U.S. Mint Actions Discourage Gold Ownership

01-25-2009, 06:10 PM

U.S. Mint Actions Discourage Gold Ownership
by: Michael Zielinski January 23, 2009

Over the past several months, the United States Mint has announced a series of actions and policy changes that make it more difficult for the average individual to buy gold. There have always been plausible or semi-plausible explanations, but the consequence of each action has been to limit or discourage gold ownership.

The recent actions of the United States Mint in relation to gold are presented below. I have also included the US Mint’s explanation for each situation, taken from official memorandums or press releases.
August 2008: The US Mint suspends sales of Gold Eagle bullion coins. Sales resume two weeks later on a rationed basis.

On August 14, 2008, the US Mint announced that they were suspending sales of American Gold Eagle bullion coins. The suspension was in place until August 25, 2008, when sales resumed under an allocation program. The program divides available gold coins into two pools. The first pool is divided equally among all authorized bullion purchasers. The second pool is allocated based on past sales performance.

When gold coin rationing (termed “allocation”) was introduced, it was presented as a temporary measure. More than four months later, gold coin rationing continues. There has been no indication when authorized bullion purchasers will be able to order unrestricted quantities of gold bullion coins.

US Mint explanation:

The unprecedented demand for American Eagle gold one-ounce bullion coins necessitates our allocating these coins among the authorized purchasers on a weekly basis until we are able to meet demand.

September 2008: The US Mint suspends sales of Gold Buffalo bullion coins. Sales resume more than one month later, but only to clear remaining inventory.

On September 25, 2008, the US Mint announced the sales suspension of 24 karat American Gold Buffalo bullion coins. Sales did not resume until November 2, 2008 when the US Mint was able to offer only its remaining limited inventory on an allocated basis.

US Mint explanation:

Demand has exceeded supply for American Buffalo 24-Karat Gold One-Ounce Bullion Coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins.

October 6, 2008: The US Mint announces that production will be halted for all but one gold bullion coin option.

Production was immediately halted for one-half ounce and one-quarter ounce American Gold Eagle bullion coins. Production of one tenth-ounce gold bullion coins was halted following depletion of the remaining blank supplies. Production of one ounce Gold Buffalo bullion coins was also halted following depletion of the remaining blank supplies.

These coins represent the US Mint’s only fractional gold bullion coin offerings and the US Mint’s only 24 karat gold bullion offering. The production halt seemed to be a temporary measure that would impact 2008 dated coins. The production halt has continued into 2009. There has been no indication when production will resume.

US Mint explanation:

The United States Mint has worked diligently to attempt to meet demand, however, blank supplies are very limited and it is necessary for the United States Mint to focus remaining bullion production primarily on American Eagle Gold One Ounce and Silver One Ounce Coins.

November 10, 2008: The US Mint announces the discontinuation of numerous gold and platinum numismatic products.

The discontinuation of 22 different gold and platinum numismatic products was included as a broader measure to refocus the US Mint’s line of products for coin collectors. Discontinued gold coin products included fractional uncirculated Gold Buffalo coins, one ounce uncirculated Gold Buffalo coins, fractional proof Gold Buffalo coins, and fractional uncirculated Gold Eagle coins.

Although the US Mint has constantly referred to the “unprecedented demand” for gold, they deemed their gold numismatic products to be “unpopular.” Following the discontinuation announcement, sales of the 2008-dated versions of the discontinued coins surged and all numismatic Gold Buffalo and platinum coin offerings sold out in less than a month.

US Mint explanation:

We are responding to the collector community which has spoken loudly and clearly. Customers have told us there are just too many products. We agree, and it’s time the United States Mint trims down and concentrates on the products our customers love most.

November 24, 2008: The US Mint announces the delayed release of all but one 2009 gold bullion coin option.

This delayed release served to prolong the previously announced production halts for fractional gold bullion coins and the 24 karat Gold Buffalo bullion coins. As noted previously, the production halt continues with no indication of when it might end.

The single 2009 gold bullion offering from the US Mint continues to be subject to rationing. As noted previously, there has been no indication of when the rationing will end.

US Mint statement:

The quantities of blanks that we have been able to acquire from our suppliers continue to be very limited, while demand for bullion coins remains high. As a result, it is necessary for the United States Mint to delay the launch of other bullion coins until later in 2009. We will continue to monitor the situation and keep you informed as additional information becomes available.

January 6, 2009: The US Mint establishes a new pricing policy for gold and platinum numismatic products.

The new US Mint pricing policy adjusts the prices for gold and platinum numismatic products as often as weekly based on the average London AM Fix gold price. The prices for coins are based on a published table which seems to impute higher premiums than the old pricing system.

In the past, prices were established at the start of sales and remained fixed unless there was a significant move in the price of the underlying precious metal. At times gold numismatic products could be purchased for premiums as low as 10%. Under the new policy, prices are adjusted weekly to preserve permanently high premiums. Current premiums run 30% or more depending on the product.

US Mint explanation:

Transparency, agility, and customer service are the catalysts for our new pricing method. The volatile precious metals market prompted our customers to suggest that we re-vamp our process, and we listened.

Conclusion?

The series of incremental changes outlined above has resulted in the following situation:

* Production was halted for all of the US Mint’s fractional gold bullion and 24 karat gold bullion offerings several months ago. There has been no indication when production might resume.
* The only 2009 gold bullion coin available from the US Mint is the one ounce American Gold Eagle. Sales of this single bullion coin offering remain subject to rationing.
* The US Mint’s gold numismatic offerings for 2009 have been significantly reduced from the prior year. The remaining product offerings will be priced at prohibitively high premiums under a newly established pricing policy.

Whether or not it was the US Mint’s intention, every significant action they have taken since August has either limited gold availability, eliminated gold product options, or increased the cost of acquiring gold. Has it all just been a consequence of surging global demand for gold, supply chain mismanagement, and bad timing for policy decisions? Or is there something else going on here?

Thank you to APMEX for confirming the status of the US Mint’s 2009 gold bullion coins for this post.

http://seekingalpha.com/article/1160...gold-ownership

Myra · 01-27-2009, 07:14 PM

Well then I would forget the US Mint and go for Gold Bars. Couldn't the US seize their own coins back anyway if they wanted to? I'm just guessing here but I'm wary of any money printed with official US logo at this time.

oldpaganfreak · 01-27-2009, 07:47 PM

canadian gold maple leaf coins may be a good alternative. they're 24kt, .9999 pure.
monex oesn't seem to have any restriction on purchase.
http://www.monex.com/prods/gold_maple.html

Swanny · 01-27-2009, 08:57 PM

I imagine it would be next to impossible to visit every house and take peoples gold.
The police/soldiers would steal half of it along the way

Anchor · 01-27-2009, 10:17 PM

Australian minted 1oz nuggets are aslo 99.99% pure and are readily available at bullion dealers. I checked yesterday at a dealers in Sydney.

Silver on the otherhand is on a 12 week waiting list. :-o

A..

eraser2012 · 02-10-2009, 09:10 PM

Quote:

Originally Posted by Myra

Well then I would forget the US Mint and go for Gold Bars. Couldn't the US seize their own coins back anyway if they wanted to? I'm just guessing here but I'm wary of any money printed with official US logo at this time.

Somebody correct me if I'm wrong, but it doesn't matter a rat's behind what country mints the coin or mints their country's name into the design. What matters is simply if it is 24k (.999 pure) and in what quantity (1oz, 1/10oz, etc). If you've taken care of your other needs such as food, water/fresh water supply, etc., then it might be time for you to take physical possession of gold and silver. Historically, silver has been used for money more than gold, although gold certainly has and is used as well. If you have the means, get yourself 10 or 20oz of gold bullion (gold coins). If you don't have the 10-20k to invest in gold, buy up American Silver Eagles or equivalent which is also .999 silver, aka "Fine silver", aka "pure silver". They're much less expensive and you can pick up 20 coins (20oz) right now for roughly $350 while one gold coin (1oz) will cost you roughly $1000 right now ($920 spot plus at least $75 premium in my area).

As far as I'm concerned, gold/silver is both a hedge against inflation (i.e. crashing US greenback) AS WELL as real money to be used when bread cost a wheelbarrow of cash. Gold and silver will both be invaluable when that happens (SOON!), but AS INVALUABLE and probably more will be your food supply and water source. The gold/silver should be used for those things you can not store or that which you can not renew as well as a store of wealth.

My two cents (which is all the dollar will likely be worth after this new "stimulus" plan pumps another trillion+ dollars into the world economy).

Czymra · 02-10-2009, 09:35 PM

I keep on wondering if gold and silver are actually still a commodity that can't be duplicated/synthesised.

(Welcome back Baggy!)

Dantheman62 · 02-10-2009, 09:49 PM

I don't think Baggy's back yet, he posted that on 1-25-09, COME BACK BAGGY!!!!!!!

Czymra · 02-10-2009, 11:07 PM

Quote:

Originally Posted by Dantheman62

I don't think Baggy's back yet, he posted that on 1-25-09, COME BACK BAGGY!!!!!!!

Oh no! Baggy where are you!

Czymra · 02-11-2009, 11:34 PM

Quote:

Originally Posted by Kathleen

This is just MY OPINION:

I believe our respected Baggywrinkle became frustrated with the frivolity of the posts here and was/is looking for a more serious minded group when it comes to survival. This is a man who actually practices what he preaches. I, for one, miss his wisdom.

Respectfully~ Kathleen

Well, surely the hardcore survivalists are somewhere else... he was my hero. Never heard of anybody guarding his land with night vision goggles.
(My this sounds like an obituary.)

Anchor · 02-12-2009, 12:19 AM

A lot of what Baggy posted came from survivalblog.com run by James Wesley Rawles.

If you want more of the same, you can hop over there and read - it is an astounding blog. I myself have learned a lot of things from there and purchased some of the material on offer.

A..

Dantheman62 · 02-12-2009, 12:30 AM

Quote:

Originally Posted by Kathleen

This is just MY OPINION:

I believe our respected Baggywrinkle became frustrated with the frivolity of the posts here and was/is looking for a more serious minded group when it comes to survival. This is a man who actually practices what he preaches. I, for one, miss his wisdom.

Respectfully~ Kathleen

Pretty much, you're right as I've gathered through a couple pm's to him.

Czymra · 02-12-2009, 09:11 PM

Quote:

Originally Posted by Dantheman62

Pretty much, you're right as I've gathered through a couple pm's to him.

As mentioned on another thread, I would have thought that the Avalon people, especially now with subscription, had a little more patience and understanding. I don't understand.

01-25-2009, 06:10 PM	#1
Baggywrinkle Guest Posts: n/a	U.S. Mint Actions Discourage Gold Ownership U.S. Mint Actions Discourage Gold Ownership by: Michael Zielinski January 23, 2009 Over the past several months, the United States Mint has announced a series of actions and policy changes that make it more difficult for the average individual to buy gold. There have always been plausible or semi-plausible explanations, but the consequence of each action has been to limit or discourage gold ownership. The recent actions of the United States Mint in relation to gold are presented below. I have also included the US Mint’s explanation for each situation, taken from official memorandums or press releases. August 2008: The US Mint suspends sales of Gold Eagle bullion coins. Sales resume two weeks later on a rationed basis. On August 14, 2008, the US Mint announced that they were suspending sales of American Gold Eagle bullion coins. The suspension was in place until August 25, 2008, when sales resumed under an allocation program. The program divides available gold coins into two pools. The first pool is divided equally among all authorized bullion purchasers. The second pool is allocated based on past sales performance. When gold coin rationing (termed “allocation”) was introduced, it was presented as a temporary measure. More than four months later, gold coin rationing continues. There has been no indication when authorized bullion purchasers will be able to order unrestricted quantities of gold bullion coins. US Mint explanation: The unprecedented demand for American Eagle gold one-ounce bullion coins necessitates our allocating these coins among the authorized purchasers on a weekly basis until we are able to meet demand. September 2008: The US Mint suspends sales of Gold Buffalo bullion coins. Sales resume more than one month later, but only to clear remaining inventory. On September 25, 2008, the US Mint announced the sales suspension of 24 karat American Gold Buffalo bullion coins. Sales did not resume until November 2, 2008 when the US Mint was able to offer only its remaining limited inventory on an allocated basis. US Mint explanation: Demand has exceeded supply for American Buffalo 24-Karat Gold One-Ounce Bullion Coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins. October 6, 2008: The US Mint announces that production will be halted for all but one gold bullion coin option. Production was immediately halted for one-half ounce and one-quarter ounce American Gold Eagle bullion coins. Production of one tenth-ounce gold bullion coins was halted following depletion of the remaining blank supplies. Production of one ounce Gold Buffalo bullion coins was also halted following depletion of the remaining blank supplies. These coins represent the US Mint’s only fractional gold bullion coin offerings and the US Mint’s only 24 karat gold bullion offering. The production halt seemed to be a temporary measure that would impact 2008 dated coins. The production halt has continued into 2009. There has been no indication when production will resume. US Mint explanation: The United States Mint has worked diligently to attempt to meet demand, however, blank supplies are very limited and it is necessary for the United States Mint to focus remaining bullion production primarily on American Eagle Gold One Ounce and Silver One Ounce Coins. November 10, 2008: The US Mint announces the discontinuation of numerous gold and platinum numismatic products. The discontinuation of 22 different gold and platinum numismatic products was included as a broader measure to refocus the US Mint’s line of products for coin collectors. Discontinued gold coin products included fractional uncirculated Gold Buffalo coins, one ounce uncirculated Gold Buffalo coins, fractional proof Gold Buffalo coins, and fractional uncirculated Gold Eagle coins. Although the US Mint has constantly referred to the “unprecedented demand” for gold, they deemed their gold numismatic products to be “unpopular.” Following the discontinuation announcement, sales of the 2008-dated versions of the discontinued coins surged and all numismatic Gold Buffalo and platinum coin offerings sold out in less than a month. US Mint explanation: We are responding to the collector community which has spoken loudly and clearly. Customers have told us there are just too many products. We agree, and it’s time the United States Mint trims down and concentrates on the products our customers love most. November 24, 2008: The US Mint announces the delayed release of all but one 2009 gold bullion coin option. This delayed release served to prolong the previously announced production halts for fractional gold bullion coins and the 24 karat Gold Buffalo bullion coins. As noted previously, the production halt continues with no indication of when it might end. The single 2009 gold bullion offering from the US Mint continues to be subject to rationing. As noted previously, there has been no indication of when the rationing will end. US Mint statement: The quantities of blanks that we have been able to acquire from our suppliers continue to be very limited, while demand for bullion coins remains high. As a result, it is necessary for the United States Mint to delay the launch of other bullion coins until later in 2009. We will continue to monitor the situation and keep you informed as additional information becomes available. January 6, 2009: The US Mint establishes a new pricing policy for gold and platinum numismatic products. The new US Mint pricing policy adjusts the prices for gold and platinum numismatic products as often as weekly based on the average London AM Fix gold price. The prices for coins are based on a published table which seems to impute higher premiums than the old pricing system. In the past, prices were established at the start of sales and remained fixed unless there was a significant move in the price of the underlying precious metal. At times gold numismatic products could be purchased for premiums as low as 10%. Under the new policy, prices are adjusted weekly to preserve permanently high premiums. Current premiums run 30% or more depending on the product. US Mint explanation: Transparency, agility, and customer service are the catalysts for our new pricing method. The volatile precious metals market prompted our customers to suggest that we re-vamp our process, and we listened. Conclusion? The series of incremental changes outlined above has resulted in the following situation: * Production was halted for all of the US Mint’s fractional gold bullion and 24 karat gold bullion offerings several months ago. There has been no indication when production might resume. * The only 2009 gold bullion coin available from the US Mint is the one ounce American Gold Eagle. Sales of this single bullion coin offering remain subject to rationing. * The US Mint’s gold numismatic offerings for 2009 have been significantly reduced from the prior year. The remaining product offerings will be priced at prohibitively high premiums under a newly established pricing policy. Whether or not it was the US Mint’s intention, every significant action they have taken since August has either limited gold availability, eliminated gold product options, or increased the cost of acquiring gold. Has it all just been a consequence of surging global demand for gold, supply chain mismanagement, and bad timing for policy decisions? Or is there something else going on here? Thank you to APMEX for confirming the status of the US Mint’s 2009 gold bullion coins for this post. http://seekingalpha.com/article/1160...gold-ownership

01-27-2009, 07:14 PM	#2
Myra Avalon Senior Member Join Date: Sep 2008 Location: So Cal Coast USA Posts: 340	Re: U.S. Mint Actions Discourage Gold Ownership Well then I would forget the US Mint and go for Gold Bars. Couldn't the US seize their own coins back anyway if they wanted to? I'm just guessing here but I'm wary of any money printed with official US logo at this time.

01-27-2009, 07:47 PM	#3
oldpaganfreak Avalon Senior Member Join Date: Sep 2008 Location: great northern boreal forest Posts: 440	Re: U.S. Mint Actions Discourage Gold Ownership canadian gold maple leaf coins may be a good alternative. they're 24kt, .9999 pure. monex oesn't seem to have any restriction on purchase. http://www.monex.com/prods/gold_maple.html

01-27-2009, 08:57 PM	#4
Swanny I dont need a label ! Join Date: Sep 2008 Location: The Shire of Wilt Posts: 2,889	Re: U.S. Mint Actions Discourage Gold Ownership I imagine it would be next to impossible to visit every house and take peoples gold. The police/soldiers would steal half of it along the way

01-27-2009, 10:17 PM	#5
Anchor Avalon Senior Member Join Date: Sep 2008 Location: Sydney, NSW, Australia Posts: 2,280	Re: U.S. Mint Actions Discourage Gold Ownership Australian minted 1oz nuggets are aslo 99.99% pure and are readily available at bullion dealers. I checked yesterday at a dealers in Sydney. Silver on the otherhand is on a 12 week waiting list. :-o A..

02-10-2009, 09:35 PM	#7
Czymra Avalon Senior Member Join Date: Nov 2008 Location: Germany Posts: 1,151	Re: U.S. Mint Actions Discourage Gold Ownership I keep on wondering if gold and silver are actually still a commodity that can't be duplicated/synthesised. (Welcome back Baggy!)

02-10-2009, 09:49 PM	#8
Dantheman62 Avalon Senior Member Join Date: Sep 2008 Location: So. Cal. U.S. Posts: 4,205	Re: U.S. Mint Actions Discourage Gold Ownership I don't think Baggy's back yet, he posted that on 1-25-09, COME BACK BAGGY!!!!!!!

02-12-2009, 12:19 AM	#11
Anchor Avalon Senior Member Join Date: Sep 2008 Location: Sydney, NSW, Australia Posts: 2,280	Re: U.S. Mint Actions Discourage Gold Ownership A lot of what Baggy posted came from survivalblog.com run by James Wesley Rawles. If you want more of the same, you can hop over there and read - it is an astounding blog. I myself have learned a lot of things from there and purchased some of the material on offer. A..