US Mint Stops Gold & Platinum Eagle Production for Some Options

Unprecedented demand for gold, silver, and platinum bullion coins continues to drive the US Mint to take unprecedented actions. Yesterday the US Mint released a memorandum to their network of authorized dealers detailing their latest strategy, which includes halting production for many options.

Production of one-half ounce and one-quarter ounce 2008 American Gold Eagles will be halted for the remainder of the year. Production of one-tenth ounce 2008 Gold Eagles will be produced until current blank supplies are depleted, and then will also be halted.

2008 one ounce American Gold Buffalo coins will be produced until current blank supplies are depleted, and then halted.

All denominations of 2008 American Platinum Eagles will be produced until current blank supplies are depleted, and then halted.

The US Mint will primarily focus on producing one ounce Silver Eagle and Gold Eagle bullion coins. These will be produced based on the amount of gold and silver blanks available each week and distributed to authorized dealers on an allocated basis.

The entire memo is reproduced 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.

The memo does not specifically address production of collector versions of bullion coins, specifically the 2008-W Uncirculated and 2008-W Proof versions of the American Gold, Silver, and Platinum Eagles and American Gold Buffaloes. However, I think this memo and prior statements present a strong indication of the Mint's plans for these coins.

A prior memo stated that the supply of silver blanks available would be diverted from collector coins to the production of bullion coins. The current memo directs the remaining inventory of blanks for several options to the production of bullion coins until depleted. The only blanks that the US Mint will obtain are for one ounce gold and silver coins.

Taken together this suggests that blanks necessary for producing most offerings simply won't be available to produce further collector coins. And the only blanks that the Mint apparently can obtain for one ounce silver and gold coins will continue to be diverted to produce bullion coins as they are still under allocation due to heavy demand.

This lends to the conclusion that the Mint will not be producing any more of the 2008 dated collector's version bullion coins. That would mean once the current inventory is sold, the coins will no longer be available.

Recently, I made a couple of recommendations for coins which might end up with significantly low mintages this year. I had intended to track these coins into the end of the year, but based on recent news, sales are likely to end sooner than most people expect. Be sure to take another look at my prior posts which highlighted the 1/2 ounce 2008-W Gold Eagle , 2008-W Uncirculated Silver Eagle, and (if they ever go back on sale) the 2008-W Uncirculated & Proof Platinum Eagles.