Price Rise in US Mint Numismatics Posted by James Randolph on June 20, 2012
June 20, 2012 – Prices for US Mint numismatic gold coins, commemorative gold coins, and
platinum coins will rise absent a fall in prices. Since last Thursday, the price Fix in
London has registered gains in gold.
Unless the Wednesday’s London PM fix falls below $1,600, particularly after the
Federal Reserve meeting this week, then seventeen gold coin prices will change.
The coins that will reflect a direct price change include six of the US Mint’s First
Spouse Gold Coins, six of its numismatic American Gold Eagle coins, two of its proof
American Gold Buffalo coins, and three of its Star-Spangled Banner commemorative
gold products. The price of the proof American Platinum Eagle coin will change unless
Platinum’s PM Fix falls below $1,450 per ounce.
The US Mint uses the London Fix to determine a weekly average price of two
precious metals and uses the information to determine whether its coins need price
adjustments. Wednesday’s AM Fix and Thursday’s AM Fix are primarily used with the
Wednesday PM Fix as a last indicator.
The range currently being utilized allowed for gold to move between $1,550
and $1,599.99 per ounce and platinum to move anywhere from $1,350 to $1,449.99 per
ounce. The average for gold, however, registered at $1,621.87 as of the Tuesday PM Fix
and platinum registered $1,487.12, rendering the Wednesday PM Fix crucial.
This coincides with the Federal Open Markets Committee meeting that will
determine monetary policy on the part of the Federal Reserve. The Committee is meeting
and will conclude its proceedings Wednesday. Operation Twist, the economic stimulus
program, is set to expire at the end of June and many investors anticipate some type of
reaction from the Fed.
Many markets, including gold, awaited the Fed decision on Tuesday and
Thursday. There is no clear indication prior to the meeting whether the Fed will pursue a
Spot prices currently have gold near $1,623 per ounce and platinum near $1,484
per ounce. Coin prices must rise by one tier on the US Mint pricing grid without a distinct
price change as of the Wednesday PM Fix. The Fed’s policy announcement will directly
affect the price change.