The U.S. Mint issues various gold products in the form of bullion coins that have long been valued by collectors and investors, where the U.S. Government has backed those investment grade coins as being made from 100% American gold. This unfortunately has been proven to be yet another lie perpetuated by our government, where this will be yet another thing which ruins the reputation of this bullion product as well as the U.S. Mint (it has for me).
The Treasury Departments OIG (Office of Inspector General) published their independent audit (PDF) uncovered decades long lapses in gold procurement processes where the U.S. Mint did not obtain/request any documentation confirming the origins of the gold sourced from suppliers and refiners. The Mint knowingly false advertised their gold product, while those who purchased this bullion, had their money effectively being used to fund everything that the U.S. Treasury supposedly is supposed to prevent (like money laundering and funding of terroristic activities, human trafficking, drug cartels, etc).
KITCO’s article about this highlights how this investigation by the OIG began after a news report in June 2019 which alleged that the Mint had purchased gold from a supplier refiner which had originally been sourced from illegal mines in Colombia, South America. The investigation uncovered illicit activities (money laundering and terrorism) associated with this mine.
Quick translation: the U.S. Government purchasing gold from questionable suppliers involved in illicit activities, means those who purchase(d) these gold bullion products are funding those illicit activities and buying them under falsely advertised premises for decades.
Also problematic is this report which was completed by August 2020, had been delayed for 4 years because the Mint’s senior management at the time, refused to believe and accept these findings. New management resulted in this finally coming to light on May 29, 2024.
The rest of the KITCO article breaks down in great detail what was revealed in the OIG’s report. I basically consider the U.S. Mints reputation well beyond ruined and will never purchase anything from them again. Myself, I last bought U.S. Mint gold in 2009 (the Ultra High Relief Double Eagle); just 1 (1 ounce).
Prior to that in 2002, I also bought 2 sets of the 2002 Salt Lake City Olympics collection that had a silver and gold coin, while in the 90’s, purchased some 1 ounce Double Eagles when the spot price of gold was below $300 an ounce. With the spot price now running over $2,300 per ounce in 2024, I plan to sell just the Double Eagles except the Ultra High Relief) and purchase certified/slabbed gold coinage.
I long ago decided to stop buying this type of bullion coinage from most government mints (the sole exception is Japan Mint though they rarely mint gold product except for the yearly zodiac and certain commemorative occasions) and have instead been buying the above mentioned certified gold coinage (mostly pre-1933 mint U.S. gold coins).
Note: Gold is more of a hedge instead of an investment for me (even though those Double Eagles in spot price value has gone up quite a bit since the time of purchase; they have outpaced inflation). I am simply “swapping” this bullion (which this report has made me aware of its origin not being as advertised) for gold coinage with actual historical value as a currency (even though it was created in earlier times where it may not be up to modern/technical standards in terms of weight and purity).
