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Old 31-12-2012, 11:45 AM
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Default US Mint Bullion Revenue Falls 29%, American Silver Eagle Generates Loss of $4.4 Milli

US Mint Bullion Revenue Falls 29%, American Silver Eagle Generates Loss of $4.4 Million

http://news.coinupdate.com/us-mint-b...ate-loss-1781/
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Old 31-12-2012, 03:21 PM
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very interesting article. Makes me wonder what is the operating profit margin of other mints?
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Old 31-12-2012, 03:31 PM
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the mint produced over 20 million ounces in ASE, but together with all other things and still made a loss.

i wonder how long will the mint suspend less profitable margin products in the future?

if can not make money, then how to retail their product?? it can cause a loss, wow

will the mint cut down their production to reduce losses?


in Singapore, a mint surely charge higher premium
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Old 31-12-2012, 04:19 PM
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The mint is suffering losses mostly from ASE. This is happening when the average price of silver is between US$30 to US$32/oz over the past one year (whether Oct-Sep, or Jan-Dec), reflecting the price level which production costs exceeds revenue. This is also consistent with other articles mentioning US$30/oz silver in order for mines to operate profitably.

Hope stackers will remember this fundamental piece of useful information. Any price below US$30/oz... stack ah!!! With a purchase strategy in place of course.
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Old 01-03-2013, 12:49 AM
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Do you see another year of loss from ASE at the US Mint?
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Old 01-03-2013, 09:15 AM
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i find it funny..

unless US mint is guaranteeing to deliver silver to distributors at some fixed price, else the cost are just passed on to distributors..


the only possibility is the huge fluctuation in prices.. e.g. US mint import silver when it hit high of 35usd, but have to sell it after production but when spot falls to 30usd... under such cases, if i am US mint i would have hedged out my silver exposure via the future market..

so i don't get these losses at all.. cannot comprehend..


but that said, with 20mil (or how many in exact) ASE costing maybe average 600mil USD.. losses of 5mil is less than 1%.. i.e. they lose around 25c per ounce of silver when silver is trading around 30 USD.. that's not really alot..
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Old 01-04-2013, 01:39 AM
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Come to think about it in 1960s the US govt controlled 3.5 billion ounces of silver
, now they controlled much much less at a fraction what it used to be.
Then with the US mint claimed a loss on their production, that told us something amiss in the way , about the "real" physical quantity of the silver there despite US is being the largest holder of gold bullion in the world.
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Old 01-04-2013, 09:46 AM
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Year to date the daily price is averaging little above USD30/oz now. All things being equal, if we take the spot price as an indication of the mint's profitability from last year's record, they are barely breaking even or losing from silver at current price. To stay profitable at spot below 30, the premium for ASE must go up, or the mint may have to ration the supply, get bailed out or maybe cook the books. LOL. I wonder how the other mints are doing.
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Old 02-04-2013, 11:32 PM
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dont think we should consider it that way..
remember, they need to buy silver in order to mint them. so whether silver goes up or down their cost/sales are going to move in tandem..

so what is the key differentiating factor..
1. if silver price keeps coming down.. if they take order at locked in price then silver cost comes down, they make.

2. if silver price keeps going up.. similarly they lose.

3. if silver price is volatile.. then it really depends on how lucky they get..


i don't really think we shld take their profit as a function of the direct cost of silver, more on the 1st order derivative of price, i.e. dS/dt.
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Old 02-04-2013, 11:50 PM
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Hmm... but the Mint's revenue comes from selling their finished coins to authorised dealers right? So if silver price goes down, they will likely be selling to dealers nearer to the prevailing lower spot price and hence lower revenue while their cost is higher. Vice versa if price goes up, they gain with higher revenue. Yes? No? I don't really know how the Mint work, whether they hold lots of excess raw silver for future production or produce the coins on JIT basis...
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