The US Mint has decreased the supply of gold and silver coins
The United States Mint, a bureau of the US Department of the Treasury responsible for producing coinage for the country, has decided to cut supplies of gold and silver coins to its distributors. The coronavirus pandemic has slowed production of the mint, however, the prices of the precious metal have reached historical highs.
The West Point Mint complex in New York is taking steps to prevent the virus from spreading among its employees. According to Bloomberg, it will likely reduce the production of bullion or investment coins over the next 12 to 18 months.
The facility can no longer produce gold and silver coins at the same time. This is why it is compelled to choose one metal over the other.
Last week, authorized companies presented the document by the United States Mint. According to the bureau, the pandemic created a whole new set of challenges for the mint. The US mint believes this environment will continue to lead to a certain degree of reduced capacity as West Point strives to balance employee safety with market demand.
The closure of mints pushes gold higher
The relentless invasion of the global pandemic on economic activity and metal supply chains had forced the closure of the bullion coin production facility at the United States Mint at West Point in April.
At that time, the United States Mint had announced the suspension of minting activity at its facilities. Specifically in West Point (New York), because of the risk of transmission of the coronavirus among its employees. The decision comes from the US Mint at a time when demand for gold and silver coins has skyrocketed among investors.
The United States Mint had communicated its decision to temporarily stop the production of coins at its West Point mint.
Analysts think that the decision has occurred at the worst time for the market. The demand for gold and silver coins has skyrocketed in recent weeks among investors. They are seeking a haven to protect themselves in the face of the growing economic crisis. As the US Mint closes, gold is printing new highs of $1,947 per ounce and silver is almost at $25.
However, it is not surprising that the government mint has to stop its production. This has not happened solely because of the great problem of the pandemic or the supply of metals that do not arrive regularly. Above all these issues, precious metals prices reached incredibly high prices. This makes purchases of blanks or disks on which the bullion is minted impossible.
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