In August 1999 the Mint began the process of hedging the purchases of base metals used to manufacture United States coinage. Base metals (zinc, copper, and nickel) account for thirty percent of the cost of manufacturing coins. Metal prices are subject to significant variation as a result of market price volatility. The objective of the Mint’s base metals risk management program is to reduce the variation in metal costs resulting from market price swings. To accomplish the risk management objectives, swap hedges are utilized to lock in metal prices on physical purchase commitments made but not yet delivered.
So....I guess in 2008 they did not hedge against gold or silver? Or did they?
and the same with the proof gold coins being like 430 some dollars over spot!.. I remember earlier this year when gold passed proof gold eagles They quickly took them off sell and raised the price of the coin. I have noticed they have still yet to drop the coins since gold has gotten so low. I really hope no one is dumb enough to buy them
"The Mint is required by legislation to obtain silver to be used in minting of commemoratives from the DLA (Defense Logistics Agency) stockpiles. The Mint has been using DLA silver in the production of numismatic silver coins. In FY 2000, due to the dwindling supply of DLA silver, the Mint has gone out on the open market to meet coin production demands. It is expected that the Mint will deplete the DLA stockpiles of silver within the next two fiscal years. (2002?) The Mint reimburses the DLA at the market price for silver, less the statutory rate of $1.292929292 per FTO. The $1.292929292 per FTO is paid by the Mint to the Treasury."
So much for the US government holding much silver anymore.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw. Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony Passive Income blog