April 25, 2024

American Silver Eagle Bullion Coin Sales Soar To All Time Record High

January 29, 2013 by Leave a Comment

With two days remaining in the month of January, U.S. Mint sales of the American Silver Eagle bullion coins have already established an all time record high.   The latest numbers from the Mint show total sales of 7,420,000 silver bullion coins as January 29, 2013.  Total sales during January 2012 amounted to 6,107,000 coins.  During January 2011 (the previous monthly record high for silver bullion coin sales) the Mint sold 6,422,000 coins.

The public demand for silver seems insatiable.  To put the unprecedented demand for silver into perspective, prior to the financial crisis of  2008, total yearly sales of the silver bullion coin averaged only about 9.5 million coins per year.  With the Federal Reserve furiously printing money to keep the financial system glued together, investor demand for both physical silver and gold bullion is likely to increase dramatically.

The US Mint has been unable to keep up with the demand for American Silver Eagles for the past two months (see U.S. Mint Sold Out).  During December, unexpectedly strong demand resulted in the suspension of silver bullion coin sales during mid December after the entire stock of 2012 coins was sold out.  At the time the Mint announced that the 2013 American Silver Eagles would be available on January 7, 2013.

Opening day sales on January 7th for the 2013 American Silver Eagle bullion coins turned out to be the largest on record with sales of 3,937,000 coins.  Demand for silver bullion continued to climb and by January 17th, the Mint once again announced that sales of the silver bullion coins would be suspended until the last week of January.  When sales resumed this week, demand was again much higher than anticipated.  Due to record demand, the Mint previously announced that they may have to institute rationing of the coins.  Since the US Mint’s production schedule has been blown right out the window for two months running, it would not be surprising if rationing of the coins was implemented.

Sales of the American Eagle Gold bullion coins has also soared during the first month of the year.  January sales to date of 140,000 ounces of gold bullion coins is the highest monthly sales since June 2010 when the Mint sold 151,500 ounces.

Filed Under: Bullion Sales, Featured, Gold, Silver, US Mint Tagged With: , , , , , , , , , , , , ,

Gold Bullion Coin Sales Drop For Fourth Straight Year, 2013 Sales Off To Strong Start

January 3, 2013 by Leave a Comment

According to the latest U.S. Mint report, sales of the American Eagle Gold bullion coins for December 2012 totaled 76,000 ounces, up 16% from December 2011 when 65,500 ounces were sold.  Sales for the month were down 44.3% from November sales which totaled 136,500 ounces.

Sales of the gold bullion coins can vary dramatically from month to month.  The highest sales month was November with sales of 136,500 ounces and the lowest sales month was April when only 20,000 ounces were sold.  Average monthly sales of the gold bullion coins for 2012 was 62,750 ounces with total sales for the year coming in at 753,000.   The gold bullion coins are available in one ounce, one-half ounce, one quarter ounce and one-tenth ounce.

Sales of the American Eagle Gold bullion coins have now declined for four straight years in a row.  The all time record sales year was 2009 when the U.S. Mint sold 1,435,000 ounces.   The value of the gold bullion coins purchased since 2000 totals almost $13.5 billion.

The U.S. Mint only sells the gold bullion coins to a network of authorized purchasers who buy the coins in bulk based on a markup and the market gold value.  The primary distributors who buy the coins then resell them to other bullion dealers, coin dealers and the public.  By using this type of distribution channel, the U.S. Mint believes that the coins can be made widely available to the public with reasonable transaction costs and at premiums in line with other bullion programs.

The 2013 American Gold Eagle bullion coins were first available to authorized purchasers on January 2, 2013.  Demand for the newest gold bullion coins was very strong with 50,000 ounces sold on the first day.  For the entire month of January 2012, a total of 127,000 ounces of the coins were sold.

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 753,000
Total 8,002,500

After a volatile year, gold ended with a strong note for 2012, up by 7.1% and rising for the 12th year in a row as global central banks ramped up the printing presses in an attempt to “stimulate” the world economy.  In his annual “10 Surprises ” list for 2013, Byron Wien, Chairman of Blackstone Group’s advisory unit predicted that gold would reach $1,900 as “central bankers everywhere continue to debase their currencies and the financial markets prove treacherous.”  Based on the way things are going and the speed at which central banks are joining the money printing race, Mr. Wien’s forecast is likely to prove extremely conservative.

Filed Under: Bullion Sales, Currency debasement, Featured, Gold, US Mint Tagged With: , , , , , , , , ,

U.S. Mint Numismatic Precious Metals Sales Decline

October 25, 2012 by Leave a Comment

According to Coin Update, sales of numismatic precious metal coins showed weekly sales declines.  Future sales, however, may increase due to an upcoming price decrease based on the recent correction in precious metal prices.

The latest report of the United States Mint’s numismatic product sales shows mostly lower numbers for precious metals products. Elsewhere in the report, the Chester Arthur Presidential $1 Coin and Alice Paul Bronze Medal Set makes its debut.

Ten out of sixteen gold numismatic products showed weekly sales declines compared to the prior period. The US Mint currently has these products priced based on an average gold price within the $1750 to $1799.99 range. With the market price of gold below this range for the entire reporting period, buyers may be showing restraint as they await the next weekly pricing adjustment.

Eighteen out of twenty-seven of the silver numismatic products showed weekly sales declines compared to the prior period. The US Mint raised prices for many of these products earlier in the month when the market price of silver was approaching $35 per ounce. Silver has since fallen back from this level, although the higher product prices remain in effect. The America the Beautiful Five Ounce Silver Coins showed sales declines across all nine options currently available. Gains were seen for the 2012 Proof and 2012-W Uncirculated Silver Eagles compared to the prior period.

The 2012 Proof Platinum Eagle, which is the only available platinum product, showed negative sales on the week.

See the full sales report for U.S. Mint numismatic products here.

Month to date figures for U.S. Mint gold and silver bullion coins remains strong.  Through October 24th, the U.S. Mint sold 2,584,000 one ounce American Eagle Silver Bullion coins.  If the current sales pace continues, monthly sales could exceed 3.5 million ounces which would be the second best monthly sales total after January when 6,107,000 silver Eagles were sold.

Sales of the American Eagle Gold Bullion coins also remain strong through October 24th with 48,500 ounces sold.  If the current pace of sales is maintained, total sales of the American Gold Bullion coins should reach almost 65,000 for October which would be the third highest sales month of the year.  In January the U.S. Mint sold 127,000 ounces of gold bullion coins followed by 68,500 ounces in September.

Although gold prices have soared over the past decade and the purchasing power of the dollar has collapsed, the American public still does not recognize the value of gold and silver as a store of wealth.  Expect this to change as the bull market in precious metals continues.

Filed Under: Bullion Sales, Currency debasement, Featured, Gold, Platinum, Silver, US Mint Tagged With: , , , , , , , , , , ,

Gold Bullion Coin Sales Soar 76% In September, Silver Sales Up 13%

October 1, 2012 by 1 Comment

According to the latest report from the U.S. Mint, demand for both gold and silver bullion coins during September surged to the highest levels since January.

Total sales of the American Eagle Gold bullion coins during September soared 75.6% to 68,500 ounces from 39,000 ounces in August.  Monthly sales of gold bullion coins have fluctuated widely during 2012 with a high of 127,000 ounces in January and a low of 20,000 ounces in April.   The average monthly sales of gold bullion coins through September is 53,500.

Total sales of the American Eagle Gold bullion coins through September total 481,500 ounces.   Unless sales surge dramatically during the last three months of the year, 2012 will be the fourth year of declining sales of the gold bullion coin.   As detailed below, the all time record for sales of the gold bullion coins was during 2009 when sales exceeded 1.4 million ounces.

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
Sept-12 481,500
Total 7,731,000

U.S. Mint sales of the American Eagle Silver bullion coins during September totaled 3,255,000 ounces, up 13.4% from August sales of 2,870,000 ounces.

Investor demand for the American Eagle Silver bullion coins has been relatively consistent throughout the year.  After a very strong January during which over 6.1 million coins were sold, demand remained strong with monthly sales well in excess of 2 million ounces except for February when sales slumped to 1,490,000 ounces.  If monthly sales of the American Eagle silver coins continue at the September sales pace, total sales for 2012 will be close to the record year of 2011 when almost 40 million ounces were sold.

Total annual sales by the U.S. Mint of the silver bullion coins since 2000 are shown below.  Sales for 2012 are through September.

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
Sept-12 25,795,000
TOTAL 224,195,500

The American Eagle gold and silver bullion coins produced by the U.S. Mint can only be purchased by Authorized Purchasers who in turn resell the coins to other dealers and the general public.  Numismatic versions (uncirculated or proof) of the American Eagle series coins can be purchased by the public directly from the U.S. Mint.

Filed Under: Bullion Sales, Featured, Gold, Silver, US Mint Tagged With: , , , , , , , , , ,

Gold and Silver Bullion Coin Sales Jump 25% In August, San Francisco Silver Eagle Set Sold Out

September 1, 2012 by 2 Comments

The latest sales figures from the U.S. Mint for August show a significant increase in sales of both gold and silver bullion coins.

Sales of gold bullion coins during 2012 have varied dramatically from month to month with a high of 127,000 ounces in January to a low of only 20,000 ounces in April.  Monthly gold bullion sales through August have averaged 51,625 ounces.

Monthly sales of silver bullion coins have been more consistent during 2012.  The U.S. Mint sold over 6 million ounces of silver bullion coins in January, but the monthly pace has tapered off to under 3 million ounces.  The average monthly sales of silver bullion coins through August is 2,817,500.

American Eagle Gold Bullion Coin Sales

Total sales of the American Eagle Gold bullion coins during August totaled 39,000 ounces, up 27.9% from July’s total of 30,500 ounces.  Total sales of gold bullion coins by the U.S. Mint through August totaled 413,000 ounces, valued at approximately $700 million based on today’s closing gold price.

On an annualized basis, the U.S. Mint will sell almost 620,000 ounces of  gold bullion to investors this year valued at $1.0 billion if the price of gold remains at $1,692.  During 2009, the peak year of gold bullion coin sales by the U.S. Mint, investors purchased 1,435,000 ounces valued at $1.4 billion based on the average price of gold of $972 per ounce.

Investors who have reduced gold bullion purchases due to the increased cost per ounce will no doubt regret this decision as the price of gold continues to increase.  The value of gold should be viewed in the context of the reduced purchasing power of the dollar – as the Federal Reserve constantly destroys the purchasing power of the U.S. dollar, the “dollar cost” of gold will naturally increase.  The price of gold is merely reflecting the fact that paper dollars are worth less and less every day.

As the Fed continues to do what it does, expect the bull market in gold to continue.

Listed below are yearly sales figures for the American Eagle gold bullion coins since 2000.  Sales for 2012 are through August 31st.

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 413,000
Total 7,662,500

American Eagle Silver Bullion Coin Sales

Sales of the American Eagle Silver bullion coins by the U.S. Mint during August totaled 2,870,000 ounces, up 25% from the July total of 2,278,000 ounces.  Investor demand for silver has remained strong, with many investors taking the opportunity to purchase additional silver below the highs reached during 2011.  Sales of the silver bullion coins remain near record levels and total sales for 2012 should be well in excess of 30 million ounces for the third consecutive year.

Total annual sales by the U.S. Mint of the silver bullion coins since 2000 are shown below.  Sales for 2012 are through August.

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
Jul-12 22,540,000
TOTAL 220,940,500

U.S. Mint Numismatic American Eagle Gold and Silver Coins

Both the American Eagle gold and silver bullion coins can only be purchased from the U.S. Mint by Authorized Purchasers who in turn resell the coins to other dealers and the general public.  The numismatic versions of the American Eagle series coins can be purchased directly from the U.S. Mint.

Many of the numismatic silver coins produced by the U.S. Mint attract strong demand and often times, the coins will sell at a premium in the secondary market.  A recent example of this is the 2012 San Francisco Silver Eagle Set.  According to the Mint News Blog:

The 2012 San Francisco Silver Eagle Set was one of the United States Mint’s most anticipated product releases of the year. Each set contained one 2012-S Proof Silver Eagle and one 2012-S Reverse Proof Silver Eagle.

Product sales began on June 7, 2012 at 12:00 Noon ET with pricing of $149.95 per set. Rather than establishing a maximum product limit, as had been done for similar products in the past, the US Mint would accept orders during a four week ordering window and produce the sets to meet the total demand. A sales odometer which was updated daily gave collectors an indication of the progress of the offering. Sales officially closed on July 5, 2012 at 5:00 PM ET. The last indicated sales total was 251,302 sets.

On the secondary market, prices for the sets remain above the issue price. A quick survey of eBay auctions completed within the past few days show the prices realized for raw sets mostly falling into a range of $180 to $190, compared to the issue price of $149.95.

Sets which have been graded by PCGS or NGC and received the top grade of Proof-70 have sold for premiums above raw sets. Sets with the two coins graded PCGS PR70DCAM and PR70 have recently sold for prices around $425 to $450. Sets with the two coins graded NGC PF 70 Ultra Cameo and PF 70 have sold for prices around $300 to $325.

Filed Under: Bullion Sales, Currency debasement, Featured, Gold, Silver, US Mint Tagged With: , , , , , , , , , , , , , , , , ,

Gold Bullion Coin Sales Plunge 50% In July, Silver Sales Off 20%

July 31, 2012 by 2 Comments

The latest sales figures from the U.S. Mint show that sales of both gold and silver bullion coins declined dramatically during July.  While sales of silver bullion coins have remained at historically high levels, sales of the gold bullion coins have been in a steep decline since 2009.

American Eagle Gold Bullion Coin Sales

Sales of the American Eagle Gold Bullion coins during July totaled 30,500 ounces, a 49.2% decline from June sales of 60,000 ounces.  Two previous months of the year had lower gold coin sales than July.  During February 21,000 ounces of gold bullion coins were sold and in April only 20,000 ounces were sold.   The year to date average monthly sales figures for gold bullion coins total 53,428 compared to a monthly average of 83,333 during 2011.

The all time yearly sales record for the American Eagle gold bullion coins was set during 2009 when it looked as if the entire U.S. banking system was about to collapse.  Sales in each subsequent year have been lower than 2009 despite the increase in the price of gold since then.  In 2009 gold closed the year at $1,087.50 per ounce, subsequently hit a high of $1,895 on September 5, 2011 and closed today at $1,615.90 in New York trading.  If sales during 2012 are annualized, total gold bullion coin sales will reach approximately 641,000 ounces, the lowest amount since 2007 when yearly sales came in at 198,500 ounces.

Listed below are yearly sales figures for the American Eagle gold bullion coins since 2000.  Sales for 2012 are through July 31st.

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 374,000
Total 7,623,500

The graph below shows gold bullion coins sales since 2012, with sales annualized for 2012.

American Eagle Silver Bullion Coin Sales

According to the U.S. Mint, sales of the American Eagle silver bullion coins totaled 2,278,000 ounces during July, a decline of 20.3% from June’s total of 2,858,000.   The highest monthly sales of the silver bullion coins during 2012 was 6,107,000 ounces recorded in January followed by the lowest monthly sales of 1,490,000 ounces in February.  Average monthly sales of the silver bullion coins through July was 2,810,000.

The silver bullion coins have showed resilient demand despite the drop in silver prices since mid 2011.  Based on year to date sales figures, total sales of the silver bullion coins could approach 34 million ounces, not far below the record sales figure recorded in 2011 when almost 40 million ounces were sold.

Total annual sales by the U.S. Mint of the silver bullion coins since 2000 are shown below.  Sales for 2012 are year to date totals through July.

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
Jul-12 19,670,000
TOTAL 218,070,500

The American Eagle gold and silver bullion coins are sold by the U.S. Mint only to Authorized Purchasers who in turn resell the coins to the general public and other dealers.  Numismatic versions of the American Eagle series gold and silver coins can be purchased by the public directly from the U.S. Mint.

Filed Under: Bullion Sales, Featured, Gold, Silver, US Mint Tagged With: , , , , , , , , , , , , , ,

Gold Bullion Coin Sales Up 13% In June, Silver Bullion Coin Sales Remain Steady

July 5, 2012 by 1 Comment

According to the latest report from the U.S. Mint, sales of gold bullion coins increased by over 13% during June, while total sales of the silver bullion coins were essentially unchanged from May.

Monthly sales of the American Eagle gold bullion coin have fluctuated considerably during 2012 with sales reaching a monthly high of 127,000 ounces in January and a monthly low of 20,000 ounces in April.  Sales rebounded strongly in May to 53,000 ounces and continued higher in June with the sale of 60,000 ounces.

Sales of the American Eagle gold bullion coin can vary dramatically from month to month based on many factors.  The all time yearly sales record for the gold bullion coins of 1,435,000 ounces was reached in 2009  when many people feared that the financial system would collapse.  Sales volume of the gold bullion coins have not, however, had a direct correlation to the price of gold.  Gold closed 2009 at $1,087.50 per ounce and subsequently went on to hit a 2011 high of $1,895 on September 5th.  Despite the fact that gold increased by over 74% since year end 2009, total gold bullion coin sales declined in both 2010 and 2011.

If the European financial storm continues to unwind into a collapse similar to what we experienced in 2008, sales of the gold bullion coins could easily expand dramatically over the record levels seen in 2009.  With each passing day, there seem to be fewer reasons to maintain confidence in the paper money system as central bankers and governments attempt to prop up a debt burdened world economy with additional debt and money printing.

Listed below are the yearly sales of the American Eagle gold bullion coins since 2000.  The total for 2012 is through June 30th.

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 343,500
Total 7,593,000

If the sales trend of American gold bullion coins continues on the pace it has been on thus far, 2012 may turn out to be the fourth year in a row of lower sales.  The graph below shows gold bullion coin sales since 2000 with figures for 2012 annualized based on sales through June 30th.

U.S. Mint sales of the American Eagle silver bullion coin continued strong in June at 2,858,000 ounces, down slightly from the May total of 2,875,000 ounces.  After a strong start in January with sales of over 6 million ounces, sales dipped below 2 million ounces in February and April.  Year to date sales through June 2012 of the silver bullion coins total 17,392,000 ounces, down by 22% from the comparable sales period in 2011 when 22,303,500 ounces were sold.

If sales of the silver bullion coins continue at the same pace for the remainder of 2012, total sales could exceed 34 million ounces, not far below the record set during 2011 of 39.9 million ounces.   Considering that silver has corrected in price from $48.70 reached during April of 2011, the volume of silver bullion coin sales is very robust, with buyers taking advantage of lower prices.

In addition to gold and silver bullion coins, the U.S. Mint sells numismatic series of both gold and silver American Eagle coins which the public can purchase directly from the U.S. Mint.  Bullion versions of the gold and silver American Eagles are only sold to Authorized Purchasers who in turn resell the product to the general public and other dealers.

Total annual U.S. Mint sales of the American Silver Eagle bullion coins since 2000 are shown below.  Sales totals for 2012 are through June 30th.

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 17,392,000
TOTAL 215,792,500
Filed Under: Bullion Sales, Featured, Gold, Silver, US Debt Crisis, US Mint Tagged With: , , , , , , , , , , , , , , ,

Gold and Silver Bullion Coin Sales Rebound Strongly In May

June 1, 2012 by 3 Comments

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
Filed Under: Bullion Sales, Featured, Gold, Silver, US Debt Crisis, US Mint Tagged With: , , , , , , , , ,

Are Gold And Silver Bullion Sales Reported To The IRS? Tips For Keeping Bullion Sales Private

May 17, 2012 by Leave a Comment

Long term gold and silver investors who have gradually accumulated physical precious metals over the years have seen the value of their holdings increase substantially when measured against the value of the paper dollar.   Astute investors realize that a large part of the “gains” on their precious metals have merely preserved purchasing power compared to paper money which has been consistently debased by the monetary and fiscal policies of the government and federal reserve.

In the eyes of the taxing authorities, however, the increased value of an investment due to inflation is still considered a gain regardless of whether or not there was an increase in purchasing power.  As the chart below graphically depicts, a $4,000 investment made in 1986 and now worth $8,000 is still worth only $4,000 in purchasing power -thus the true economic gain is zero.  Try telling that to the IRS!  After paying long term capital gains on the phantom $4,000 “profit”, you are left with less that you had in 1986.

There is, however, a silver and gold lining for investors in physical precious metals since, under many circumstances, the sale of your gold and silver bullion is not reported to the IRS.  There are circumstances, however, in which a bullion dealer is required to file a Form 1099-B with the IRS which reports sales transaction proceeds, name, address and social security number.  It is obviously important to most investors to know what types of sales are kept private and what types of sales are reported to the IRS.

Thanks to our friends at GoldSilver.com, here is the essential up to date information that you need to know before selling gold and silver bullion.

Before we begin, the following information covers aspects of investor privacy, not an investor’s responsibility to pay income tax gains on any profits made from the purchase and sale of investment grade bullion products.  For tax questions, please seek professional tax consul.

We know investor privacy is very important to physical silver and gold purchasers and confidentiality is one of the values we covet most along with our customers.

For some bullion investors, ensuring themselves a private sale is their most important objective and we understand the myriad of reasons as to why this is so.

That being said, we must always adhere to the rules of our industry.

Being a bullion dealer, we are often asked by customers questions like…

– Are my transactions private?

– When I sell my gold bullion or silver bullion, is it a private transaction, or is it reported to the IRS?

 

First, when a customer buys from our dealership, the transaction is private.

We have specifically designated the current payment method options on our website so that investors who buy bullion from us, do so in confidentiality.

Secondly, when an investor sells their gold bullion or silver bullion to a dealer like us, some of these trades are private while some are not.

Depending upon what you are selling will depend upon whether the powers that be require us as a bullion dealer to fill out something called an IRS 1099-B Form.

 

 

IRS 1099 Gold Reporting & Silver Reporting

When you sell your bullion back to a dealer, the pertinent questions for a dealer are:

1) What form of gold and or silver bullion are you selling?

2) What amount of silver bullion and or gold bullion are you selling?

 

The following covers private investor sales of bullion products we currently offer at GoldSilver.com.

1099 EXEMPT PRIVATE SILVER BULLION

Private silver bullion ( IRS 1099 Form exempt ) consists of any quantity sold to a dealer of the following items:

– American Silver Eagle Coins

– Canadian Maple Leaf Silver Coins

– Austrian Philharmonic Silver Coins

 

1099 REQUIRED SILVER BULLION

Reported silver bullion ( IRS 1099 Form required ) consists of 1000 ounces or more sold to a dealer of the following items:

– .999 fine silver bullion bars  (any sizes)

– .999 fine silver bullion rounds  (any sizes)

 

1099 EXEMPT PRIVATE GOLD BULLION

Private gold bullion ( IRS 1099 Form exempt ) consists of any quantity sold to a dealer of the following items:

– American Gold Eagle Coins

– American Gold Buffalo Coins

– Gold Austrian Philharmonic Coins

 

1099 REQUIRED GOLD BULLION COINS

Reported gold bullion coins ( IRS 1099 Form required ) consists of 25 ounces or more sold to a dealer of the following items:

– Canadian Gold Maples (1 oz)

– South African Krugerrands (1 oz)

 

1099 REQUIRED GOLD BULLION BARS

Reported gold bullion bars ( IRS 1099 Form required ) consists of 32.15 ounces or more sold to a dealer of the following items:

– .999 fine gold bullion bars (any sizes)

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These are the IRS 1099-B Form reporting requirements for the bullion products we offer at GoldSilver.com as of May 2012.

Stay tuned to GoldSilver.com for any future news or proposed changes to the current IRS 1099 gold and silver reporting requirements.

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Gold And Silver Bullion Coin Sales Plunge In April – What Is John Q Public Thinking?

May 1, 2012 by 2 Comments

The latest sales figures from the U.S. Mint show a continuing trend of lower gold bullion coin sales. Sales of American Gold Eagle bullion coins hit an all time high in 2009 when the Mint sold 1,435,000 ounces. During 2010, sales declined to 1.2 million ounces and in 2011 only 1 million ounces of gold bullion coins were sold.

Sales of the American Gold Eagle bullion coins in April totaled only 20,000 ounces, the lowest monthly sales figure since June 2008 when 15,500 ounces were sold.  Total year to date gold bullion sales of 230,500 ounces through April 2012 are down a substantial 43% from the first four months of 2011 when the U.S. Mint sold 407,500 ounces.

If sales of the American Eagle gold bullion coins continue at their present pace, 2012 could turn out to be the fourth year in a row of declining sales.

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 230,500
Total 7,480,000
Note: 2012 totals through April 30, 2012

Total sales of the American Silver Eagle bullion coins for April 2012 totaled 1,520,000 ounces, down from 2,542,000 ounces in March.  Year to date sales of the Silver Eagle coins through April 30 totaled 11,659,000 ounces, down by 23.5% from total sales of 15,248,000 ounces in the first four months of 2011.  Sales of the American Silver Eagle bullion coins reached an all time record high of 39,868,500 ounces during 2011.

Shown below are the U.S. Mint sales figures for the American Silver Eagle bullion coins since 2000.  Sales totals for 2012 are through April 30th.

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 11,659,000
TOTAL 210,059,500

The American Gold and Silver Eagle bullion coins cannot be purchased by the public directly from the U.S. Mint. Instead, the Mint sells the coins to a network of authorized purchasers who in turn resell them to the public and secondary retailers.

Sales figures shown above do not include U.S. Mint sales of gold and silver Eagle numismatic coins.  The public is allowed to purchase numismatic versions (uncirculated and proof) of gold and silver coins directly from the U.S. Mint and sales of these coins have also been declining during 2012.

According to Mint News Blog, sales of the 2011 Proof Gold Eagles declined by about 50% from 2010 and sales of the 2012 Proof Gold Eagles have declined by over 60% from the previous year.  The same trend has been seen in the proof version of the American Silver Eagle with 2012 sales down 19% through April.

There are a number of factors likely contributing to the drop off in sales. Over the past few years, the US Mint has caught up with demand for bullion coins, allowing more certainty for the numismatic offerings. The sense of urgency and pent up demand that characterized the product return in 2010 has greatly diminished. There also seems to be a shift away from precious metals in recent months, with some moving back to collector coins. Sales of the US Mint’s Gold Eagle bullion coins were down 30% in the first quarter.

Gold prices may also be having an impact in various ways. For the past two years, the Proof Gold Eagles were released in an environment of rising prices. For the current year, prices have fallen over the past two months leading up to the release. Despite this recent drop, the initial prices for this year’s offerings were higher by the equivalent of $200 per troy ounce compared to last year, possibly making affordability a factor for some collectors. Finally, some collectors may have been delaying orders in anticipation of the price decrease which will take place later today.

With the world economy on the brink of collapse in 2008, Americans decided that they needed to prepare for a financial hurricane and subsequently purchased record amounts of both gold and silver.  Perhaps the public has not noticed that a financial crisis potentially worse than 2008 (and certain to impact the U.S. economy) is brewing “across the pond” with European governments and banks tottering on the brink of insolvency and many countries already in full blown depressions.

With the global economy drowning in debt and facing unprecedented financial problems, it is almost comical that many Americans are avoiding the only asset class able to preserve their wealth.

Filed Under: Bullion Sales, Featured, Gold, Silver, US Mint Tagged With: , , , , , , , , , , ,