US Mint suspends Gold Coin production

gscraig · 10-12-2009, 05:18 PM

This came from an Investor Newsletter I received that I pay little attention to, but found this a bit interesting.
It points out the likely reason the US Mint is doing this, but due to our debt, China seeking re-payments and recovering missing gold (and other reasons). There may be more to this than what is speculated in the newsletter.

Those of you who are Economy Savy please feel free to chime in...

Being a short newsletter write up, I will simply post the article;

The Daily Profit 10/12/09

In an official--but quiet--release the United States Mint suspended production of the ever popular gold eagle coins until further notice.
When companies see increased demand for their products they ramp up production. But not the U.S. Mint.
Why? It's simple, it's the government version of contango, where a commodities holder (in this case the U.S. Mint with gold) has determined that the far future price of that commodity will be greater than the near future or spot price and therefore refuses to sell.
The U.S. Mint has determined that by hoarding the gold they already own and purchased at lower than current spot prices they can increase their profit margins later by suspending production and sales until gold reaches the $1,200 - $1,400 range most analysts believe is coming.
So if the U.S. Mint is willing to defer profits today for greater profits tomorrow, then you know gold's going up.

10-12-2009, 05:18 PM	#1
gscraig Avalon Senior Member Join Date: Mar 2009 Posts: 335	US Mint suspends Gold Coin production This came from an Investor Newsletter I received that I pay little attention to, but found this a bit interesting. It points out the likely reason the US Mint is doing this, but due to our debt, China seeking re-payments and recovering missing gold (and other reasons). There may be more to this than what is speculated in the newsletter. Those of you who are Economy Savy please feel free to chime in... Being a short newsletter write up, I will simply post the article; The Daily Profit 10/12/09 In an official--but quiet--release the United States Mint suspended production of the ever popular gold eagle coins until further notice. When companies see increased demand for their products they ramp up production. But not the U.S. Mint. Why? It's simple, it's the government version of contango, where a commodities holder (in this case the U.S. Mint with gold) has determined that the far future price of that commodity will be greater than the near future or spot price and therefore refuses to sell. The U.S. Mint has determined that by hoarding the gold they already own and purchased at lower than current spot prices they can increase their profit margins later by suspending production and sales until gold reaches the $1,200 - $1,400 range most analysts believe is coming. So if the U.S. Mint is willing to defer profits today for greater profits tomorrow, then you know gold's going up.