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Message: The Return of Gold and Silver Eagle Rationing

The Return of Gold and Silver Eagle Rationing

posted on Dec 14, 2009 03:26PM

the mint rationing of coins is off again, on again. normally (in every year prior to this one) the mint would cease production of silver eagles in july and begin production of next year's eagles, to be stockpiled through december, and then released in the first week of january. this year the mint continued producing 2009 coins, so heaven only knows when or if we will see 2010 coins:

On November 25, 2009, the US Mint had announced the suspension of sales for one ounce American Gold Eagle and American Silver Eagle bullion coins. Sales of the Silver Eagles resumed on December 7, 2009, but sales were subject to rationing. Sales of the one ounce Gold Eagles will resume tomorrow December 15, also subject to allocation.

Separately, the US Mint offered fractional weight 2009 Gold Eagle bullion coins on December 3, 2009. On the first day of sales, the entire inventory of one-tenth ounce coins was depleted and the inventory of one-quarter and one-half ounce coins was reduced limited status. The remaining inventory of one-quarter and one-half ounce coins was rationed. Today, the US Mint will sell another batch of fractional Gold Eagles to its authorized purchasers. All available coins will be subject to the rationing process.

The US Mint used the allocation program for the first time during 2008. The one ounce Silver Eagle bullion coins had been subject to rationing from April 21, 2008 to June 15, 2009. The one ounce Gold Eagle bullion coins had been rationed from August 15, 2008 to June 15, 2009. Fractional weight gold bullion coins completely unavailable for most of this time. The long standing allocation programs had negative impacts for both precious metals investors and coin collectors.

On the precious metals side, higher premiums above the spot price of the metals developed due to the limited availability of coins. During the height of the 2008 Silver Eagle shortage, premiums for one ounce Silver Eagle bullion coins had risen as high as $4.50 above the spot price of silver. Before the era of shortages, normal premiums were around $1.75. Gold Eagle bullion coin premiums were similarly elevated. Higher premiums erode the gains experienced when the price of precious metals rises, since investors need to recoup the extra costs.

http://mintnewsblog.blogspot.com/2009/12/return-of-gold-and-silver-eagle.html

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