For all of 2005 thru August the Mint has coined 224,500 total gold ounces of all denominations. Comparatively, the total ounce production thru August 2004 was 374,000. That's a haircut of about 40%.

Correspondingly, silver eagle production is down as well, 5,602,000 minted thru Aug '04 compared to 4,080,000 in 2005 thru August, so far. We know the US Treasury & Mint have no silver, having squandered the several billion ounces it once had.  So, taking them at their word they must be buying it from the markets or directly from mining companies.

I guess what I'm suggesting is that for those socking away physical gold, you might be a beneficiary of a quasi-numismatic premium with the "slabbed" (certified) 2005 1/4 and 1/10 oz issues which so far are running about half of 2004's mintages. Earlier years have lower mintages, but now have a numismatic premium. The benefit accruing to you would be the 2005 issues appreciating in premium - if you can get them before it's relative scarcity is assessed by the collecting world. Check around and you'll see the premiums now commanded by the earlier issues which have been minted since 1986.

We think it would be quite informative if one of our sound money sleuths could maintain a graph for gold & silver eagle coin production with price overlays. It wouldn't have to be done for each denomination, but just yearly ounce totals with say a year end's spot price overlay.

For all of 2004, there were 437,000 one ounce gold eagles produced; this compares with 175,500 minted in the first eight months of 2005! If you're stashing away physical gold, you might as well have fun doing it!

- - CV

Full yearly mint production figures can be viewed at: http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2005