NEW YORK (Reuters) – The United States Currency said on Tuesday it could not meet rising demand for its gold and silver gold coins in 2020 and until January, partly due to pandemic-driven demand and plant capacity problems.
Sales of U.S. gold coins rose 258% in 2020, while demand for silver coins rose 28%, the US Mint said on Tuesday. Heavy buying continued in 2021, according to stocks, which were already tight because the coronavirus affected production.
A buying device driven on social media raised silver futures contracts to a high of eight years on Monday, but traders in the coin market were already struggling before the rally with a shortage of stock and shipping.
The Mint, a division of the US Treasury, has restricted its silver coins to suppliers as it is currently changing the design of its US Eagle Gold and Silver Bullion Coins.
“There would be a backlog in the supply chain of silver gold that made Silver Eagles scarcer anyway,” said Everett Millman at Gainesville Coins in Florida. He expects delays until mid-March for the most popular products.
“The silver coins and silver rods available have received significantly higher premiums,” he added.
In January, 220,500 American Eagle gold coins were sold, up 290% from $ 56,500 a year earlier, the Mint said.
For this year, the U.S. currency has a limited window to produce its current gold and silver coins, with the redesigned coins expected to launch in the summer. It limits the distribution of gold, silver and platinum coins to specific traders due to high demand, and a limited number of metal suppliers, reads a statement.
Reporting by Devika Krishna Kumar in New York and Arpan Varghese in Bengaluru; edited by Richard Pullin