American Eagle Gold Bullion Coin Experiences Unprecedented Demand - Proof Versions Suspended

The American Eagle Gold Bullion Coin has experienced tremendous demand in the past year. In fact, the US Mint recently announced on its website that it is suspending production of the American Eagle Gold Coin Proof and version in order to focus on the production of bullion coins to meet the current demand.  The mint is also suspending the uncirculated versions of the coins.

Mint Must Strive to Meet Demand

By law, the US Mint is required to supply enough American Eagle Gold Bullion coins to meet the public demand. The problem is listed as a blank problem--there seems to be a shortage of blanks that are used to make both American Eagles and the 24K American Buffalo Gold coins.  It does not appear that the supply of the standard bullion coin product has been affected (regular American Eagles are available.)

When Will Production of Proof Coins Resume?

The mint will resume production of the gold coins as soon as inventories of gold blanks can be acquired to meet the demand of all three American Eagle Gold Coin Products. Uncirculated coins in fractional sizes have been discontinued indefinitely.

Could Be Bullish for Gold

A shortage of these blanks and a high demand for the American Eagle Gold Bullion Coins could be bullish for for the coins. Unprecedented demand could be stemming from the worldwide fears of inflation and a weak dollar. Should these factors occur, the price of gold could rise substantially. Many gold experts are calling for a gold spot price of $1,500 to $3,000 in the coming 18 months to 2 years. This would mean the current gold bullion coins could triple in value!

A Good Time to be in the Mint Business

American Eagle Proof coins should be available in the latter half of 2009 (this summer perhaps?) once the mint is able to get their hands on some more blanks. It appears to be a good time to be in the mint business, as investors are clamoring for protection from an economic downturn and possible inflationary responses to the borrowing (and money printing) spree of the US Government.