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US Mint Gold Bullion Sales Rise with Gold Buffalo Launch

March 17, 2011 by Leave a Comment

The number of ounces worth of gold bullion coins sold by the United States Mint rose in the latest week, bolstered by the launch of the 2011 Gold Buffalo coins. Silver bullion sales showed a slight increase, as the year to date total for American Silver Eagles moved above 11 million.

The United States Mint sells bullion products through a network of authorized purchasers. This small group of primary distributors may buy the coins directly in bulk quantities, based on the market price of the metals plus a mark up. The coins are then resold to other dealers and the public for broader distribution.

At the current time, the available products include one ounce Silver Eagles; one ounce, half ounce, quarter ounce, and tenth ounce Gold Eagles, and one ounce Gold Buffaloes. The 5 ounce America the Beautiful Silver Bullion Coins are expected to be released in late April. The status of the Platinum Eagle coins remains uncertain.

US Mint Bullion Coin Program Sales 3/16/2011 (ounces)

Prior Week Month to Date Year to Date
American Silver Eagle 748,500 1,417,000 11,079,000
American Gold Eagle 24,000 42,500 268,500
America the Beautiful Silver 0 0 0
American Platinum Eagle 0 0 0
American Gold Buffalo 21,500 0 21,500

Total ounces of gold sold for the week ending March 16, 2011 was 45,500. This consisted of 24,000 ounces of American Gold Eagles and 21,500 ounces of the newly released 2011 Gold Buffalo coins. The latter are only available in one ounce size and are struck in 24 karat gold.

In the past week, the US Mint recorded sales of 748,500 ounces of American Silver Eagles. This is up from the sales of 668,500 reported for the previous period. Sales levels for silver bullion continue to be restrained as the US Mint imposes its allocation program, which rations the available supply amongst the authorized purchasers.

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Silver Eagle Sales Slower as US Mint Rations Supplies

March 11, 2011 by Leave a Comment

Sales of the United States Mint’s American Silver Eagle bullion coins were slower in the latest week. However, the slow down seems to be the result of the allocation program currently in place, as opposed to a reduction in demand. Sales for Gold Eagle bullion coins dropped to the lowest weekly total for the year to date.

For the weekly period ending March 9, the US Mint recorded sales of 668,500 of the one ounce Silver Eagles. This compares to 1,509,000 coins sold in the previous week.

Since the start of sales for the 2011-dated coins, the US Mint has carried out sales under their standard allocation program. Rather than accepting unrestricted orders, available supplies of silver bullion coins are rationed amongst the authorized purchasers. As such, sales figures reflect the number of coins that the US Mint is able to produce and make available, as opposed to the level of demand from the market.

There has been anecdotal evidence from bullion dealers indicating demand in excess of the available supplies. This reduced availability has caused premium levels for Silver Eagles to expand at the retail level.

Other world mints have indicated that they have been encountering problems obtaining the silver needed to produce coins and other bullion products. The US Mint has not provided any specific explanations.

US Mint Bullion Coin Program Sales 3/9/2011 (ounces)

Prior Week Month to Date Year to Date
American Silver Eagle 668,500 668,500 10,330,500
American Gold Eagle 12,500 18,500 232,000
America the Beautiful Silver 0 0 0
American Platinum Eagle 0 0 0
American Gold Buffalo 0 0 0

Sales of the bullion Gold Eagles were only 12,500 in the latest week compared to a previous weekly total of 37,000 coins. The demand for physical gold has not been as intense as the demand for silver. Since the start of sales for the 2011-dated coins on January 3, 2011, the US Mint has not used the allocation program.

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US Mint Silver Eagle Bullion Coin Sales Jump

March 3, 2011 by Leave a Comment

The pace of United States Mint gold and silver bullion coin sales picked up in the prior week. The US Mint currently has available one ounce American Silver Eagles in allocated quantities and unrestricted quantities of American Gold Eagles.

The latest available statistics show an increase of 1,509,500 ounces of silver bullion sales. In the previous two weeks, the US Mint had sold 908,000 and 833,500. Although sales show a big increase, it could be higher if not for the US Mint’s allocation program. Authorized purchasers are currently limited in the number of coins that they can order, which means sales are not an indication of the full demand for silver bullion.

American Gold Eagle sales increased by 37,000 ounces since the last report. This compares to sales of 28,000 and 31,500 in the prior two weekly periods. The increased demand comes as the price of gold recently reached a new all time high above $1,440 per ounce. For the past several years the rising price of gold has been accompanied by strong demand for physical gold.

US Mint Bullion Coin Program Sales 3/2/2011 (ounces)

Prior Week Month to Date Year to Date
American Silver Eagle 1,509,500 0 9,662,000
American Gold Eagle 37,000 6,000 232,000
America the Beautiful Silver 0 0 0
American Platinum Eagle 0 0 0
American Gold Buffalo 0 0 0

Year to date US Mint bullion coin sales have now reached 9,662,000 ounces of silver and 232,000 ounces of gold. Both figures represent an increase from the average pace of sales experienced in the prior year.

During 2010, the average monthly sales level for Silver Eagles was 2,888,541 ounces, while the average monthly sales of Gold Eagles was 101,708 ounces.

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American Gold and Silver Eagle Sales Slower

January 27, 2011 by Leave a Comment

After generating some mainstream media attention for the record pace of sales, United States Mint bullion coins had a quiet week. According to figures provided by the Mint, only 136,000 ounces of American Silver Eagles and 7,500 ounces of American Gold Eagles were sold in the past week.

Some have noted the divergence in the sales of bullion coins, which are in record territory for the month, and exchange traded fund (ETF) holdings, which continue to decline. Both have an impact on demand for silver, although the nature the of the buyers for each type of investment are different.

Those purchasing ETF’s are more likely to be professionals or other investors trying to participate in short terms price gains. Since bullion coins are comparatively more difficult to buy and sell and carry larger spreads, these buyers are more likely to be making longer term investments.

US Mint Mint Bullion Coin Program Sales 1/26/2011 (ounces)

Prior Week Year to Date
American Silver Eagle 136,000 4,724,000
American Gold Eagle 7,500 83,000
American Platinum Eagle 0 0
American Gold Buffalo 0 0

The US Mint has now sold 4,724,000 of the one ounce Silver Eagles for the year to date. This includes a remaining quantity of 2010-dated coins, as well as the newly released 2011 Silver Eagles. This is the highest monthly sales total in the history of the program.

American Gold Eagle sales total 83,000 for the year to date. This includes sales of 80,500 one ounce coins, 1,000 one-half ounce coins, 2,000 one-quarter ounce coins, and 15,000 one-tenth ounce coins. The fractional weight coins represent 2010 Gold Eagles, while the one ounce coins included 2010 and 2011-dated coins.

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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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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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2010 Proof Gold Eagle Selling Quickly

November 23, 2010 by Leave a Comment

Sales of the recently released 2010 Proof American Gold Eagle already account for more than 74,000 ounces of gold. The collector offerings were first available for sale from the United States Mint on October 7, 2010.

In addition to gold and silver bullion coins distributed through a network of authorized purchasers, the US Mint also typically offers collectible versions of the coins for direct sale. Numismatic products for the American Gold Eagle were canceled last year due to the demand for bullion coins. With the resumption of sales this year, collectors have returned in force.

Through November 21, the total sales for the 2010 Proof Gold Eagles measured in ounces, already exceed the final sales total for the 2008 offerings by more than 50%. The 2008 Proof Gold Eagles were available for a period of more than ten months.

2010 Proof Gold Eagle Sales through 11/21/10

Units Ounces
1 oz 25,000 25,000.00
1/2 oz 6,031 3,015.50
1/4 oz 5,194 1,298.50
1/10 oz 12,809 1,280.90
4 coin set 23,464 43,408.40
Total
74,003.30

2008 Proof Gold Eagle Sales Final

Units Ounces
1 oz 17,720 17,720.00
1/2 oz 10,085 5,042.50
1/4 oz 6,360 1,590.00
1/10 oz 15,599 1,559.90
4 coin set 12,517 23,156.45
Total
49,068.85

Maximum product limits for the 2010 Proof Gold Eagles have been established at 25,000 one ounce coins, 15,000 half ounce, 16,000 quarter ounce, 27,000 tenth ounce, and 39,000 of the 4 coin sets. So far the one ounce option has achieved the maximum.

If all options sell out, this would account for 111,350 ounces of gold.

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US Mint Changes Rules for Authorized Purchasers

October 20, 2010 by Leave a Comment

The United States Mint recently revised the requirements to become an Authorized Purchaser for their American Eagle Gold and Silver bullion programs. Since the start of the program, the US Mint has used an authorized purchaser network to distribute the coins to the public.

These Authorized Purchasers are the only ones allowed to buy bullion coins directly from the United States Mint. They purchase the bullion coins based on the market prices of the metals plus an established premium. The premiums are currently $2 for Silver Eagles and 3%, 5%, 7%, and 9% for one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce Gold Eagles. Authorized purchasers are also required to create a two way market for the coins to ensure liquidity for US Mint bullion coin investors.

There are currently eight authorized purchasers for gold and twelve for silver.

Changes to the requirements recently made effective included modifications to the sections “Purpose”, “Marketing Support”, “Experienced Market Maker”, and “Tangible Net Worth”. The most significant change was the addition of a new section “Right to Temporarily Refrain from the Review of New Applications.”

The new section states the following (emphasis added):

The United States Mint reserves the right to temporarily refrain from the review of new AP applications during periods in which the allocation of any bullion product is required. The temporary refrain period will continue until a minimum of nine months after all allocations have been lifted, but no more than one year after all allocations have been lifted.

For more than two years the US Mint has continually resorted to their allocation program (rationing) in times when gold and silver bullion demand has spiked. From 2008 to 2010, Silver Eagles have spent more time under allocation than not, with the program implemented February 2008, lifted in June 2009, reinstated in December 2009, and lifted in September 2010.

Under the newly established rules, the US Mint can refrain from considering applications of potential new authorized purchasers until at least June 2011. During this time, if another demand spike necessitates the use of the allocation program, the clock starts again, but only after allocation has been lifted. Given the pattern of the past two years, the period of refrain could last indefinitely.

By law the US Mint is required to supply American Gold and Silver Eagles in quantities sufficient to meet public demand. In reality, the supply of coins is limited based on the number of planchets the US Mint can obtain from foreign suppliers, and distribution is limited based on the small number of authorized purchasers and the new hurdles placed before potential applicants.


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US Mint to Offer 2010 Proof Gold Eagles

September 17, 2010 by Leave a Comment

The United States Mint has officially announced the availability of 2010 Proof American Gold Eagle coins.

Although these are collector coins, their fate has become intertwined with the demand for bullion coins. The end of Gold and Silver Eagle rationing and the recent decline in bullion sales, no doubt helped clear the way for the collectible offering. Proof Gold Eagles had been canceled for 2009.

The US Mint will offer the full range of 2010 Proof Gold Eagles, including 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz coins. These will be available for sale individually or as part of a four coin set. The following product limits have been established for each offering:

Product Product Limit
1 oz. Coin 25,000
1/2 oz. Coin 15,000
1/4 oz. Coin 16,000
1/10 oz. Coin 27,000
4 Coin Set 39,000

If the US Mint manages to completely sell out of all options, that would represent 111,350 ounces of gold. Through the end of August, the average number of ounces sold through the American Gold Eagle bullion program was around 108,000 per month.

There is still no word on whether the US Mint will have the time and precious metals blank supplies to produce and offer 2010 Proof Silver Eagles.

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Gold and Silver Eagle Rationing Ends… For Now

September 13, 2010 by Leave a Comment

The United States Mint’s “on again, off again” rationing of American Gold and Silver Eagle bullion coins is “off again”.

For more than two years, increased levels of demand for gold and silver bullion coins have caused problems for the United States Mint. Under current law, they are required to produce Gold and Silver Eagle bullion coins in quantities sufficient to meet public demand. When they have been unable to meet full demand, they have defaulted to meeting as much demand as possible.

In February 2008, following a multi-week suspension of Silver Eagles, the US Mint imposed their “allocation program” for the first time, which rationed the supply of bullion coins amongst authorized purchasers. At the time their memo stated, “The unprecedented demand for American Eagle Silver Bullion Coins necessitates our allocating these coins on a weekly basis until we are able to meet demand.”

Despite making some progress with the overall number of gold and silver bullion coins available, the US Mint has resorted to this allocation time and time again, in response to increased bullion demand. When demand subsides, the program is lifted, only to be reinstated weeks or months later when demand reemerges.

Last year rationing was ended for both gold and silver bullion coins in June 2009 with little fanfare. In the ensuing months, the US Mint presumably produced the bullion coins in quantities necessary to meet full demand. However, as had happened before, fresh waves of demand upset the delicate balance.

In late November 2009, sales of both Gold and Silver Eagles were briefly suspended and resumed under the familiar allocation program. Rationing eventually ended for Gold Eagle bullion coins in March 2010, and for Silver Eagle bullion coins early this month.

Will the latest “end of rationing” finally stick? Or will events once again transpire to reignite bullion demand and bring back the rationing program yet again?

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