Today, October 7, 2010 at 12:00 Noon ET, The United States Mint will begin sales of the 2010 Proof Gold Eagles. This will mark the exciting return of the collector gold coins following a one year gap.
Elevated demand for gold bullion coins had resulted in the cancellation of the coins for 2009. By law, the US Mint is required to produce American Gold and Silver Eagles in quantities sufficient to meet public demand. Following their interpretation of the law, in times when bullion demand exceeded available planchet supplies, the Mint sourced all incoming planchets to the production of bullion coins. This resulted in the suspension and ultimate cancellation of some collector coins, which were not required by law.
Demand for the US Mint’s Gold Eagle bullion coins eased a bit this year, allowing the US Mint to release fractional and 24 karat gold bullion coins earlier and end allocation programs. In early September, it was revealed that Proof Gold Eagles were being struck and would be available in October.
The 2010 Proof Gold Eagles are available in one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes. Each coin is sold individually or as part of a 4 Coin Set, containing one of each coin. Product limits have been set for individual and set sales, resulting in mintage limits for each coin. Although the mintage limits might seem high, they are only slightly above the levels that were established for the 2008 Proof Gold Eagles.
Pricing for the coins is determined based on the average price of gold via the US Mint’s gold and platinum numismatic product pricing grid. The average gold price is calculated weekly and if it crosses tiers established at $50 increments, a pricing adjustment takes place. Initial pricing for the 2010 Proof Gold Eagles is based on the $1,300 to $1,349.99 tier.
The product limits, mintage limits and initial pricing for the coins is shown below. There are no household ordering limits in place.
|2010 American Gold Eagle Proof Coins|
|Product Limit||Mintage Limit||Initial Price|
|1 oz.||25,000||64,000||$ 1,585.00|
|1/2 oz.||15,000||54,000||$ 806.00|
|1/4 oz.||16,000||55,000||$ 415.50|
|1/10 oz.||27,000||66,000||$ 180.50|
|4 Coin Set||39,000||N/A||$ 2,938.00|
It is a relief to see the US Mint’s product offerings return to some semblance of normality. Although the 2010-W Uncirculated Gold and Silver Eagle coins were canceled, the release of the Proof Gold Eagles today and the 2010 Proof Silver Eagles in November will bring back some long running US Mint favorites and provide a greater variety of precious metals products.
While there is likely a great deal of pent up demand for the 2010 Proof Gold Eagles, with sizable mintage limits and no household ordering restriction, there should be more than enough to go around. Barring something unforeseen occurring, this year’s offerings will most likely not turn out to be big secondary market successes like some of the 2008-dated numismatic gold products.
Someone asked if I would be purchasing the coins on the first day of release. Since mintage limits are high and continued availability seems relatively secure, I don’t see a rush. In the past, I have purchased numismatic gold products the day before a pending price increase. On several occasions prices have dropped before they have risen, allowing my purchases to take place at a better price.