U.S. Mint suspends red-hot American Eagle gold coins

By Frank Tang, Reuters

A shortage of American Eagle bullion coins following a recent sharp retreat in gold prices has forced the U.S. Mint to suspend sales of the popular coins temporarily, dealers said on Thursday.

Rand LeShay, senior vice president of A-Mark Precious Metals, an authorized purchaser for the U.S. Mint, confirmed that the Mint told dealers in a memorandum it was halting all sales of American Eagles, a novel item among collectors and investors.

“It is temporarily suspending,” said LeShay. He said he saw no communication about a permanent suspension from the U.S. Mint.

“Until the U.S. Mint can supply us with more (American Eagle) coins, we won’t be able to supply any to our customers,” LeShay said.

Michael White, a spokesman of the U.S. Mint, did not return calls seeking comment.

LeShay said that there was a big spike in demand for gold and silver coins and ingots following a recent tumble of precious metals prices.

COIN DEMAND SPIKES

Coin dealers from the United States to Canada also reported a surge in buying of bullion coins and other gold products since prices plummeted from highs last month. The buying spree contributed to supply fears and helped boost gold prices sharply on Thursday.

Blanchard and Co., one of the largest U.S. retail dealers of rare coins and precious metals, said the American Eagle and American Buffalo one-ounce gold coins are sold out. Read more….