Numismatic Gold Coins Avoid Another Price Increase
For the second week in a row, the United States Mint's numismatic gold products will narrowly avoid a pricing increase. Prices for the 2010 Proof Gold Buffalo, 2010 Proof Gold Eagles, and First Spouse Gold Coins should remain unchanged today.
The US Mint's basic policy for numismatic gold and platinum coins provides that the prices may be adjusted as frequently as weekly, based on the average London Fix price of the metals from the prior Thursday AM to the current Wednesday AM. If the average moves outside of ranges established at $50 increments for gold and $100 increments for platinum, then a pricing increase would generally take place. However, the increase will be avoided if the Wednesday PM price remains within the current pricing range.
This somewhat complicated pricing formula has been put to the test in the past two weeks.
Last week, the average price of gold fell within a higher range of $1,350 to $1,399.99. However, the pricing increase was avoided since the Wednesday PM Fix price remained within the lower $1,300 to $1,349.99 range.
This week, the average price of gold is within the $1,300 to $1,349.99 range, but the Wednesday PM Fix price (set after 11:00 PM ET) seems poised to be in the higher $1,350 to $1,399.99 range. The fact that the Wednesday PM Fix price is higher should not result in a price increase, since the average remains within the current range.
According to the US Mint, the additional Wednesday PM pricing component is in place "to determine the trend with the intention of minimizing changes to prices." Although it does complicate the basic formula, it seems to be having the desired effect, with prices remaining unchanged as the price of gold has moved above and below the $1,350 mark the past few weeks.
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Labels: US Mint
posted by Mint News Blog @ 5:29 AM
11 Comments:
Has the Mint not sent the updated sales report yet?
Uhhhh...the 2009 Silver Quarters Proof Set is back on sale. Cancellations? Or is the Mint going for sales of an even 300,000 units?
Just received this week's numbers, posted here:
http://news.coinupdate.com/us-mint-sales-one-ounce-proof-gold-eagle-sold-out-0519/
I am just wondering if the first spouse sales drop to zero with the next price increase. Their premuim over gold i just way too high. Does the mint ever run sales?
The Mint run sales? HA!
Even in their "Last Chance" or "Last Opportunity" sections, they NEVER mark the prices down. Sheer stubbornness, or stupidity? Your guess is as good as mine.
Even if by some miracle the Mint ever DID run a sale, you can bet it most certainly would NOT be on any products containing precious metal. I'm afraid you're just out of luck on that one.
If the Mint had a sale and lowered prices everyone who had paid full price would scream. And many people probably would stop buying new items in hopes that the price would come down later. Never having a sale is probably a rational marketing plan for them.
November 3, 2010 12:45 PM
You are correct. I remember when the mint lowered the price of the FDC for the 50 State Quarters Program from $19.95 to $14.95 - I was really upset; While some FDC's had sold out at the $19.95, there were many others that I had paid $19.95 for, and then were lowered in price to $14.95. It was not a good feeling to see the products that I purchased from the mint had been put on sale at a 25% discount...
TMM
I didn't realize until several years later that the 50 State Quarter FDCC had EVER cost $19.95. I bought all mine in 2007 for $14.95 each, except the sold out ones from 1999 and 2000. Those set me back a little more in most cases.
I guess even the Mint feels "gougers remorse" ONCE in a while. They must have decided that the premium on those was just a bit excessive! :) However, even $14.95 is a stretch!
Gold is up $36 an ounce today! What's the opposite of pop?
I guess the opposite of "pop" would be "fffff", the sound of a balloon being blown up! :)
Metal is going up and will continue to do so. Yes, there will be occassional drops when some sell for profit-taking and the bubble pop flies will buzz around then. But as long as your gooberment is in the process of destroying the dollar metal is on the way up. The bad news is so will bread, hamburger, green beans, and gasoline.
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