US mint suspends gold coin sales?

[The Outback Oracle]

Re: US mint suspends gold coin sales?

I think we are seeing something akin to just what you refer to, a decoupling of the physical and paper/electronic markets. One the supply is LIMITED, the other is not.

Here is a notice from bulliondirect. I've seen the same thing at kitco, in coin stores, you name it. Not just in my area. Went home to Oregon for vacation and saw the same thing.

All I'm saying is that strange behavior is occuring (just like when Nixion tried the second round of price controls, shortages resulted). Me thinks we are seeing the same mechanism at play presently.

Welcome to Bullion Direct!

Sunday, August 17, 2008

High Activity Market Alert

The precious metals industry is experiencing a substantial surge in activity which may increase the possibility of logistical delays; including customer service response time, product processing (incoming and outgoing), and product transport/fulfillment. Certain silver products are delayed as much as 2-4 weeks. Please review Catalog descriptions for notices regarding such delays. We are working diligently to fulfill all orders in a timely fashion while maintaining competitive prices. We appreciate your patience and understanding. The Bullion Direct Team Also just look at the prices the mint is charging, these are insane considering the spot price for example: 2008 American Eagle One Ounce Silver Uncirculated Coin (Z8F) Price: $25.95 Qty. More Info. 2008 American Eagle One Ounce Gold Uncirculated Coin (Z8A) Price: $1,119.95 Qty. More Info. 2008 American Buffalo One Ounce Gold Uncirculated Coin (BV8) Price: $1,059.95 Qty. More Info. Kind of reminds me of this quote in action Voltaire (1694-1778). “Paper money eventually returns to its intrinsic value ---- zero.”

I just checked the Perth mint, A$95.00 for a 1oz Silver coin!!! (USD $81.00)! And you lot think you are getting ripped off!

[jtabeb]

Re: US mint suspends gold coin sales?

I just checked the Perth mint, A$95.00 for a 1oz Silver coin!!! (USD $81.00)! And you lot think you are getting ripped off!

Go to bulliondirect.com, they are STILL quoting spot + spread for coins. (don't know if it is deliverable, but worth a shot.)

[Guest]

Re: US mint suspends gold coin sales?

I just checked the Perth mint, A$95.00 for a 1oz Silver coin!!! (USD $81.00)! And you lot think you are getting ripped off!

Outback -

It's not a question of who is getting ripped off - coming from the PERTH MINT, this announcement is like a three alarm fire engine klaxon going off. The spread is out of never never land. This is fascinating info coming from the Perth Mint. Strange world indeed in August 2008. Would you say to any extent that this tips their hand on their purported massive bullion holdings? Or what is the most rational, skeptical, non-tinfoil hat explanation here?

[The Outback Oracle]

Re: US mint suspends gold coin sales?

Outback -

It's not a question of who is getting ripped off - coming from the PERTH MINT, this announcement is like a three alarm fire engine klaxon going off. The spread is out of never never land. This is fascinating info coming from the Perth Mint. Strange world indeed in August 2008. Would you say to any extent that this tips their hand on their purported massive bullion holdings? Or what is the most rational, skeptical, non-tinfoil hat explanation here?

\
Right,,,here is their price list for today.
DATE: 18/08/08 Troy Ounce = 31.103 grams
OPENING GOLD PRICE: $923.02 1 Kilogram = 32.151 ozt.
PRICE UPDATE AT: 9:08am 1 AUD will buy 0.8712 USD





AU$ SPOT US$ SPOT
GOLD AU$923.02 US$804.14 fine oz
SILVER AU$15.44 US$13.45 fine oz
PLATINUM AU$1649.83 US$1437.33 fine oz
PALLADIUM AU$356.49 US$310.57 fine oz(s3b



WE SELL WE BUY
(s0b
GOLD COINS - KANGAROO NUGGET/LUNAR 9999
1/20 ounce 71.53 45.23
1/10 ounce 129.22 90.46
1/4 ounce 299.98 226.14
1/2 ounce 498.43 452.28
1 ounce 978.40 904.56
2 ounce 1,938.34 1,809.12
10 ounce 9,599.41 9,045.60
Kilo Coin 30,269.54 29,082.50

GOLD CAST BARS - Perth Mint 9999
1/2 ounce 480.51 452.28
1 ounce 948.02 904.56
2.5 ounce 2,334.55 2,261.40
5 ounce 4,651.10 4,522.80
10 ounce 9,282.28 9,044.70
20 ounce 18,545.55 18,089.39
Kilo Bar 29,802.25 29,079.79
50 ounce 46,341.38 45,223.48

GOLD MINTED BARS - Perth Mint 9999
1 gram 43.04 28.95
2.5 gram 98.34 72.36
5 gram 191.61 145.63
10 gram 371.21 291.27
20 gram 633.00 581.63
1 ounce 948.02 904.56
50 gram 1,514.22 1,454.53
100 gram 3,042.51 2,908.16

PLATINUM COINS - KOALA 9995
1/20 ounce 127.86 80.02
1/10 ounce 230.98 160.03
1/4 ounce 536.19 400.08
1/2 ounce 890.91 800.17
1 ounce 1,748.82 1,600.34
2 ounce 3,464.64 3,200.67
10 ounce 17,158.23 16,003.35
Kilo Coin 54,104.56 51,452.37






(s3b












WE SELL WE BUY
(s0b
SILVER COINS - KOOKABURRA/LUNAR 999
1/2 ounce 14.72 7.49
1 ounce 25.44 14.98
2 ounce 45.88 29.95
5 ounce 112.20 74.88
10 ounce 209.40 149.77
1/2 kilo 323.20 240.75
Kilo Coin 589.41 481.52

SILVER BARS - PERTH MINT 999
10 ounce 166.40 142.80
20 ounce 326.80 285.60
Kilo Bar 522.41 459.12
50 ounce Discontinued 714.00
100 ounce 1,618.00 1,428.00
250 ounce N/A 3,570.00(s3b

Their price on a 10 oz Silver Coin is 33% above spot. The price on a 10oz Silver Bar looks only aboiut 6.5% over Spot. The Silver Coin is legal tender and that has some advantage.

[The Outback Oracle]

Re: US mint suspends gold coin sales?

Outback -

It's not a question of who is getting ripped off - coming from the PERTH MINT, this announcement is like a three alarm fire engine klaxon going off. The spread is out of never never land. This is fascinating info coming from the Perth Mint. Strange world indeed in August 2008. Would you say to any extent that this tips their hand on their purported massive bullion holdings? Or what is the most rational, skeptical, non-tinfoil hat explanation here?

It would appear the $95.00 price is for a run of 1000 of the particular coin. So I guess it is an attempt to create nuismatic value in keeping with the bigger fool theory. Normal commercial practice i would say.
Cheers

[Spartacus]

BART and Idianov - do you want to post a guess?

The US Mint represents fabrication demand side for raw gold. If they truly suspended production of gold coins and reduced the fabrication demand for raw material, then gold refirners and gold producers must turn to the market to sell their gold.

My local pawn shop owner friend has told me that local refiners in Vancouver got stuck with excess inventory after run-up to $1000/oz in March, which somewhat supports the story.

It does look like a clever attempt of the US government to manipulate the price of gold, but what do I know? The last time US Mint announced suspension of gold coin sales was in October 2007, which followed by a gold rush to $1000/oz.

will the big commercial shorts end up higher (IOW, will they have more short contracts - absolute or relative to the total open position) after this flushout, or was this meant as a way to reduce the short position?

My take has been that the Mint knows what's going on, but is not necessarily a participant in the manipulation

They're stopping the sales because they don't want to be a target for arbitrage - if no one will sell you Silver and Gold at spot, but the mint will, that's a lot of $100 bills lying on the ground ready to be picked up ....

[Spartacus]

Re: US mint suspends gold coin sales?

Sorry dude, GIGO, I thought it was valid

ALWAYS REMEMBER - lease rate without LIBOR means nothing.

IMHO many of the strangest happenings in lease rate (Silver and Gold) have nothing to do with Silver or Gold and more to do with LIBOR.

[metalman]

Re: US mint suspends gold coin sales?

ALWAYS REMEMBER - lease rate without LIBOR means nothing.

IMHO many of the strangest happenings in lease rate (Silver and Gold) have nothing to do with Silver or Gold and more to do with LIBOR.

don't you mean lie-bor?

LIBOR Sends Another Shaky Signal to the Global Financial Markets By Martin Hutchinson
Contributing Editor

The news that the London Interbank Offer Rate (LIBOR) system of setting interest rates is running into trouble was surprising at first glance. It seems some banks are giving phony LIBOR quotations that don’t reflect the true rates at which they accept deposits. In the perfect financial system, beloved of regulators and academics, this kind of discrepancy shouldn’t happen.

In the real world it does, and I’ll explain why.

The LIBOR system was set up in the 1960s, when the market for dollar-denominated bank deposits outside the United States grew big enough to worry about. On a daily basis, the British Bankers Association would go to 16 banks, which were thought to be top quality, and ask those banks at what rate deposits were being offered. Assuming an honest reply, the data would be compiled to determine the average rates at which deposits were offered to prime banks. The average of the 16 banks becomes that day’s LIBOR - for 1-month, 3-month, 6-month or other period deposits.

Should be a foolproof system, right?

[jtabeb]

Re: US mint suspends gold coin sales?

Got this from la metropole via an email (not from their pay site, so should be okay to post)

Le Metropole Members,

U.S. mint suspends gold coin sales; futures price is a fiction

Submitted by cpowell on 09:27PM ET Thursday, August 14, 2008. Section: Daily Dispatches
12:25a ET Friday, August 15, 2008

Dear Friend of GATA and Gold:

The U.S. Mint has suspended sales of American Eagle gold coins and is refusing orders from dealers, two coin and bullion dealers confirmed Thursday.

The mint's suspension of gold coin sales follows its tight rationing of sales of silver eagle coins, begun in May, when sales to the public were terminated and sales to the mint's 13 authorized dealers were tightly limited.

Word of the mint's suspension of gold coin sales came from the American Precious Metals Exchange in Edmond, Oklahoma, (http://apmexdealer.blogspot.com/2008/08/news-alert-us-mint-suspends-sales-of.html) and from Centennial Precious Metals in Denver, Colorado.

The suspension is overwhelming evidence that the futures contract price of gold on the commodities exchanges is substantially below the physical market price and that, indeed, the commodities exchanges are being used as GATA long has maintained -- as part of a massive scheme of manipulation of the precious metals, currency, and bond markets.

Michael Kosares, proprietor of Centennial Precious Metals and host of its Internet bulletin board, the USAGold Forum (http://www.usagold.com/cpmforum/), explained Thursday:

"The U.S. Mint buys direct from the refiners, and this suspension of gold eagle sales may be an indication that the supply line is already backing up, or that the mint expects that it will back up for the rest of the year. I wonder who would give up physical metal at these prices and under these circumstances except distressed sellers. The central banks are in a hunker-down mode as far as I can determine, and it's the mines that supply the refiners. So if the mint, which buys from the refiners, is having a difficult time locating metal, what does that tell you? I keep saying that we may get a surprising rubber-band effect later in the year when the pre-holiday/festival season kicks off in September/October. It may happen sooner. One of our indicators of approaching a bottom in gold is how many calls Centennial Precious Metals gets from our U.S.-based Indian clientele. Here's a quote from my office's report to me at the end of the day today: 'Today was a good day. ... There must have been an Indian convention where someone was handing out USAGold business cards.' That may give you a clue as to thinking in India proper and probably the rest of the Asian rim."

That is, through their agents the bullion banks the Western central banks, desperate to prop up a corrupt and totteringt financial system, have put gold so much on sale that even the U.S. Mint can't find any now. The price reported from the commodities markets is a fiction -- a scary one, perhaps, but a fiction no less.

You can strike a blow at the market riggers who are defrauding the world -- just buy a little real metal. The dealers listed at the bottom right of this dispatch will be glad to help you do it.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

It is NOW OFFICIAL NEWS, check it out:

http://www.fxstreet.com/fundamental/...008-08-18.html

[Spartacus]

Re: US mint suspends gold coin sales?

[/I][/I]

don't you mean lie-bor?

[URL="http://www.moneymorning.com/2008/04/18/libor-sends-another-shaky-signal-to-the-global-financial-markets/"]

Exactly.

but IMHO, LIE-bor has much less effect on Silver & Gold than the CRIMEX & their buddies / cohorts / enablers at their "regulator"[*], the Criminal Futures Treason Commission (CFTC).

[*] insert the Joker laugh here, as he walks into the mob meeting with the Hong Kong financier on the TV
he he ha ho heeee haaa ha

[jmdpet]

Re: US mint suspends gold coin sales?

It happened again:

http://www.ft.com/cms/s/0/e8bc3d72-8...0779fd18c.html

Gold coin sales halted after retail rush
By Javier Blas in London
Published: September 25 2008 23:03 | Last updated: September 25 2008 23:03
The rush by retail investors into gold on Thursday forced the US government to “temporarily” suspend the sales of the popular American Buffalo one-ounce bullion coin after depleting its inventories.

The shortage of gold coins is the latest sign of investors seeking a safe haven into bullion amid Wall Street woes. Gold prices this week surged above $900 an ounce, up about 20 per cent from its level before the collapse of Lehman Brothers.

Safe-haven buying spurred by a weakening dollar and rising inflation on the back of high commodity prices have also benefited gold sales, analyst said.

The US Mint said in a memorandum that “demand has exceeded supply” and, therefore, it was “temporarily suspending sales of these coins”. “We are working *diligently to build up our inventory and hope to resume sales shortly,” it added.

Spot gold in New York on Thursday traded at $875 an ounce, down $5 on the day. Traders said bullion prices came under pressure from a strengthening in the dollar. Gold set a record of $1,030.80 an ounce in March.

The US Mint said it has sold 164,000 ounces of gold in American Buffalo one-ounce bullion coins since January, almost 54 per cent more than in the same period of last year. Demand for other gold coins from the US Mint is also very strong.