US Mint Suspends Production of More Gold and Silver Coins

March 14, 2009
Mike Zielinski

The United States Mint has officially announced the suspension of another slate of gold and silver products. The affected products are 2009 dated American Gold and Silver Eagle coins produced for collectors. These coins are considered collectible versions of the bullion coins.

Although these are collectible coins, they represent a sizable amount of precious metals sales and represent a method of gold and silver investment for many individuals. Last year, the US Mint sold 1,157,911 ounces of silver in the form of Silver Eagle coins minted for collectors. They also sold 155,740 ounces of gold in the form of Gold Eagle and Gold Buffalo coins minted for collectors.

The following message was posted on the US Mint's website in the space where the collectible Gold Eagle coins typically appear. The proof coins has been offered uninterrupted since 1986. The uncirculated version has been offered since 2006.

Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins. Currently, all available 22-karat gold blanks are being allocated to the American Eagle Gold Bullion Coin Program, as the United States Mint is required by Public Law 99-185 to produce these coins ?in quantities sufficient to meet public demand . . . ..?

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products. Additionally, as a result of the recent numismatic product portfolio analysis, fractional sizes of American Eagle Gold Uncirculated Coins will no longer be produced.

A similar message is posted in the section where collectible American Silver Eagle coins would typically appear. The proof coins have also been offered uninterrupted since 1986 and the uncirculated coins since 2006.

Production of United States Mint American Eagle Silver Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Currently, all available silver bullion blanks are being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins ?in quantities sufficient to meet public demand . . . ..?

The United States Mint will resume the American Eagle Silver Proof and Uncirculated Coin Programs once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

This adds to the lengthy list of 2009 dated precious metals products that have been "temporarily delayed" or suspended by the US Mint.

For those keeping track, here is a list of the US Mint's 2009 precious metals products that have been "temporarily delayed" or suspended:

• 2009 American Gold Eagle 1/2 oz. (bullion)
• 2009 American Gold Eagle 1/4 oz. (bullion)
• 2009 American Gold Eagle 1/10 oz. (bullion)
• 2009 American Platinum Eagle 1 oz. (bullion)
• 2009 American Platinum Eagle 1/2 oz. (bullion)
• 2009 American Platinum Eagle 1/4 oz. (bullion)
• 2009 American Platinum Eagle 1/10 oz. (bullion)
• 2009 American Gold Buffalo 1 oz. (bullion)
• 2009-W Proof American Gold Eagle 1 oz. (collector)
• 2009-W Proof American Gold Eagle 1/2 oz. (collector)
• 2009-W Proof American Gold Eagle 1/4 oz. (collector)
• 2009-W Proof American Gold Eagle 1/10 oz. (collector)
• 2009-W Proof American Gold Eagle 4 Coin Set (collector)
• 2009-W Uncirculated American Gold Eagle 1 oz. (collector)
• 2009-W Proof American Silver Eagle (collector)
• 2009-W Uncirculated American Silver Eagle (collector)
  
  

In addition, the following precious metals related products were discontinued by the US Mint for 2009. These discontinuations were announced in November 2008. Amidst the environment of unprecedented demand for precious metals, the US Mint determined that these products were "unpopular."

• Uncirculated American Gold Eagle 1/2 oz. (collector)
• Uncirculated American Gold Eagle 1/4 oz. (collector)
• Uncirculated American Gold Eagle 1/10 oz. (collector)
• Unriculated American Gold Eagle 4 Coin Set (collector)
• Uncirculated American Gold Buffalo 1 oz. (collector)
• Uncirculated American Gold Buffalo 1/2 oz. (collector)
• Uncirculated American Gold Buffalo 1/4 oz. (collector)
• Uncirculated American Gold Buffalo 1/10 oz. (collector)
• Unriculated American Gold Buffalo 4 Coin Set (collector)
• Proof American Gold Buffalo 1/2 oz. (collector)
• Proof American Gold Buffalo 1/4 oz. (collector)
• Proof American Gold Buffalo 1/10 oz. (collector)
• Proof American Gold Buffalo 4 Coin Set (collector)
• Uncircualted American Platinum Eagle 1 oz. (collector)
• Uncircualted American Platinum Eagle 1/2 oz. (collector)
• Uncircualted American Platinum Eagle 1/4 oz. (collector)
• Uncircualted American Platinum Eagle 1/10 oz. (collector)
• Uncircualted American Platinum Eagle 4 Coin Set (collector)
• Proof American Platinum Eagle 1/2 oz. (collector)
• Proof American Platinum Eagle 1/4 oz. (collector)
• Proof American Platinum Eagle 1/10 oz. (collector)
• Proof American Platinum Eagle 4 Coin Set (collector)
  
  

That makes a total of 38 precious metals products which have been delayed, suspended, or discontinued by the US Mint.

Demand for gold coins soaring around the world

Reuters

Posted: 14-03-2009

International demand for gold coins has risen sharply as interest in the precious metal soars on financial instability and investors' appetite for assets seen as a safe store of value. Investors have used gold as a shelter from the impact of the deteriorating economy on other assets, pushing the price up and making jewellery expensive for consumers with shrinking disposable income. Demand for physical gold products such as coins and bars has been particularly strong, traders say.

The Royal Canadian Mint, which produces Maple Leaf bullion coins, said it quadrupled its production capacity late last year as demand for gold and silver bullion products leapt. Gold is being driven by concern about the financial system and lack of confidence in paper currencies,? said Adrian Day, the president of Adrian Day?s Asset Management in Annapolis, Maryland. ?All the pressure is on the upside.?

The United States Mint said sales of its one-ounce American Eagle gold bullion coins rocketed to 710,000 ounces in 2008, from 140,000 ounces a year before.

"The demand for gold and silver has been unprecedented," a spokesman for the Mint told Reuters.

The chairman of the French Mint, Christophe Beaux, said sales roughly doubled last year in value terms and are expected to rise by another 50% this year. The 2009 catalogue the mint had produced was almost entirely pre-sold, he said. The French Mint produces 100 euro gold coins, and plans to mint 10-ounce and 1-kilo coins this year.

In South Africa, the world's third-largest gold producer, Natanya van Niekerk, deputy general manager for numismatics at the South African Mint Company, said she had seen a big increase in demand for gold. "I think we will see this same trend in this and the next quarter," she said. "Gold surely has been resilient in these times."

Michael O'Kane, head bullion trader at the New Zealand Mint, said many overseas buyers had come into the New Zealand market. "We're seen as a safe-haven market," he said. He said buying had been strong since the collapse of US investment bank Lehman Brothers in September, as investors moved money from banks into hard assets like gold. The mint was averaging "a month's transactions in a day," he said, adding he saw demand continuing to rise.

Gold sales in Dubai's traditional jewellery market have collapsed mainly because of the decline in tourist arrivals. Local jewelers who have been waiting for a big chunk of tourists said that less and less tourists inflow to the city has badly affected the sale of the yellow metal.

Retail sales in Abu Dhabi?s gold market have fallen by more than 70%, according to the Gold and Jewellery Group, due to high prices. There will be fewer and fewer people who can afford the intricate jewellery pieces in their windows.

But despite, high prices, demand has been soaring for physical gold which is seen as a long-term investment and a safe store of value.

As a result, there was an acute shortage of gold coins in Dubai, during the recent shopping festival.

?People are coming and asking for gold coins. But there is a terrible shortage of gold coins. Many gold and jewllery shops in Dubai do not have the stocks of gold coins,? said a manager with Joy Alukkas, a leading Dubai jeweller.

Larry Myles

Larry Myles Reports

http://www.larrymylesreports.com

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