NEW YORK (Reuters) – The United States Mint said on Tuesday that it was unable to meet the growing demand for its gold and silver coins in 2020 and until January, due in part to the demand driven by the pandemic and problems of plant capacity.
Sales of gold coins in the U.S. increased by 258% in 2020, while demand for silver coins grew by 28%, the U.S. Mint said on Tuesday. Heavy purchases continued into 2021, he said, squeezing supplies, which were already tight because the coronavirus affected production.
A wave of purchases driven by social media raised silver futures to an eight-year high on Monday, but traders in the currency market were already struggling with a shortage of supplies and shipping delays before that rise.
The Mint, a division of the United States Treasury, has limited the distribution of its silver coins to suppliers, as it is currently changing the designs of its gold coins and American Eagle silver coins.
“There would be an accumulation in the silver bar supply chain that would make the Silver Eagles more scarce anyway,” said Everett Millman of Gainesville Coins in Florida. He expected delays until mid-March for the most popular products.
“The available silver coins and bars have acquired significantly higher premiums,” he added.
In January, 220,500 American Eagle gold coins were sold, up 290% from 56,500 a year earlier, the Mint said.
For this year, the United States Mint has a limited window to produce its current gold and silver coins, with redesigned coins expected to debut in the summer. It is limiting the distribution of its gold, silver and platinum coins to specific dealers due to high demand and a limited number of metal suppliers, the company said in a statement.
Reporting by Devika Krishna Kumar in New York and Arpan Varghese in Bengaluru; edition by Richard Pullin