U.S. Mint Spends $3.75 Billion in Buying Precious Metals

Posted on November 10, 2011 by

The U.S. Mint has already spent an amazing $3.75 billion on buying precious metals in 2011 alone. This is an increase of over $1 billion more than last year, despite last year also hitting record numbers.

The Mint purchases precious metals from at least 5 different bullion suppliers. One of its main precious metal suppliers is Sunshine Minting, which also happens to supply 13 other World Mints with precious metals. The Sunshine Minting Company has also had to quadruple its work staff, in order to keep up with other World Mints increased demand for precious metals.

As we can see precious metal demand is definitely not just taking place in the U.S. as World Mints are also experiencing a huge demand in selling bullion related coins. precious Metals

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Comments (2)

 

  1. Owen says:

    Interesting statistics, and really big numbers! I think demand for precious metals will continue to grow globally. I have continued to buy gold, silver, and platinum coins on a regular basis, but only what I refer to as ‘numismatic quality’. I only buy coins that have been graded or are being sold in original U.S. Mint boxes with COA included. I buy directly from the Mint as well as the secondary market. I believe that there is a not insignificant risk of hyper-inflation at some point, with both the U.S. Dollar and the Euro at risk. Buying quality coins gives me the opportunity to achieve gains both from the precious metals market and from the coin collectors and investors market. Admittedly, the markets move both ways, but my sense is that there is less risk with ‘numismatic quality’ coins than with plain bullion coins. Since I buy a little at a time throughout the year, and year after year, I occasionally benefit from market dips as well as sometimes buying when the markets are higher. It averages out over time. My sense is that some portion of assets in ‘numismatic quality’ coins is just a sound way to invest and diversify. Even more important, I have the fun of collecting some really beautiful coins. Never underestimate the ‘fun factor’! I even enjoy my trips to our safe deposit boxes – kind of like visiting old friends.

  2. Hi Owen,

    Thanks for the great insight and glad you have been succesful at buying bullion coins from the Mint and that you are having fun.

    Thanks for your comments.

    jaime

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