June 15, 2026

Archives for May 2010

2010 First Quarter Gold Demand

May 26, 2010 by Leave a Comment

The World Gold Council has released Gold Demand Trends for the First Quarter of 2010. The report indicates a drop in gold demand for the covered period, but suggests that demand will be strong for the rest of the year.

Identifiable gold demand during the first quarter of 2010 was 760.2 tonnes, representing a drop of 25% compared to levels seen for the first quarter of 2009. The change was driven by a 69% decline in investment demand, offset by a 43% increase in jewelry demand and 31% increase in demand from industrial sectors.

The drop in investment demand was driven by a sharp decline in demand from ETFs and similar products. Total demand was only 3.8 tonnes for the quarter compared to 465.1 tonnes for the year ago period. Comparisons are also influenced by an unusually strong year ago period.

Investment demand did pick up right after the close of the first quarter, when concerns about Greece and debt contagion fears led to a significant pick up in demand for physical gold. In a previous post, I explored how physical gold demand had surged compared to the muted levels of the first quarter. More significantly, there has also been a resurgence in demand from the GLD ETF in the past month.

In their forecast for strong demand for the remainder of 2010, the WGC cites jewelry demand in India and China, as well as investment demand for the United States and Europe as the drivers.

Filed Under: Gold Tagged With: , ,

Demand for Physical Gold Surging

May 18, 2010 by Leave a Comment

There have been numerous recent reports about the surging demand for physical gold. It has been mostly concentrated in Europe, but there have also been signs of new waves of demand hitting the U.S.

This is a big shift from earlier this year. For the first two months of 2010, the Austrian Mint had reported that Gold Philharmonic sales had dropped 80% from the year ago levels. Similarly, the Royal British Mint had reported a drop in demand of about 50% through the end of the first quarter.

What a difference a crisis makes.

Recently, the Austrian Mint reported that they had sold more coins in two weeks than the entire first quarter, citing demand “exclusively from Europe.” Swiss refiner Argor-Heraeus has estimated that demand for small gold bars and refined products has jumped tenfold compared to the start of the year.

On the US front, sales have strengthened in recent weeks, but there hasn’t been the surging demand seen in 2008, which prompted repeated suspensions and bullion rationing programs.

For the month to date, the US Mint has sold 81,000 of their one ounce Gold Eagle bullion coins. This already tops the prior month total of 60,500. One ounce Silver Eagle bullion coins have sold 2,381,000 coins for the month to date, nearing last months total of 2,507,500. The newly released one ounce 24 karat Gold Buffalo has sold 54,000 coins for the month. The coins debuted on April 29, 2010, making prior month comparisons less meaningful.

Filed Under: Gold Tagged With: , , ,

2010 Proof Gold Buffalo and 2010 Fractional Gold Eagles

May 14, 2010 by Leave a Comment

Closely behind the release of the 2010 Gold Buffalo bullion coins, the United States Mint has two more gold products on the way. This includes the collectible proof version of the Gold Buffalo and fractional weight American Gold Eagles.

The 2010 Proof Gold Buffalo is now scheduled for release on June 3, 2010. Since this is a collector coin, it will be available for sale directly from the US Mint via their website. Each coin will contain one ounce of 24 karat gold and feature the design from James Earle Fraser’s Buffalo Nickel. Pricing for the coins won’t be known until the week of release, since it will be based on the average weekly price of gold. At the current gold price, the coins would be $1,510.

Last year, the 2009 Proof Gold Buffalo wasn’t available for sale until October 29, 2009, amidst delays and cancellations across many of the US Mint’s precious metals products. The coins remained available for sale until March 29, 2010 and sold 49,388 coins.

The US Mint has reportedly begun production of the fractional weight versions of the 2010 American Gold Eagle bullion coins. I’ve always felt that these smaller weight coins were an important part of the bullion program, as they allow for different investment levels. The US Mint has historically offered one-half ounce, one-quarter ounce, and one-tenth ounce size coins.

A release date for these coins has not been established. Once available, they will be sold via the US Mint’s network of authorized purchasers, like other bullion offerings.


Filed Under: Gold, US Mint Tagged With: , ,

Price of Gold at All Time High

May 12, 2010 by Leave a Comment

The price of gold reached an all time high in US Dollar terms in late electronic trading yesterday. Gold has continued higher this morning and is currently trading at $1,239 per ounce.

The previous all time high for gold was $1,226.10, reached in December 2009.

Gold had finished 2009 with a price of $1,087.50. This means that gold is up $151.50 or 14% for the year. During the previous year, gold had achieved an annual gain of 25.04%.

Although gold is currently in the spotlight, silver, platinum, and palladium have even larger gains so far during 2010. Compared to last year’s closing prices, silver has risen from $16.99 to $19.66 per ounce, gaining 15.71%; platinum has risen from $1,461 to $1,729, gaining 18.34%; and palladium has risen from $393 to $541, gaining 37.66%.

View the 2009 performance for gold, silver, platinum, and palladium.

Filed Under: Gold Tagged With: ,