Despite previous gaps in the series, the U.S. Mint has announced that they will be selling American Platinum Eagles bullion coin in 2016! Because the coin was not issued last year, demand could be high. Why should you make a purchase of the 2016 Bullion American Platinum Eagle? MCM's writer, Brian Comp Jr., tells you what you need to know.
Practically everyone is familiar with the American Gold Eagle and American Silver Eagle coins from the U.S. Mint. What some may not realize is that the American Platinum Eagle is one of the most collectible coins being struck by the U.S. Mint today. The bullion version is back for 2016, but what does this mean for you? Let’s cover a bit about buying platinum in general first.
The American Platinum Eagle series of coins was introduced in 1997. The standard bullion version was issued annually from 1997 to 2008. Once production of the bullion version ceased following 2008, it wasn’t until 2014 that these coins were struck again. 2015 was also a no-show for the bullion Platinum Eagle.
This may be a modern U.S. bullion coin, but the only 6 figure mintage of the series belongs to the 1998 1 oz. version. Other than that, these coins have mintages in the 4 or 5 digit range. Compared to most modern U.S. coins, that’s very low. This is part of what gives the bullion Platinum Eagle its collectible appeal.
The U.S. Mint plans to issue only one size for 2016, the full 1 oz. version. Each Platinum Eagle is made of .9995 fine platinum. Similar to the way that .999 fine is the market standard for silver bullion, .9995 is the market standard for platinum.
The Platinum Eagle bullion coin may be collected for its low mintage figures and intrinsic value, but it isn’t lacking in eye appeal either. The obverse features a design created by John Mercanti depicting the Statue of Liberty.
Since this is the bullion version we’re talking about, the reverse displays the soaring bald eagle design created by Thomas D. Rogers Sr. If you want to see the weight or purity inscriptions, they can be found just to the right of the eagle.
Purchasing platinum for investment purposes is basically the same as buying gold or silver. While there are fewer options available in terms of forms and producers, there are still enough options to suit most situations.
Like gold and silver, platinum is sold by the Troy oz. A Troy oz. is equal to 31.1 grams, which is more than the standard avoirdupois oz. that we associate as 16 to a pound. The spot price of platinum is the standard value of 1 Troy oz. of platinum at any given time during trading hours. If you check the spot price charts for gold and silver then it’s likely you’ve seen platinum charts somewhere as well.
When you purchase platinum, the price you pay will always be higher than the spot price. The difference between the spot price and the price of your chosen 1 oz. platinum bullion product is called the "premium." Premiums vary by type, whether you are buying a bar or a coin, and by Mint.
At the time of this writing, the spot price of platinum is hovering just above $1,100 per ounce. Recently, the prices of all precious metals have jumped a bit. Just in the past month, platinum has risen in value from $963 per oz. to its present level. However, it’s still quite far from a new high. In the past 5 years, the price of platinum has been as high as $1,901!
Platinum is one precious metal that there just never seems to be enough of. Unlike gold and silver, it’s rather common to see bullion dealers with an out-of-stock notice on their platinum products. Some of this is caused by the industrial uses of platinum. Its most commonly known use in industry is in catalytic converters for vehicles. Nearly half of all the platinum that is mined makes its way to the automobile industry.
Another reason for the seemingly weak supply of platinum is our location. While platinum is mined here in the United States, we are only the world’s 5th largest producer by weight. As of 2014, South Africa was the world’s largest producer. The amount of platinum mined from South Africa was approximately 30 times larger than the amount mined here in the US.
The most recent bullion Platinum Eagle released by the Mint, which was in 2014, had a final mintage of 16,900 coins. With the general scarcity of platinum bullion and the low mintages that this series is known for, you need to act quickly if you want to own a 2016 bullion Platinum Eagle.
The Mint won’t be selling these directly to the public, but it’s safe to say that distributors will order everything they can when sales open on July 25th. Your best bet is to pre-order, so keep an eye on the MCM Pre-Sale section or sign up for our email newsletter and add some of these coins to your stack or collection as soon as they’re available.
||Brian Comp Jr. is a coin and bullion expert from Pennsylvania. He attended his first coin show at the age of 8 with his father in the late 90s. Brian has been working as a writer since 2011 and specializes in content that helps customers make good decisions. In his free time, Brian enjoys reading, checking out new coins, lifting weights, and drinking coffee. He’s always ready to answer questions, just email him at firstname.lastname@example.org.|