Coin Blog

The United States Mint released the 2011-W Uncirculated Gold Eagle on May 5, 2011. This represented the return of this collector version of the coin after an absence of two years. Only a one ounce version was available, priced at $1,778.00 to start, but variable week to week.

The coins are struck on burnished blanks, but carry a finish similar to the bullion version of the coin. The "W" mint mark also appear on the obverse, in contrast to the bullion coins which carry no mint mark. Finally, the coins are sold directly by the US Mint at a higher premium, while the bullion versions are distributed through authorized purchasers at prices more closely following the intrinsic value of the coins.

This will be an interesting issue to watch. After two years of absence, it may have fallen off the radar for many collectors. Also, the previously released proof versions have always experienced greater popularity. As higher precious metals prices stretch collector budgets, they may have to choose only one version of the coin to collect.

It seems possible that this might be the lowest mintage Gold Eagle in the history of the series. Recent sales figure show 1,825 coins sold to date. The lowest mintage for an issue of the Gold Eagles series is the 2008-W $10 Uncirculated Gold Eagle at 8,883.

Less than one month after the initial release, the one ounce individual option for the 2010 Proof Gold Eagle has sold out. The maximum production limit was established at 25,000 coins.

Since the issue price of the coins was a hefty $1,585 each, that means this product accounted for $39,625,000 worth of sales for the United States Mint. Using an intrinsic value of $1,350 per ounce of gold, this amount includes a premium of $5,875,000.

The US Mint has issued Proof Gold Eagles for collectors each year except for 2009. Sales for 2008 were at relatively low levels, with the individual one ounce option recording sales of 17,720 during nearly a year of availability. Perhaps absence does make the heart grow fonder, as collectors very quickly scooped up the entire maximum for this year.

Record prices for gold may have also added to the allure. Although logically we would like to buy low and sell high. In practice, rising prices seem to incite more purchases than falling prices.

The United States Mint has confirmed that they will be offering 2010 Proof Gold Eagles for collectors. The standard range of products will be available starting October 7, 2010.

One ounce, one half ounce, one quarter ounce, and one tenth ounce coins will be sold individually or as part of a four coin set. Limits are imposed across each of the different products, which yield maximum mintage thresholds for each coin. The limits are as follows:

Last year the 2009 Proof Gold Eagles was canceled, disappointing many collectors. Ever since the series in 1986, there has been at least one proof coin minted for collectors.

The cancellation was deemed necessary by the US Mint due to their interpretation of the law. The US Mint is required to produce American Gold Eagle bullion coins in quantities sufficient to meet public demand. Elevated demand had caused shortages, suspensions, and rationing. Since they were not meeting full demand, they instead diverted all precious metals blanks to the production of more bullion coins. The collector Gold Eagles were canceled.

With that water under the bridge, collectors will finally have a greater variety of numismatic items struck in gold. The 2010 Proof Gold Eagles will join the previously released 2010 Proof Gold Buffalo, and the four different First Spouse Gold Coins.

The US Mint has provided the initial date that they will accept orders for 2010-dated bullion coins to their authorized purchasers. These bulk buyers are able to buy Gold and Silver Eagle bullion coins directly from the United States Mint for resale to the public. Orders will be accepted starting on January 19, 2010.

This represents a delay from the tradition start of orders. In the past, the US Mint has accepted orders in late December for delivery in early January. This has allowed coins bearing the new year's date to reach the market within the first few days of January. The FUN convention held in Florida this week has often been the first venue where collectors purchase the 2010 Silver Eagles and 2010 Gold Eagles.

Will the delayed launch have any impact on sales or demand for the bullion coins? During 2009, the American Silver Eagle reached another record year of sales with more than 28 million sold. The American Gold Eagle sold about 1.3 million, not a record but among the top five years.

Collectors will also be waiting for information on the collectible version of the 2010 Gold and Silver Eagles. Last year, the proof and uncirculated (burnished) versions of the coins were canceled- something that had not happened before during the prior twenty four years of the series.

By memorandum to its network of authorized bullion purchasers, the United States Mint outlined its latest steps to deal with the unprecedented demand for gold and silver bullion coins. The new measures including halting production for some options of Gold and Platinum Eagle bullion coins.

According to the memo, most fractional Gold and Platinum Eagle options and American Buffalo coins have been halted for the remainder of 2008 or will be halted after current supplies of blanks are exhausted. The US Mint will concentrate on producing one ounce Silver Eagles and one ounce Gold Eagles.

The memo is included below:

October 6, 2008

MEMORANDUM TO ALL AMERICAN EAGLE AND AMERICAN BUFFALO AUTHORIZED PURCHASERS

SUBJECT: 2008-Dated Bullion Products

Due to the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is unprecedented and the demand for platinum is unusually high.

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.

For the remainder of 2008 bullion inventory, the following will apply:

American Eagle Gold Bullion Coins

One Ounce Coins will remain on allocation each week. Allocation amounts are based on available quality blanks each week.

One Half Ounce Coins: Inventory was depleted last week. No more coins will be produced for 2008.

One Quarter Ounce Coins: Inventory was depleted last week. No more coins will be produced for 2008.

One Tenth Ounce Coins: Inventory was depleted last week. More coins will be produced based on current blank supplies, however, once that remaining inventory is depleted, no more coins will be produced for 2008. You will be notified when these are available for sale.

American Buffalo One Ounce Bullion Coins

Inventory was depleted and sales were suspended in late September. More coins will be produced based on current blank supplies, however, once that remaining inventory is depleted, no more coins will be produced for 2008. You will be notified when these are available for sale.

American Eagle Silver Once Ounce Bullion Coins

American Eagle Silver One Ounce Coins will remain on allocation each week. Allocation amounts are based on available quality blanks each week.

American Eagle Platinum Bullion Coins

All denominations were depleted last week. More coins will be produced based on current blank supplies, however, once that remaining inventory is depleted, no more coins will be produced for 2008. You will be notified when these are available for sale.

We will keep you updated as more information becomes available.

Mint News Blog provides some perspective on what this might mean for the US Mint's so-called collectible versions of the bullion coins such as the Uncirculated coins bearing the "W" mint mark and the Proof coins. Read the full post  US Mint Halts Gold & Platinum Eagle Production.