U.S. Mint Sets Price for New, One Ounce American Eagle Gold Coins at $1,119.95 Each
April 2nd, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Right now, the spot market price for gold is $890.50 per ounce. The new American Eagle price of $1,119.95 includes a premium of $229.45, per one ounce coin—over the spot price of the metal. Obviously, coins have minting costs associated with them, but $229.45 per coin!?
Now, look at BullionVault. The difference between the spot market price and the price on BullionVault’s Zurich market facility is less than $3 per ounce at the moment. BullionVault’s low fees make it a very cost efficient way to own physical gold. NOTE: I am a BullionVault client and affiliate. Cryptogon readers buy and sell tens of thousands of dollars worth of physical gold on BullionVault every month.
Via: Cryptome:
The United States Mint is announcing the prices of the 2008 American Eagle Gold Uncirculated Coin Program.
Pursuant to the authority that 31 U.S.C. 5111(a) and 5112(a)(7-10) grant the Secretary of the Treasury to mint and issue gold coins, and to prepare and distribute numismatic items, the United States Mint mints and issues 2008 American Eagle Gold Proof and Uncirculated Coins with the following weights: One-ounce, one-half ounce, one-quarter ounce, one-tenth ounce. The United States Mint also produces an American Eagle four-coin set that contains one coin of each denomination.
Because of increases in the cost of gold, the United States Mint will begin accepting orders for 2008 American Eagle Gold Uncirculated Coins at the prices indicated below, effective April 1, 2008:
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Description Price
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American Eagle Gold Uncirculated Coins:
One-ounce gold uncirculated coin………………………. $1,119.95
One-half ounce gold uncirculated coin………………….. 565.95
One-quarter ounce gold uncirculated coin……………….. 295.95
One-tenth ounce gold uncirculated coin…………………. 124.95
Four-coin gold uncirculated set……………………….. 2,039.95
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That’s a greater premium that you find even on Ebay!
If this premium persists it would certainly suggest the Mint is actively trying to discourage gold purchases. I mean, if rumors are true that the US government is net short on gold, then every Eagle bought means the Mint has to go out and buy that ounce on the market. In todays gold market that doesn’t seem like a very profitable business to me….
Of course the flip-side of this line of thought is that maybe even the US Mint itself is no longer interested in trading their precious Gold for paper Dollars anymore.
Are there any other sources for this? I searched, but failed to find any.
I’m tempted to suspect that it’s a cruel “April Fool’s day joke” by some anonymous prankster.
@dermot
The pricing is live on the usmint.gov site:
http://catalog.usmint.gov/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10001&storeId=10001&productId=14450&langId=-1&parent_category_rn=13238
Price: $1,119.95 Qty.
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Kevin,
I recall a post of yours from way back now that could be more than 6 months – my memory -argh isn’t what it used to be, that said the Mint cancelled the sale of this coin because they could not determine the “right” price for it.
Ha! This confirms to me that the gold price suppression scheme (well I did not doubt)has even the literal money makers flummoxed! Doh!
Wonder where the Mint did their research to set this price for the gold piece?
Buillion Vault, Kitco, Gold Money, the Moneychanger,etc, etc.
Or did they go to the Federal Reserve or the PPT? Your call. Heads or Tails?
Hahahah. This is really FUNNY.
I guess I won’t be selling Mom’s after all…
Bloody Hell…
Forgive my ignorance – but can we expect to see this transferred to dealers such as kitco & monex any time soon? Currently monex is still showing the regular markup:
http://www.monex.com/monex/controller?pageid=prices
Well, I’m just glad I got in the gold marked two years ago…