U.S. Mint Set to Release the One Ounce 2018 American Eagle Platinum Bullion Coins To Dealers.
2018 American Platinum Eagle Coins available to pre-order for shipment by 02/23/2018
The 2018 American Eagle Platinum Bullion coin will be shipping soon in the one ounce size. The U.S. Mint has not indicated the size of their 2018 American Platinum Eagle coin inventory, though it is believed that coins will be in limited quantity and on a strict allocation basis to dealers.
Limited Mintage History of the American Platinum Eagle Coin
From 1997 – 2008 the U. S. Mint produced one tenth, one quarter, one half and one ounce American Eagle Platinum bullion coins. After a five year hiatus the U.S. Mint produced resumed production of the one ounce American Platinum Eagle coin but did not produce smaller denominated coins. The U.S. Mint did not issue any American Platinum Eagle coins in 2015. The one ounce American Platinum Eagle coin returned again in 2016 and was also produced in 2017. Recent year mintages have been very low (see chart below).
About the 2018 American Eagle Platinum Bullion Coin
The 2018 American Eagle Platinum Bullion coin is minted in .9995 pure platinum and weighs 1.0005 ounces. The coin has reeded edges and a diameter of 32.7 mm. The obverse of the coin was designed by former United States Mint Chief Engraver John. M Mercanti and its reverse by former United States Mint Sculptor-Engraver Thomas D. Rogers Sr. The face value of the one ounce American Eagle Platinum bullion coin is $100 though the bullion value will far exceed that amount at time of release.
Facts About Platinum
The symbol for platinum on the periodic table of the elements is Pt
Platinum is an extremely rare precious metal with many unique properties that make it, like its white metal cousin, silver, prized for its beauty and use in industry. Platinum is the most dense precious metal (the ratio of the mass of an object to its volume) Platinum has a density of 21.4, Gold 19.3, Palladium 12.0 and Silver 10.5.
As a result of its unique density, platinum is nearly impossible to counterfeit.
Platinum is an extremely rare metal mined mostly in South Africa and Russia. Annual mining production is about 10 times lower than annual gold mining production. Platinum coins are also very rare. Production of American Platinum Eagles by the U.S. Mint has been limited to an average of about 12,000 coins for the last ten years in which the coin was produced. In total, 385,700 one ounce American Platinum Eagle coins have been minted in the coin’s history that began in 1997, with 138,500 minted in 1998.
Platinum was discovered in South America around 1735. About ninety years later, platinum was found in the Ural Mountains of Russia. Soon after its discovery, the Russian Emperor Nicolas I had platinum coins minted that circulated from 1828-1845 within Russia. These coins are the only examples of platinum serving as a monetary metal. In 1865, platinum deposits were discovered in South Africa. Today South Africa (approximately 72%) and Russia (13%) supply the bulk of the world’s platinum. Total annual platinum production is about 200-250 tons a year (approximately 6.5-8 million ounces a year).
Platinum’s use in the automotive industry accounts for about 45% of overall demand. Platinum is used in automobiles’ catalytic converters that reduce Nitrogen Oxide emissions. Platinum demand has increased the past two decades as countries like China and India have seen massive growth in their national auto fleets. In 2000, Chinese demand for platinum for catalytic converters was 32,000 ounces. By 2014, demand had grown to 527,000 ounces.
Platinum is less “white” than silver and has a greyish tinge that is popular in many jewelry designs. Platinum jewelry is especially popular in China and Japan. Jewelry demand accounts for about 30% of overall jewelry demand.
The remaining platinum demand comes from the chemical petroleum refining industry (about 10%), electronics (3%) and various other applications including electrodes, anticancer drugs, fuel cells, dental applications, oxygen sensors, spark plugs and turbine engines (about 13%).
Platinum demand for investment purposes is small. While the Canadian Mint, Perth and U.S. Mint produce platinum products they are not produced in large quantities. An Exchange Traded Fund launched in 2013 in South African now holds about 900,000 ounces of platinum.
Due to its scarcity, platinum is normally more expensive than gold and historically trades at a premium of about 1.1-1.5 times more than gold, for most of the past 100 years. During the past three years, however, the price of gold has out-paced platinum by factors of 1.01-1.3 to 1.
One major reason for the difference in the gold/platinum ratio has been an increase in the price of gold while the price of platinum has decreased. Palladium, often considered a cheaper version of platinum, has traded at a premium to platinum for the past six months as the price of palladium has doubled since 2016.
The discount that platinum is trading to gold and even palladium, leads many investors to believe the platinum is undervalued.
Ten Year Platinum Chart
Ten Year Palladium Chart
You can order your one ounce 2018 American Eagle Platinum Bullion coins by clicking here.
American Platinum Eagle coins are IRA eligible.
American Platinum Eagle sales data from USMINT.GOV
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.