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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.

Filed Under: Featured, Gold Tagged With: , , ,

2010 Proof Silver Eagle Sales Begin

November 19, 2010 by Leave a Comment

For the first time in more than two years, Proof Silver Eagles are available for purchase from the United States Mint. In recent years, the availability of the collector coins has been prevented by the high demand for physical precious metals.

The US Mint produces American Silver Eagles for both precious metals investors and collectors. The bullion version of the coin is distributed through a network of authorized purchasers, who are able to purchase the coins based on the market price of silver plus a specified premium (currently $2.00 per coin). The authorized purchasers then resell the coins to other bullion dealers and the public, as well as create a two way market for the coins to ensure liquidity. By law the US Mint is required to issue the bullion coins in quantities needed to meet public demand.

The collector versions of the coin are sold by the US Mint directly to the public. Traditionally, a proof version of the coin has been offered to collectors each year. For various occasions, collectible Silver Eagles have also been incorporated into various numismatic products. More recently, a collectible uncirculated version of the coin was offered. Silver Eagles produced for collectors have been offered at fixed prices, generally reflecting a large premium above the value of the silver content. There is no legal requirement for the US Mint to produce or issue collector coins.

Proof Silver Eagles were last available in August 2008. After that point sales of the 2008-dated coins were suspended, never to be resumed. In the following year, the offering was long delayed and eventually canceled. Due to high demand for the bullion version of the coin and the US Mint’s legal requirement to meet public demand, during this period silver planchet supplies were used exclusively to strike bullion coins for this extended period of time.

This year, the US Mint managed to reconcile their legal obligation to precious metals investors and their traditional obligation to coin collectors and sell a record number of bullion coins and offer the collector coins.

The 2010 Proof Silver Eagles are priced at $45.95 each. A limit of 100 coins per household has been imposed by the US Mint for at least the first week of release. Order fulfillment is expected to begin by December 1, 2010.

Filed Under: Silver, US Mint Tagged With: , , , ,

Will the US Mint Resume Silver Eagle Rationing?

November 18, 2010 by Leave a Comment

During the course of the past several years, the United States Mint has implemented a rationing program for their popular American Silver Eagle bullion coins at times when demand has exceeded the available supply. Will a recent surge in demand for silver bullion cause them to reinstate the program?

The euphemistically titled “allocation program” was last implemented for Silver Eagles in December 2009. This followed a brief sales suspension during the last few days of November. At the time, the price of silver had been moving steadily higher, supporting increasing interest in precious metals investment. The US Mint experienced a slow month of silver bullion sales in September, followed by increasing demand in October and November leading up to the suspension and ensuing allocation program, which remained in place until this September.

During the past few months, the situation is shaping up to be eerily similar. In September 2010, the US Mint sold 1,880,000 ounces of silver bullion, which represented the lowest monthly sales of the year. In October, sales rebounded strongly to 3,150,000 ounces. For the current month date, sales have already exceeded this amount, measuring 3,175,000.

With the month a little more than half over, the total seems poised to set a new monthly sales record. The current record is 3,636,500 ounces achieved earlier this year in May. Annual sales are already in record territory.

Bullion sales have been rising against a backdrop of steadily rising silver prices. Since the end of September, the silver price has increased from $22.07 to $26.57, representing a gain of more than 20% in less than two months. Reports of tightening supplies or shortages for other silver bullion have also been reported. This may explain the recent move towards the higher premium bullion coins.

The American Silver Eagle is currently the only silver bullion product offered by the United States Mint. A second program known as the America the Beautiful Silver bullion coins has been scheduled to launch this year, but a release date has not yet been specified.

Filed Under: Featured, Silver Tagged With: , , , ,

US Mint Mass Email Causes Mass Confusion

November 12, 2010 by Leave a Comment

Collectors have been eagerly awaiting the release of the 2010 Proof Silver Eagle. Imagine their surprise yesterday when they received a mass email notification from the United States Mint that the product was “sold out” and their orders were canceled one week before the anticipated release date.

The Proof Silver Eagle is one of the US Mint’s most popular products. Featuring Adolph A. Weinman’s classic “Walking Liberty” design on one ounce of .999 fine silver struck with a proof finish, it makes an exceptionally beautiful item for collecting or gift giving. This did not stop the Mint from canceling the offering last year due to high demand for bullion coins.

This year’s offering was confirmed by the US Mint in early October when it was announced that the 2010 Proof Silver Eagle would go on sale November 19, 2010. The price would be $45.95 and a household limit of 100 would be imposed.

The email notification received yesterday by customers who entered orders through the US Mint’s subscription program was as follows:

Greetings from the United States Mint.
Thank you for ordering from the United States Mint.
We regret to inform you that the item(s) listed below
are currently sold out. A customer service representative
will be happy to assist you in finding an alternative item.

Order #
Sold To
Ship To

Item: PS1 Qty:
2010 AE SILVER PRF 1 OZ

This is a system generated e-mail. Please do not reply.
If you have questions, please visit the Help page at
http://catalog.usmint.gov or call us at 1-800-USA-MINT.

The mass emailing set off a torrent of calls to the US Mint’s toll free number. Many feared a repeat of the situation last year where the offering had been canceled due to bullion demand. After all, this year’s American Silver Eagle bullion coins are already in record territory for annual sales. The rising price of silver also seemed to have potential to impact the offering, which was priced more than a month ago.

Callers were told that the emails were sent in error and the subscriptions would be reinstated. It wasn’t until later that evening that a second email was sent to customers officially confirming that the offering was not canceled.

A mass emailing falsely announcing a product cancellation one week before the release date is certainly not a great way for the US Mint to ingratiate themselves with their customers– especially considering the many missteps of the recent past.

Filed Under: Silver, US Mint Tagged With: , ,

American Silver Eagle Bullion Sales Break Record

November 5, 2010 by 1 Comment

Sales of the United States Mint’s American Silver Eagle have just moved into record territory. The most recent available sales figures show a total of 28,885,500 of the one ounce coins sold for the year to date. This edges out the annual record sales achieved in the previous year when 28,766,500 coins were sold.

With nearly two months left in the year, the final total for 2010 seems likely to beat out the old record by a comfortable margin. During the first ten months, average monthly sales have been 2,863,050, suggesting full year sales of around 34 million.

2010 American Silver Eagle Sales (through 11/5/2010)

January 3,592,500
February 2,050,000
March 3,381,000
April 2,507,500
May 3,636,500
June 3,001,000
July 2,981,000
August 2,451,000
September 1,880,000
October 3,150,000
November 255,000
December –
Total 28,885,500

On an historical basis, sales levels for the American Silver Eagle have been immense during the past three years. This has frequently resulted in the US Mint suspending or rationing the available supply of coins. It has also resulted in the cancellation of certain collector versions of the coin.

As an interesting point of reference, the lowest annual sales total for the bullion offering was 3,466,000, achieved in 1996. This year monthly sales exceeded this amount on two separate occasions.

Filed Under: Featured, Silver Tagged With: , , ,

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.


Filed Under: Featured, Gold, Silver, US Mint Tagged With: , , ,

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?

Filed Under: Gold, Silver, US Mint Tagged With: , , , ,

US Mint Gold Bullion Sales Collapse in August

September 3, 2010 by 1 Comment

The US Mint’s published sales figures for the month of August show a stunning decline in the level of gold bullion sales. The monthly sales for their popular American Gold Eagle bullion coins measured just 41,500 ounces. This represents the lowest monthly total since June 2008, before the financial crisis took hold and led to a surge in bullion sales.

American Gold Eagle sales during August included 39,000 one ounce coins, 1,000 one-half ounce coins, 2,000 one-quarter ounce coins, and 15,000 one-tenth ounce coins to make up the total sales of 41,500 ounces. This represents a decline of more than 70% compared to the previous month and about 50% compared to the year ago period.

The US Mint’s other gold bullion offering, the 24 karat American Gold Buffalo also put in a lackluster month with sales of 15,500 of the one ounce coins. This is down from a monthly high of 70,500 ounces in May and the prior month total of 23,000 ounces. In the year ago period, the coins were not available.

Since the American Gold Eagle coins have been available continuously (amidst a few periodic suspensions), the monthly sales totals illustrate the pattern demand for the US Mint’s gold bullion coin. There have been a few other monthly drops over the course of the past few years and demand has always managed to recover.

Here are the monthly sales totals for American Gold Eagle bullion coins (in ounces) since June 2008.

Jun-08 15,500
Jul-08 50,000
Aug-08 86,000
Sep-08 113,000
Oct-08 121,500
Nov-08 116,500
Dec-08 176,000
Jan-09 92,000
Feb-09 113,500
Mar-09 136,500
Apr-09 147,500
May-09 65,000
Jun-09 116,000
Jul-09 86,000
Aug-09 82,000
Sep-09 115,500
Oct-09 115,500
Nov-09 124,000
Dec-09 231,500
Jan-10 85,000
Feb-10 84,000
Mar-10 102,000
Apr-10 60,500
May-10 190,000
Jun-10 151,500
Jul-10 152,000
Aug-10 41,500
Filed Under: Bullion Sales Tagged With: , , , ,

2010 Platinum Eagles Available

August 13, 2010 by Leave a Comment

The United States Mint began selling 2010 American Platinum Eagles this week– not the bullion coins, but the collectible proof version of the coin.

Platinum bullion coins actually have not been produced by the US Mint since late 2008. The 2009-dated bullion coins were announced canceled as part of a broader announcement, citing “unprecedented demand” for gold and silver bullion coins. There have been no specific updates on the status of platinum bullion coins for the current year.

The one ounce proof 2010 Platinum Eagles are limited to a maximum mintage of 10,000 coins. The initial sales price was set at $1,892. In the absence of bullion versions of the American Platinum Eagle, will this offering have a broader appeal from precious metals investors, rather than just coin collectors?

At the current price, the one ounce proof coins carry a premium of nearly 25% above the current price of platinum. By comparison, a well known bullion dealer has one ounce Platinum Maple Leaf coins available for $1,645 each, or one ounce Platinum Eagles priced at $1,725. These prices represent premiums of 8.22% and 13.49%.

Pricing for the US Mint’s 2010 Proof Platinum Eagle is tiered and based on a weekly average price of platinum, which presents an opportunity to wait for a more favorable price. Assuming the coins do not sell out and platinum prices remain around the current levels, prices for the coins should actually be decreased by $100 on Wednesday of next week. If the price does decline to $1,792 per coin and platinum stays at $1,520 per ounce, the premium above platinum value would be cut down to 17.89%. At around 4.4% more than the premium for random date, bullion quality American Platinum Eagles, precious metals investors may be enticed.

The 2009 Proof Platinum Eagles, which were limited to 8,000 coins, managed to sell out after about a week. The coins now sell for around $2,400 each due to demand from the collector market.

Filed Under: Platinum, US Mint Tagged With: ,

Proof Silver Eagles Possible… With Change in Law

July 27, 2010 by 1 Comment

There might be a chance for proof versions of the American Silver Eagle after all.

Shortly after my post on the dimming prospects of the 2010 Proof Silver Eagle, US Mint Director Edmund Moy delivered testimony to the Subcommittee on Domestic Monetary Policy and Technology on “The State of U.S. Coins and Currency”. Within the testimony, Director Moy mentioned that the subcommittee was considering amending the existing law to allow the Mint to produce collectible uncirculated and proof versions of the Silver Eagle, even if full demand for bullion coins was not being met.

It was revealed that the US Mint has already, in fact, provided drafting assistance for the amendment to the law. If it could be enacted soon, the Mint could begin production of Proof Silver Eagles in September at a rate of 200,000 coins per month. This would allow total production of 830,000 coins before the end of the year.

Frankly, after two years of stalled production, a change in law is not really the solution I was expecting. Two years should have provided the US Mint with sufficient time to either find additional precious metals blank suppliers, or set up their own production of precious metals blanks in-house. During the course of the subcommittee meeting, the US Mint Director was questioned on these two options and did not provide satisfactory responses. If the US Mint sought to change the law to legitimize the fact that they cannot satisfy bullion demand, then they could have taken this step two years ago.

As it stands, the US Mint claims that there is plenty of gold, silver, and platinum in raw material form, they just can not get it fabricated into planchets fast enough. This is another tough statement to accept without scrutiny. As covered in prior posts, other world mints quickly managed to adapt to the increased level of demand for precious metals. The US Mint has apparently been staring down the same bottleneck for two years.

During the course of the questioning, Director Moy was asked about the possibility of producing back dated 2009 Proof Silver Eagles, to fill the gap left by last year’s cancellation. He stated that this was not allowed.

Filed Under: Silver, US Mint Tagged With: , ,