U.S. Mint to Suspend American Eagle Gold Bullion Due to Gold Rush

The economy is tanking! Soon we may all just be using electronic currency.

Frank Tang of Reuters reports the following: The U.S. Mint said on Wednesday it will suspend sales of the popular American Eagle 1-ounce bullion coins as rising demand depleted its inventory.

“The United States Mint has depleted its current inventory of 2009 American Eagle 1-ounce gold bullion coins due to the continued strong demand for this product,” the Mint told its authorized dealers in a memorandum on Wednesday.

November sales to date were at 124,000 ounces, higher than the 115,500 ounces sold in each month of September and October, the Mint said.

The Mint said it expects to resume sales in early December.

Increasing worries about inflation, a falling U.S. dollar and geopolitical tensions are prompting individual investors to take physical possession of gold coins and other bullion products due to the metal’s appeal as a safe haven in financial and political crises.

Gold XAU= hit a record high at just under $1,190 an ounce on Wednesday due to a broadly lower dollar and renewed interest from central banks. Year to date, the metal has risen more than 35 percent. [GOL/]

Last year, the Mint had also briefly suspended sales of its American Eagle gold and silver coins due to high demand and a lack of coin blanks.

Produced from gold mined in the United States, the 22-karat American Eagles have been novel items among collectors and investors since their introduction in 1986. Each coin has a face value of $50 but it is sold by authorized dealers at a premium to the price of gold.

This entry was posted on Saturday, November 28th, 2009 at 6:02 am and is filed under Politics, World News. You can follow any responses to this entry through the RSS 2.0 feed.