Physical Demand For Gold and Silver Skyrockets – Gold Bullion Coin Sales Highest Since December 2009
We have probably all heard enough already from the mainstream nitwits who are forecasting the end of the gold bull market and further price declines. Funny thing though, most precious metal investors don’t need advice from self proclaimed experts on how to invest their money. The explicitly stated goal of central banks to increase the rate of inflation through currency debasement is blatantly obvious. Investors are acting accordingly by taking advantage of the recent decline in precious metal prices.
A look at product availability and pricing at some major coin and bullion dealers shows spot shortages of gold and silver as well as large premiums as investor demand overwhelms supply.
The Perth Mint reports that retail customers are increasing purchases at a record rate even as gold slumps to a 21 month low. As the experts were proclaiming the “Death of Gold”, the Perth Mint website recorded the highest activity of the year and one of the best days of the past year. Bargain prices on gold and silver have greatly increased the demand for physical gold and silver by the public. Demand for gold coins have skyrocketed with sales of Australian gold bullion coins increasing by 48% in the first quarter over the comparable prior year period.
Buying by U.S. investors of the American Eagle gold and silver bullion coins has also increased dramatically. Through April 16th, sales by the U.S. Mint of the American Eagle gold bullion coins have already exceeded total monthly sales for the previous two months. At the current sales pace, sales of the gold bullion coins in April will total over 167,000 ounces, an increase of over 260% from the prior month. The last time sales of gold bullion coins exceeded 167,000 ounces was in December 2009 when the U.S. Mint sold 231,500 ounces.
Sales of the American Eagle silver bullion coins are also strong in April, continuing a trend that began with the financial crisis in 2008. Sales of the silver bullion coins through April 16th total 2.2 million ounces. If the current sales pace continues through the end of April total sales of the Silver Eagle coins will increase by 31% over the previous month.
Short term speculators may be crashing the precious metals markets, but long term investors in gold and silver see this as the ultimate golden opportunity to increase positions.