If you do not follow the U.S. Mint on Facebook or Twitter, they announced that there would be a price increase for silver coins as of October 13, 2020. Their statement read:
The United States Mint recently adopted a new strategy for pricing products in its silver numismatic products portfolio. As a result, prices for products containing silver will change EFFECTIVE October 13, 2020, with release of the 2020 American Eagle Silver Proof Coin with “S” mint mark (20EM). The new pricing will affect prices for silver products already on sale (including prior year) and those remaining to be released in 2020.
In order for the United States Mint to cover rising costs, meet its fiduciary responsibility to operate at no net cost to taxpayers, and return money to the Treasury General Fund, re-setting silver prices is necessary.
The Mint’s goal, as a fiscally responsible self-funded Federal agency, is to always provide the best quality numismatic products while maintaining fair prices. The first objective is to ensure that the numismatic portfolio (all product lines together) be self-sufficient and cover all associated costs. The new silver prices reflect a sound business decision aimed at meeting these obligations. (No tax dollars are used to fund numismatic operations.)
The United States Mint will continue to look for operations optimization and cost reduction efforts to deliver superior quality numismatic products at a fair price.
Kitco YTD Silver Price as of 10/9/2020 (does not update, trendline added)
Although social media did not like the announcement, collectors should have expected the price increase. When the U.S. Mint set the price for silver coins at the beginning of 2020, the price of silver hovered around $18.00 per ounce. On March 19, the price closed as low as $12.005 per ounce. What followed was a steady rise until August 6 when the markets closed at $28.33.
From the $17.925 at the close of the markets on January 2 through August 6, silver rose 58-percent. If the U.S. Mint had to purchase silver in August to meet market demands, it was the most expensive silver they purchased.
U.S. Mint Price Update
||Old Retail Price
||New Retail price
|Presidential Silver Medals
|America the Beautiful Quarters Silver Proof Set
|American Eagle One Ounce Silver Proof Coin
|American Eagle One Ounce Silver Uncirculated Coin
|American Eagle One Ounce Silver Proof Coins—Bulk Pack
|American Eagle One Ounce Silver Uncirculated Coin—Bulk Pack
|Limited Edition Silver Proof Set
|Silver Proof Set
|America the Beautiful Five Ounce Silver Uncirculated Coin
|End of World War II 75th Anniversary American Eagle Silver Proof Coin
|End of World War II 75th Anniversary One Ounce Silver Medal
|2019 America the Beautiful Quarters Silver Proof Set
|2019 American Liberty High Relief Silver Medal
|2019 Congratulations Set
|2019 Silver Proof Set
† These products are sold directly to distributors who sell them to dealers. Prices are not on the U.S. Mint’s website.
‡ The only items for sale at the U.S. Mint that comes close to this is the Women’s Suffrage Centennial 2020 Proof Silver Dollar and Medal Set
* Item was not for sale prior to the price hike
¶ Listed as “Currently Unavailable” on the U.S. Mint’s website.
You cannot blame the U.S. Mint’s metals buyers. First, they are mandated to buy precious metals from U.S. sources at the market value. If they need additional inventory, then they buy it on the market like everyone else. Like any investor, the U.S. Mint can try to predict the market, but the results are variable like any investor.
Since August 6, the price of silver dropped to $24.315, a 14.17-percent decrease. However, the price of silver is up 35.65-percent for the year. If the price of materials rise, how long could the U.S. Mint maintain their prices?
Aside from the rising cost of silver, the U.S. Mint did not report how much other costs have risen. Aside from the dies and facilities costs, they must account for labor, design, and production costs. The U.S. Mint has not reported what additional costs they have incurred because of the pandemic.
The U.S. Mint is unlikely to report about these issues until the release of the annual report.
And now the news…
October 6, 2020
The Ministry of Culture and Sports on Monday announced that five rare silver coins dating to the 5th and 4th centuries BC were returned to Greece, before being auctioned off in Munich and Zurich.
→ Read more at greekcitytimes.com
October 5, 2020
The executive officer said construction workers found the coins and rings in a brass box.
→ Read more at newindianexpress.com
October 9, 2020
Surprising as it may sound, there once was a time that our coinage system, backed by gold and silver, was mostly supplied by Spain and countries under Spanish rule, such as Mexico, Chile, Bolivia, Peru and Guatemala.
→ Read more at yarmouth.wickedlocal.com
October 10, 2020
An extremely rare Roman coin commemorating the assassination of Julius Caesar has surfaced and may be worth millions of dollars, according to coin experts.
→ Read more at foxnews.com
If you like what you read, share, and show your support