28.8 Cents Prevents US Mint Gold Coin Price Reductions

by CoinNews.net on October 29, 2009 · 2 comments

UHR $20 Double Eagle Gold CoinThe price of gold has been on a five-day price slide, but ironically the timing of the decline was slightly off in helping collectors pay less for US Mint gold collector coins.

The US Mint uses a London Fix weekly gold average to determine whether to keep gold coin prices the same, or adjust them up or down. The average came in 28.8 cents higher than the threshold needed to cause a reduction of UHR Gold Double Eagles by $50, First Spouse Gold Coins by $25, and 2009 Gold Buffalo Proof Coins by $50.

The Buffalos go on sale Thursday at noon ET. Since the London Fix five day average is $1,050.278, the coins will launch with a price tag of $1,360.00. Had the average been at or below $1,049.99, the coin would have been released at $1,310.00.

Now collectors must decide whether to delay their proof Buffalo order until a potential price cut next week. In a typical year, the decision to wait and possibly save a quick $50 would be an easy call. However, this year demand is expected to be heavy, and there is absolutely no indication as to how many the Mint has on hand to sell. Given recent history and the current circumstances, there is at least some risk in delaying.

The following are the figures the US Mint used to arrive at the $1,050.278 gold average:

London Fix Gold Prices
10/28/2009 – Wednesday 1035.50
10/27/2009 – Tuesday 1040.75 1036.50
10/26/2009 – Monday 1055.00 1054.00
10/23/2009 – Friday 1061.25 1061.75
10/22/2009 – Thursday 1054.75 1053.00


The London gold-fixing is a benchmark for gold traded directly between big institutions.

{ 2 comments… read them below or add one }

Matt Adder October 29, 2009 at 4:33 pm

Is this a cover up?! Doesn’t any body check facts or the math?!

While I don’t have access to exact LME AM Fix pricing, I can add the LME AM fix pricing for the last five days, and then divide by 5 so as to get the 5-day average.

The sum total of the AM Fixes used by the Govt is $ 5,247.25. This isn’t rocket science.

This produces an average of $ 1,049.45 and means, and the US Mint’s own PRICING POLICY states that the coin should be priced at $1,310.00 per coin and not the $ 1,360.00 it now imposes.

The Mint’s own website is clear on the policy, which is excerpted as follows from this link http://catalog.usmint.gov/wcsstore/ConsumerDirect/images/catalog/en_US/GoldCoinGrid.pdf :
“*The new pricing methodology is based primarily on the London Fix weekly average (average of the London Fix prices covering the previous Thursday A.M. Fix through the Wednesday A.M. Fix) gold prices, which reflect the market value of the gold bullion that these products contain.”

It is important to note that the PDF page downloadble as of today, differs from those previously available via download. The prior versions of this pricing grid didn’t highlight only the 1 oz proof Buffalo.

We all grew up knowing what bait & switch was. Well, it seems as if the US Mint is engaged in stating one thing about its pricing POLICY and then acting to its own interests when 55 CENTS ensured it would lose $50 per coin.

This is a fraud perpetrated by GOVERNMENT employees who have changed the policy to ‘TAKE IT OR LEAVE IT’.

FOUL! Dear US Mint, please act in accordance with your own pricing policy and remedy this situation by immediately refunding us our $50 per coin for each overcharge you wrongly imposed for purchases made during this period. Maintain such integrity and then and only then will all be well between you and us, your customers.

Paul October 29, 2009 at 5:08 pm

“While I don’t have access to exact LME AM Fix pricing, I can add the LME AM fix pricing for the last five days, and then divide by 5 so as to get the 5-day average.”

No. You add the 9 price fix numbers together, and then divide by 9.

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