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U.S. Mint Halts Coin Output Just as Investors Demand More

CommoditiesApr 15, 2020 04:27PM ET
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U.S. Mint Halts Coin Output Just as Investors Demand More

(Bloomberg) -- The clamor for retail investors to get hold of precious-metals coins is about to get more urgent.

The U.S. Mint said Wednesday it’s temporally halting production at its West Point facility in New York because of the risk to employees from the coronavirus. The site makes gold, silver, platinum and palladium coins which are sold through a network of distributors.The shutdown comes as convulsive swings in financial markets spur a surge in demand among retail investors for precious metals as haven assets. Last month, the Mint said it sold out of American Eagle silver coins, while the gold coins it offers were snapped up in March at the fastest pace in over three years.

“The timing is awful,” said Everett Millman, a precious-metals specialist at Gainesville Coins in Florida. “It’s going to exacerbate the supply shortage” in the coin market when demand is soaring.

Premiums for gold coins are at 5%-10% over spot gold, compared with less than 1% in normal circumstances, said Millman. Gold for immediate delivery slipped 0.4% to $1,720.89 an ounce at 3:51 p.m. in New York.

The jump in coin sales, along with a record high this week for holdings in exchange-traded funds backed by gold, suggests buyers are seeking physical metal amid the turbulence in equities.

(Updates with gold prices in fifth paragraph)

©2020 Bloomberg L.P.

 

U.S. Mint Halts Coin Output Just as Investors Demand More
 

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Jack Drummond
Jack Drummond Apr 16, 2020 12:53AM ET
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I quit using APMxx for buying physical gold. They set their "spot price" to the futures price and charged a hefty premium on to of that. I say coins for sale that were 65- 100% above the actual spot price. When asked they said that their posted spot price varies, sometimes by a couple of bucks- like $70 higher? And the premiums are skyhigh on the inflated "spot" price because they are victims of market forces. Why don't they close shop if they're victims? No too much gouging afoot to miss out on.
Trend Follower
Trend Follower Apr 15, 2020 5:23PM ET
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So demand is through the roof causing shortage in supplies and the price of Gold is falling.  So how does the theory of supply and demand apply here?  All ears!
sumit kumR
sumit kumR Apr 15, 2020 5:23PM ET
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might be some short selling for time being.. but we all know satellites ends up in space
Darryl Parvin
Darryl Parvin Apr 15, 2020 5:23PM ET
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Just watch the spread between spot gold and gold futures (XAUUSD vs. GC). It's historically about $7 but has recently gone to $70 and now is at $40.
Nick Gee
Nick Gee Apr 15, 2020 5:23PM ET
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Gold is falling? LOL....it hit 7 year highs.... yesterday. Stop trading. You have no clue what you're even looking at.
 
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