Gold Prices are Down, Will/Should the U.S. Mint Reduce Bullion Coin Prices?

Gold prices are currently down and they have been since the metal’s high of $1030.80 exactly two weeks ago. New York spot gold at 1:30 p.m. (ET) today was at $916.70 an ounce. While expectations could very well be that gold will eventually climb back and set fresh records, is the United States Mint remiss in not lowering their gold coin prices now to better match the market?

Imagine if the price of a barrel of oil dropped 10%, like gold has from its recent high. After a few weeks, many in the public would expect that the prices at the pump would start to lower. With no other explanations provided, imagine the public’s reaction if gas prices actually increased. Unfortunately, unless changes are made quickly, the position of the Mint will be somewhat similar.

Tomorrow, April 1, the Mint’s 2008 American Eagle Gold Uncirculated coins are being introduced. Their prices are significantly higher than the same series of 2007 dated coins, which were actually adjusted several times higher to compensate for gold’s rise. (Their last adjustment was on Feb 4, 2008. Gold closed that day on $902 an ounce.)

It’s important to state that there are many factors in setting a product’s price and some are less obvious without being directly involved. But it’s hard to explain how 2008 dated coins are so much more than 2007 dated coins. Especially when gold prices have come down since the Mint announced the new 2008 American Eagle Gold Uncirculated prices March 19.

At least one argument can be made about the cost of purchasing bullion inventory at a certain time. But many could counterpoint in arguing that the Mint was exceptionally fast at suspending coin sales when gold increased.

Isn’t it time for the Mint to lower at least some gold coin prices? Should they be launching the new 2008 American Eagle Gold Uncirculated coins tomorrow at the prices set two weeks ago, when gold was just off its newest high?