US Mint limits its silver coin sales
A precious metals sell-off has lowered prices and lifted demand beyond production capabilities, which means new investors will have a tough time finding 'America the Beautiful.'
As investors start to realize hoarding precious metals isn't such a great play anymore and consumers start flocking to whatever shiny cast-offs they can find, the U.S. Mint is putting the plug in its piggy bank.
After running out of 0.1-ounce gold bullion coins last month, the Mint is now limiting dealers' purchases of its 5-ounce "America the Beautiful" silver bullion coins when they go on sale next week. It just tightens the squeeze the Mint put on coin sales after gold plunged to a two-year low and investors sold off their silver holdings last month.
When the coin becomes available for sale on May 13, the Mint will distribute half of its inventory equally among its authorized dealers, and the other half based on each dealer's volume of "America the Beautiful" coin sales in the past two years, it said on Wednesday.
The Mint's move has little to do with the recent economic instability in Cyprus that boosted Bitcoin value or even the sluggishly improving U.S. economy. The Mint says it simply doesn't have enough blanks to meet demand.
That's not going to sit well with skeptics, but even seasoned investors are finding that doom just isn't as sound an investment as it used to be. Mining companies including Barrick Gold (ABX) have scaled back operations. Exchange-traded funds that track the metals -- like SPDR Gold Shares (GLD), down about 13% on the year, and iShares Silver Trust (SLV), down 22% -- are being liquidated as retail investors buy up more bullion and saturate the market, while institutional investors back out of precious metals entirely.
The U.S. Mint is keeping its own stingy allocation process in place until it can boost delivery and meet demand. The Mint had actually been doling out more silver coins in recent months after suspending sales late last year. But with prices still unstable and the consumer market gobbling up all the gold and silver it can find, the Mint seems bent on preventing heightened interest from becoming a full-on run on its supplies.
What does this article mean, The U.S. mint is running out of silver and as it does so the price of silver goes down.
Don't go through dealers, sell directly to pop, mom, their sister, and my brother Lou...I may buy one too.
Silver eagles on ebay are a 40% premium above spot...... because demand is so low???????
Did the editor read this article? ETF's are selling off because they are paper. Coins are in great demand.
Copyright © 2013 Microsoft. All rights reserved.
The Affordable Care Act includes tax credits and subsidies to ease the cost burden for some, but others will have to choose between higher premiums or inferior plans.
- How to use your credit card to donate to charity
- Try this instead of raising the minimum wage
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
[BRIEFING.COM] Commodities ended the day mixed with energy lower, except for natural gas, metals mixed with gold and copper higher and silver fell.
Crude oil futures lost some steam near the end of today's session and fell to a new LoD of $97.27 just a couple minutes before the end of floor trading. At the end of the session, Jan crude oil ended $0.30 lower at $97.40. Jan natural gas gained 11 cents to $4.23/MMBtu.
Precious metals gained some steam in the early hours of electronic ... More
More Market News
The social media stock surged in its first day of trading. But in the month since, shares have gained only 5 cents.