Mint Expects New Rush for U.S. Gold Coin Today

The U.S. Mint, caught off guard last week by the public clamor for its new American Eagle gold coin, expects to suffer an embarrassment of riches today when dealers scramble for the limited supply.

The first general-circulation U.S. gold coin in more than half a century has proved to be a winner with the public, and government officials hope to capitalize on that interest by unveiling a sister silver bullion coin on Wednesday.

The gold coin went on sale Oct. 20 and by the next day red-faced officials at the Mint had to announce sales were being suspended because the supply of 800,000 coins was exhausted.

Backup Plan Initiated

The Mint hastily put a backup plan into operation in which it will hold sales each Monday and will allocate the available coins among the 25 primary dealers.

For the sale today, the Mint will offer 152,000 ounces of gold coins, all that its bullion depository in West Point, N.Y., has been able to produce in the last week, working 24-hour shifts, seven days a week.

The Mint is not selling the coins directly to the public, but instead is distributing the coins to 25 primary dealers worldwide who then resell the coins to a network of precious metal dealers, coin shops, brokerage firms and banks.

The primary dealers said they expect to be limited to purchases of around 5,000 ounces of coins in the sale today.

Price Has Fallen

The price of gold has fallen since the coins first went on sale. Gold was selling in London for $410.50 an ounce on Friday, down $12.90 from the day before.