US Mint Suspends Sales as Gold and Silver Prices Continue to Rise
It had to happen sometime, and last week it did. The gold price has been rising almost without pause for several weeks now, and buysilver.org has in previous weeks highlighted this in conjunction with the rising value of silver. With such price rises comes the need to stop selling at some point. It becomes impossible to keep re-pricing products and still keep up with the rising price of the commodity.
Rising prices in themselves can create demand, and the demand for US gold collectible coins has increased dramatically over the last few weeks. The problem for the US Mint is that it can not keep pace with the rapid rise in the gold price going hand in hand with the increase in demand. At some point, with demand outstripping the ability to mint in large enough quantities, it becomes uneconomical to sell. In other words, the Mint run the risk of paying more for its product than it sells it for.
Hence a week ago last Friday the US Mint suspended sales of the four 2011 commemorative coins. As of writing this article, their sale remains suspended. The coins affected are:
• Proof 2011 Medal of Honor $5 Commemorative
• Uncirculated 2011 Medal of Honor $5 Commemorative
• Proof 2011 U.S. Army $5 Commemorative
• Uncirculated 2011 U.S. Army $5 Commemorative
The price of gold hit all time highs last week at around $1881 per ounce. The US Mint needs to see some stability in the price to be able to restart sales of the above coins again.
But gold coins are not the only ones affected. The Mint also suspended sales of its 2010 dated America the Beautiful Quarters Silver Sets. The last suspensions of these coins were made earlier this year in March and then again in April. After the suspensions – which followed rises in the price of cash silver – the sale prices of the coins were increased.
Such increases across the range of the US Mint’s gold and silver coin issues look likely again.
As One Coin is Suspended, Another is Announced
Only in America could the Mint suspend sales of its coins, and then almost simultaneously announce a new issue of commemorative coins.
The Silver Eagles were first issued in 1986, and collectors have pondered for some time if there would be a silver jubilee version released. At the ANA World Fair of Money on Saturday 19th August, the US Mint announced that they would indeed be making such a commemorative coin available, as a five coin set and limited to 100,000 sets to be minted. They will come presented in a special box, and with a certificate of authenticity.
Unsurprisingly, the Mint has not issued a price for the sets as yet. It remains to be seen whether they will be suspended before being placed on sale!
For the latest technical analysis of the price of silver, visit the latest video on the BuySilver.org Youtube Channel .
