For a second straight week, it appears unlikely that the United States Mint will adjust coin prices on either of its numismatic gold or platinum coins.
Gold and platinum prices have been holding relatively steady in London since Thursday, with gold’s average currently hovering near $1,653 an ounce and platinum’s average just above $1,671.
The threshold for the U.S. Mint’s current gold coin pricing is based on a London Fix gold weekly average of between $1,650.00 and $1,699.99 an ounce. In order for the Mint to drop coin prices, the Wednesday AM fixing would have to fall below $1,627.46, and the Wednesday PM fixing would need to stay under $1,650.00. While certainly more possible given gold’s tumbling performance today, the chances seem slim that tomorrow’s AM price retreats to the needed level. As a reference point, gold prices on Tuesday closed down $20.30 to $1,647.00 an ounce in the New York futures market.
As for platinum, the U.S. Mint’s proof Platinum Eagle pricing is based on the noble metal’s span from $1,650.00 to $1,749.99 an ounce. A much larger swing would be required for the Eagle’s price to get cut. The AM fixing alone would need to plummet under $1,480 an ounce. As of this writing, the futures market has platinum off $28.80 to $1,655.90 an ounce.
I refuse to pay $300.00 over melt. 10% would be plenty or $165.00 a fair price to stamp out this coin. Results have shown there is little gain in own the Proof’ version. Where are the new 5 oz silver and the Spousal coins… The Mint is failing to do it’s job.
Blame the deputy director (I do) who after a year still doesn’t know what to do.
One doesn’t buy proof coins for investment purposes unless you plan on holding them for a very long time. They’re numismatic coins for collectors who are interested in collecting coins and not necessarily in selling them.
Jim;
Hmm, Interesting take on the reason for owning proof coins. I’m somewhat new to the hobby, and I’ve always just collected what I liked. I guess I assumed that proof coins were struck so as to be shiny & lovely & desirable, and make people ooh and ahh at their beauty, etc….and by doing this, they would in fact rise in value accordingly since people tend to collect lovely objects. That’s how I look at them as being “worth more” in 5 years than what I had to pay the US MINT to get them.
This is an interesting dillema. As the prices go up on available coins the mintages stay low. If the mintages end up low, the prices go up in the secondary market. People don’t buy numismatic coins for investment? I would tend to disagree. I don’t consider people that buy bullion as investors. I think they are more hedging. It generally goes back to mintage vs demand on any numismatic coins. Lots of times uncirculated coins are worth more than proofs because of the lower mintages. But, all things being equal people prefer proofs in general as demonstrated by numbers old.… Read more »
The US Mint Proof coins are truly beautiful. And I agree that the low mintages give them a much greater change of appreciating as an investment. The one thing the Mint does well (for the most part) is the Quality and Beauty of their coinage!
I must add this to this discussion. In addition to the cost paid for say a one ounce Gold Proof, if you add the cost of certification and then the minimum of $100 that a sales method such as eBay takes for the sale…. There has to be a significant move ($200+) in the price of Gold over what you paid in order to make a reasonable Profit. It is a bit of a gamble, however, I doubt in the current World situation that Gold will retreat and become undesirable. The low mintages are also a great selling point. An… Read more »