The US Mint stated on Monday (6th October) that it has been forced to cease production of some of its coins due to unexpectedly high demand for precious metals such as platinum.

It has stopped making its popular half-ounce and quarter-ounce American Eagle gold coins for the rest of the year and will now distribute its other bullion coins on an allocation basis.

The move - which is also being attributed to volatile markets - will see the Mint focus production primarily on its one-ounce gold and silver coins until the end of 2008 at the earliest.

One section of a memorandum to its authorised coin dealers read: "Due to the extreme fluctuating market conditions for 2008, as well as current market conditions, gold and silver demand is unprecedented and the demand for platinum is unusually high."

A host of coin dealers in North America have recently reported surging sales of bullion coins and various gold products as investors seek a safe haven in precious metals amidst the current financial crisis.



Source:

US Mint halts some American Eagle coin production (07/10/08)
http://africa.reuters.com/wire/news/usnN07435260.html