American Eagle Gold Bullion Coin Sales Soar 132% In September
Despite the ongoing slump in the price of gold, buyers of physical gold seem to sense that gold has reached bargain levels. The September sales report from the US Mint shows that sales of the American Eagle gold bullion coins soared by 132% over the previous month.
September sales of gold bullion coins totaled 58,000 ounces, up from 25,000 ounces in August and 13,000 ounces last year. Sales of gold bullion coins reached the highest level of the year since January when the Mint sold 91,500 ounces.
Despite the monthly increase, sales of gold bullion coins remain weak compared to previous years. Year to date 2014 sales total 379,000 ounces compared to 704,000 ounces in the comparable prior year.
Gold has reached what some think is a critical support level in the $1200 range, a point from which gold has rebounded three times in the last two years.
With the stock and bond markets delivering robust returns to investors due to the unprecedented easy money policies of the Federal Reserve interest in gold has diminished greatly. History has shown time and again that the best time to invest in an asset class is when the crowd thinks there is no reason to buy.
Sales of gold bullion coins have been steadily declining since 2009 when sales soared to almost 1.5 million ounces. Sales of gold bullion coins by year since 2000 are shown below.
Based on the present sales rate of the American Eagle gold bullion coins, total sales for 2014 could drop to the lowest level since 2007.