Gold Futures Hit $2000 After US Mint Reduces Bullion Coin Supplies Tyler Durden Mon, 07/27/2020 - 21:46
Gold and Silver futures prices have extended their gains after hours, with the barbarous relic hitting $2000...
...and silver topping $26.
This move came after Bloomberg reported that, according to documents reporters had seen, the U.S. Mint has reduced the volume of gold and silver coins it’s distributing to authorized purchasers as the coronavirus pandemic slows production.
As we previously noted, sales of silver and gold coins had been surging until the pandemic hit and shutdown production.
The Mint's West Point complex in New York is taking measures to prevent the virus from spreading among its employees, and that will probably slow coin production there for the next 12 to 18 months.
The facility is no longer able to produce gold and silver coins at the same time, forcing it to choose one metal over the other, according to the document, which was presented to companies authorized to buy coins from the Mint last week.
Bloomberg reports that a spokesman for the Mint didn’t immediately have comment.
“The pandemic created a whole new set of challenges for us to manage,” the Mint said in the document.
“We believe that this environment is going to continue to lead to some degree of reduced capacity as West Point struggles to balance employee safety against market demand.”
Ahead of this unexpected interruption in supply, the premium for physical gold was already high ...
...and we suspect this will send it soaring back near those $100 levels seen at the last Mint production halt.
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