Contact us
CALL US NOW 1-888-GOLD-160

US Mint Struggling With Gold and Silver Coin Production Slowdown

  by    0   1

The US Mint is limiting the distribution of gold and silver coins to authorized third-party distributors due to production slowdowns.

According to a Bloomberg report, the US Mint complex in West Point, N.Y., is taking measures to reduce the spread of COVID-19 among its employees and expects production slowdowns for the next 12 to 18 months. According to a US Mint document, the facility can no longer simultaneously produce both gold and silver coins, forcing it to choose one metal over another.

“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document. “We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.”

The West Point facility serves as one of the US Mint’s primary bullion production sites, along with its San Francisco complex. The California facility shut down earlier this year and partially reopened in May.

The production slowdowns come as investors clamor for gold and silver bullion coins. Retail silver bullion coin sales jumped by an estimated 60% year-on-year in the first half of 2020, according to data released by the Silver Institute. Meanwhile, the price of gold has surged to an all-time record high.

Even with the production issues, the sale of American Gold Eagles in July is up significantly over last year. To date, the Mint has sold 92,500 ounces of Gold Eagles compared to just 22,000 ounces in July 2019. But the sale of American Silver Eagles is down slightly. To date, the Mint has sold 1,072,000 ounces of Silver Eagles compared to 1,240,000 in July 2019.

In an effort to cope with the supply issues, the Mint is asking dealers to provide 10-day and 90-day demand forecasts. This is the first time this has ever happened. According to the Mint document, this will allow it to decide what products to make since some are more labor-intensive than others.

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Taxpayers on the Hook for $435 Billion in Student Loan Losses

US taxpayers are on the hook for a $435 billion loss on the $1.37 trillion in student loans that were on the government’s books at the beginning of this year, according to an internal study by the Department of Education recently reported by the Wall Street Journal. That’s before any loan forgiveness program that might […]


Money Is Not Wealth

When governments started locking down the economy in response to coronavirus, the Federal Reserve sprung into action. First, it slashed interest rates to zero. Then it quickly launched what we’ve dubbed QE infinity. In effect, that meant printing trillions of dollars out of thin air and pumping them into the economy. Meanwhile, the US government […]


The Fed Now Holds a Record Percentage of US Debt

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds? Foreign and domestic investors, commercial banks and US government entities all buy US debt, […]


Silver Investment Demand Expected to Hit Five-Year High

Physical silver investment is expected to surge by 27% this year, according to the latest data released by the Silver Institute. Demand for investment silver is projected to come in at 236.8 million ounces in 2020. That would mark a 5-year high.


The Fed Has No Way Out

We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive. And there is still no way out.


Comments are closed.

Call Now