Numismatic Gold Coins Avoid Another Price Increase

For the second week in a row, the United States Mint's numismatic gold products will narrowly avoid a pricing increase. Prices for the 2010 Proof Gold Buffalo, 2010 Proof Gold Eagles, and First Spouse Gold Coins should remain unchanged today.

The US Mint's basic policy for numismatic gold and platinum coins provides that the prices may be adjusted as frequently as weekly, based on the average London Fix price of the metals from the prior Thursday AM to the current Wednesday AM. If the average moves outside of ranges established at $50 increments for gold and $100 increments for platinum, then a pricing increase would generally take place. However, the increase will be avoided if the Wednesday PM price remains within the current pricing range.

This somewhat complicated pricing formula has been put to the test in the past two weeks.

Last week, the average price of gold fell within a higher range of $1,350 to $1,399.99. However, the pricing increase was avoided since the Wednesday PM Fix price remained within the lower $1,300 to $1,349.99 range.

This week, the average price of gold is within the $1,300 to $1,349.99 range, but the Wednesday PM Fix price (set after 11:00 PM ET) seems poised to be in the higher $1,350 to $1,399.99 range. The fact that the Wednesday PM Fix price is higher should not result in a price increase, since the average remains within the current range.

According to the US Mint, the additional Wednesday PM pricing component is in place "to determine the trend with the intention of minimizing changes to prices." Although it does complicate the basic formula, it seems to be having the desired effect, with prices remaining unchanged as the price of gold has moved above and below the $1,350 mark the past few weeks.

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