Armed Polite Society
Main Forums => Politics => Topic started by: AZRedhawk44 on August 23, 2011, 07:19:35 PM
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http://mintnewsblog.com/2011/08/all-us-mint-numismatic-gold-coins-suspended/
Gee, that won't drive the price of gold up at all... ;/
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http://mintnewsblog.com/2011/08/all-us-mint-numismatic-gold-coins-suspended/
Gee, that won't drive the price of gold up at all... ;/
Why do you say that, glancing at the article they are stopping sales because of the constantly chainging price of gold.
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But stopping sales, removes a source of supply from the market.
Less supply = higher price for any commodity.
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Erm... The mint doesn't supply gold. Miners supply gold.
The coin has basically no value as currency, so it's not like, say, a Honda where the finished product is worth more than the pile of glass and steel and aluminum and such that it started as. If it were, then just putting the constituent raw materials in a big box with an H on the side would net you a sale as big as a car.
The mint just puts it in a box. The gold is just as valuable before the mint stamps it, so if the unstruck gold migrates to another part of the market, supply is not reduced.
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Except the mint charges more than gold spot price, so, technically, it is a value-added product :)
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Except the mint charges more than gold spot price, so, technically, it is a value-added product :)
And the US Mint is the biggest manufacturer/distributor for the US market, and the most trusted.
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http://finance.yahoo.com/q?s=GCQ11.CMX
Looks like a little dip on gold today. I wonder how much gold the mint buys for coinage.
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Except the mint charges more than gold spot price, so, technically, it is a value-added product :)
Intangible value is added. A gold ounce with ".999 fine United States of America" is more trustworthy, to the first and subsequent buyers, than the same thing from "Budz Gold and Pawn". One hopes.