Reuters: "February U.S. Mint American Eagle gold, silver coin sales fall" ....Not a pretty picture!
Goldbully
Posts: 17,525 ✭✭✭✭✭
And the state of the U.S. Mint American Eagle gold/silver coin market is.........??? 
February U.S. Mint American Eagle gold, silver coin sales fall
Renita D. Young
(Reuters) - February sales of U.S. Mint American Eagle gold coins fell 80 percent from the same month a year earlier, the slowest February sales in 11 years, while February silver coin sales fell to the lowest since 2008, government data showed on Wednesday.
The U.S. Mint data showed sales of American Eagle gold coins totaled 5,500 ounces in February, down 90.6 percent from the previous month when 58,500 ounces were sold. The year prior, 27,500 ounces were sold.
Spot gold prices fell about 2 percent in February in a wild market ride that saw global stocks sell off sharply and then regain ground.
“The U.S. Mint sold coins for about three percent over spot prices, so everybody went to the secondary market to buy where the premiums are very low,” said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
Data showed the U.S. Mint sold 942,500 ounces of American Eagle silver coins in February, down 70.9 percent from the month before when 3.2 million ounces were sold. That was 22.4 percent lower than the year prior, when 1.2 million ounces were sold, according to the data.
The U.S. Mint sold 20,000 ounces of American Eagle platinum coins. It was the first time the U.S. Mint sold platinum coins since January 2017, when it sold the same amount.
Last month, sales of U.S. Mint American Eagle gold coins marked their slowest January sales in 10 years. January silver coin sales fell to the lowest since 2009.
Comments
Gold is soft. Premium on most gold coins has shrunk to unheard of levels. But the price of NEW silver eagles and gold eagles is deceptive. Why would you pay a $5 premium for a 2018 eagle (other than for an album) when 2015 ASEs are selling for $17.50 to $18.50? Same with gold. You can buy CLASSIC gold $20 Liberty's for $30 over spot. Why would you buy a 2018 gold eagle with a higher premium just to get the date?
the u.s. mint just might end up going in the red one of these years. the government will have to bail them out, just as they did general motors in 2009
well, if they actually lost money, maybe they would finally eliminate the cent. It would save them tens of millions right there.
Exactly Why would you pay $5 over when MCM on ebay is currently selling 2018 eagles for $1.53 premium in lots of 10. Even letting you earn ebay bucks on the deal.
https://www.ebay.com/itm/Daily-Deal-Lot-of-10-Coins-2018-American-Silver-Eagle-1-GEM-BU-Coin-SKU51558/132425390420?_trkparms=5079:5000006556
And to stay on topic yeah sales are soft but January always has the highest sales so reuters trying to compare February to January is useless. First month of year is almost always high as collectors want the date for their albums.
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Yes, you can get better prices on larger lots. [And that appears to be a loss leader for MCM given what they pay from the Mint.] But the premium on older dates is always lower on any apple-to-apple comparison.
True. On another topic I'd like to know how MCM can sell new eagles for $1.53 over when they are not even a mint authorized purchaser. Even the AP's are paying $2.00 over. Not only $1.53 over but free shipping, ebay has to get a cut, paypal etc.
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Apmex does similar things. They are currently selling 1 oz. gold bars for $1.99 over spot. $1.99!!!! They were also selling $10 gold liberties for $34.99 over spot. On a $670 sale, they have to be paying $35 in fees. Wholesale is $10 over. I think it's obviously a marketing ploy to get new customers.
"Not a pretty picture"
The phrase implies something negative. Why are lower sales of gold and silver bullion pieces 'bad?' Does the phrase refer to "coin collecting" "bullion accumulation" or the "general economy?"
Not a pretty picture.....for the Mint.
Hmmmm....OK. But the US Mint has no real cost involved. Any loss on overhead is covered by the annual appropriation and any profit goes into the Treasury General Fund.
Total annual sales would be a better measure, and might suggest a "scarce date."
Over the course of 31+ years, demand for modern bullion coin products will rise and fall, and as the U.S. Mint itself is an enduring and near permanent entity, a few months of lesser or greater bullion coin demand is not very significant. I feel this Nation is pretty fortunate that the modern bullion coin program was started, and that the country is lucky to have some extra financial reserves in the form of these coins of intrinsic value.
The stock market is roaring.
Why would you tie up your money in bullion that's remained almost stagnant ($1250 +/- $100) over the past 5 years? Silver is even worse, losing about 15% over the same duration. PM's are not where investment money is going right now.
The numis market will get theirs, but I just can't see a whole lot of them being bought for IRA's or as an investment. I mean, for the majority that buy these, it's just bullion, and could care less what date is on 'em...
On the collector side, $3,107.50 for the four-piece AGE proof set is almost absurd. It's a $675 premium over spot. ($360/ozt.)
It'll be interesting to see what the breastie pink gold commem will do. Two weeks until that one...
Yes you will see even lower sales numbers on these mint released commemoratives and proofs as time goes on. Flippers enjoy!
It will continue to be a bloodbath for those holding the proof spouses. Now that was a premium!
A down market is good for stackers....Also, on low premium collector items....It will not affect rarities. Cheers, RickO
i like the stacker part of this.
(Kitco News) - February U.S. Mint sales of American Eagle gold coins were the lowest in more than a decade, analysts report.
This is a continuation of a trend that has been in place for more than a year now, with many North American investors opting to sell their backdated coins instead, observers said. This in turn has meant that dealers who buy these coins can then resell them at a premium far below those on 2018-dated coins.
Bottom line – the market is soft, although not as soft as the Mint data may suggest since some buying and selling of backdated coins continues.
Data on the U.S. Mint website show only 5,500 ounces of American Eagle gold coins were sold in February. That is down sharply from 58,500 in January and from 27,500 in February 2016.
“It’s been a trend since the beginning of 2017,” said Peter Hug, global trading director of Kitco Metals. “There has been a massive amount of dishoarding metal in the North American market.”
Commerzbank analysts pointed out that the U.S. Mint sales last month were the lowest February figure in 11 years.
“Thus, there is no sign as yet of any recovery following the very weak previous year,” they said in a Thursday research note.
Mint sales of American Eagle silver coins were likewise soft last month. The total of 942,500 ounces was down from 3.24 million in January and 1.22 million ounces in February 2016.
Hug outlined in detail the picture in the coin market, beginning with the heavy sales back in 2008 through 2011, when the economy was on the skids after the financial crisis, and spot gold prices ran to a record high around $1,921 an ounce. Prices subsequently fell back sharply, eventually bottoming just below $1,050 in 2015.
In the last three years, a market trend developed that discouraged many potential buyers, Hug explained. Gold prices would rally from December into the first months of a new year, prompting some investors to “jump on the train,” only to see prices fall back again.
“So now they’re backing away,” Hug said.
Then, with the volatility in outside markets, many investors sold their metal last month to meet margin calls in equities and bitcoin, Hug continued.
Normally, he explained, retail investors are on the buy side of the market. Dealer transactions are typically 90% sales and 10% purchases. But in the current environment, the purchases are roughly matching the sales, sometimes even exceeding them by a 60%-40% margin, he said.
As a result, coin dealers have been building inventory in American Eagle coins. Thus, when dealers are contacted by potential buyers, dealers can now sell backdated coins at a far lower premium than on brand-new U.S. Mint coins. There is almost no difference between coins of different years other than the date, so those who simply want bullion as an investment can buy a 2016 or 2017 coin far cheaper than a 2018.
For instance, Hug said the premium on a 2018 American Eagle gold coin is roughly $60, with most of this the result of the Mint’s 3% premium charged to dealers. Meanwhile, Kitco has been selling backdated coins at a premium of $23.99. This $36 difference per ounce can add up, with somebody buying 10 ounces thus saving $360.
Hug said he has been in the metals business since 1974 and has never seen the current situation before, especially in silver, where prices are within $1 of their lowest level in the last few years, yet liquidation continues.
“The reason is because investors – especially since 2011 – have been discouraged in the market.”
Hug figures the metals either need to fall farther to encourage a pick-up in buying – often referred to as “bargain hunting” – or break through certain upside price levels to convince investors a rally is more sustainable this time. Specifically, Hug said, gold below $1,200 an ounce and silver below $15 may encourage buying. Likewise, gold above recent highs of $1,365 may spur fresh buying, as well as silver over $18.
Shortly before 10 a.m. EST, spot gold was trading around $1,309 an ounce and spot silver was at $16.21.
By Allen Sykora
For Kitco News
http://www.kitco.com/news/2018-03-01/Feb-U-S-Mint-Coin-Sales-Weak-Dishoarding-Premiums-Behind-Decline.html
I don't collect modern gold, I have the entire $10 indian gold series, all graded except for the 1920-s, 1930-s and 1933 and the 1907 rolled edge, working on getting a 1930-s now. anyone that collects any gold that thinks they can live another 5-7 years, keep your gold, because 2,000/ounce plus it coming