Minting Facilities Shut Down from Coronavirus Demands

These are unprecedented times. Not only is Bullion Exchanges working hard to fulfill the needs of our customers, but also minting facilities are selling out of inventories in record-achieving levels. As a result, premiums for many products steeply increased quickly and suddenly. Also, many companies are closing down temporarily for reasons including complete sell out of inventory and to keep its customers and workers safe from the Coronavirus.

Bullion Exchanges is also temporarily closing in accordance with the New York State mandate. Please check your emails for more information.

Minting Facility Coronavirus News 

So far, the Royal Canadian Mint has announced to its customers and retailers that they are closed for the next two weeks, effective today, March 20th, 2020. This is to safeguard the health of employees and customers.

Additionally, the US Mint has sold out of inventory completely. They do not expect to be able to restock soon, and it might be another 4-5 weeks before they can. Bullion Exchange is also quickly selling out of inventory, but you can take a look at what we have in stock from the US Mint here. You are also able to still make preorders on our products, but we cannot guarantee shipment for all orders before we reopen in April.

Lastly, the Perth Mint has temporarily ceased new production for certain products including the 1-kilo sizes for the silver 2020 Australian Koala Bullion Coins. They will announce when production can recommence in the coming weeks to months.

What are Premiums?

When it comes to precious metals investing, there is a lot going on right now. Let’s quickly refresh your understanding of spot prices and premiums before we get too technical. 

First, there is a difference between paper price versus the real value of stock and precious metals. Similar to stocks, the gold price also has a value according to the law of supply and demand, which is known as the spot price of gold. This changes on a minute-to-minute basis, and Bullion Exchanges provides live spot price charts for gold, silver, platinum, and palladium for you to check anytime. 

On top of that, certain products carry higher premiums than others. Premiums are tacked onto the spot price of precious metals. This charges for business operations that have to do with refining, processing, and more. This premium can also change over time, and that is what they are doing right now. 

What is happening with premiums right now?

Currently, premiums have been reacting to the increase in demand, which is why you are seeing premiums skyrocketing. High demand and backlogs mean that premiums cannot remain the same. Premiums on the US Mint Silver Eagles have been as high as $10 over spot not only because of demand, but also because there is no definite date for when inventories will be replenished.

Companies now face 4-6 week estimated delays from the increase of demand and impact of the coronavirus. Even companies that are not yet closed or sold out are facing shortages globally because there are little to no planes making flights to transport this product. Even if all commercial planes were operating, companies are closing around the US. Not many will be able to accept the inventory until they reopen. 

What do I do now?

The most we ask of our customers is to sit tight and follow what your state tells you to do. These are unprecedented times and we are not sure when regular life can start to resume. Bullion Exchanges is proud to serve our valued customers. We are currently acting in accordance with New York mandate to shut down for at least two weeks to fight the spread of the coronavirus. If you are signed up with our mailing list, please check your emails for more information and future updates.

Bullion Exchanges

Bullion Exchanges is your trusted precious metals retailer located in the heart of Midtown Manhattan’s Diamond District. Unfortunately, we temporarily closed our storefront and office until further notice from the impact of the coronavirus. This is effective at the end of the day on March 20th. Online orders might take between 15-30 days for shipping and handling. We are eager to return to work in April when we will continue to handle products with the highest level of care. Our inventory includes bars, coins, and rounds in a variety of gold, silver, platinum, and palladium products. Bullion Exchanges thanks you for your patience as we work through our high volume of orders and customers. We will resume in limited operation in April. Until then, we wish our customers good health for you, your families, and your communities.  

Disclaimer. This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.