This past week the U.S. mint announced that it will stop all production of their Gold and Silver one ounce coins. They claimed that due to unprecedented demand, the Mint was unable to obtain additional gold and silver blanks to produce the coins. The Mint said that refiners are working around the clock but are not able to keep up with investors’ incredible appetite for the coins. They indicated that the 2009 Buffalo is scheduled to be produced during the fourth quarter of this year. Maybe it will, maybe it won’t. Gold Eagles will soon become scarce. We already know how hard the 2008 $50 Gold Buffalo is to find.
You may recall I predicted this shortage back in January, claiming that production would be halted by June 30. I was only off by 12 days. I also predicted that within 3 years, no gold or silver coins will be available for purchase at any price. There will simply be too much money chasing too little supply. This means that premiums will soon start to increase again. I recommend buying Gold and Silver Eagles with every downdraft in price. The day is coming soon when you will not regret one coin.