US Mint Shuts Down New York Production Facility
With all of the economic chaos and uncertainty spurred by the government lockdowns in response to coronavirus, the demand for physical gold and physical silver has skyrocketed. That has put a significant squeeze on the supply of gold bullion products.
That squeeze is about to get tighter.
The US Mint has temporarily shut down production at its West Point facility in New York due to the COVID-19 risk to its employees. Mint director David Ryder said in a statement, “The safety of the mint workforce is unwavering and continues to be my highest priority.”
The facility produces gold, silver, platinum and palladium coins.
There is no timeline for the shutdown. According to the statement, the mint will resume production “once it is deemed prudent to do so.”
The US Mint sold out of American Silver Eagle coins last month. Meanwhile, demand for American Gold Eagles surged to the highest level in three years. According to sales data, the US Mint sold 56,500 one-ounce American Gold Eagles in the first two weeks of April. Sales for the month were up 465% compared to April 2019.
A Florida coin dealer told Bloomberg, “The timing is awful.”
It’s going to exacerbate the supply shortage in the coin market when demand is soaring.”
The shutdown of the West Point facility will not completely halt production. The US Mint’s Philadelphia facility will remain in operation.
A US Mint spokesperson told Bloomberg that during the temporary suspension of operations at the West Point facility, it will continue to make American Eagle and America the Beautiful silver bullion coins available to its network of authorized purchasers. American Eagle and American Buffalo gold coins will not be available.
This does not mean US Mint coins will be completely unavailable. Contact a SchiffGold precious metals specialist for the availability of previously minted coins. Call 1-888-GOLD-160 or email [email protected]