US Mint Resumes Selling One-Tenth Ounce Gold Coins... At A 40% Premium To Spot

Tyler Durden's picture




 

When news broke a month ago that the US Mint had suspended selling one-tenth ounce gold coins, perhaps the most surprising news was that there were thousands of consumers willing to pay the exorbitant retail premium demanded by the US mint, with the resulting order deluge promptly sapping the mint's stretched inventories. Well: we have good news - as of moments ago the US mint has once again restocked on the popular denomination (with a 20,000 production limit), and without a limit per household. The even better news: the coin will set you back just $195. This means a "tiny" 40% premium to spot.

Is there indeed a massive disconnect between spot and physical as the Mint is telegraphing? Nah: must be all those shipping and wrapping costs for the fancy box the coin is put in. Oh wait, the gift box is another $5.95 per order. And no, it isn't the shipping and handling either: that is another $4.95. In other words: the full delivery of one coin to your front door step would cost $200 per one tenth of an ounce. Oh well: we are fresh out of ideas then.

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Tue, 05/28/2013 - 11:48 | 3603702 Xibalba
Xibalba's picture

Get your piece of Ft Knox history! 

Tue, 05/28/2013 - 11:59 | 3603725 gmrpeabody
gmrpeabody's picture

HURRY....HURRY....

Get 'em while they're hot!

(if you're that much of a believer, why not buy a couple of good miners at a 40% DISCOUNT)

Tue, 05/28/2013 - 11:59 | 3603752 malikai
malikai's picture

There you have it, $1900/oz, confirmed by the federal government.

Tue, 05/28/2013 - 12:02 | 3603765 DCFusor
DCFusor's picture

Wow!  Even the government is acknowledging that paper is crap and the great disconnect is happening already.  Who'da thunk it?

Tue, 05/28/2013 - 12:10 | 3603814 DoChenRollingBearing
DoChenRollingBearing's picture

DCFusor writes:  "Who'da thunk it?"

Only those of us who bought..., even the fractionals!

Tue, 05/28/2013 - 12:13 | 3603826 AllThatGlitters
AllThatGlitters's picture

Vindication DoChen?  I recall you saying you liked the fractionals and I was expressing skepticism over the premiums.  

I considered scooping up some 1/10 ouncers when sales were suspended, but failed to do so.  Doh!

Tue, 05/28/2013 - 12:17 | 3603840 DoChenRollingBearing
DoChenRollingBearing's picture

You get the premiums BACK if you sell, to your LCS for example.  But, note that they are selling proofs!  Which always cost more.

Tue, 05/28/2013 - 12:22 | 3603863 americanspirit
americanspirit's picture

CNI (California Numismatic) is selling a tube of 20 1/10 oz Austrian Philharmonics for $3260. Still a hefty premium, but at least you're not feeding the Federal government.

Tue, 05/28/2013 - 12:46 | 3603958 AllThatGlitters
AllThatGlitters's picture

Well, with the Phillies, you are simply feeding another corrupt government.

Although you can at least look at a different design, pay less premium and feel as if you are paying homage to Austrian Economics with them.

But you can also skip the coin premiums and buy 1 oz. bars for significantly less, and get all the pretty designes you want.

BTW - Did anybody notice that spot prices spiked as soon as floor trading opened?

Check it out live: http://www.pmbull.com/gold-price/

 

Tue, 05/28/2013 - 13:06 | 3604085 A is A
A is A's picture

This is for the proof coins not the uncirculated. They always sell the proof coins for insane premiums. Unfortunately they STILL aren't selling the regular uncirculated 1/10th ounce coins. WTF?

Tue, 05/28/2013 - 13:36 | 3604252 derryb
derryb's picture

correct. Nothing has changed. Proof prices are determined by US Mint pricing matrix that is based on weekly spot average.

Tue, 05/28/2013 - 14:06 | 3604355 francis_sawyer
francis_sawyer's picture

Hey Fusor ~ to someone like you... paying a 40% 'markup' to the government on a gold coin should be a bargain compared to your Government Motors Volt...

Tue, 05/28/2013 - 15:36 | 3604645 cynicalskeptic
cynicalskeptic's picture

At least someone gets it -   This is  THE PROOF VERSION

For God's sake - the article makes it sound like this is the bullion coin.......Proofs are always grossly overpriced.

Nonetheless, the Mint is charging one hell of a premium on gold these days - you'd never know that the 'official price' of the metal is under $1400.   

Tue, 05/28/2013 - 12:15 | 3603833 greyghost
greyghost's picture

this article shows 20,000 coin mintage and is for the "proof" coins. "proof" coins have always had a premuim. what is the mark up on the non proof coins?

Tue, 05/28/2013 - 13:08 | 3604089 akak
akak's picture

The only proofs that I give a damn about are 80 and 100.

Tue, 05/28/2013 - 13:36 | 3604253 Tyler Durden
Tyler Durden's picture

Yes, the same "proof" coins that were exhausted a month ago and when the Mint stopped selling them due to record demand.

Tue, 05/28/2013 - 14:19 | 3604404 Bay of Pigs
Bay of Pigs's picture

Posters are calling you a liar Tyler. (see below)

Tue, 05/28/2013 - 14:39 | 3604468 savagegoose
savagegoose's picture

oo if you calc inflation as  dolars vs gold, ....

Tue, 05/28/2013 - 14:38 | 3604467 ncdirtdigger
ncdirtdigger's picture

To my knowledge, there is no law requiring the mint to produce any amount of proof coins. If we wish our govco agencies to operate at something close to profitable, it only makes sense to limit the number of numismatic coins released so as to keep values for them high. 

 Record demand? One can only truley measure 'record demand' if one allows the price discovery mechanism to function freely, not by setting a price and selling out. For all you and I know, there were customers willing to pay even higher premiums for these coins. In fact, go on over to the internet bidding site and see what they are selling for in a relatively free market atmosphere ($200+ at the moment). 'Record demand' would be measured in the price the consumer was willing to pay for a coin which was released in 'limited supply'. 

 This site has gone down fast since it became a member of the ABC media family.

Tue, 05/28/2013 - 15:24 | 3604606 Bay of Pigs
Bay of Pigs's picture

Well, I find the US Mint extremely shady with their sales reporting in general (and for good reason), especially with ASE's. Look at this months totals. 2.6M? That's a joke, and everyone here knows it. Probably double that number.

Tue, 05/28/2013 - 16:29 | 3604883 ncdirtdigger
ncdirtdigger's picture

Well, it is difficult to produce bullion coins when your COMEX positions are settled in fiat and not bullion. :)  I take any govco reports with a pound of salt, and I don't follow the Mint's sales reports as a rule. But perhaps the reported sales are simply a reflection of a limited capacity to produce bullion coins for whatever reason there may be, wether limited capacity or limited raw materials or limited desire to produce.

Tue, 05/28/2013 - 15:41 | 3604671 Diablo
Diablo's picture

Nope. the bullion coins were suspended, not the proof versions. 

Heres your story, just to refresh your memory: http://www.zerohedge.com/news/2013-04-23/us-mint-halts-sales-runs-out-inventory-one-tenth-ounce-gold-coins-due-strong-demand

Tue, 05/28/2013 - 12:14 | 3603832 Seasmoke
Seasmoke's picture

$1950/oz

Tue, 05/28/2013 - 12:20 | 3603861 somecallmetimmah
somecallmetimmah's picture

Coming soon: $950/oz. gold

S&H, on the other hand, is $1,100 per ounce.

But it's still a great deal!!!

Tue, 05/28/2013 - 13:11 | 3604111 Kaiser Sousa
Kaiser Sousa's picture

as the tylers like to say...

presented with out comment...

http://www.kitco.com/charts/livesilver.html

 

Tue, 05/28/2013 - 13:23 | 3604169 Jonas Parker
Jonas Parker's picture

Hmmm.... $195.00 + $4.95 s&h = $199.95 X 10 = $1,999.50 per troy ounce...  hell, let's just say $2,000.00 per troy ounce... sounds about right to me.  :D

Tue, 05/28/2013 - 13:42 | 3604274 kralizec
kralizec's picture

Now up to $1930!  Woo Hoo!

Tue, 05/28/2013 - 12:09 | 3603801 Winston Churchill
Winston Churchill's picture

But wait,order two today and get a free Spiderman towel (s&h extra).

Tue, 05/28/2013 - 12:13 | 3603824 gmrpeabody
gmrpeabody's picture

... and they have a very sharp Ginsu edge for slicing and dicing.

Tue, 05/28/2013 - 12:44 | 3603946 monoloco
monoloco's picture

The agency that's supposed to be in charge of our currency has been reduced to a trinket vendor.

Wed, 05/29/2013 - 04:22 | 3606556 OZZIDOWNUNDER
OZZIDOWNUNDER's picture

Yes Indeed !  Hurry hurry Hurry !!!

Only those with SFB would BUY  ANYTHING from the USA Mint -let alone pay that sort of Premium.

Tue, 05/28/2013 - 12:07 | 3603794 SRSrocco
SRSrocco's picture

As the West continues to Print Money and Fabricate Derivatives, the EAST exchanges worthless FIAT money for Gold.  Looks like the Russian Central Bank is adding more gold to its stockpile:

Russia, Kazakhstan expand gold purchases as prices tumble

http://srsroccoreport.com/russia-kazakhstan-expand-gold-purchases-as-pri...

Tue, 05/28/2013 - 13:02 | 3604055 TahoeBilly2012
TahoeBilly2012's picture

The Feds are selling "money" for 40% above the cost of money....what a deal!

Tue, 05/28/2013 - 15:07 | 3604542 Economicreason
Economicreason's picture

Free 1oz Silver Coin.

I dont mean to spam, but would appreciate your opinions for my survey. The survey will take less than 5 minutes to complete. In return, your name will be entered into a draw to win a 1oz silver coin from Sprott Money.
http://www.economicreason.com/goldismoney/enter-to-win-a-1oz-silver-coin/

Tue, 05/28/2013 - 11:49 | 3603703 GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

Reminds me of what they're doing with ammo.  Make it more rare and more expensive.

Tue, 05/28/2013 - 11:57 | 3603742 somecallmetimmah
somecallmetimmah's picture

No, no. Gold is 'down', didn't you hear?

No one wants it anymore.  That's how-come it's so expensive.

Tue, 05/28/2013 - 11:59 | 3603750 DosZap
DosZap's picture

Reminds me of what they're doing with ammo. Make it more rare and more expensive.

Yep, and the DOD is back up to their past tricks of making the military shred the once fired cases(sell as scrap to China),rather than sell to bulk reloaders (and losing money in the process).This adminstration is dead set on anything to take down the 2nd, and to bankrupt this country.

Tue, 05/28/2013 - 12:19 | 3603852 El Oregonian
El Oregonian's picture

Once china slips in the Ginsu knife they'll not have time to reconsider...

Tue, 05/28/2013 - 11:49 | 3603708 PaperBear
PaperBear's picture

How soon before the premium is 400% ?

Tue, 05/28/2013 - 11:54 | 3603729 Rainman
Rainman's picture

Fed Centennial special edition 1/20th oz ?

Tue, 05/28/2013 - 13:38 | 3604261 MissCellany
MissCellany's picture

Shoot, we're WAY past 400% already. The U.S. "official" valuation of an ounce of gold is $42.22. So a tenth of an ounce is officially valued at $4.22 (that's why the 1/10 coins say "5 Dollars," I guess).

So...a 1/10 gold coin with $4.22 "worth" of gold in it, selling for $195, is already at a premium of...wait for it...

4,620%!!!

Yep, your beloved gummint...makin' a killing sellin' these buggers! There oughta be a law...oh, wait...

Tue, 05/28/2013 - 11:50 | 3603709 apberusdisvet
apberusdisvet's picture

The big clue is the limited Production of only 2000 oz. TOTAL

Tue, 05/28/2013 - 11:55 | 3603735 DosZap
DosZap's picture

Why is it the US buyers pay the highest premiums over spot (at least what I have seen).2000 only, well that explains it, the question is why?,why just 2000.(is this for plain old tenth ounce, or limited run?).Pee Pee on them buy Mapes,or any other soverign small denomination coin.(higher prems than one ounce coins but at least not off the charts.

Tue, 05/28/2013 - 12:05 | 3603781 Quinvarius
Quinvarius's picture

Because they don't want to sell any at all. If they have to sell some, it is going be a very small amount at a very high price.

Look ma! The new plan to stop gold is really high prices!

Tue, 05/28/2013 - 12:44 | 3603950 mt paul
mt paul's picture

the mint must have found

5 good delivery bars

that weren't tungsten 

in the back room ...

Tue, 05/28/2013 - 11:51 | 3603716 tmosley
tmosley's picture

Premiums on small coins have always been high.  What was the premium before they ran out?

Tue, 05/28/2013 - 11:53 | 3603727 fonzannoon
fonzannoon's picture

great question.

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