US Mint Raises Premiums on Gold Buffalo, Platinm Eagle

Many are confused by the US Mints’ recent decision to raise premiums on many products – like the 1 oz Gold Buffalo and 1 oz Platinum Eagles – but considering the volatility in precious metals prices, with gold bullion falling back towards $1550 in recent weeks and silver hovering below $30 for most of the last year, it makes sense that the US Mint would have to protect itself against manipulation.

Last year the US Mint saw its luxury numismatic products decline amidst a souring economy in which 50% of the nation is under the poverty line.  But, this year, the US Mint and the Royal Canadian Mint have seen extraordinary demand as of late. The price hike is to defend the US government against volatile precious metals spot price in the modern state-run economy.  The US has among the most expensive gold bullion coins in the world, leaving many world-class bullion investors to favor instead the Gold Philharmonic, Gold Krug or Gold Maple Leaf.

Higher prices were called for in December and january as the Mint was having trouble keeping with demand.  New prices were printed in the Federal Register, and the Platinum Eagle now has a premium of more than $400. $2,000 a Platinum Eagle. Many people are turning to other mints:

I made the decision to buy a bullion gold Britannia instead and ordered last week. The US Mint can find someone else to sell their overpriced proof coins that immediately lose value on the secondary markets to. I’d also thought about buying the new platinum eagle as I liked both top contenders for those designs as well. Count me out on those as well, a $108 premium increase is just too much.

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