is now at a nine year high, with gains attributed to the dwindling stockpiles in Russia amidst increased demand for use within catalytic converters in gasoline powered automobiles. As recently as December 2008, the price of palladium was $164 per ounce, compared to this year’s closing price of $791.

Silver had an impressive year with a gain of more than 80%, outperforming gold’s rise of 27.74%. With the price of silver moving up faster than gold, the gold-silver ratio continues to contract. This ratio indicates the number of ounces of silver necessary to purchase one ounce of gold. At the start of the year, the ratio was 64.98. At the close of the year, the ratio is 46.04.

The table below shows the last available London Fix prices from 2009, today’s London AM Fix price, the change, and percentage change.

2010 Precious Metals Price Performance


 Dec 31, 2009 Dec 31, 2010 Change Percent
Gold $1,104.00 $1,410.25 $306.25 27.74%
Silver 16.99 30.63 13.64 80.28%
Platinum 1,466.00 1,731.00 265.00 18.08%
Palladium 402.00 791.00 389.00 96.77%

Although palladium and silver outshone gold this year, gold continues its impressive streak of consecutive annual gains. The price of gold has recorded an annual gain each year since 2001. During the ten year period, the price of gold has risen more than fourfold from $272 per ounce to $1,410.

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2011 American Gold Eagle Release Date

December 29, 2010 by Leave a Comment

The United States Mint will begin accepting orders from authorized purchasers for 2011 Gold Eagle bullion coins on January 3, 2011. This will coincide with the start of sales for the 2011-dated Silver Eagles.

Initially, the US Mint will only offer the one ounce version of the 2011 Gold Eagle. Each year since 1986, fractional weight coins have also been offered to accommodate different investment levels and provide greater flexibility. Other sizes include one-half ounce, one-quarter ounce, and one-tenth ounce coins. For the past two years, the Mint has released the one ounce coins first, with the fractional versions offered later in the year.

American Gold Eagles feature Augustus Saint Gaudens’ design used for the $20 double eagle, minted from 1907 to 1933, on the obverse. This is paired with an image depicting a family of eagles on the reverse, designed by Miley Busiek. The composition of the Gold Eagle is 22 karat, or 91.67% purity. Each coin contains its stated weight in pure gold.

As with other bullion coins, the US Mint utilizes a network of authorized purchasers to distribute Gold Eagles to the public. There are six primary distributors who may purchase gold bullion directly from the Mint. The price paid is determined based on the London PM Gold Fix on the date following the order date, plus a premium of 3% (for one ounce coins). The minimum order quantity is 1,000 ounces.

The US Mint will continue to sell 2010 Gold Eagles to authorized purchasers as long as inventories remain. Any 2010-dated coins remaining on January 3, 2011 will be sold on a ratio basis to authorized purchasers who order 2011-dated coins.

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2011 American Silver Eagle Release Date

December 28, 2010 by 1 Comment

Sales of the 2011 Silver Eagle bullion coins will begin on Monday, January 3, 2011. This will mark the first day that authorized purchasers may place orders for the coins with the United States Mint.

The American Silver Eagle has been issued in bullion format each year since 1986. Each coin contains one troy ounce of .999 fine silver, with the weight and purity guaranteed by the United States government. The program was authorized by Congress to provide a convenient and cost effective method for Americans to invest in physical precious metals.

The United States Mint sells bullion coins to a small group of official distributors who resell the coins to secondary retailers who in turn sell to the public. This authorized purchaser system is believed to be the most effective and efficient means of distributing the coins to the public, although recently this has been called into question.

Under typical procedures, the group of eleven primary distributors will be able to place orders for 2011 Silver Eagle bullion coins directly with the US Mint. The price paid will be based on the London Silver Fix on the first business day following the order, plus a premium of $2.00 per coin. Minimum order requirements are for 25,000 ounces of silver per order, with orders above the minimum placed in 500 ounce increments.

The bullion Silver Eagles are packaged in plastic tubes containing 20 one-ounce coins. Twenty five tubes are placed into molded plastic shipping containers, containing 500 ounces of silver. The plastic tubes and shipping containers are imprinted with the United States Treasury Department Seal.

The United States Mint is currently selling 2010-dated Silver Eagles. If any inventory of these coins remains on January 3, 2011, the prior year coins will be sold on a ratio basis for any primary distributors placing orders for coins bearing the new date.

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