Re: United States Mint Changes Strategy for Pricing Precious Metals Numismatic Products
- From: "mazorj" <mazorj@xxxxxxxxxxx>
- Date: Thu, 15 Jan 2009 22:07:44 GMT
"Arizona Coin Collector" <nospam@xxxxxxxxxx> wrote in message
news:uN6dnaP6i-IwEvLUnZ2dnUVZ_o7inZ2d@xxxxxxxxxxxxxxxx
FROM:
http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=979
January 15, 2009
United States Mint Changes Strategy for Pricing
Precious Metals Numismatic Products
Washington - The United States Mint announced today it is
implementing a new strategy for pricing numismatic
products containing gold and platinum effective
January 12, 2009. Non-precious metal products and bullion
coins will not be affected by the new pricing strategy.
"Transparency, agility, and customer service are the
catalysts for our new pricing method," said United States
Mint Deputy Director Andy Brunhart. "The volatile precious
metals market prompted our customers to suggest that we
re-vamp our process, and we listened."
The United States Mint published a Federal Register
notice on January 6, 2009, that included an itemized
pricing structure for gold and platinum numismatic products.
(This notice does not affect gold commemorative coin
pricing.) Product prices will fluctuate within the new
structure, which is based on a range of the average market
price for gold and platinum. For gold numismatic products,
the range will be within $50 and, for platinum numismatic
products, the range will be within $100.
Pricing of gold and platinum numismatic products will be
directly related to the average weekly London fix prices
for these metals. If the market value of gold and platinum
moves to a higher or lower range, the price of each product
will be increased or decreased in corresponding increments.
For example, if the weekly average price of gold rises to
the next $50 price range, the United States Mint will
increase the price of gold numismatic products by $50 for
each ounce of gold in the product. Under this scenario, the
price of a one-tenth ounce gold uncirculated coin would
increase by $5.
Previously, the United States Mint published a Federal
Register notice each time the price of a product was
changed. Under the new policy, the notice will be in effect
throughout 2009. It encompasses a broad band of price
ranges for the metals. The United States Mint's new pricing
formula will be more responsive to changes in the market
price of gold and platinum.
The pricing tables for numismatic products containing gold
and platinum coins can be found at
http://usmint.gov/pressroom/index.cfm?flash=yes&action=goldplat.
It looks like they're pricing in a constant mark-up over melt of $253
per ounce for uncirculated Eagle 1-oz. coins and $260 for proof,
regardless of melt value. At the lowest price bracket of the table
(shown at the top), in the midpoint of that bracket ($525) the
mark-ups equal a whopping 48.2/49.5 percent over melt. At the
highest bracket it's still a hefty 21.5/22.1 percent. Not a good
bargain if you're just buying bullion. I haven't done the math for
the other gold issues in the table but I doubt that they're going to
be much better.
.
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