The shortage of gold coins is the latest sign of investors seeking a safe haven into bullion amid Wall Street woes. Gold prices this week surged above $900 an ounce, up about 20 per cent from its level before the collapse of Lehman Brothers.
Story continues here.
First they ran out of Eagles, then they ran out of Buffalos. This is, of course, only for the year 2008 issues. There are plenty of gold coins out there if you want one. Also, to be on-target, the U.S. Mint "halted" sales because they have no more to sell. They are not hoarding.
While structurally, it is true that the US dollar is backed 100% in gold because you can take your Federal Reserve Notes to the Mint and buy US Gold Eagles (or Buffalos) at the market price, the fact is that "you" cannot. The Mint sells Eagles to a handful of preferred wholesalers. From there, the coins move into the retail channels and eventually over the counter to you. Buffalos, the First Lady Half Ounce Golds, and other Mint items (with higher mark-ups) continue to be sold ... when available. When the US Mint runs out of Mint Sets or Proof Sets, as when they ran out of their Jefferson/Louisiana/Lewis-and-Clark-5-cent-Nickels-in-Little-Leather-Pouches, only collectors care.
The Buffalo is not a "bulllion" coin. It is a proof coin, struck on polished planchets and struck three times. The last price was $1,199.95 per plush boxed presentation. Also, in celebration of Asian good luck charms, the Mint sold a special two-coin set for 08-08-08. (8 is lucky among Asians, any number of reasons why, perhaps, but to the Japanese, the character for 8 looks like a rising mountain and thus symbolizes Mt. Fuji). The two half-ounce coins in a plush box are apparently still priced at $1,228.88 .
If you just want a gold coin, buy sovereigns or something from a dealer. For about eight or ten years now, Canadian Maple Leaf coins were 4-Nines fine, .9999 pure and now the Royal Canadian Mint offers 5-Nines fine, .99999. It's a pretty good product, better than US Mint items.
Story continues here.
First they ran out of Eagles, then they ran out of Buffalos. This is, of course, only for the year 2008 issues. There are plenty of gold coins out there if you want one. Also, to be on-target, the U.S. Mint "halted" sales because they have no more to sell. They are not hoarding.
While structurally, it is true that the US dollar is backed 100% in gold because you can take your Federal Reserve Notes to the Mint and buy US Gold Eagles (or Buffalos) at the market price, the fact is that "you" cannot. The Mint sells Eagles to a handful of preferred wholesalers. From there, the coins move into the retail channels and eventually over the counter to you. Buffalos, the First Lady Half Ounce Golds, and other Mint items (with higher mark-ups) continue to be sold ... when available. When the US Mint runs out of Mint Sets or Proof Sets, as when they ran out of their Jefferson/Louisiana/Lewis-and-Clark-5-cent-Nickels-in-Little-Leather-Pouches, only collectors care.
The Buffalo is not a "bulllion" coin. It is a proof coin, struck on polished planchets and struck three times. The last price was $1,199.95 per plush boxed presentation. Also, in celebration of Asian good luck charms, the Mint sold a special two-coin set for 08-08-08. (8 is lucky among Asians, any number of reasons why, perhaps, but to the Japanese, the character for 8 looks like a rising mountain and thus symbolizes Mt. Fuji). The two half-ounce coins in a plush box are apparently still priced at $1,228.88 .
If you just want a gold coin, buy sovereigns or something from a dealer. For about eight or ten years now, Canadian Maple Leaf coins were 4-Nines fine, .9999 pure and now the Royal Canadian Mint offers 5-Nines fine, .99999. It's a pretty good product, better than US Mint items.
