U.S. Mint Bullion Coin Shortage Continues During Pandemic

gold mint bullion coin shortage pandemicDue to the pandemic, there is a shortage of circulating coinage in many parts of the country. The U.S. Mint also continues to reduce its production and sales of Silver American Eagles and smaller-denomination Gold American Eagles. There were no sales of $5 (one-tenth ounce) Gold Eagles during the April-June quarter and limited sales of other fractional-ounce Gold Eagles. In June, 42,500 of 44,000 ounces of all Gold Eagles sold (96.6%) were full one-ounce Gold American Eagles, making the premiums on smaller-denomination eagles higher. Production of everything but one-ounce gold is down. Silver American Eagle production and sales are also down, but premiums were up due to the pandemic, since fewer Mint employees were consistently available, and the Mint sometimes closed.

American Eagle bullion coins are usually struck at the West Point Mint, but the Philadelphia Mint was called on to help with production and produced 240,000 Silver Eagles in April. Historically, these will likely be called “Pandemic Eagles,” and, when certified, have already commanded a premium.

June closed the first half of the year strongly with 44,000 ounces of Gold American Eagles sold during the month vs. only 4,500 ounces sold in June 2019, an increase of 878%! For the first six months of 2020, sales of Gold American Eagles reached 379,000 Troy ounces, up 249% from the 108,500 ounces sold last year during the same period.  Sales would have been higher if the West Point Mint had not suffered multiple COVID-19-related interruptions.

The Mint sold 7,500 American Buffalo one-ounce gold coins in June 2020, 150% above the 3,000 coins sold in June 2019.  This lifted their year-to-date sales total to 126,000 ounces, 165% above the 2019 levels.

Premiums on Silver Eagles are still high because the demand is so much higher than the Mint can supply. Despite production interruptions since March, sales of American Silver Eagle sales are up 25.7% for the year, so far – to 12,596,500, or 25% more than the 10,022,000 coins sold in the first six months in 2019.

Gold was the Best Investment in the First Half of 2020

On Tuesday, June 30, Gold for August delivery – the most actively-traded gold futures contract – closed at $1,800.50, the first-time gold traded above $1,800 since September of 2011. The spot price that day was $1,793, delivering an 18.35% first-half gain for gold, eclipsing all other major investments assets.

The tech-heavy NASDAQ gained over 12%, but the other major U.S. and foreign market indexes all fell:

Recently released World Gold Council figures show $39.5 billion flowed into gold-backed ETFs in the first half of the year.  That beat a previous record from 2016 and increased global gold holdings to a record.

Silver Led All Metals in the Second Quarter

Although silver was flat for the first half of 2020, it was a tale of two quarters. Silver led all metals in the second quarter with a 31.52% gain vs +16.0% for platinum and +13.24% for Gold – but it was the best quarter for gold since 2016. This is especially impressive since the second quarter (April through June) is a seasonally weak time for gold, which has its strongest season from September to December.

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2 years ago

The reason for this? The Federal Reserve has joined up with a number of companies, political elitists, and megalomaniacial billionaires to conspire to change our monetary system from one based on physical currency to one based on digitization. It is set to start in January 2021. The House AND the Senate passed the Digital Currency Act Bill. It is affiliated with 2020/060606. Don’t believe me? Look it up.
The consequences of this are devastating. You know those $1, $10, $20, maybe $50, or even $100 bills you have in your wallet? Well, you might as well start a bonfire with them when physical currency is eliminated because they won’t be worth the paper they are printed on.
Your bank accounts and financial privacy? Gone. Your savings? Gone. Why? Because with digital currency, it will be VERY EASY to tax all of your withdrawals. Try to buy a gun? Good luck with that one. Maybe you say something on social media that the head honchos don’t like. Goodbye identity. Good luck trying to get into a frozen account because you are not towing the NWO party line.
Your health records? Why, with digital advances and currency, all will be revealed. I have done MY research and have plenty of sources to back up these claims. Do your own…then tell me that this is not going to happen – because it IS, people. Right now we are being betrayed even as I write this diatribe.
Get your life in order now. Do whatever you need to do to protect your financial future and your family. Before it is too late.
And one last thing: STAND UP! SPEAK OUT! SUPPORT CONSERVATIVE CANDIDATES FINANCIALLY AS MUCH AS YOU CAN, EVEN IF THEY ARE NOT FROM YOUR STATE. We need all the help that we can get from whatever source that we can access. SILENCE begets totalitarianism. Look back in history. Pay attention. LEARNAND ACT.

Jonathan delPozo
2 years ago

Well what would one do or rather could be allowed to do when the current currency of green backs become unwanted? When all your cash holdings in the illustrious federally backed dollar becomes worthless? What do you do? When Nixon, in his infinite wisdom, took this country off the gold standard he ruined our capacity to have our dollar backed by the equal amount of gold. Not too smart I think. As for silver, the shortage is explained, shortages in employees but then I’d have some change available. Gold has always fluctuated on the market but in these changing times, holding gold may be a smart thing to do. Think about this, one 1878 $20.00 gold coin at the rate of .900 Fine is worth what? $1917.00 to $ 2000.00! What does that tell you? I’m not an investor but simply looking for some place to stash some savings.

The Red Baron
2 years ago

FDR took us off the gold standard. Nixon took us off the silver standard.

Frank Reedy
2 years ago

The argument against the ‘gold standard’ in Nixon’s time was that gold for dollar backing was too restrictive and anti-growth. There is also a strong argument for the gold standard as it existed then, but doesn’t the subsequent explosive real growth of the American economy since 1971 exonerate Nixon’s and Congress’ action? I’d submit ‘yes’ – by comparing the incredible growth of our living standards, GDP, national and average household wealth, and real household incomes. Gold bugs have a lot to answer for after their 50 year resistance to the detachment of the dollar to gold. The change in the price of an ounce of gold over that period is swamped by all of the factors I mention herein, and many others. That said most advisors and I recommend some gold holdings in your funds – I’m only at about 2%, many say 5-7 % is about right, but…I’m happier that my Amazon and Apple stock shares have multiplied 10-15-20x since I bought them than if I’d bought bullion or GLD 10 years ago!

2 years ago

I bought silver as a first investment not knowing anything as a young idiot at $50 an ounce and it topped out at $53.00. After that it went straight down to around $5 or $6 or so for at least the next 20 years. Luckily I found a fellow employee who took my silver for $23 an ounce on its way down. I lost out for sure, but years later I feel like a winner not waiting for that silver to get back to $50 an ounce. Will I ever buy silver again at any price? NO! Not even if I could get it at $5.00. Pass.

Sandra Lee
2 years ago

It IS a commercial for gold and silver!! AND it doesn’t explain why there is a shortage of coinage! Why a shortage, because their too busy making all these extraneous coins so they don’t have time to make nickles, dimes and quarters?

2 years ago
Reply to  Sandra Lee

It’s all about supply-demand. When fewer coins are minted, their value increases. Couple this with the government pay-outs to businesses and unemployed workers (due to the China pandemic), and precious metals are bound to be winning investments for the short to medium haul… I rather prefer mining investments over physical metal, but have always kept some physical metals.

2 years ago

Sounds like a commercial for gold and silver sales.

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