U.S. mint runs out of gold

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Submitted by Adebisi on November 27, 2009 - 10:34am

The demand for gold is insatiable:

The U.S. Mint has suspended sales of most American Eagle coins made from precious metals including gold and silver, citing depleted inventories of the metals after sales surged 88 percent in the first 10 months of this year.

Sales of American Eagle gold coins jumped to 1.07 million ounces this year through October, from 568,000 a year earlier, according to the mint's Web site. This month, the mint indicated it sold an additional 124,000 ounces of the coins.

http://www.contracostatimes.com/ci_13869...

Got gold?

Submitted by Nor-LA-SD-guy on November 27, 2009 - 11:21am.

This can actually be good I am thinking, not like Oil or housing, it will only affect those with extra money to burn.

Go ahead guys blow this bubble as big as you want.

I see only good here now.

Submitted by Adebisi on November 27, 2009 - 11:24am.

Hey Nor-LA-SD-guy, great call on a dollar rally off the Dubai bankruptcy. The dollar is up 0.23% today. Yippee!

Today's selloff in precious metals is just another opportunity to buy. It's clear that the Fed wants to continue to devalue the dollar, so gold, silver and platinum will continue to go up.

Submitted by paramount on November 27, 2009 - 2:33pm.

Hasn't the trend lately been when the market is down, the dollar is up? The market factors in dollar fluctuations to an extent.

Submitted by Coronita on November 27, 2009 - 2:34pm.

Adebisi wrote:
Hey Nor-LA-SD-guy, great call on a dollar rally off the Dubai bankruptcy. The dollar is up 0.23% today. Yippee!

Today's selloff in precious metals is just another opportunity to buy. It's clear that the Fed wants to continue to devalue the dollar, so gold, silver and platinum will continue to go up.

i doubt it.

Submitted by Adebisi on November 27, 2009 - 3:05pm.

The dollar index is right around 75 at the moment. Mark my words, it's going to 60. That means gold will go to 1450 just on dollar devaluation alone. Add in the increased demand for gold and we'll see $2K gold soon enough.

And if China de-pegs? To the moon, baby!

Submitted by Hatfield on November 27, 2009 - 3:15pm.

It's not quite accurate to say that the mint has run out of gold. What they've run out of is this year's allocation of gold for minting coins, which is a tiny fraction of US gold reserves. This exact same thing happened last year, and right around this time if I'm not mistaken. At that time I was buying gold coins and ended up buying gold Maple Leafs which were still readily available.

Submitted by Coronita on November 27, 2009 - 3:53pm.

Adebisi wrote:
The dollar index is right around 75 at the moment. Mark my words, it's going to 60. That means gold will go to 1450 just on dollar devaluation alone. Add in the increased demand for gold and we'll see $2K gold soon enough.

And if China de-pegs? To the moon, baby!

I'm calling bubble on precious metals. Time will tell though. I think what we're seeing in Dubai is just a window into a global financial problem of extreme speculation. I have a feeling once these investments go sour, it's going to spill into asia, and we're going to see a lot a lot of interesting things in terms of the stability of emerging economies.. I would not be surprised that countries in asian heavily leveraged in investing in Dubai, and it will spill over.
The the dollar isn't going to look as bad as folks think it is, in the short term...

I can't fathom in the short/mid term that China could be a world reserve currency. You think things aren't heavily leveraged there? Time will tell, though. And, yes oil is going down.

China won't de-peg until
(1) It can find a replacement the consuming consumerism of americans
(2) The world has accepted it as a reserve currency

Depegging = going for the kill in terms of the the US versus China. The moment that happens, they don't have this "cheap labor/cost" advantage no more. So plan B must already exist before that happens to sustain the growth.

Submitted by Allan from Fallbrook on November 27, 2009 - 4:27pm.

FLU: Anyone hyping China and their supposed economic power is in for a big surprise. China knows full well that if they float the renminbi all hell will break loose.

You're absolutely correct about the cost of labor, too. Factor in nearly critical shortages in experienced management, legal and financial professionals and it gets downright ugly.

The Chinese stimulus program is being used to paper over the systemic and structural problems they're experiencing, as well as a tool to head off potential internal social "dislocation" (caused by increased unemployment).

I won't do any business in China, due to the fact that our IP and proprietary information is at immediate risk, once we start dealing with Chinese companies. I know quite a few companies on the technical and engineering side that feel the same way. I will, however, do business in India and our experiences have been uniformly positive there.

Submitted by Arraya on November 28, 2009 - 7:14pm.

China lies more about their stats then we do. The whole world is in a hand basket.

Submitted by Coronita on November 28, 2009 - 9:19pm.

Arraya wrote:
China lies more about their stats then we do. The whole world is in a hand basket.

It must be a pretty good lie, because apparently a good portion of the world is convinced.

What I want to know is when the poor people in China get totally pissed off about the huge gap in prosperity and another unrest happens.

Submitted by ucodegen on November 29, 2009 - 12:26am.

The demand for gold is insatiable:

Not running out of gold.. just the gold blanks that the coins are minted out of. Lets see:

Sell 1oz, 22carat gold coin for $1244. Cost of one ounce of 24carat gold metal is $1176 per troy ounce. Cost of gold in 22carat coin is $1176(22/24) = $1078. Result = net income of about $1244/$1078 - 1 = 0.1539 or 15% by just pressing into coin.

Platinum coins will be sold beginning next month, the mint said. None have been sold this year, the Web site shows.

I wonder what these will go for. Raw metal goes for $1436.50/oz, which is underpriced against gold when comparing to rarity (about 30 times more rare).

Submitted by partypup on November 29, 2009 - 11:30am.

Adebisi, you're wasting your time with this crowd. Let them cling to their flammable pieces of paper and take comfort that gold is going back to $500/oz.

The frog in the pot of slowly-boiling water won't even attempt to jump out until it lacks the energy or strength to do so. But by then it will of course be too late. And so it goes for the vast majority of posters on this board. Attempts to enlighten and educate will only fall on deaf ears. I had once hoped that if enough Americans were armed with the truth then we would be able to resist the brutality that awaits us. But it looks as if the government plan to lull and soothe naive and compliant Americans into a false sense of security is actually working.

As one friend recently told me, anyone who hasn't woken up by now will NOT wake up until the end game is here.

Sadly, poverty awaits most. They will literally be too poor to rebel.

Submitted by Adebisi on November 29, 2009 - 11:42am.

Well, at least I can take comfort in knowing that I tried to enlighten this crowd. Perhaps in the future when the dollar is worthless I will provide the posters here with a few shekels of gold in exchange for their dollars to use as toilet paper.

Submitted by Coronita on November 29, 2009 - 10:21pm.

flu wrote:
Arraya wrote:
China lies more about their stats then we do. The whole world is in a hand basket.

It must be a pretty good lie, because apparently a good portion of the world is convinced.

What I want to know is when the poor people in China get totally pissed off about the huge gap in prosperity and another unrest happens.

Like I said, the peg stays....
China's too smart to commit financial suicide right now until it has a plan B to replace us...They haven't found one yet...I think what would be a more appropriate approach is similar to a game of monopoly. They start using their cash to buy U.S. assets left and right....

http://finance.yahoo.com/news/Chinas-pre...

"NANJING, China (AP) -- Chinese Premier Wen Jiabao says Beijing will keep the value of its currency, the yuan, at a stable and balanced level, shrugging off appeals for faster reforms.

Wen made the comment following a summit Monday with European Union leaders, who are urging China to move more quickly in loosening controls that keep the yuan, also known as the renminbi, linked to the weakening U.S. dollar.

Wen said that "to maintain the basic stability of the rmb exchange rate is conducive to the economy and the recovery of the world economy."

He described as "unfair" demands for changes and accused critics of China's policies as "practicing trade protectionism against developing countries."

Submitted by afx114 on November 29, 2009 - 10:56pm.

flu wrote:
What I want to know is when the poor people in China get totally pissed off about the huge gap in prosperity and another unrest happens.

They're probably wondering the same thing about us.

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