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Congressman extracts statement from Mint on gold coin shortage
7:20p ET Thursday, August 21, 2008
Dear Friend of GATA and Gold:
The U.S. Mint today supplied to U.S. Rep. John B. Larson, D-Connecticut, the statement appended here about its suspension of sales of one-ounce gold coins. GATA requested Larson's help on Monday after two days of calls to the Mint failed to elicit the responses that were promised each time GATA called. As of this hour the Mint still seems to have provided no statement on the subject to the public, nor to have posted any statement on its Internet site:
Today's story in The Wall Street Journal quotes from a memorandum reportedly distributed by the Mint to coin dealers, but it's not known if that statement is the same as the one extracted by Representative Larson.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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STATEMENT BY U.S. MINT
August 21, 2008
FACT SHEET ON ONE-OUNCE GOLD BULLION COIN DEMAND
MENTIONED IN THE WALL STREET JOURNAL TODAY
The United States Mint does not sell bullion coin products directly to the public but to "authorized purchasers" who then sell these products to the public and price the bullion based on market factors. Authorized purchasers are required to meet high standards and must guarantee to maintain a two-way market for their customers to ensure the liquidity of these investment-grade coins.
By law, the United States Mint must mint and issue gold bullion coins in quantities sufficient to meet public demand. Therefore, the sale of bullion products takes precedence over other "numismatic" products made by the United States Mint. Accordingly, obtaining bullion blanks from our vendors and producing bullion products to meet demand takes priority over other uses and product lines that may use the same metals.
Because our vendors are not able to supply enough one-ounce gold bullion blanks to meet the unprecedented demand we are experiencing, the United States Mint notified our authorized purchasers on August 14, 2008, that we must temporarily suspend sales of the 2008 American Eagle One-Ounce Coin.
However, one-half ounce, one-quarter ounce, and one-tenth ounce 22-Karat American Eagle Gold Bullion coins are still available to authorized purchasers and are in stock at the United States Mint. In addition, one-ounce American Buffalo 24-karat gold bullion coins are still available to authorized purchasers and are in stock at the United States Mint.
The United States Mint is currently working diligently to build up our inventory and hope to resume sales of American Eagle Gold Bullion coins shortly.
If you need any additional information, please call us and the United States Mint will be happy to help you.
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