Mint News Blog

News, Information, and Commentary on US Mint Products

Wednesday, August 18, 2010

Gold Coin Prices to Increase, Platinum Coin Prices to Decrease


Under the United States Mint's pricing policy for gold and platinum numismatic coins, the prices for available gold coins should increase while the price for the one available platinum coin should decrease. Based on past practices, the price changes would likely take place around mid-morning today.

Pricing for US Mint numismatic gold and platinum coins is determined by the average price of the metals from the prior Thursday AM to current Wednesday AM London Fix Prices. If the average falls into a different range than the currently in use, prices are adjusted accordingly. Ranges are established at $50 increments for gold and $100 increments for platinum. As an additional criteria, the Wednesday PM price must directionally agree with the new range for a pricing update to take place.

For the relevant period, the average price of gold was $1,218.11, within the $1,200 to $1,249.99 pricing range. The Wednesday PM London Fix price seems likely to fall within the same pricing range. First Spouse Gold Coins and the 2010 Proof Gold Buffalo are currently priced based on an average price of $1,150 to $1,199.99.

For the First Spouse coins, prices should be increased from $754 to $779 for proof coins and from $741 to $766 for uncirculated coins. For the Gold Buffalo, prices should be increased from $1,460 to $1,510. This will bring the prices for these products back to their highest levels on record.

Meanwhile, the average price of platinum for the relevant period was $1,532.78, within the $1,450 to $1,549.99 pricing range. The Wednesday PM London Fix Price also seems likely to fall within this range. The one available platinum coin is currently priced for a higher range, suggesting a price decline is coming. Prices for the 2010 Proof Platinum Eagle should be reduced from $1,892 to $1,792 per coin.

At this price, the coins will carry a much more reasonable premium above the spot price of platinum. Assuming a platinum price of $1,535 per ounce, the coins were previously priced at a premium of 23.25% above spot. After the price increase, the premium will be cut down to 16.74% above spot.

The price decrease for this nearly sold out product will also bring about an odd situation for collectors. Some collectors who already purchased the coin may be tempted to cancel orders and place new ones at the lower price. At the same time, with more than 80% of the maximum mintage sold through Sunday, these collectors risk a sell out occurring in the interim, or some other situation whereby their second order is canceled. For collectors who have not yet ordered but have been contemplating the coin, the price decrease might be the incentive to place an order, accelerating a sell out.

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32 Comments:

At August 18, 2010 at 6:27 AM , Anonymous Anonymous said...

Ha! I just might order that platinum proof coin now, provided the Mint does not break their own rules.

 
At August 18, 2010 at 7:12 AM , Anonymous Anonymous said...

When does the US Mint website update their pricing? Its still $1892 as of 10 am est.

 
At August 18, 2010 at 7:16 AM , Blogger Mint News Blog said...

It has varied, sometimes as early as 10 AM, sometimes around 12 Noon.

Today's PM London Fix prices are already in, and confirm the price increase for gold and decrease for platinum.

 
At August 18, 2010 at 7:17 AM , Anonymous Anonymous said...

It seems to vary, but the prices should be adjusted by about 11:30 am CT, based on past experience.

I can't wait! I sure hope I don't miss out on the platinum proof!

 
At August 18, 2010 at 8:20 AM , Anonymous Anonymous said...

"This product is temporarily unavailable for product repricing."

 
At August 18, 2010 at 8:28 AM , Anonymous Anonymous said...

Let's hope they don't screw up and mark the price UP by $100! :)

 
At August 18, 2010 at 8:36 AM , Anonymous Anonymous said...

The change came through, $1,792 as it should be. Now the question is, how fast will the sellout happen?

If a lot of the early orders were from the custodians of IRA accounts, chances are those orders will not be cancelled and re-submitted. Dave Harper at Numismatic News predicted that custodians of IRA accounts would snap up the full issue of 10,000 coins pretty quickly. I hadn't even considered that possibility, but it makes sense. Anyone who wants to put the platinum eagles in their IRA have no other choice this year, as there ARE no bullion versions.

I placed an order for 5 coins just a few minutes ago. I guess now I have to wait and see what happens. If they turn out not to be worth anything, I'm out about $40 in USPS Registered Mail fees to return them!

 
At August 18, 2010 at 8:41 AM , Anonymous Anonymous said...

Got an order in...who knows if it will go through though.

 
At August 18, 2010 at 8:49 AM , Anonymous Anonymous said...

I ordered another at the lower price, and now the "cancel box" is gone for the one I ordered last week !

 
At August 18, 2010 at 8:51 AM , Anonymous Anonymous said...

Coincidence? I wonder. I figured since the coin had been on backorder, the order status of the early orders would still be at the stage where they could be cancelled. Maybe the Mint hurried up and changed the status of all the early orders to save themselves the headache (not to mention all of the extra dough!)

If the early orders can't be cancelled now, the "waiting list" status might hit later on today. We'll see, I guess.

 
At August 18, 2010 at 10:56 AM , Anonymous Anonymous said...

Originally, I wasn't going to buy one, but did purchase one with the $100 price drop. I figure since it is a sure sell-out, it can't hurt.

 
At August 18, 2010 at 11:00 AM , Anonymous Anonymous said...

My order went from "backordered 8/25" to "in stock and reserved" in about an hour. The order is still "on hold" though, with no pending charge to my credit card yet.

 
At August 18, 2010 at 12:03 PM , Anonymous Anonymous said...

All-time high of $2,290 an ounce it hit in March 2008--paying close to that in our current depression, where the demand from the auto industry is iffy at best--no thanks! Wait til next year for more reasonably priced coins or buy it cheaper on ebay then.

 
At August 18, 2010 at 12:51 PM , Anonymous Anonymous said...

Kudos for those of you that bought the coin this afternoon and outsmarted the world for your chance to buy a blah coin at close to a 7% discount from close to $1900 to now a steal at close to $1800. If you are a flipper, good job!
I know the Mint doesn't really care, but I'm a collector and even with the $100 decrease of a super expensive coin, it is really hard to justify spending that kind of money.
I bought a UHR and felt it was well worth my money. Very pretty with great detail.
I'm passing on the plat because I don't love the coin. Folks buying today remind me of folks buying condos they really didn't want 5 years ago.

 
At August 18, 2010 at 1:38 PM , Anonymous Ben said...

Has anyone tried to get a refund on this coin and buy it back? I bet the Mint has figured out a way to prevent people from doing just that.

 
At August 18, 2010 at 2:35 PM , Anonymous Anonymous said...

If the order status of the early orders has switched from "backordered" to "in stock and reserved" with removal of the cancel box, then anyone who wants to return the coins and buy them back will have to wait until they are delivered, then use the 7-day return option. However, those returns will go to someone on the "waiting list" instead.

So, the only way to pull it off is by placing a second order, then returning the original order upon delivery. And, that will only work if you did not order the household maximum the first time. If your original order was for 5 coins, any second order you place with your own credit card will be kicked out as a duplicate order. By the time the first order is refunded, it will likely be too late to place another order.

I'm just glad I didn't order last week. I saw what the price of platinum was doing, and figured the chances were good for a price drop to the same level as the 2009 coin this week. Thank goodness the Wed pm fix was not at $1,550 or above!

 
At August 18, 2010 at 2:36 PM , Anonymous vaughnster said...

With the $100 price drop and a sellout of 10,000 sure to happen in the next few days, I think it's a good investment. Just my two cents.

 
At August 18, 2010 at 2:43 PM , Anonymous Anonymous said...

Yesterday I received M.Taylor Unc Spouse gold coin for the sixth time. Every time was different coin , but every time was damaged.First two times coin had scratches on obvers, and four times coin had damaged rim on the reverse above ".... STATES OF ..." sign.Today I mail back this coin for another replacement. If you collect those can you check your coins for this reverse rim damage and provide me with information. I think Mint is striking coins with damaged die. I hope next coin will arrive in perfect condition. I have 3 months for this. Mint already lost money on my coin because shipping reimbusement.

 
At August 18, 2010 at 2:47 PM , Anonymous Anonymous said...

Does it really make sense for the Mint to INCREASE the mintage of the proof platinum eagles? These coins are a six year SERIES, and the logical way to collect them is to build the set. With the current maximum number of sets possible being 8,000, why the extra 2,000 coins for 2010? Greed for extra sales? Extra coins for IRA custodians? It seems like the mintage should have stayed the same for all six years of the series.

Who knows, maybe platinum will skyrocket in price, dropping demand for future coins to 4,000 or less due to extreme cost.

 
At August 18, 2010 at 2:54 PM , Anonymous Anonymous said...

They should just make everybody pay the lower price as a reward for their loyal customers patience. Why is the price of plat up when a coin comes out and tanks after that? If you don't get your coin early you always take the risk of getting somebody elses returns

 
At August 18, 2010 at 3:05 PM , Anonymous Anonymous said...

That's very true about getting someone else's returns. It's a lousy situation, but the Mint is not going to simply melt down and re-strike returns. They'll just keep selling the coin until someone keeps it. If you end up being the sorry sucker who got someone else's sloppy seconds, you have to either live with it or return it yourself. We have a right to expect a decent product when making an order, especially at this price level.

 
At August 18, 2010 at 5:03 PM , Anonymous Anonymous said...

I am amazed at all the "paranoid" people concerned about "sloppy seconds"...give me a break...do YOU have any actual experience of a "Platinum Proof"....I doubt it...maybe with other Mint products like Proof Sets, but come on....these have such a limited mintage, I don't see "sloppy seconds".

Please correct me if I'm wrong...and I mean no disrespect to those of you you may of experienced this...but please give me some FACTS on Platinum Proofs ONLY!

 
At August 18, 2010 at 6:31 PM , Anonymous Anonymous said...

Basics: very pricey coin, minimal detail on reverse compaired with winning design. Sell out soon, great for flippers. We all know the proof silver ASE has much more eye appeal than any plat to date. Happy for all of you that can afford the $800 bottle of wine on sale for $700 when the $40 bottle tastes better to me! How many days until the Buchanan Liberty?

 
At August 18, 2010 at 7:07 PM , Anonymous Anonymous said...

Hee hee!

Wow, I forgot that Buchanan's Liberty is only two weeks away! It sure got here in a hurry. It will also be the end of Sarah Polk, but that probably won't cause much excitement. Her mintages are already higher than Julia Tyler's.

 
At August 18, 2010 at 7:44 PM , Anonymous Anonymous said...

Got my 2 Plat proofs today. One of them has a glaring ding. Well here you go waiting list guys. You can have my reject with a $100 discount..

 
At August 19, 2010 at 1:53 AM , Anonymous Anonymous said...

I'm really tempted to buy the upcoming Buchanan's Liberty. I'm torn really because there's some actual classic coins on my watch list. I am not really interested in the series itself other than the Liberty coins, and I have yet to own any of them. Looks like it may be a great coin to own and even has potential in the long run.

 
At August 19, 2010 at 4:22 AM , Anonymous Anonymous said...

Received mine with a ding/chip on the obverse...being sent back.

 
At August 19, 2010 at 5:08 AM , Anonymous Anonymous said...

I serious doubt anyone received a plat proof with a "glaring ding". If that were to be true you should photograph it and post it on the internet.

Is platinum more difficult than gold or silver to stamp/ shape? I'd love to know why the Mint way minimized the detail on the reverse. The gold spouse coins have all the detail in the design so why doesn't the plat?

 
At August 19, 2010 at 6:31 AM , Anonymous Anonymous said...

Platinum is a very hard metal. The Mint strikes each coin a whopping FIVE times!

 
At August 19, 2010 at 6:35 AM , Anonymous Anonymous said...

Yes to above commenter, platinum is a harder metal and may be one reason the mint doesn't do much detail on them. I never cared for the plats for that reason plus the cost but for an investment in a retirement acct. they appear to be a goood choice or if you really like them as a collector.

 
At August 19, 2010 at 7:17 AM , Anonymous Anonymous said...

Just received my two coins. As with last year, the design is quite a bit more attractive on the coin than you might expect from the pictures. Unfortunately, I'll be sending one back owing to a "fleck" in the finish on Liberty's crown. Not an uncommon occurrence for the plats in my experience. A keeper if you get a nice one!

 
At August 19, 2010 at 7:42 AM , Anonymous Anonymous said...

The "waiting list" notice just appeared.

 

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