US Gold Mint: Historical and Economic Understanding
US Gold Mint: Historical and Economic Understanding
According to a report published by Thomson Reuters on August 10, 2011, a mint spokesman said that a recent rise in gold prices has prompted the US Mint to suspend the online sale of gold collector coins on Tuesday, August 8, a first time in history. The US gold mint issues the American Eagle bullion coins, one of the most famous gold products. It sells them to authorized wholesalers, who then sell them to individuals and the public. Like any other mint in the world, the US mint issues and distributes coins for national consumption. Apart from production of coins, the mint also manufactures collectible coins and national medals as per government instructions. The mint has to maintain the custody of gold and silver assets of the country and protect them from internal and external threats.
The US Constitution realized the need for a sound monetary framework for healthy governance and a robust economy. Alexander Hamilton, the Secretary of the Treasury, created the initial draft for the US Mint. Subsequently, The Coinage Act was passed by the Congress on April 2, 1792. The Act was incorporated in Article I, Section 8 of the Constitution. Since the inception of the mint, there has been constant evolution of the numismatic art. Every coin evokes memory of America’s great history and its emphasis on ideas of liberty and equality.
US Gold Mint: Now and Then
“E Pluribus Unum” – this is the Great American Promise which lends credibility to each coin that the US Mint issues. Each coin is a small share of America’s core values. It brings together all its citizens under the same economic umbrella. As it passes from person to person, it reminds each American of the nation’s cultural and economic essence. The US Mint has also evolved with time, producing coins between 4 and 10 billion annually, and generating a record $3.89 billion in revenues in fiscal year 2010. The mint takes its operating expenses from the revenues it generates and hands the reaming to the General Fund of the Treasury. Each of the six facilities that the US Mint operates performs a unique function. Its headquarters are in Washington DC and the production facilities are in Philadelphia. Other facilities include: San Francisco, CA; Denver, CO; West Point, NY; and the United States Bullion Depository at Fort Knox, KY.
There are many special numismatic coins that the US Mint issues. The Proof American Eagle is one such special numismatic coin which has a fancier finish and it moves with the London spot prices. Apart from this, the mint also produces limited edition commemorative coins honoring the nation’s institutions, culture and history, the surcharges of which support museums and historical sites.
Two significant developments have taken place recently:
- The unfortunate combination of Europe’s sovereign debt crisis and the lowering of the credit rating of the US pushed gold prices astronomically high, surging past $1,800 an ounce. This made the US Mint suspend the sale of their gold numismatic coins on August 9, 2011. Mint spokesman Mike White said from Washington that this move affects only special gold numismatic products and not the gold bullion coins sold to investors.
- On August 8, 2011, the US Mint in a press release confirmed its participation in the American Numismatic Association’s (ANA) World’s Fair of Money Convention to be held from 16-20 August at the Donald E. Stephens Convention Center in Rosemont. Treasurer of United States Rosie Rios will be participating in the official ribbon cutting ceremony on August 16 and will hold a public forum to talk about the Mint.
