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All Posts Tagged With: "America the Beautiful Bullion"

Pricing Controversy with New 5 oz. “America the Beautiful” Bullion Coins

The U.S. Mint’s Dec. 1 announcement that the new 2010 America the Beautiful 5-ounce .999 fine silver bullion quarter dollars were to go on sale December 6th was canceled earlier this week over Mint concerns and complaints that the much anticipated coins were being overpriced.

The US mint does not distribute its bullion products directly to the public, but rather uses a network of 11 “Primary Distributors” who purchase the coins from the US Mint at $9.75 over the spot price of silver, and then in turn mostly wholesale these out to retail dealers. Few of these Primary Distributors have retail facilities.

Here is a list of the Primary Distributors:

  • A-Mark Precious Metals
  • Coins ‘N Things Inc.
  • MTB
  • Scotia Mocatta
  • Dillon Gage of Dallas
  • Prudential Securities Inc.
  • The Gold Center
  • American Precious Metals Exchange, Inc. (APMEX)
  • Commerzbank International (Luxembourg)
  • Deutsche Bank A.G. (Germany)
  • Tanaka Kikinzoku Kogyo K.K. (Japan)

As part of the December 1st announcement, the Mint surprisingly drastically reduced the mintage’s for the much anticipated 5 oz  America the Beautiful Bullion coins from an anticipated 100,000 coin  (for each of the 5 designs this year), to a mere 33,000.

After the announcement, APMEX decided to offer the 2010 5 coin set to customers and allow them to pre-order the coins from their website. Apmex is one of the few Primary Distributors that maintains a retail presence  through their website (which is excellent by the way). The 5 coin set was being offered at $1,395.

Obviously with such limited supplies, the large (3 inches in diameter) bullion coins were expected to be in hot demand .

However within hours of this pre-launch offering, complaints started to be registered with the US Mint because Apmex, responding to the anticipated demand and low mintages, had placed a $130.00 premium per coin on the set.

Apmex customers didn’t seem to mind the hefty premiums too much because within 19 hours after the posted  pre-launch offer, they had sold 1000 sets. But the US Mint did mind. In fact they halted the release of the new 5 oz coins to review the situation. (more…)