US Mint Price Reductions for Numismatic Gold Coins

by Rhonda Kay on May 16, 2012 · 0 comments

2012-W $50 Proof American Gold Eagle Coin

On Wednesday, the U.S. Mint will reduce prices on its numismatic gold coins, including 2012-W Proof Gold Eagles

Collectors on Wednesday should expect lower prices for certain numismatic gold coins issued by the United States Mint.

Based on the U.S. Mint pricing policy and as a result of consistently lower precious metals prices, price cuts should be applied across several numismatic offerings to include American Gold Eagles, American Gold Buffalo Coins, First Spouse Gold Coins, and Star-Spangled Banner Commemorative $5 Coin products.

[Update: As expected, the United States Mint reduced coin prices Wednesday.]

The U.S. Mint bases its numismatic gold and platinum product pricing on the average weekly price of the precious metals they contain in order to keep coin prices well above their melt values. When the average weekly price, from the Thursday AM Fix through to the Wednesday AM Fix, moves from one predefined range to another on the Mint’s pricing grid, the U.S. Mint looks at the Wednesday PM Fix as the final indicator of the market trend.

Under the present circumstances, the U.S. Mint has been using an average price which falls within a range of $1,600.00 to $1,649.99 an ounce. The most recent average as of Tuesday is easily below the spread, at $1,573.66. Therefore, Wednesday’s PM Fix will be the determining factor.

The U.S. Mint will lower its numismatic gold coin prices if

  • Wednesday’s London gold AM Fix is below $1,810.71 an ounce (guaranteed), AND IF
  • Wednesday’s PM Fix is below $1,600.00 (extremely likely)

The following grid offers the current and expected coin pricing.

Current and Expected Prices for Numismatic Gold Coins

U.S. Mint Numismatic Product Current Prices Expected Prices Price Reduction
Uncirculated First Spouse Coins $966.00 $941.00 $25.00
Proof First Spouse Coins $979.00 $954.00 $25.00
2011 & 2012 American Buffalo $1,910.00 $1,910.00 $50.00
2012 1 oz Proof American Eagle $1,885.00 $1,835.00 $50.00
2012 1/2 oz Proof American Eagle $956.00 $931.00 $25.00
2012 1/4 oz Proof American Eagle $490.50 $478.00 $12.50
2012 1/10 oz Proof American Eagle $210.50 $205.50 $5.00
2011 & 2012 Proof American Eagle 4-Coin Set $3,493.00 $3,400.50 $92.50
2012 Star-Spangled Banner $5 Commemorative ā€“ Proof $497.85 $485.70 $12.15
2012 Star-Spangled Banner $5 Commemorative ā€“ Uncirculated $487.85 $475.70 $12.15
2012 Star-Spangled Banner Commemorative Two-Coin Set $547.85 $535.70 $12.15

 

Notes:

  • The column for expected prices is based on an average for gold that is between $1,550.00 and $1,599.99 an ounce.

  • Uncirculated and proof First Spouse Gold Coins for sale by the United States Mint at the time of this writing honor Lucretia Garfield, Lucy Hayes and Eliza Johnson. The uncirculated coin honoring Julia Grant is also available.

  • If pricing needs adjusting, then the United States Mint will suspend sales temporarily of the applicable coins for several minutes. The process typically occurs sometime between 11:00 a.m. and 12:00 p.m. ET on Wednesday.

Proof American Platinum Eagle Not Affected

For platinum coins, a different set of predefined ranges are used. Instead of a $50 spread, platinum’s weekly average has to change by $100 or more per ounce. That happened one week ago.

The current range in use is $1,450.00 to $1,549.99 per ounce, and the latest London Fix weekly average for platinum as of Tuesday was $1,464.12 an ounce. The odds that Wednesday’s numbers make a difference on that average is slim, which means the proof American Platinum Eagle is expected to remain at $1,792.00.

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