US Mint Runs Out Of Buffalo Gold Coins, Will Not Restock

[MNeagle]

In what appears to be a beginning of the rerun from late April, when mints all around the world were running out of bullion and dealers had no coins in inventory, the US Mint has announced it has run out of one ounce Gold Buffalo coins: "The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins." And even though one can't eat the gold coins, this is happening as gold is touching daily fresh record prices. Oddly enough, as Reuters reports: "The mint said it will not stock more of the 1-ounce, 24-karat American Buffalo bullion coins." Keeping in mind that the Buffalo is "among the world's purest gold coins in terms of the fineness of the metal they contain" one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock "more diluted" versions of gold bullion.

From Reuters:

The U.S. Mint has run out of a type of highly pure gold coin it had been selling amid record high prices of gold.

The mint said it will not stock more of the 1-ounce, 24-karat American Buffalo bullion coins.

"The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins," the Mint said in a statement, seen by Reuters on Monday.

Officials at the Mint could not immediately be reached for comment.

Gold prices have hit record highs over the last two weeks, breaching $1,300 an ounce, as investors bought into the precious metal on global economic health worries and possibilities of more U.S. stimulus programs that could weaken the U.S. dollar.

This year alone, gold prices have risen more than 18 percent. Fund managers and industry experts think the rally has further to run in the longer term as gold provides a hedge against inflation amid expectations that central banks worldwide could resort to more monetary easing to support their economies.

Most importantly, the US Buffalo is actually priced about 20% over spot, and was last sold for $1,560. And even this massive premium over "NAV" has not stopped the flood of retail buying. Either this, or the mint has been order to redirect all physical holdings of ultra pure gold into the vaults of LBMA dealers for physical sequestration. Our money is on the latter, now that there is a major run on physical gold both in retail demand, in ETFs and in virtually every other market. We expect to see more global gold dealers to announce inventory depletions shortly.

h/t Mark McHugh

ZH (http://www.zerohedge.com/article/us-mint-runs-out-buffalo-gold-coins-will-not-restock?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)

[joe_momma]

In a follow-up statement, GLD announced it would make available as many 100% pure paper gold certificates.

The additional 100% paper notes are backed by the promise that they really mean to provide paper should there be a demand for physical.

;D

Look for premiums on all coins and bars to bounce up!

[ShortJohnSilver]

Keeping in mind that the Buffalo is "among the world's purest gold coins in terms of the fineness of the metal they contain" one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock "more diluted" versions of gold bullion.

OK, this is a dumb, stupid, ignorant comment. 99.9 vs 99.99 percent pure is more of a refining or manufacturing issue, not one having to do with physical availability of gold. Probably the morons at the Mint didn't feel like ordering more blanks from their supplier.

[JohnQPublic]

I also saw somewhere that they are discontinuing Gold Eagles, and it did not sound like just the collectors series. Anyone else see this?

[osoab]

I also saw somewhere that they are discontinuing Gold Eagles, and it did not sound like just the collectors series. Anyone else see this?


U.S. Mint Suspends Sales of American Eagle Gold Coins (Update1) (http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKIgT9DddcYY)


Aug. 21 (Bloomberg) -- The U.S. Mint suspended sales of its 1-ounce ``American Eagle'' gold coins after soaring commodity prices led collectors and investors to deplete supplies.

It is the first time in two decades that the Mint halted sales of the coins, which are made of 22-carat gold from domestic mines. The coins also contain small amounts of alloy for hardening.

In a memo to dealers dated Aug. 15, Cathy Laperle, a Mint official, said: ``Due to the unprecedented demand for American Eagle Gold One Ounce Bullion coins, our inventories have been depleted. We are therefore temporarily suspending all sales of these coins. We are working diligently to build up our inventory and hope to resume sales shortly.''

Gold prices soared over the past year, with the most active gold futures reaching a record $1,033.90 an ounce on March 17 as the price of crude oil increased and the dollar weakened against the euro and other currencies. Commodity prices have since retreated.

American Eagle coins, introduced in 1986, are also available in other weights as well as silver and platinum. The suspension was reported in today's editions of The Wall Street Journal.

To contact the reporter on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net

To contact the editor responsible for this story: Chris Anstey at canstey@bloomberg.net


I couldn't find this on the mint site, though. :conf:

Edited text size. I had one at 40. :o

[madfranks]

Keeping in mind that the Buffalo is "among the world's purest gold coins in terms of the fineness of the metal they contain" one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock "more diluted" versions of gold bullion.

OK, this is a dumb, stupid, ignorant comment. 99.9 vs 99.99 percent pure is more of a refining or manufacturing issue, not one having to do with physical availability of gold. Probably the morons at the Mint didn't feel like ordering more blanks from their supplier.


The Buffalo is pure 24 karat gold (.9999 fine), while the alternate American bullion coin, the Gold American Eagle, is around 22 karat, with 90% gold and 10% silver/copper alloy.

[ShortJohnSilver]

Keeping in mind that the Buffalo is "among the world's purest gold coins in terms of the fineness of the metal they contain" one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock "more diluted" versions of gold bullion.

OK, this is a dumb, stupid, ignorant comment. 99.9 vs 99.99 percent pure is more of a refining or manufacturing issue, not one having to do with physical availability of gold. Probably the morons at the Mint didn't feel like ordering more blanks from their supplier.


The Buffalo is pure 24 karat gold (.9999 fine), while the alternate American bullion coin, the Gold American Eagle, is around 22 karat, with 90% gold and 10% silver/copper alloy.


Thanks for the correction. They do however, each contain 1 ozt of gold, so whether a person bought one coin or the other, the same amount of gold would be required; which was the point I was trying to make.

[madfranks]

Keeping in mind that the Buffalo is "among the world's purest gold coins in terms of the fineness of the metal they contain" one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock "more diluted" versions of gold bullion.

OK, this is a dumb, stupid, ignorant comment. 99.9 vs 99.99 percent pure is more of a refining or manufacturing issue, not one having to do with physical availability of gold. Probably the morons at the Mint didn't feel like ordering more blanks from their supplier.


The Buffalo is pure 24 karat gold (.9999 fine), while the alternate American bullion coin, the Gold American Eagle, is around 22 karat, with 90% gold and 10% silver/copper alloy.


Thanks for the correction. They do however, each contain 1 ozt of gold, so whether a person bought one coin or the other, the same amount of gold would be required; which was the point I was trying to make.


Your point is valid. I've never heard of anyone complaining about the "diluted" alloy of gold in the GAEs anyway.

On another note, this article makes me think that if the mint can't keep up with demand for physical gold coins for the second year now, that's actually a good sign that metal is getting into the hands of individual people across this country. I think that's a good thing.

[joe_momma]

Once again the evil leaders of the United States have allowed the American Buffalo to go (nearly) extinct!