Silver is 5Xs More Rare Than Gold Above Ground!
Outrageous Silver Eagle Markups by US Mint
March 25, 2012
Open letter to:
Richard A. Peterson
Director of The US Mint
801 9th Street
NW Room 8S23-3
Washington, D.C. 20220
Re: Outrageous Silver Eagle Markups by US Mint
It seems that the US Mint is continuing to shirk its responsibility to provide US Silver Eagles to the public as stipulated by law. I have written to you on many occasions to rectify this situation and the US Mint has continued to “drop the ball” as evidenced in the halting of sales in December 2012 and the current rationing regime. This is not acceptable under US law as I pointed out in the following letter to your offices.
US Mint Must Pay More For Silver…BY LAW!
Although the wording of the law has been changed since my May 2011 letter to give sole determination to the US Treasury Secretary, the language is clear that the Secretary is just as required as the US Mint was to produce coins in quantities and qualities that are “sufficient to meet demand”.
(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in qualities and quantities that the Secretary determines are sufficient to meet public demand, coins which…
There is no ambiguity here and there are no provisions in the law for the Treasury Secretary to stop sales or ration silver coins. The ONLY determinate of the Secretary in the law is that he MUST supply sufficient coins to meet public demand. That is clearly NOT being done at present and this must be rectified.
Not only is the US Mint in violation of not producing in quantities to meet demand but also the US Mint is in GROSS VIOLATION of Section f(1) of the law
“The Secretary shall sell the coins minted under subsection (e) to the public at a price equal to the market value of the bullion at the time of sale, plus the cost of minting, marketing, and distributing such coins (including labor, materials, dies, use of machinery, and promotional and overhead expenses).”
This provision applied to the price of “Proof” coins is an abomination of the Law! As of 3/25/2013 the price of this silver coin is marked up OVER 100%!!
Current Silver Price 2/25/2013 = $28.89
US Mint 1oz Silver Eagle Proof = $62.95 (118% markup)
Obviously, this markup of silver is NOT in compliance with the law but more along the line of PRICE GOUGING!
I have spoken with a representative of the US Mint and they claimed that the “premium” was for the extra workmanship and quality of the Proof coin which is total nonsense.
On that line of thinking I looked at the markups on Gold Eagle coins and they are only marked up 20%. A huge difference in percentage terms but of course in dollar terms the Gold Eagle markup is much higher. Gold trading at $1,500 puts the premium at around $300 according to the US Mint pricing sheet here:
Now wait a minute! Does it really cost the US Mint $300/coin to make a Proof Gold Eagle vs. the $30/coin to make a Proof Silver Eagle??
Of course not. The cost markups for Proof Coins is NOT all that is being charged by the US Mint. It should cost the SAME amount of money to make a Proof of either coin as it is the exact same process. So is the US Mint abiding by the law which states again…
“shall sell the coins minted under subsection (e) to the public at a price equal to the market value of the bullion at the time of sale, plus the cost of minting, marketing, and distributing such coins (including labor, materials, dies, use of machinery, and promotional and overhead expenses).”
Where does it say that the US Mint can “markup” the coins any amount they wish?
They CAN’T and they are in violation of the Law AGAIN!
The reality is that the US Mint is attempting to CONTROL the supply, availability and pricing of Silver and Gold American Eagle Coins through rationing and price fixing. Although the 20% markup is troublesome for the Gold Eagle market the 100%+ markup in silver is MASSIVE FRAUD!
The games being played by the US Mint are distorting the proper market price discovery mechanisms for gold and silver and must be stopped immediately!
- The Silver Shortage Of 2013 (sgtreport.com)
- Chart(s) of the Day: Divergence of Silver Eagles Sold vs. Silver Price (silverdoctors.com)
- Why Silver Prices Are Headed Back To $50/Ounce (etfdailynews.com)
- Silver Prices Defy the Law of Supply and Demand (fromthetrenchesworldreport.com)
- Physical Silver Supply Shortage at $30, News Of Stalwart Demand Keeps Rollin’ In (silvervigilante.com)
- US Mint Sells Out Millions of Silver Eagles, Stops Production (storyleak.com)
- US Mint Sets All-Time Silver Eagle Sales Record for February- Nearly 11 Million Sold in 2013! (silverdoctors.com)
- -1996 Us 999 Silver Eagle Ounce Oz $1 Dollar Coin (1996silvereagleouncedollarsale4w.wordpress.com)
- If This Isn’t The Gold Bottom, It’s Close (etfdailynews.com)
- Ed Steer’s Gold & Silver Report – March 23 , 2013 – news , data and views – focus on the precious metals …… (fredw-catharsisours.blogspot.com)