U.S. Mint Silver, Gold, Platinum Coin Revenue Hits $1.7bn Record High in FY09
Source: Mineweb, Dorothy Kosich (2/3/10)
". . .bullion net income increased 83.7% to $32.7 million in [FY09]"
The U.S. Mint sold 27.6 million ounces of gold, silver and platinum bullion coins in fiscal year 2009 (FY09), a 132.3% increase over annual bullion sales since FY05.
Total bullion revenue for the mint achieved a record high of $1.7 billion in FY09, a 78.65 increase from $948.8 million in FY08.
As bullion coin buyers were well aware, the U.S. Mint was initially unable to acquire sufficient planchets (blanks) to satisfy "the unprecedented demand for bullion coins."
Because of supply constraints, the mint diverted all available planchet supply to produce of 22-karat gold and silver one-ounce bullion coins. The mint also diverted blanks from discretionary numismatic and bullion programs, increased production capacity, and worked with suppliers to expand planchet supply. "Consequently, the bureau expanded bullion planchet supply from previous levels of 8 to 10 million ounces annually to over 27 million ounces in FY09," the report said.
Bullion sales, general and administrative (SG&A) expenses increased from $8.4 million in FY 2008 to $1.2 million in FY09. Meanwhile, bullion net income increased 83.7% to $32.7 million during the same time period. "The bullion program was successfully managed to just below the standard net margin of two percent," the report said.
The sales of American Eagle 22k gold bullion revenue increased 184.3% to nearly $1.28 billion in FY09, up from $449.6 million in FY08. Revenue from the sale of all American Eagle 22k gold products comprised 75.4% of total bullion sales revenue in FY09.
Beginning in calendar year 2009, the mint suspended production of American Eagle 22-k fractional denominations, only to resume their sales in October 2009.