U.S. News

U.S. Mint says has run out on Buffalo gold coins

NEW YORK (Reuters) - The U.S. Mint has run out of a type of highly pure gold coin it had been selling amid record high prices of gold.

The mint said it will not stock more of the 1-ounce, 24-karat American Buffalo bullion coins.

“The United States Mint has depleted its inventory of 2010 American Buffalo One Ounce Gold Bullion Coins,” the Mint said in a statement, seen by Reuters on Monday.

Officials at the Mint could not immediately be reached for comment.

Gold prices have hit record highs over the last two weeks, breaching $1,300 an ounce, as investors bought into the precious metal on global economic health worries and possibilities of more U.S. stimulus programs that could weaken the U.S. dollar.

In Monday’s trade, New York’s most active gold futures contract, December, settled up 50 cents at $1,298.60 per ounce, after rising to $1,301.30. Spot gold, which reflects the price of bullion, hit a high of $1,300 against the $1,295.60 level quoted in New York late on Friday.

This year alone, gold prices have risen more than 18 percent. Fund managers and industry experts think the rally has further to run in the longer term as gold provides a hedge against inflation amid expectations that central banks worldwide could resort to more monetary easing to support their economies.

The Mint said on its website that the American Buffalo Gold Bullion Coins -- authorized by Congress in 2005 and first minted in June 2006 -- were “among the world’s purest gold coins in terms of the fineness of the metal they contain”.

Each coin contains a full 24-karat of purity, the Mint said.

Reporting by Barani Krishnan; Editing by Lisa Shumaker