Precious Metals

Platinum American Eagle bullion coin sales sluggish

After a solid resumption of sales in March following an interruption of more than five years, monthly sales of platinum American Eagle bullion coins have dropped steadily since.

Images courtesy of U.S. Mint.

The more than five-year period during which no platinum American Eagle bullion coins were struck for sale by the U.S. Mint did little to spark investment demand since the coin's return.

Production resumed earlier this year with the output of .9995 fine platinum 1-ounce coins. There was no indication that the Mint will eventually include half-ounce, quarter-ounce and tenth-ounce coins.

Before the resumption, the last platinum American Eagles struck for sale to the Mint’s authorized purchasers (APs) were 800 half-ounce coins in November 2008.

A respectable 10,000 of the 1-ounce coins were sold in March 2014, but that number quickly slipped to just 1,200 coins in April. May sales reached 1,000 coins, and only 700 were sold in June.

Through July 15, the Mint had not recorded any sales of platinum American Eagle bullion coins.

The highest monthly sales total for 1-ounce platinum American Eagle bullion coins was 25,000 in September 1997, the month program sales were inaugurated.

The Mint does not sell its bullion coins directly to the general public, but through a group of APs.

The APs purchase the American Eagle gold, silver and platinum; American Buffalo gold; and 5-ounce silver American the Beautiful quarter dollar bullion coins for the spot price of the metal per troy ounce on a given day, plus a small premium.

The premium for the 1-ounce platinum American Eagles is 4 percent over the spot price. The minimum ordering requirement is 1,000 ounces.

The APs then resell the bullion coins to the general public or to other dealers for subsequent resale.

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