Gold and Silver Bullion Coin Sales Rebound Strongly In May

June 1, 2012

According to the latest report from the U.S. Mint, sales of both gold and silver bullion coins rebounded strongly during May.

Sales of the American Gold Eagle bullion coins during April had declined to only 20,000 ounces, the lowest monthly sales since June 2008 when 15,500 ounces were sold.  During May, the U.S. Mint sold 50,000 ounces of gold bullion coins, up 150% from April sales of 20,000 ounces.

The monthly sales figures for bullion coins can vary dramatically for a number of reasons, but support for the increase in demand during May may be due to the recent pullback in gold prices.  During May, the closing London PM Fix Price for gold declined by 6.3% from $1,664 to $1,558 per ounce.  Through the end of May, gold has declined by $40 from $1,598 at the beginning of 2012.  Gold reached a 2012 high of $1,781 on February 28th.

Sales of the American Eagle gold bullion coins hit a record high during the financial turmoil of 2009 as investors eagerly purchased 1,435,000 ounces of gold.  Ironically, sales of gold declined during the next two years despite the fact that the financial system has become more unstable as sovereign governments worldwide continue to borrow and print fiat money on an unprecedented scale in an effort to prop up a world economy burdened by unsustainable debt levels and nonexistent economic growth.  The ongoing simultaneous collapse of the banking systems and economies of the Eurozone is the most obvious trigger for the next phase of the financial crisis.  As confidence in paper money evaporates, expect gold to soar as investors stampede into the only currency that governments cannot debase.

Gold Bullion U.S. Mint Sales By Year
Year Total Sales Oz.
2000 164,500
2001 325,000
2002 315,000
2003 484,500
2004 536,000
2005 449,000
2006 261,000
2007 198,500
2008 860,500
2009 1,435,000
2010 1,220,500
2011 1,000,000
2012 280,500
Total 7,530,000
Note: 2012 totals through May 31, 2012

Sales by the U.S. Mint of the American Silver Eagle bullion coins for May almost doubled from the previous month.  Total sales of  silver bullion coins for May totaled 2,750,000 ounces, up 81% from sales of 1,520,000 ounces in April.  Year to date sales of the American Silver Eagle bullion coins through May 31st came in at 14,409,000, down by 23.8% from the first five months of 2011.  Sales of the silver bullion coins reached all an all time high during 2011.   Since reaching a multi decades high of $48.70 during April of 2011, silver has since corrected, closing out the month of May 2012 at $28.10.

Total annual U.S. Mint sales of the American Silver Eagle bullion coins since 2000 are shown below.  Sales totals for 2012 are through May 31.

In addition to gold and silver bullion coins, the U.S. Mint also sells numismatic versions (uncirculated and proof) of gold and silver American Eagle coins which can be purchased by the public directly from the U.S. Mint.  Gold and silver bullion coins are sold by the U.S. Mint only to authorized purchasers who in turn resell them to the general public and secondary retailers.

American Silver Eagle Bullion Coins
YEAR OUNCES SOLD
2000 9,133,000
2001 8,827,500
2002 10,475,500
2003 9,153,500
2004 9,617,000
2005 8,405,000
2006 10,021,000
2007 9,887,000
2008 19,583,500
2009 28,766,500
2010 34,662,500
2011 39,868,500
2012 14,409,000
TOTAL 212,809,500

Comments

By Scott on June 2nd, 2012 at 3:27 pm

I have to think that gold and silver bullion coin sales at all major mints will remain strong. From a numismatic perspective it seems as if the demand is always there. I am still seeing panic and pandemonium from those who foresee another market fallout and economic depression. I will continue to check back to your blog and study the sales prices. I like to shop around for the best deals from each mint.

By BullionSyndicate on June 7th, 2012 at 1:38 am

Like other precious metal bulls, I find today’s price action reassuring, in addition to the sales increase realized by the U.S. Mint.

My only concern at this point is that in recent trading sessions, the precious metals have correlated with the overall economy. While it is true that technical momentum has now shifted to the bullish side, nominally speaking, the Dow Jones had a strong session. Also, crude oil and the Euro is up, and dollar is down due to profit-taking. These are outside factors that are bullish for metals.

Ideally, I would like to see the PM’s not correlate themselves to major economic indexes and trade according to the underlying fundamentals. However, due to all sectors being up today, it’s hard to tell whether precious metals will again artificially correct based on some negative news coming out of the Euro zone.

Perhaps June 15th will be the next major test to determine if the current bullish posture of the PM’s can be sustained. I will say that despite this one concern, the negative price actions that occurred for much of May prove that corrections are starting to become less vicious in downward volatility. Therefore, I personally will conclude that in this moment, there is more risk to NOT be in precious metals than to be in it.

By Craig on July 2nd, 2012 at 4:11 pm

It seems like its a great time to buy gold and silver bullion!

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