Gold Coin Prices to Increase, Platinum Coin Prices to Decrease

Under the United States Mint's pricing policy for gold and platinum numismatic coins, the prices for available gold coins should increase while the price for the one available platinum coin should decrease. Based on past practices, the price changes would likely take place around mid-morning today.

Pricing for US Mint numismatic gold and platinum coins is determined by the average price of the metals from the prior Thursday AM to current Wednesday AM London Fix Prices. If the average falls into a different range than the currently in use, prices are adjusted accordingly. Ranges are established at $50 increments for gold and $100 increments for platinum. As an additional criteria, the Wednesday PM price must directionally agree with the new range for a pricing update to take place.

For the relevant period, the average price of gold was $1,218.11, within the $1,200 to $1,249.99 pricing range. The Wednesday PM London Fix price seems likely to fall within the same pricing range. First Spouse Gold Coins and the 2010 Proof Gold Buffalo are currently priced based on an average price of $1,150 to $1,199.99.

For the First Spouse coins, prices should be increased from $754 to $779 for proof coins and from $741 to $766 for uncirculated coins. For the Gold Buffalo, prices should be increased from $1,460 to $1,510. This will bring the prices for these products back to their highest levels on record.

Meanwhile, the average price of platinum for the relevant period was $1,532.78, within the $1,450 to $1,549.99 pricing range. The Wednesday PM London Fix Price also seems likely to fall within this range. The one available platinum coin is currently priced for a higher range, suggesting a price decline is coming. Prices for the 2010 Proof Platinum Eagle should be reduced from $1,892 to $1,792 per coin.

At this price, the coins will carry a much more reasonable premium above the spot price of platinum. Assuming a platinum price of $1,535 per ounce, the coins were previously priced at a premium of 23.25% above spot. After the price increase, the premium will be cut down to 16.74% above spot.

The price decrease for this nearly sold out product will also bring about an odd situation for collectors. Some collectors who already purchased the coin may be tempted to cancel orders and place new ones at the lower price. At the same time, with more than 80% of the maximum mintage sold through Sunday, these collectors risk a sell out occurring in the interim, or some other situation whereby their second order is canceled. For collectors who have not yet ordered but have been contemplating the coin, the price decrease might be the incentive to place an order, accelerating a sell out.