Price of Gold and Silver as far as the US Mint is concerned.

Just in case you were not aware, when ever the US Mint submits it report to congress on the value of the US Gold and Silver Reserves they are mandated to use a value that well below todays market value.

U.S. Code Title 31, Sections 5116 and 5117 (statutory rates) which are $42.2222 per Fine Troy Ounce (FTO) of gold and $1.292929292 per FTO of silver.

Even though the Mint is Authorized by this same US Code to buy gold and silver at what they call Average Market Prices, in their reports to congress they can still only report it at the statutory rates.

Which really makes me wonder. If they are buying silver at 9 to 10 dollars per FTO and then selling the coins they make from this silver to us the collector at spot plus the premium over spot, and reporting it at 1.29 FTO with their so called profit margin, how cooked are the books really?

Dave

 

Log in or Sign up to hide this ad.

no, even the mint has to pay market price for the metal they get from others, but its the 30 to 40% markup that is criminal, IMO.

 

Sorry about the length of this

GDJMSP you may be correct there but under 31 USC 5116 it is written as follows.
The Secretary shall pay not more than the average world price for the gold. In the absence of available supplies of such gold at the average world price, the Secretary may use gold from reserves held by the United States to mint the coins issued under section 5112(i) of this title.

The Secretary shall issue such regulations as may be necessary to carry out this paragraph. (b)(1) The Secretary may buy silver mined from natural deposits in the United States, or in a territory or possession of the United States, that is brought to a United States mint or assay office within one year after the month in which the ore from which it is derived was mined.

The Secretary may use the coinage metal fund under section 5111(b) of this title to buy silver under this subsection. (2) The Secretary may sell or use Government silver to mint coins, except silver transferred to stockpiles established under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.). The Secretary shall obtain the silver for the coins authorized under section 5112(e) of this title by purchase from stockpiles established under the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.). At such time as the silver stockpile is depleted, the Secretary shall obtain silver as described in paragraph (1) to mint coins authorized under section 5112(e). If it is not economically feasible to obtain such silver, the Secretary may obtain silver for coins authorized under section 5112(e) from other available sources.

The Secretary shall sell silver under conditions the Secretary considers appropriate for at least $1.292929292 a fine troy ounce

So does this mean that they have to buy it from the stockpile until it is depleted and then at which time they have to buy it at average world price to replenise the stockpile?
As far as silver it spificicly states that silver should be purchased from US Mints. Now later in the code it does state that to continue the ASE program certain conditions must be met. One of which if I am not mistaken is the amount of silver that the mint must purchase from Nevada mines. This subsection on the ASE program is quite interesting in itself.

Dave

 

Most metal mines up to last year had trouble fulfilling contracts. Usually with the base metals, mines would have up to 2 months worth sitting in their warehouse. When metal prices shot up to record high prices, some places didn't have a week's worth left.

A mint having a stockpile would not make any sense when metal prices are absurdly high - they would be striking as fast as meet demands. There is also a price to pay for security; probably more profitable to set up a few more dies and double, triple the production rate.