Coin Blog

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.

The Platinum Eagle is one of the American Eagle bullion coins of the United States.  Each coin contains 99.95% fine platinum and is guaranteed by the United States for weight, content, and purity.

The coin series was first offered by the US Mint starting with the 1997 Platinum Eagle.  It was offered in the common one ounce size with a $100 legal tender value.  Alternate denominations were offered with different platinum content amounts and face values.  The $50 coin contains one-half ounce of platinum.  The $25 coin contains one-quarter ounce of platinum.  The $10 coin contains one-tenth ounce of platinum.

Platinum Eagles have been offered in either uncirculated or proof versions.  The proof version has a special cameo finish which includes mirrored background and frosted raised elements.  In 2006, the Mint started offering burnished finish coins.  In 2007, the Mint issued a special reverse proof finish coin.

The obverse design of the coin features the Statue of Liberty as designed by John Mercanti.  The reverse design features a soaring eagle as designed by Thomas D. Rogers.  Since 1998, the proof version of the coin has featured an annually rotating reverse design.

In 2007, The US Mint announced that it would be issuing a special 10th Anniversary Platinum Eagle Set.  This set followed the hugely popular 20th Anniversary Sets issued for the Gold Eagle and Silver Eagle.

The set contains two coins:

• 2007 One-Half Ounce Proof Platinum Eagle
• 2007 One-Half Ounce Reverse Proof Platinum Eagle 

The proof coin features the modern cameo proof finish with frosted raised elements and a mirrored background.  The reverse proof coin features the opposite, mirrored raised elements and a frosted background.

The set has a maximum production of 30,000 sets and initially had an ordering limit of one per household.

To date, there have been 17,895 sets sold.  The initial price of the set was recently adjusted upwards due to the rising market price of platinum.  The set remains available directly from the US Mint.