The Coin Collecting Den

Yesterday the Mint announced sales of 19,468 American Buffalo Gold Proof coins through November 1, nearly equaling the entire 2008 production of 19,591 in one week of sales. No limits are in place for production or orders of the Buffalo coin, so it seems likely 2009 could surpass the 58,998 sales in 2007 for second highest mintage since the 246,267 coins sold in 2006, the first year they were offered.

The Mint also announced the 2009 US Virgin Islands First Day Coin Cover will be available for purchase Tuesday, November 10. The US Virgin Islands quarter is the last in the series of D.C. and the 5 US territories released this year. The First Day Cover will be limited to 20,000 units.

The 2009 American Buffalo Gold Proof coin went on sale yesterday, October 29. Based on the average price of gold for the period being $1,050.28, the coins were priced at $1,360 each, with no order limits or announced mintage limit. The current spot price of gold is $1,037.50, which could mean a price drop of $50 is in the future for this coin. No sales figures will be out for at least a few days, but since the Mint’s site didn’t crash the way it did with the launch of the Lincoln Chronicles set, it’s safe to say the demand has been more moderate. This may be due to the previously mentioned possibility of a price drop if the price of gold stays below $1,050 per ounce. It may also be due to the lack of a mintage limit, which could mean enough coins will be produced to fill the market demand and reduce the value of the coin in the secondary market. Time will tell!

The Mint announced today that the 24-karat American Buffalo Proof gold coin will begin sales on Thursday, October 29 at 12:00 pm Eastern Standard time. If gold remains between $1,050 and $1,099.99 per ounce, the coins will be priced at $1,360 each. There is no order limit and no announced mintage limit, apparently the Mint is not suffering any shortage of 24-karat blanks, in contrast to the 22-karat blanks used for the American Eagle coins. Demand seems likely to be high for this coin! This could mean the production figures for this coin will be relatively high, which in turn could limit the secondary market value compared to last year’s more limited mintage.

On a related note, the Mint has already sold 86,000 American Buffalo bullion coins as of today (10-22-09) since they went on sale October 15. That is a very robust figure, particularly in comparison to 2008, when 172,000 coins were sold in the entire year. This is a definite indication of strong demand that seems likely to include the proof coins as well.

The Mint today announced that all gold and silver American Eagle proof and uncirculated coins are canceled for 2009. They also announced the cancellation of the American Eagle platinum bullion coins for 2009.

The cancellation means the following collector coins and sets will not be produced in 2009:

• 1 0unce American Eagle silver proof coin
• 1 ounce American Eagle silver uncirculated coin
• 2009 US Mint uncirculated dollar coin set
• American Eagle gold proof coins (1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce)
• American Eagle gold proof 4 coin set
• 1 0unce American Eagle uncirculated coin

The reason for the cancellations was, “The unprecedented demand for American Eagle gold and silver bullion coins,” which the Mint is required by law to produce “in quantities sufficient to meet public demand.” Since the public demands all the gold and silver coins the Mint can stamp, no blanks are left for us, the collectors. One more reason to hope for economic recovery to pick up steam, so investors will turn back toward other options and quit hogging all the precious metals!

The Mint did throw a small bone to the numismatically minded however, as they announced a one-ounce American Buffalo Gold Proof coin and one-ounce American Eagle Platinum Proof coin for 2009. The American Buffalo coin is tentatively scheduled for an October 29 release, with the American Eagle Platinum coin scheduled for December 3.