U.S. Mint suspends red-hot Eagle gold coins: dealers
Submitted by obscure titles on Thu, 08/21/2008 - 13:17By Frank Tang
NEW YORK (Reuters) - A shortage of American Eagle bullion coins following a recent sharp retreat in gold prices has forced the U.S. Mint to suspend sales of the popular coins temporarily, dealers said on Thursday.
Rand LeShay, senior vice president of A-Mark Precious Metals, an authorized purchaser for the U.S. Mint, confirmed that the Mint told dealers in a memorandum it was halting all sales of American Eagles, a novel item among collectors and investors.
"It is temporarily suspending," said LeShay. He said he saw no communication about a permanent suspension from the U.S. Mint.
"Until the U.S. Mint can supply us with more (American Eagle) coins, we won't be able to supply any to our customers," LeShay said.
Michael White, a spokesman of the U.S. Mint, did not return calls seeking comment.
LeShay said that there was a big spike in demand for gold and silver coins and ingots following a recent tumble of precious metals prices.
COIN DEMAND SPIKES
Coin dealers from the United States to Canada also reported a surge in buying of bullion coins and other gold products since prices plummeted from highs last month. The buying spree contributed to supply fears and helped boost gold prices sharply on Thursday.
Blanchard and Co., one of the largest U.S. retail dealers of rare coins and precious metals, said the American Eagle and American Buffalo one-ounce gold coins are sold out.
"Nobody has the Eagles or the Buffalos right now. We bought 2,000 ounces late last week, and those were the last 2,000 ounces that we can find in the marketplace," said David Beahm, vice president of New Orleans-based Blancard.
"If we don't have them, nobody has them," Beahm said. He added that he has been recommending customers to buy the one-ounce Canadian Gold Maple Leaf gold coin instead.
Top Canadian precious metals dealer Kitco reported that demand for gold bullion coins has increased significantly in recent days.
Kitco's Senior Analyst Jon Nadler said American Eagles are still in stock even though delays in supply and shipping of all bullion products could be possible due to high demand.
On Thursday, spot gold surged as much as 3 percent to $839 an ounce, while U.S. gold futures for December delivery scaled a one-week high at $845 an ounce. Gold hit a five-month peak of $987.75 on July 15, and it set an all-time record of $1,030.80 on March 17.
George Gero, vice president of RBC Capital Markets Global Futures in New York, cited the gold coin shortage for Thursday's gold rally.
In hindsight, A-Mark's LeShay said that neither the U.S. Mint nor the coin dealers could anticipate such a supply shortage.
"This kind of spike in demand is something no one can foresee, and no business runs itself waiting for this to happen," LeShay said.
The shortage is silver and
The shortage is silver and gold coins are simply an indication that the People of this country realize that the U.S. Dollar is tanking as a medium of exchange and seeking safety in commodity metals a definite sign that the realization is kicking in. Some are calling this a shortage in the actual metals themselves, but actually it is a supply and demand shortage of coinage, because it has yet to hit the futures market, which it would do if it were an actualy physical metal shortage, thus far the markets are showing a relatively level pricing structure.
When the markets begin to rise, which I fully expect them to, it will be more related to economic fears as demand for safety increases. The next big push in the gold market should begin soon, so buy now because the prices should begin to sky rocket in terms of fiat prices when the masses understand just what is happening to the dollar. There is a rapid deterioration of the collective purchase power, therefore the value of our irredeemable fiat dollar, gold and silver are one of the ways to measure that decline, especially if it is rapid.
http://militantjeffersonian.com
"Men do not willingly read unpalatable truths of themselves. The People like those best who fool them most, by pandering to their vices and flattering their foibles" Raphael Semmes
Well . . .
it seems like people are going back to gold and silver again. I guess since there are no coins available, I'll have to go with the mining stocks in Australia like Peter Schiff suggests. If you don't like the mining stocks, there is always the Perth Mint program Euro Pacific Capital offers. Thanks for the post.
Just goes to show you that there are a lot of smart people ...
in this world. The smart ones buy on the dips.
Reenforces my optimistic view of the human race.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994