US Mint Halts Gold Coin Sales Based on Gold Price Jump

Interesting article this week from CoinNews.net:

The price of gold has jumped in the last thirty days from a low of $648 an ounce to a high of $711.75. If you’ve invested in gold, you’re loving it. If you’re the United States Mint, you’re hating it.

The increased price of gold is affecting the US Mint’s bottom line. So much so that late this afternoon, September 13, the U.S. Mint suspended the sale of all their 2007 American Eagle Gold Uncirculated coins.

The Mint needs to adjust their prices, pushing them up higher. Here’s a listing of the suspended gold coins (at least so far) and their former prices:

• 2007 American Eagle Gold Uncirculated One Ounce Coin, Price: $749.95
• 2007 American Eagle Gold Uncirculated One-Half Ounce Coin,
  Price: $379.95
• 2007 American Eagle Gold Uncirculated One-Quarter Ounce Coin, Price: $195.95
• 2007 American Eagle Gold Uncirculated One-Tenth Ounce Coin, Price: $89.95
• 2007 American Eagle Gold Uncirculated Four-Coin Set,
  Price: $1,379.95

The following statement was posted on the U.S. Mint web site for each of the coins they suspended:

Due to the increasing market value of gold, the American Eagle Gold Uncirculated Coins are temporarily unavailable while pricing for this option can be adjusted; therefore, no orders can be taken at this time. We expect products to be available with adjusted pricing on or after September 27, 2007.

I’m a little surprised.  After all, the US Mint is largely working off inventory that has already been created.  I didn’t think the Mint was that “margin sensitive”.  Still, in the end, it’s not surprising that a sharp spike in gold prices would make them revisit pricing.

I notice that they did not feel the need to reprice the 1/2 ounce gold first spouse coins.  Maybe they were scared to given all of the fulfillment issues.  I’m still waiting on Thomas Jefferson’s Liberty coin.

This should be a boost for anyone who did order gold coins this year.  The eBay price tends to quickly jump to the latest coin prices at the US Mint plus some margin.  So, if you got the gold eagles at a cheaper price, you might be able to sell for an immediate profit.