U.S. Mint Gold, Silver Bullion Sales Down More Than 50% So Far This Year -Kitco News
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I thought this would be interesting, Will future value of Collector Coins from Mint be up for 2017 in future years, will my investment in PCGS Gold an Silver 70's be above average?
"U.S. Mint Gold, Silver Bullion Sales Down More Than 50% So Far This Year
Neils Christensen Neils Christensen
Monday May 01, 2017 13:27
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(Kitco News) - A more than 3% rally in gold that helped push prices to a five-month high last month created a significant drag on U.S. Mint coin sales.
The latest data provide by the Mint shows that a total of 6,000 ounces of gold, in various denomination of American Eagle gold bullion coins, were sold last month. This is the worst April performance in five years and the lowest sales pace in 16 month.
In total April sales were down 71% from March sales, which marked a 15-month low in demand.
For the year total gold bullion demand was 172,000 ounces, down almost 51% compared 351,000 ounces sold during the first four months of 2016.
Bart Melek, head of commodity strategy at TD Securities, said that because of the recent rally in gold prices, it is not surprising to see weaker physical demand as coin and bar sales are highly sensitive to prices.
He added that sales should pick in May as prices have fallen from their five-month highs and consumers are adjusting to the idea of gold trading above $1,200 an ounce.
Ultimately though, he said that physical demand will not have much impact on prices this year.
“Coin sales is not traditionally a market driver. We think gold market continues to depend on the Federal Reserve and interest rates,” he said.
Physical silver demand was also muted last month with the U.S. Mint selling 835,000 ounces, down more than 48% from the previous month. The drop in demand also coincides with future prices rallying to a 5-month high in mid-April.
So far this year the mint has sold 8.8 million ounces of silver, down more than 53% from 18.9 million ounces sold during the same timeframe last year."
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Comments
Perhaps the change in Washington, lets people that were buying for the dooms day scenario back off? More confidence in the economy might be a reason. Just say'n.
I hear gun sales are way down as well. A friend I know that sells for Wise Food (those instant meal folks on TV) said sales are way down there too.
Per Bob Dylan: The times, they are a changing.
bob
I think a big portion is the insane premium that the mint puts on its products. A simple example is the gold liberty coin. $400 over spot! Not to mention that when selling it you only get offered below melt. It doesn't put a lot of confidence in the purchase.
I like the coins offered but be reasonable.
Aerospace Structures Engineer
I don't usually buy from the Mint for that exact reason.....wait a year or two and save a lot of money.
bob
The 50% reduction in sales is for bullion American Eagle coins, not the mint's "collector" coins. These bullion coins are sold only to a very small group of "authorized" purchasers in monster boxes that re-sell to the public. The reduction in mint sales tells us that the AP's are not moving earlier purchases that they stocked up on. The current under buying is a result of earlier over buying. All this means is that the APs over estimated public demand. They do this occasionally and once their current inventory dwindles they will increase their mint purchases.
However, this does mean that wholesale demand is down because retail demand is not what was projected.
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Demand is less, imho, because people are putting money into stocks right now.
Some of us have started stacking gold, for different reasons than "doomsday", but we are lesser and fewer folks.
Also, where gold has been sitting as been somewhat in a small range. No big swings of volatility, at least, to me. Without the volatility, less hype. Less hype, less man on the street coming in.
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There is a very different view of the economy under the new administration. As Bob said above, even gun sales have been impacted. So if gold/silver, guns and ammo sales have fallen off, it is likely a sign of overall confidence in our future. I also have noted that while malls are losing business (large retailers closing stores), there is a distinct resurgence in small, local shops. Sure, the internet has had a major effect on malls... however, people still like to shop for things and this drives small businesses - the true engine of our economy. Cheers, RickO
That has been my experience/lesson over the years.
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