Last Updated :
28 January 2010 at 14:00 IST
Bullion coin sales fetch $1.7 bn for US Mint
WASHINGTON (Commodity Online): The sale of bullion coins by US Mint reached a record high in FY 2009 when it approached $1.7 bn, nearly 80% of the last year's sales revenue, according to Edmund C Moy, United States Mint Director.
US Mint in its annual report pointed out that bullion coins accounts for 58% of sles revenue in 2009 compared to 34% in 2008. The Mint was able to meet the demand for 22-karat
Gold and
Silver one-ounce bullion coins by the third quarter of FY 2009, the annual report said.
The circulating coin production was at a 45-year low with fewer cash transactions because of the slow economy and Americans cashing in coins they’d been saving. We were able to keep our seigniorage margins up through lower metal costs and improvements in the market share of $1 coins among the denominations, but the total amount of seigniorage is the lowest we’ve seen in 12 years. The Federal Reserve Bank and the United States Mint forecast continued low circulating coin demand for FY 2010.
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While metal prices fell during the global recession, thus reducing US Mint's losses on pennies and nickels, base metal prices have begun to rise as the world economy begins to recover. Higher metal prices will result in reduced seigniorage that ultimately negatively affects the taxpayer, Edmund Moy said the Annual Report.
The sale of numismatic products were hurt by very tough retail conditions however the business sustained due to the new product the 2009 Ultra High Relief Double Eagle
Gold Coin. Sales of other precious metal numismatic products were significantly hurt by the high demand for bullion. "By law, we must meet the public’s demand for our gold and silver bullion coins before we can offer our signature numismatic gold and silver proof coins. We have worked to stay ahead of bullion demand and hope to resume some American Eagle and American Buffalo numismatic product sales in FY 2010," Edmund Moy said in the report.
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