Buffalo Gold Coin Sales Halted After Retail Rush

RichR

Sorry if anyone already posted this...

http://www.ft.com/cms/s/0/e8bc3d72-8b40-11dd-b634-0000779fd18c.html


Gold coin sales halted after retail rush
By Javier Blas in London

Published: September 25 2008 23:03 | Last updated: September 25 2008 23:03

The rush by retail investors into gold on Thursday forced the US government to “temporarily” suspend the sales of the popular American Buffalo one-ounce bullion coin after depleting its inventories.

The shortage of gold coins is the latest sign of investors seeking a safe haven into bullion amid Wall Street woes. Gold prices this week surged above $900 an ounce, up about 20 per cent from its level before the collapse of Lehman Brothers.

Safe-haven buying spurred by a weakening dollar and rising inflation on the back of high commodity prices have also benefited gold sales, analyst said.

The US Mint said in a memorandum that “demand has exceeded supply” and, therefore, it was “temporarily suspending sales of these coins”. “We are working ­diligently to build up our inventory and hope to resume sales shortly,” it added.

Spot gold in New York on Thursday traded at $875 an ounce, down $5 on the day. Traders said bullion prices came under pressure from a strengthening in the dollar. Gold set a record of $1,030.80 an ounce in March.

The US Mint said it has sold 164,000 ounces of gold in American Buffalo one-ounce bullion coins since January, almost 54 per cent more than in the same period of last year. Demand for other gold coins from the US Mint is also very strong.

Last August, a shortage of American Eagles one-ounce bullion coins, another popular gold investment, due to “unprecedented demand” also forced the US Mint to suspend sales and later to place limits on the number it ships to dealers.

The US Mint has sold since last January about 419,500 ounces of bullion in the form of American Eagles coins, more than double the 198,500 ounces it sold during the whole 2007. In 2006, it sold 261,000 ounces.

The scarcity of gold coins comes as investors in bullion-backed exchange traded funds (ETFs) have amassed a record 1,054 tonnes of bullion, becoming the largest holders of gold after the reserves of the US, Germany, the International Monetary Fund, Italy, France and Switzerland.
Copyright The Financial Times Limited 2008

bluelobster

"The rush by retail investors into gold"

This is probably negative for gold prices, at least in the short term.

Longshot

Still shows on the mint site...

Deadhorse

<< <i>"The rush by retail investors into gold"

This is probably negative for gold prices, at least in the short term. >>





So, if there's a shortage, the price should drop?

That's not been my experience with most commodities.

A rush by investors into gold would be a negative for prices?

OK..........................

cohodk

I think he is referring to the maxim of "The masses are a$$es"

It generally holds true.

fc

it simply seems to me that people want gold in tiny amounts
in certain shapes and from certain places.

while other gold goes unwanted at B&Ms everywhere i go in the
form of US gold coins older then 1933.

Half eagles, eagles, etc... are there for the buying at melt. I see them
constantly in my area. Yes, they are not MS nor AU. Xf or slight problem
coins. Not graded by a TPG, but sometimes they are.

The mint running out or stopping sales makes for good news but it
means nothing to me.

fishcooker

Hey, maybe the First Lady coins will sell out!