US Mint Expected to Cut Proof Platinum Eagle Price, Not Gold Coins

by CoinNews.net on May 8, 2012 · 5 comments

2011 Proof American Platinum Eagle

2011 Proof Platinum Eagle

On Wednesday, collectors are likely to see the U.S. Mint lower its price for the 2011-W Proof American Platinum Eagle. The current Platinum Eagle price of $1,892.00 should drop $100 to $1,792.00. That would be $300 lower than when the coin was first introduced in May 2011 at $2,092.00.

In order for a reduction to kick-in, Wednesday’s London PM Fix for platinum needs to be is less than $1,550.00 an ounce. That likelihood is high since today’s PM Fix was $1,514.00 an ounce and the current spot price is down even further at $1,504.00 an ounce.

[Update: The United States did in fact reduce the Eagle’s price. As of 11:45 AM ET on Wednesday, the proof coin was available for $1,792.00. As expected, prices for the bureau’s numismatic gold coins remained the same.]

U.S. Mint’s Coin Pricing Process

The U.S. Mint uses a weekly average of the London Fix for gold and platinum to judge whether to adjust pricing on coins composed of them. The average is compared to a set of pre-determined levels which are posted on a grid found on the U.S. Mint’s website (see a PDF of it here). The prices from Thursday AM through Wednesday AM are used to calculate the weekly average, and then the Wednesday PM is used as a directional indicator.

The range used for the current Proof Platinum Eagle price is between $1,550.00 and $1,649.99. As of today the average is $1,533.66, which is clearly lower. But the U.S. Mint will not make changes unless the direction component — the Wednesday PM Fix — agrees.

In short, a $100 price cut for the Eagle will occur Wednesday if:

  • the AM Fix is less than $1,648.00 an ounce and
  • the PM Fix is less than $1,550.00 an ounce

The 2011-W Proof American Platinum Eagle may be purchased directly from the United States Mint website at http://www.usmint.gov/catalog, or directly here, and by phone at 1-800-USA-MINT (872-6468). The Mint has yet to indicate when the 2012-dated Eagle will be released.

Pricing on Numismatic Gold Coins

For numismatic gold coins, on the other hand, the likelihood that the United States Mint will change their prices is minute. The London Fix average for gold has held easily between $1,600.00 and $1,649.99, which is the current price setting area. The weekly average as of today was $1,630.50. It would take a sudden and nearly $200 swing in gold prices for the Mint to adjust prices on its gold coins.

If the U.S. Mint changes the price of the Proof Platinum Eagle, it will temporarily suspend its sales while changes are made and tested. This usually occurs between 11:00 a.m. and 12:00 p.m. ET.

The last time the U.S. Mint changed the Platinum Eagle’s price was on March 28, 2012.

{ 5 comments… read them below or add one }

CW May 9, 2012 at 11:08 am

It would be nice if they would reintroduce fractionals.

jim May 9, 2012 at 12:42 pm

As rare as platinum is (more so than gold), I’d much rather see the palladium eagle – get a whole ounce for less than half the price of either gold or platinum, it’s still white like platinum or silver, and finally a different design for a change even if it’s the old mercury dime obverse.

Jim May 10, 2012 at 4:48 pm

What I don’t understand is why investing in platinum needs to be made so damn hard! I want to invest in platinum and silver but the value-added tax is just never going to let it become a serious investment. What’s with the gold favoritism?!

jim May 12, 2012 at 3:13 am

Gold is much more plentiful than platinum is so it’s easier to find in different forms like ingots, coins, jewelry. Plus it’s got color so can’t be confused with silver or palladium, and is softer and more malleable than platinum. There was a time a few years ago when platinum sold for $550+ more than gold. That day will probably come around again when the economy turns around (however long that may take).

Darkseid1998 May 16, 2012 at 6:44 am

Looks like the U.S. mint will be holding off in releasing these coins until the price of platinum recovers. I sense the prices will recover around the summer or fall when these bozos down in all ST stop buying the dollar and stop focusing on Greece. For now, it is time to buy doubles of coins already released or catch up on the platinum eagle collection. I am caught up with the collection with these fire sale prices in platinum.

Leave a Comment