Reuters: U.S. Mint gold coin sales on track for biggest annual drop since 2006

Goldbully

Dec 29 (Reuters) - U.S. Mint American Eagle gold coin sales are on track to fall nearly 40 percent in 2014, the biggest drop in eight years as prices failed to appreciate, discouraging purchases.

U.S. Mint data on Monday showed gold coin sales reached 524,500 ounces in 2014 so far, down from 856,500 ounces in 2013. This could be the biggest plunge in sales since 2006 when coin sales fell by 42 percent from the prior year to a much smaller 261,000 ounces.

Though spot gold prices rose by 15.5 percent earlier in the year, they are on track to close 2014 down around 2 percent from the end of 2013, which is seen curtailing physical buying.

"There have been several large liquidations where investors who have bought gold eagles in previous years, opted for selling those coins back," said L.A.-based Roy Friedman, executive vice-president for Dillon Gage, a major U.S. coin wholesaler based in Dallas that distributes to dealers and institutional investors.

"In my opinion, more gold eagles were sold back in 2014 than in any other previous year."

In January, the U.S. Mint began to mix 2014 coins with 2013-dated coins on a one-for-one basis, pressuring 2014-dated coin sales.

Sales of silver coins were at 44 million ounces so far this year, up slightly from 42.7 million ounces in 2013, Mint data showed. (Reporting by Marcy Nicholson; Editing by Nick Zieminski)


Reuters Link

OPA

I'm curious, did the rest of the major world mints experience a similar drop in their gold coin sales?

MGLICKER

<< <i>I'm curious, did the rest of the major world mints experience a similar drop in their gold coin sales? >>



Best question of the week!

s4ny

Probably a good contrary indicator.

bluelobster

<< <i>Probably a good contrary indicator. >>



Maybe, although JCP is still buying lots of SAE's, apparently.

BAJJERFAN

Any idea what the several large liquidations could have been?

TwoSides2aCoin

Laggard sales and less discretionary spending adds up to numismatic research which is often quite profitable to students of that game.

cohodk

<< <i>

<< <i>Probably a good contrary indicator. >>



Maybe, although JCP is still buying lots of SAE's, apparently. >>




Maybe JCP (JC Penny) should sell silver instead of clothes.

cohodk

So the US Mint sold about $50,000,000 less of gold? (330,000 x $150 ave difference).

In the grand scheme of things that really isnt a lot of money.

CaptHenway

Sounds like a lot of gold eagles were purchased this year, since I doubt any of the ones that came back onto the market were melted. They just came from a variety of sources including the Mint.

roadrunner

<< <i>Probably a good contrary indicator. >>




You could be right. As the below link shows a huge demand still out there for silver eagles. Could be as simple as PM investors and speculators taking advantage of the >70-1 ratio between gold and silver.
Dump some gold eagles and buy silver eagles.

Record US mint silver eagle sales for 2014

At nearly 44 MILL silver eagles sold, it's more money that the 2014 gold eagles commanded. Not quite as gloomy as the Reuters story suggests. Thomson Reuters bought the Gold Fields Mineral Service (GFMS) so it's not uncommon for these guys to print headline grabbing, gold-bashing type articles. They at least mentioned the silver coins in the last sentence: Sales of silver coins were at 44 million ounces so far this year, up slightly from 42.7 million ounces in 2013, Mint data showed. . Only that "slightly" up also includes a whopping increase from 50-1 to 84-1 silver to gold coin sales ratio. And if you're trying to get the PM market to show signs of life, you sort of expect it to come from silver leading gold.