US Mint Resumes Gold Coin Orders On Limited Basis

[MalteseFalcon]

http://www.reuters.com/article/busin...39668920080825

NEW YORK (Reuters) - The U.S. Mint said it must allocate the American Eagle bullion coins among dealers to cope with overwhelming demand as it resumed taking orders for the popular coins on Monday.

"The unprecedented demand for American Eagle gold one-ounce bullion coins necessitates our allocating these coins among the authorized purchasers on a weekly basis until we are able to meet demand," the U.S. Mint told its authorized American Eagle dealers in a memo dated August 22.

Last week, soaring demand forced the U.S. Mint to suspend temporarily sales of the American Eagles, creating a shortage in the one-ounce version of the coins, which are also available in other weights and denominations.

American Eagle gold coins have been popular novelties among collectors and investors since their introduction in 1986. The coins offer people an easy, tangible way to invest in the gold market, as opposed to buying an exchange-traded fund or other financial instrument.

Coin dealers from the United States and Canada reported a surge in buying of bullion coins and other gold products since prices plummeted from highs last month, contributing to supply fears.

The buying spree and the subsequent shortage of the Eagles have improved momentum in gold as market participants interpret it as a sign of increasing retail investor interest in gold and other precious metals.

The Mint said that it will equally divide its Eagles inventory available for sale each week into two equal pools, with the first allocated equally among all authorized dealers, and the second pool distributed according to the dealers' past sales performance.

Allocation will continue for the American Eagle silver bullion coins, another popular item, the U.S. Mint said.

In addition, the Mint said that it currently has inventory for American Buffalo one-ounce 24-karat gold coins, American Eagle gold fractional coins, including the half-ounce, quarter-ounce and 1-10th ounce, and American Eagle Platinum in all denominations.

Spot gold traded at $822 an ounce on Monday, sharply below its all-time high of $1,030.80 on March 17.

[BBcardsRI]

Nice to see they started back up. A lot of people on silver/gold seek were up in arms about the stoppage.

Even the government is short on the PM's :P

~Dave

[vibes]

WASHINGTON (AP) _ The U.S. Mint is temporarily halting sales of
its popular American Buffalo 24-karat gold coins because it can't
keep up with soaring demand as investors seek the safety of gold in
these turbulent economic times.
Mint spokesman Michael White said Friday that the sales were
being suspended because demand for the coins, which were first
introduced in 2006, has exceeded supply and the Mint's inventory of
the coins has been depleted.
The Mint had to temporarily suspend sales of its American Eagle
one-ounce gold coins on Aug. 15 and then later that month announced
sales of the American Eagle coins would resume under an allocation
program to designated dealers.
White said the Mint expected to soon start distributing
available Buffalo gold goins through a similar allocation program.