Wednesday, September 29, 2010
In what appears to be a beginning of the rerun from late April, when mints all around the world were running out of bullion and dealers had no coins in inventory, the US Mint has announced it has run out of one ounce Gold Buffalo coins: “The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins.” And even though one can’t eat the gold coins, this is happening as gold is touching daily fresh record prices. Oddly enough, as Reuters reports: “The mint said it will not stock more of the 1-ounce, 24-karat American Buffalo bullion coins.” Keeping in mind that the Buffalo is “among the world’s purest gold coins in terms of the fineness of the metal they contain” one wonders just how heavy the physical depletion of ultra pure gold must be for the mint to only stock “more diluted” versions of gold bullion.
The U.S. Mint has run out of a type of highly pure gold coin it had been selling amid record high prices of gold.
The mint said it will not stock more of the 1-ounce, 24-karat American Buffalo bullion coins.
“The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins,” the Mint said in a statement, seen by Reuters on Monday.
Officials at the Mint could not immediately be reached for comment.
Gold prices have hit record highs over the last two weeks, breaching $1,300 an ounce, as investors bought into the precious metal on global economic health worries and possibilities of more U.S. stimulus programs that could weaken the U.S. dollar.
This year alone, gold prices have risen more than 18 percent. Fund managers and industry experts think the rally has further to run in the longer term as gold provides a hedge against inflation amid expectations that central banks worldwide could resort to more monetary easing to support their economies.
Most importantly, the US Buffalo is actually priced about 20% over spot, and was last sold for $1,560. And even this massive premium over “NAV” has not stopped the flood of retail buying. Either this, or the mint has been order to redirect all physical holdings of ultra pure gold into the vaults of LBMA dealers for physical sequestration. Our money is on the latter, now that there is a major run on physical gold both in retail demand, in ETFs and in virtually every other market. We expect to see more global gold dealers to announce inventory depletions shortly.
This article was posted: Wednesday, September 29, 2010 at 9:18 am