Numerous readers have asked whether the U.S. Mint would guarantee the price of the Ultra-High Relief Saint-Gaudens Double Eagle coin under the Mint's new pricing policy for most numismatic bullion coins. ("Numismatic bullion coins" are coins made of precious metals such as silver, gold, and platinum, and intended for collectors rather than precious metals speculators.) The Mint recently implemented sweeping changes to its pricing policies for numismatic gold and platinum bullion coins, saying that it would adjust the prices weekly based on the average London spot prices for precious metal for the previous week. Readers wanted to know whether the U.S. Mint would lock in those prices at the time of purchase.
For example, I placed an order for the new Ultra-High Relief coin last Thursday, shortly after the coins went on sale. At the time, the coin was priced at $1,189.00 because the spot price of gold had averaged between $800 and $850 per ounce the previous week. My coin isn't due to be shipped until Feb. 6. In the mean time, the price of gold has risen significantly, to more than $900 (as I write this). If the price of gold stays above $900 until Feb. 6, would I be charged the higher price ($1,289.00) or was my price guaranteed at the time of purchase?
I put this question to the U.S. Mint, and they informed me that the price is locked in at the time of purchase.
While I certainly applaud this policy, as it is in keeping with industry standards for bullion market transactions, I can already foresee abuse on the horizon because the U.S. Mint's customer satisfaction policies differ from those of private sector bullion dealers.
For instance, the U.S. Mint allows customers to cancel an order up until the time it is processed. So, if I had locked in my Ultra-High Relief coin at $1,189 and gold had gone down rather than up, I could cancel this order and place a new order at the lower price the following week.
In addition, because the Mint has a 30-day return policy for virtually everything it sells to consumers, I could send my Ultra-High Relief coin back to the Mint if the bullion prices significantly declined during that time. I could take the refund of the higher price, and then order another one more cheaply, saving $50 to $100 or more (less the shipping charges each way, which the Mint does not refund.)
Although the Mint has made great strides in its new numismatic bullion coin pricing policy, I think it should go a little further and make the locked-in price at the time of purchase a two-way street. Not only is this the standard when buying bullion-based coins on the open market, it protects the Mint from those dishonest coin dealers and consumers who would use the Mint's generous return policy in an abusive manner. In times past, when the Mint rarely adjusted the prices and took them off sale for a period of time while doing so, abuse of this type wasn't often feasible. But nowadays, with weekly price changes, I think the Mint should consider revising the order cancellation and return policy for the numismatic bullion coins.
Free U.S. Mint Shipping Upgrades
While I was reading the Mint's customer service polices to research this editorial, I noticed that the Mint automatically upgrades gold and platinum bullion coin purchases, and any purchases that exceed $300, to its expedited shipping service. So, the next time you order from the Mint and feel inclined to pay the extra $12.95 for 2-day air, check the Shipping Information and Return Policy page to see if your order qualifies for the free upgrade. The Mint won't refund it if you pay it and didn't have to.
Comments
I still do not like the fact that it said feb 6th as a shipping date now i get an email telling me that its moved back to the 20th, yet when i check the website in my orders, it shows feb 6th for coin feb 20th for book, and if you order one now it says feb 13 for shipping. I have almost hit the cancel button a few times guess i’ll wait and see what happens to the price in the next 3 weeks while i wait……
There might be something in the works to curtail potential abuses.
I read in Coin World that the US Mint would be “reviewing” their return policy in light of the new pricing policy.
I purchased the 10th anniversary platinum set when first issued, had I waited the same set
could have been purchased for $500.00 less during the year. We’re not playing the futures market here, I think prices should only be adjusted upwards not down. This would prevent the cancel and buyback problem, would also result in a lower mintage. The only drawback would mean less “profit for the Mint”. Maybe a coin such as this should have been classified as a commerative, with a maximum mintage.
This is similar to the way that many bullion dealers handle fluctuating prices. NWTmint for example will buy back ordered bullion at any time before it ships. Although the main difference if I read this right is that private bullioners will only give you their “buy” price which is less than spot… and of course their “sell” is a premium above. Their would have to be some major movement to make money this way. I believe with the amount of revenue the mint makes off these coins, that a little bit of devious activity would not hurt their coffers that much.
I’ve found that the mint ships things when they want to and not necessarily when they say the shipping information. My last order was over $300. and the order before that I paid the extra $12.95. Both times when I’d been waiting over 10 days I’d call the mint to see what was up since my order info said “In stock and reserved”. Ive been told the two day delivery starts after they send the order! That’s right I’m not kidding I’ve been told by several people including a supervisor to just be patient. Then I was informed that they would not refund or credit the extra $12,95 I paid on one of the orders. In both of these instances it took over three weeks to get my order, and that was for things in stock and not items on back order! The worst part was the lack service I received. They acted like I was bothering them. “JUST BE PATIENT” “There is nothing we can do” “I’ll just have to wait”, etc. Unfortunitly the customer has no choice since they already had my money and was told I can’t cancel the order. There is no way to register a complaint with anybody who cares. The employees I’ve delt on my last few orders have reinforced the stereotype of mean, rude, don’t give a ….., civil service or civil “no service” employees. I’m sorry to say this because most of my coin collecting has really been fun, however the last several dealings with the US MINT have been very disappointing. The quality of some employees serving the public has gone down so much in recent months. If that rudness is the norm when someone has problem, the people in charge need to clean house and find employees who care about their customers.
This is what I got in my email today.
“Greetings from the United States Mint. The following order has been cancelled either at your request or because we were unable to process it. We invite you to resubmit the order via our website at http://www.usmint.gov and click on Product Catalog.
UH1 Qty
2009 Ultra High Relief Gold Coin.”
Is this how they are getting around the lock in price. These were birthday gifts to my adult children.
Bob,
I am sorry to hear that your UHR order got canceled. The most likely reasons why the Mint cancels UHR orders are:
(a) You ordered more than one coin to be delivered to your address. There is a one-per-household limit, so the Mint will cancel the second and subsequent orders placed on either the same credit card, or sent to the same address. (And yes, they can detect small variations in addresses that people use to try to deceive them, because all addresses are standardized to USPS requirements before shipping. This strips out any variations, leaving only one possible correct standard address for each location.)
(b) Your credit card was rejected. This could be because you made an error typing it in, or maybe the expiration date has passed (a common problem with folks who store their credit card on file at the Mint. They forget to update it when their new cards arrive.)
Another reason your card might have been rejected is bank error. If you are sure you only placed one UHR order for your address and credit card, and that one order got canceled, call the Mint’s customer service line and see if they can tell you why it was rejected. If so, and it was your bank’s error, ask for a supervisor to reinstate your order. (Not everyone is successful with this attempt, but it’s worth a try.)
Judging by the context of your message, (”birthday gifts”) it sounds like you tried to order more than one coin.
The Mint will hopefully relax the order limits soon, now that the initial frenzy has passed. Another alternative is to buy from a coin dealer who has acquired many specimens. Some of the mark-ups I’ve seen are less than 10% of the cost of the coin.
If you’re wondering how coin dealers get so many despite the one-per-person limit, see this article:
How do Coin Dealers Avoid One-Per-Person Limits on U.S. Mint Coins?
I had used the mint’s mail directly to their addresses option. 1 coin to each at 3 differant city and state addresses. So the only thing I figure is the mint is really SAYING is 1 PURCHASE per household AND not one-per-household limit. “household order limit of one (1) coin” One would think that the on line order page would block you if that was the case. Also they have not billed me for the one still coming to my house.