APMEX Reports Sales Spike on eBay Bullion Center
Last Wednesday, with New York gold down over $40 per ounce, even long time gold bulls were advising caution before committing to further investment. Some precious metals dealers reported a flood of panic selling by anxious investors who were unloading physical coin and bar.
With everyone fearful of lower prices, exactly who was buying all that gold and silver from panicked investors?
Michael Haynes, CEO of APMEX, one of the countries largest precious metals dealers, said "As gold and silver prices continue to drop, long-term investors immediately reacted to the market movement. Recognizing that the precious metals were on sale and at a discount relative to the expected future values, buyers of physical bullion increased purchasing at the APMEX Bullion Center on eBay."
Michael Haynes explained further.
"This was the second largest selling day for the APMEX Bullion Center on eBay since inception about five months ago, beating the next highest selling day by more than 30%. As Gold and Silver prices fell, heavily influenced by the reaction of day traders to the minutes from the recent Federal Reserve Open Market Committee meeting, physical sales of both metals skyrocketed. Buyers of physical Gold and Silver have a moderate to long term view and concluded that with the price movements, the precious metals were on sale and at a discount relative to the expected future values. These investors in physical Gold and Silver apparently see the long term issues faced by the U.S. economy and seek some asset allocation into the non-correlated asset class of precious metals to protect and hedge their investments in paper assets like Stocks and Bonds.”
According to APMEX, the top sellers on the Bullion Center are the 1 oz Silver American Eagle, the 1 oz Gold American Eagle, the 5 gram Statue of Liberty Credit Suisse Gold Bar and the 100 oz Royal Canadian Mint Silver Bar.
Every bull market has corrections which offer long term investors the opportunity to add to positions at bargain prices. The high volume of gold and silver purchases on the eBay Bullion Center indicates that mainstream buyers remain committed to precious metals as a method of wealth preservation.