Why is the U.S. Mint Running out of Gold?
In mid-April, following the devastation of gold prices, the demand for physical coins has been extremely strong. It is widely known that the U.S. Mint had to suspend sales of its 2013 American Eagle one-tenth ounce gold coins in April.
A month later, the one-tenth ounce coin was selling again at a price way above the spot price for gold. Many dealers were selling the coins for $190, implying a price of $1,900 per ounce. With the spot price of gold trading at around $1,400 this represents a whopping premium of about $500 an ounce.
The high premium suggests that demand is big and supply is tight.
This is why it is so important to buy from dealers who have stock. Many precious metals dealers sell you gold and silver only to deliver it 6-10 weeks later. This usually means they do not have the metal in stock and they need to go out and buy it……
