From the Oct. 4 Numismatic News E-Newsletter:
Do you think the Mint should change its prices daily to accommodate the changing price of metal?
Here are answers sent from our e-newsletter readers to Editor Dave Harper.
Yes! The U.S. Mint should change its prices daily. It?s the better way to keep the gold coins prices low.
Jose Angel Alvarez Diaz
El Paso, Texas
I believe the Mint should acquire their gold under longer-term contracts (probably one year at a time), thereby guaranteeing the price of the gold for that period. This way, they can maintain a constant price for a given gold coin throughout its sales period.
San Mateo, Calif.
I think the Mint should change prices daily, as a bank does with foreign currencies, etc.
Yes, the Mint should change gold prices like the stock market since prices change daily. This would simplify things for the consumer and be fair.
The Mint purchased the material and calculated their production costs and are making their profits based on these costs. Do not let U.S. Mint become a clone of the oil companies. They increase prices upon any hiccup or news story and only decrease prices after the prices of crude or demand goes down.
If the demand for bullion coins goes up because of an increase of the material cost let the Mint limit the quantities per order to allow an equitable distribution of the bullion pieces. Don?t let some deep pocket group hog the rewards.
Robert R. Maisch
In my opinion the Mint would probably distribute its products through an upper tier of wholesale dealers like they are currently doing with the American Eagles before they would go through the hassle of explaining (and having to defend) their daily pricing to thousands of callers.
With the amount of surcharges that the Mint adds to all of its products, keep the prices the same throughout the year. Hard to imagine the Mint not making money (pardon the pun).
Yes, I think both gold and silver should go with the spot prices.
Sure, why not? Just as the government currently lets gasoline prices change daily, sometimes hourly since there is absolutely no thought put into pricing for the consumer, why shouldn?t the US Mint use the same tactics? They could even post a crawl not the U.S. Mint Web site with changing prices so sellers can jump on minute-by-minute changes! Just like spot gold or the stock market! What a concept!
Sure, the Mint, just like the coin dealers, should adjust prices based on the daily gold price.
I would rather see the Mint update prices daily based on spot than try to guess where the gold price will be next month?for bullion issues. I?m afraid that if the Mint sets gold prices at a level they are sure will not be exceeded, the price will always be higher than it would be if prices were adjusted daily.
It would be acceptable if the price changes worked both ways. I do remember about 1-1/2 years ago gold plummeted from $725 an ounce to about $560 an ounce. However, I do NOT remember the U.S. Mint lowering the price of their gold coins. Personally, I would be very pleased if the U.S. Mint instituted a policy where they would sell gold ?bullion? coins at a premium of 5 to 7 percent over spot. Prices could then easily change daily.
As long as the Mint is continuing to sell gold items, I believe they should change the prices daily. Coin dealers do and I know the Mint brings in more money than most coin dealers, so I believe they could afford to have someone change the prices each evening as the market closes.
The U.S. Mint prices should not change prices daily. These coins are not exactly bullion issued. The coins are a mix product of bullion with collector value. At the same time the government should not have to sell coins very near or at melt. I recommend a price adjust per each $50, $25, or $15, pick a number, change in gold. The marketing of the gold coins could go something like, prices based on $700oz gold and are subject to change. The halt of sales is a real inconvenience for both collectors and dealers.
Los Banos, Calf.
No, absolutely not.
I don?t think daily would be practical. However, I do think that the Mint should have a published standard for the fluctuations of all precious metals, both for increases, as well as decreases in price.
If the price decreases, the buyer can cancel or refuse the order. If the price increases, the Mint should be able to do the same, using defined limits.
James W. Miller
Yes, the U.S. Mint should change the sales price of coins produced from precious metals to reflect the cost they encounter for raw materials. How often they adjust prices should depend on how frequently it is required to effectively manage the relationship between sales prices and raw material purchase costs. It is simple business management to do so.
Maybe a better way would be to mint a specified number at a specified price, then when those have been sold, if the market on gold is higher, then again mint a specified number at a new price. Seems to me that would take care of their problem.
NO! When they were making $100 a coin when they first came out, I was buying them and paid the premium. Now that it?s more affordable, they take it off the market. If they want to sell coins, this is the time to do it. I only hope they keep it off the market the rest of the year to make the ones I bought worth more than spot.
Absolutely! This is only a bullion coin in essence. No need to pretend it?s a numismatic item.
Yes, the U.S. Mint should change gold prices on a daily basis to reflect the daily rate.
Shermans Dale, Pa.