Numismatic Gold Coin Sales Resume at Higher Prices
Around mid-day, the United States Mint resumed sales of previously suspended numismatic gold coins. The suspension had been imposed mid-day Friday, when the market price of gold had jumped to around $1,875 per ounce, which compared to the pricing range of $1,750 to $1,799.99.
Even though gold actually traded below $1,800 for a few minutes today and had a London PM Fix price of $1,810, prices for the numismatic gold products were increased two tiers to the $1,850 to $1,899.99 range.
First Spouse Gold Coins are now $1,104 for proofs and $1,091 for uncirculated coins. Commemorative gold coins are $558.60 for proofs and $548.60 for uncirculated coins. The 2011 Proof Gold Buffalo is $2,160. The 2011-W Uncirculated gold Eagle is $2,128. The 2011 Proof Gold Eagles are $2,135, $1,081, $553, $235.50, and $3,955.50 for the individual one ounce, half ounce, quarter ounce, tenth ounce, and four coin set, respectively.
The US Mint’s pricing policy calculates the average weekly gold price based on the previous Thursday AM London Fix price to the current Wednesday AM London Fix price. If this average price falls into a higher or lower tier (established at $50 intervals for gold), then products are repriced accordingly. An additional aspect of the policy provides that the Wednesday PM Fix price must agree directionally, or a pricing change will not take place.
As gold has recently experienced numerous daily price movements in excess of $50 and weekly price movements in excess of $100, the US Mint’s policy has shown its inability to deal with the increased volatility. This is frustrating many buyers and losing business for the Mint, as Louis Golino discusses in this article.
The US Mint introduced their current pricing strategy in January 2009. “Transparency, agility, and customer service” were the catalysts for the change, which would make the US Mint “more responsive to changes in the market price of gold and platinum.” While the system worked reasonably well for a few years, it’s clearly not serving customers well in the current environment. Prices can be out of sync with the market, as they are currently. Sales can be abruptly suspended without warning, shutting out all potential buyers.
Is this transparency, agility, customer service, and responsiveness to the market?
2011-P Gettysburg National Military Park Five Ounce Silver Uncirculated Coin
Details of the next numismatic release for the America the Beautiful Five Ounce Silver Coin have been posted on this preliminary product page of the US Mint’s online catalog.
Although it is possible that details may be adjusted before the September 22, 2011 release, a mintage limit of 35,000 coins is indicated, along with a household ordering limit of 5 coins. The price will be $279.95 per coin. This compares to a mintage of 27,000 coins for each of the 2010-dated numismatic releases and initial household limit of 1 coin. The price remains the same.
Through the rapid release of the first five designs, the pace of sales slowed dramatically. The first design took only 15 days to sell out with the one per household limit imposed for the entire duration. The fourth design took 65 days to sell out with the household limit completely removed for the final weeks of availability. The fifth design featuring Mount Hood National Park has reached sales of 20,094 our of 27,000, after 40 days of availability.
See the newly released US Mint numismatic product sales report.
I can’t help but see further deterioration in the pace of sales for the sixth release, particularly given the increase in the maximum mintage. When the US Mint boosted the maximum mintage of the 2011 Proof Platinum Eagle to 15,000 compared 10,000 in the previous year, collectors responded by purchasing fewer coins. While the 2010 release sold out after one week, sales of the 2011 release still have not reached the same level after more than three months of availability.
An additional ominous sign is the incredibly slow sales for the 2011 ATB 5 ounce Silver Bullion Coins. At a time when silver bullion sales are surging, the product recorded sales of just 4,100 coins between August 3 and August 30.
While the US Mint is legally required to produce and offer the bullion versions of the coins, they are not required to produce or offer numismatic versions. It’s still very premature, but if sales of the numismatic versions continue to slide, its possible that the numismatic series may be canceled, which would probably be a positive for existing issues. We’ll have to watch and see how this develops.
are there any updates on the mintage of the 1 ounce uncirculated gold eagle?
Those are offered without a stated maximum mintage, so the US Mint will strike the coins throughout the year based on demand/orders and potentially offer remaining inventory into the following year.
At this time, we can monitor the weekly sales reports for an indication of the potential mintage.
http://news.coinupdate.com/us-mint-sales-lucy-hayes-first-spouse-gold-coins-debut/
Sweet, your article reminded me to purchase the one ounce uncirculated eagule when it was at about the 1900 level. Hopefully this will be a small mintage like the 1/4 2008 w Eagle I snagged.
The unc AGE mintage numbers may go up if it is included as part of 25th ann. set.
That is true, I mentioned that in a past article. As yet, the US Mint has not announced any kind of 25th anniversary Gold Eagle set.
Sales of 27,884 for the 5oz ATB-P Grand Canyon coins , on Coin Update is this common for the mint ? , or maybe a mistake. If true Im curious why the extra coins?
On some occasions, they have reported sales above the maximum mintage and then in subsequent weeks adjusted the level back to the maximum. As far as I know, the numbers reported each week reflect orders received less cancellations (by the Mint or customer) and returns.
Any info for how many 9/11 medals ordered thus far?
Okay, I’m confused, are there two versions of the ATB 5 oz coins? I see references to a bullion and a numismatic version. What is the difference?
Thanks
The AGE & Gold Buffalo now cost more than the Platinum Eagle on the Mint’s site. Today on Kitco’s “Gold Brief” the commentator said that some who are trading in gold are switching to platinum.
Jeremy,
here is the bullion one.
http://www.apmex.com/Category/110/America_the_BeautifulSilver_Bullion_Coin_Program.aspx
thanks for the link but I still don’t understand what the difference is other than one has a mint mark and the other does not?
well, I’ve done a good amount of research on these coins now. The two versions are what is known as the “bullion” and the other which is known as either or the “uncirculated”, “collector’s” and “numismatic” version. The difference between the two are the mint mark and the finish.
Jeremy,
In May I wrote an article for Coin Update on the pros and cons of the 2 versions. A few things have changed since then but this should help:
http://news.coinupdate.com/collecting-america-the-beautiful-ounce-silver-coins-numismatic-vs-bullion-versions-0811/
Good article, Michael.
On the issue of pricing, I’m inclined to give the Mint a bit of a break – for now – on the suspension and repricing issues, because I think the sudden bounce in volatility of gold prices caught everyone off guard a bit. I know I was expecting it, but not until QE3 started. However, I agree that action needs to be taken pretty much immediately to prevent these issues from issues from becoming a chronic problem. If they were able to adjust pricing quickly for the gold commemoratives, they should be able to do it for the rest of the coins as well.
In my opinion they should transition to a model used by places like, say, Gainesville or APMEX and just have the prices of their coins adjust minute to minute in fluctuation with the prices of PMs. And if that isn’t technologically feasible, they’ll need to consider adjusting prices once a day, for all their products excepting clad.
On the AtB’s, I can say I’m glad they kept the price at $280. The increased mintage, though, is going to kill whatever flipper interest is left. Not much else for me to say on this subject that I haven’t expounded on at great length about already.
If they continue with 2012 AtB-Ps, I will be very surprised, short of a run on silver causing a run on these products (and even that will be short lived if the Mint adjusts their pricing policy for day-to-day price increases).
Too bad the Mint won’t make the ATBs with Proof finishes instead of matte. A proof finish would make them much more desirable. Never liked the ATB matte finish.
I don’t mind the current mint pricing changes at all. Makes it sort of like a game. Real time price changes will take the fun out of it!
Be careful what you wish for. Now you can make the “game” work to your advantage.
Cleveland,
I don’t deny that the Mint’s current pricing policies can lead to good bargains for the nimble among us (I managed to “get in the door” before they suspended the MoH the first time), but the constant suspensions are also becoming an issue. The Mint can’t keep up with things anymore and it isn’t good for them as a business to have to constantly hold their stock from sale and then suffer huge “runs” on perceived bargains when they put things back on sale.
Also, it leads to outcomes like Lucy Hayes being pulled off the shelf two seconds after it was put ON the shelf.
I like to play the pricing game the way it currently is too. Sometimes I think the Mint has some “inside information” on the direction of PM pricing. I thought it was odd they priced two tiers up, but now I’m wondering if they knew something…
Is there anything that says the Mint can’t produce a proof finish for the 5 oz ATBs?
The mint should just cancel the numismatic versions of the 5 oz ATB series. I would buy way more of the bullion if they did. The bullion just looks better.
Kinda sad that folks buy the numismatic ATB because of the perceived aftermarket value (remains to be seen) and the fact they are 70s and 69s even though they look “blah” (at least to me).
A very interesting comment last night by Ron Paul at the Republican debate…
He said, America could still sell gasoline for a dime a gallon… However, the dime would need to be made of silver. Old silver dimes are worth approx. $3.47 in todays’ market.
Sort of reminds me of my concern about what has happened to the value of money. And yes, I am old enough to remember using real money when I was a youngster.
I think the Mint’s shutting down sales Friday was a big mistake. They could have sold a lot over the Labor Day weekend.
Bill,
I had bought last year’s silver proof quarter set for Christmas gifts the past year for my wife’s best friend’s 2 children (12 & 15). I asked them if they were still interested in this year’s set or something different than coins. After responding yes to the quarters, I explained the 90% silver content was the same as prior 1965 quarters and are worth north of $7. This really peaked their interest in examining coin change.
If it takes PM bullion values to spur budding interest in coin collecting, so be it. My own grandchildren will need future collectors to trade or sell to.
At least right now, the gold spot price is in the same range as the pricing tier in use by the Mint. We’re all going to get whiplash watching these violent price swings as of late!
Did anyone notice that the Mint must have sold the first wave of Eliza Johnson Uncirculated coins? It’s on backorder status right now. It looks like the Mint will have to whip up another batch. With the ever increasing prices and sales slowing because of it, this will likely be the last batch made of them too. Since sales should end in early March, I highly doubt any more will be made at the end of the year for such a small sales period into next year. I’m thinking this new batch will probably be around 500 coins. At the rate they’re selling, that should get them through to early March I would think.
Tom,
I’ve managed to get my family much more interested in metals once I bought them silver eagles for Christmas two years ago and silver quarter sets last year. Unfortunately I still can’t get them to buy PMs in any quantity, my parents still think they can invest their way out of this mess.
Michael.
I’ve got one question regarding the ATB bullions. What if the mint doesn’t sell all of them to the AP’s by the end of this year? Would they have to melt them again, or can they continue to sell 2011 bullion to AP’s in 2012.?
Thanks
Frank
Frankie,
I am not Michael but if memory serves correctly, the procedure is to melt them down. See the last paragraph of this article: http://news.coinupdate.com/2011-atb-five-ounce-silver-bullion-coin-sales-slow-to-a-crawl/
Thanks!
Well, this could mean a potentially lower mintage for the Chickasaw bullion than for the 2010 ATB bullions. Wouldn’t that be hilarious after all the hype surrounding the 2010 ATB bullions?
The Mint can only sell them to AP’s through the end of the year. The AP’s can sell them as long as they want. This only applies to the bullion versions.
Frankie, You are right. I think it could be the key to the whole series.
I was a little confused my Michael’s ATB numbers in the 9/1 article (many were combined #’s, so were the individual #’s from a different source?). The numbers for Vicksburg seem low as well. Any update on total number of each coins sold to authorized dealers to date?
The total number of coins sold to authorized purchasers through August 30 is shown in the table included in the article. You can just refer to this table for the data you are looking for.
Within the article, the total sales by month are examined, showing the declining pace of sales.
Where can I find the mintages so far for the bullion version of the ATB’s? Thanks!
Please fellow enthusiasts, there are many previous articles that address so many questions that a lot of the newcomers have. Many times I will go back and look at Micheal’s previous articles. It has become a rich library.
We should have a sell out of the 1 oz AGE in the next few days, but that may not translate to stopping sales immediately.
SunTzu, here are the latest 2011 ATB Five Ounce Silver Bullion Coin Sales
from Michael’s article on Coin Update (the numbers are in the chart near the end of the article):
http://news.coinupdate.com/2011-atb-five-ounce-silver-bullion-coin-sales-slow-to-a-crawl/
Frankie, I agree. I bought a Chickasaw bullion coin reason for exactly that reason. I think it’s going to be a hidden gem. Vicksburg is also likely to be desired, in my opinion.
For 2012 bullion, it’s too early to say yet. Some of it will depend on whether they sell 2012 AtB-Ps or not.
Frankie, Captain..I second that opinion. I’ve purchased 2 Vicksburg and 3 Chickasaw so far…not only do these have a low mintage thus far, but dang! …they are awesome looking too!
Cleveland: Why a sell-out of the 1 oz AGE soon?
“Why a sell-out of the 1 oz AGE soon?”
http://mintnewsblog.com/category/gold-eagles/
The link above show that the max mintage of the 2011 1oz proof is 30,000 individual coins (and 70,000 total b/c the 4 coin set has a max of 40,000…which is separate from the individual option). The most recent sales report shows sales for the individual 1oz proof as 29,917
Actually, this should be the correct link (I put the wrong one above):
http://mintnewsblog.com/2011/04/2011-proof-gold-eagles/
You said 1 oz AGE and I thought you meant the UNC, not the proof. My mistake. Thanks.
Can someone please explain how gold can fall $50 in less than an hour early this morning (5:45- 6:30 am) when there is no new news of any type at all?
No news is good news!
Cleveland,
There was some news, but it flew under the radar. See here: http://www.zerohedge.com/news/cme-hiked-cleared-otc-london-gold-forward-margin-40-yesterday
Usually when there is a little hike somewhere in the world like this, jittery traders take it as a warning sign a margin hike is about to happen. More often than not, they are correct. However, this was countered by the rumor that hit the web in the last half-hour (also available on Zero Hedge) that Greece may default over the weekend. Gold has since started creeping back up.
Yes, I think some margin hikes can be expected but consider them short-lived gifts. I wouldn’t recommend purchasing any products from the mint since their antiquated system will provide NO opportunity when the metals react to the imposed increases.
US Mint officer admits taking $2.4M worth of coins
AP – 1 hr 28 mins ago…
.
CAMDEN, N.J. (AP) — A former police officer for the U.S. Mint in Philadelphia has admitted to stealing $2.4 million worth of “error” coins and selling them to a coin distributor in California.
U.S. Attorney Paul J. Fishman in New Jersey said 64-year-old William Gray pleaded guilty on Thursday to charges of theft of government property and tax evasion.
Gray, of North Wildwood, N.J., had worked at the U.S. Mint since 1996. In a federal court in Camden, N.J., he admitted taking $1 presidential coins that were missing edge lettering, knowing they would be considered more valuable to coin collectors because they were considered “mint errors.” He mailed them from New Jersey.
He was freed on $50,000 bail. He is scheduled to be sentenced on Dec. 20.
DCDave: Wow! I wonder how he managed to sneak 2.4 million coins out of the Mint?
“Wow! I wonder how he managed to sneak 2.4 million coins out of the Mint?”
It wasn’t 2.4 million coins, it was “$2.4 million worth” of “error” coins. Each one was worth more than $1 because of how people value “error” coins. If each coins were worth $100, he would only need to have taken out 24,000 coins. Still a substantial amount of coins but nearly as much as 2.4 million coins.
LL
Au ($1865) and Ag ($42) seem to be recovering lost ground. Ag seems to be holding 40+ firmly. Next week will be interesting.
RE: Missing edge lettering coins
There is a shop at home show that mysteriously bought into “several” of these coins in the previous show. I wonder if they included any stolen coins?
Wish that guy would have taken my annual sets with spotted pennies and spotted presidental dollars as “errors”. Any guess what the Mint will do with the ’10 silver sets? Wait until silver falls again or re-price them the same as the ’11s? I’m surprised the PMs have actually gone down since yesterday when the stock market is down a lot. I think some manipulation may be occuring, but I have no idea how they do it.