A congressional subcommittee has been asked to investigate the growing backlog in and foreign procurement of U.S. bullion and collectors' precious metals coin blanks manufactured by the U.S. Mint. Witnesses before and members of the U.S. House Subcommittee on Domestic Monetary Policy have urged Congress to direct the U.S. Mint to buy U.S. manufactured blanks for gold and silver bullion coins and discontinue the practice of using Australian-made
Ranking Subcommittee Member Rep. Ron Paul, R-Texas, said he opposes the Mint's current efforts to gain greater power in determining the composition of circulating coinage."We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard," Paul noted. "Paper money inevitably breeds inflation and destroys the value of currency."
Michael B. Clark, president of the Diamond State Depository, a subsidiary of the Dillon Gage group, one of 12 authorized purchasers of American Eagle Silver Bullion Coins, told the subcommittee, "The Mint's inability to keep pace with demand has had a negative and unnecessary impact on the investment and hobby community."
He added that the Mint's reliance on just three suppliers for planchets or blanks "is flawed. Moreover, there is some irony in the fact that while Congress requires the Mint to procure the gold for its Eagle bullion coins from newly mined U.S. deposits, the Mint then ships that gold to Australia
to be made into blanks. Then, the fabricated blanks are later shipped back to the United States for the production of coins."....read on