US Mint Likely to Cut Platinum Eagle Price, Keep Gold Coin Prices Unchanged

Collectors most likely will get a $100 break on the price of the 2011-W Proof American Platinum Eagle. The 99.95% pure platinum coin is poised for a decrease Wednesday, per the recent trend of London platinum and the U.S. Mint’s numismatic pricing system. The Eagle is expected to go from $1,992.00 down to $1,892.00.

The last time the pricing changed for the Platinum Eagle had been on February 29 when it was increased because the PGM metal climbed within the Mint’s coin price setting range of $1,650.00 and $1,749.99 an ounce.

[Editor Update: The U.S. Mint, as expected and at around noon ET on Wednesday, reduced the price of the proof Platinum Eagle by $100 to $1,892.00 and kept its gold coin prices unchanged.]

While surging in London Tuesday, platinum has fallen significantly over the last few days. Since Thursday, the average dipped to nearly $1,631 an ounce which is within the Mint’s lower coin price bracket of between $1,550.00 and $1,649.99 an ounce. The determining price cutting factors will be the Wednesday AM and PM London platinum fixings.

A $100 price cut for the Platinum Eagle will occur if:

• the AM Fix is less than $1,797.96, and
• the PM Fix is less than $1,650.00

It appears unlikely that the United States Mint will change numismatic gold coin prices, since the London Fix average for gold has been holding steady between $1,650.00 and $1,699.99 an ounce. The average between March 22 and March 27 was $1,663.84 an ounce. The U.S. Mint last adjusted gold coin prices on March 7.

The U.S. Mint has a different pricing policy for its investment-grade bullion coins. They change daily based on the latest value of their precious metal composition.

Notes:

• To determine numismatic platinum and gold coin prices, the United States Mint tabulates daily London fixings from the previous Thursday to the following Wednesday, calculates their average and then checks where that average falls within a pre-defined pricing range. The PM fixing on Wednesday is then used as a directional indicator that can trigger or stop adjustments.

• Based on previous pricing adjustments, the United States Mint should halt ordering of the Platinum Eagle sometime between 11:00 a.m. and 12:00 p.m. ET on Wednesday and reintroduce it several minutes later at the lower price.