U.S. Mint shut down gold and silver bullion production at its West Point facility due to a spike in COVID-19 cases in the area.
Reports of barren shelves at gold and silver dealers and even at the U.S. Mint made news headlines in recent weeks. The problem? An acute shortage of bullion. One that could worsen with the announcement that the U.S. Mint shut down gold and silver bullion production at its West Point facility due to a spike in COVID-19 cases in the area.
The U.S. Mint reported the closure of its West Point branch on April 15. It’s taking precautions to protect employees’ health because the number of coronavirus cases has been increasing in Orange County, New York.
Worse for the bullion market, the closure is indefinite. The organization stated, ‘The Mint will resume production once it is deemed prudent to do so.’
Bullion Demand Surges as Supply Shrinks
The closure comes at a time when demand for safe-havens is soaring because the COVID-19 crisis has crippled the economy and rattled the stock market with record volatility.
After selling out of American Eagle silver coins last March, the U.S. Mint reported sales of American Eagle gold bullion coins were up 465% in the first two weeks of April.1
Spot gold prices have been steadily climbing in tandem with the surge in demand, hitting $1,741.90 on April 14.2
And that’s just the paper gold market. Intense demand for physical precious metals is reportedly pushing premiums for bullion coins up by 5%-10%. Even at those prices, gold and silver dealers are still struggling to meet client demand.
Where You Can Find Gold and Silver Bullion Coins
The precious metals advisors at Scottsdale Bullion & Coin have seen the rush to physical gold and silver firsthand.
Despite the shortages, we have gold and silver bullion and investment grade coins, and are working overtime to ensure our clients can secure their savings with them.
We’re here to help you protect your financial future. Call us at 1 (888) 812-9892.
Update on 4/17/20: According to Kitco News, the U.S. Mint provided an update that it will move some of it’s silver bullion production to it’s Philadelphia facility.