November 28, 2022

American Gold Eagle Bullion Coin Sales Up Sharply in March

gold-eagle-100x100According to the latest report from the US Mint, sales of the American Gold Eagle bullion coins soared in March from both the previous month’s sales and the previous year.

Total sales of the Gold Eagle bullion coins during March came in at 46,500 ounces, up by 151% from the previous month’s sales of 18,500 ounces.  Sales of the gold bullion coins were also way ahead of the year ago month, with more than double the sales of 21,000 ounces in March 2014.

Although sales of the gold bullion coins have been declining since 2009, year to date sales for 2015 have slightly outpaced the previous comparable period.  For the three month period ending March 31, 2015, the US Mint sold a total of 146,000 ounces, up from 143,500 ounces in the previous year’s quarter.

Sales of the gold bullion coins during 2014 totaled 524,500 ounces.  If the sales pace for the first quarter continues, sales for 2015 should outpace last year by around 60,000 ounces.

The chart below shows sales by year since 2000 of the US Mint American Gold Eagle bullion coins.

The current price for a one ounce gold bullion coin is about $1,270, an expensive purchase for many people but the Mint also sells smaller weight coins.   The American Eagle gold bullion coins are also available in one-half ounce, one-quarter ounce and one-tenth ounce sizes.   A one-tenth ounce gold American Eagle coin currently costs only about $138.  During March the US Mint sold a total of 70,000 one-tenth ounce coins, 8,000 quarter ounce coins, and 5,000 one-half ounce coins indicating solid demand by small investors for physical gold.

American Eagle Gold Bullion Coin Sales Up 25% In November

Liberty-EagleThe sale of the US Mint American Eagle gold bullion coins remained strong in November.

The US Mint reports that sales of the gold bullion coins were 60,000 ounces in November up by 24% from last year’s monthly sales of 48,000 ounces.  Sales for November slipped from October sales of 67,500 ounces which was the second biggest sales month of the year.  The year started off with a bang for the gold bullion coins when the US Mint sold 91,500 ounces in January.

Year to date sales of 506,500 ounces through November remain far below last year’s comparable sales of 800,500 ounces, a decline of 36.7%.  The sale of gold bullion coins has been in a general decline since 2009 as seen in the yearly sales chart below.

Gold has been in a nonstop bear market decline since early 2011 and gold sentiment weakened even further with today’s announcement that Swiss voters rejected a call for the Swiss National Bank to increase their gold reserves.

gold Technical chart [Kitco Inc.]

Shown below are the total ounces sold by year since 2000 of the American Eagle gold bullion coins.  Based on current sales trends sales of the gold bullion coins for 2014 will decline to the lowest levels since 2007.

American Eagle Gold Bullion Coin Sales Soar 132% In September

gold-bullionDespite 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.

Courtesy: Kitco.com

Courtesy: Kitco.com

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.

Gold Bullion Coin Buyers Go On Strike – Sales Drop Again in August

1986-gold-eagleSales of the US Mint American Eagle gold bullion coins slumped again in August following the fall off in demand seen in July.   August sales of 25,000 ounces dropped by 16.6% or 5,000 ounces from July’s total of 30,000 ounces.

Although August 2014 sales of the gold bullion coins was more than double the 11,500 ounces sold in August 2013 the overall sales trend of American Eagle gold bullion coins has been in a steep slump during 2014 compared to the previous year.  Year to date sales of the gold American Eagle bullion coins as of August 31, 2014 totaled 321,000 ounces, a decline of almost 54% from comparable year sales of 691,000 ounces.

The price weakness in gold prices seen during 2013 continued this year as Gold Demand Falls 16% as Jewelry Purchases Decline 30%.

Gold demand fell 16 percent in the second quarter, led by declines in India and China, the World Gold Council said.

Global demand slipped to 963.8 metric tons from 1,148.3 tons a year earlier as jewelry purchases fell to the lowest since the fourth quarter of 2012, the London-based council said today in a report. China fell behind India as the largest consumer, with global jewelry buying dropping 30 percent and bar and coin demand down 56 percent. Mining companies hedged 50 tons as they continued selling future output.

Gold slid 28 percent in 2013, the most in three decades, as investors lost faith in the metal amid expectations U.S. policy makers would cut stimulus as the economy strengthens. Last year’s price drop spurred jewelry, coin and bar demand, particularly in China. Indian bullion buying has slowed as the government restricted imports to curb a current account deficit.

Global jewelry demand declined to 509.6 tons in the latest quarter, the least since the final three months of 2012. China’s purchases slipped 45 percent and those in India fell 18 percent, with the countries together accounting for almost 60 percent of world jewelry consumption. Buying rose 15 percent in the U.S. and 21 percent in the U.K. as consumer confidence rose, it said.

Global bar buying slumped 57 percent to 212.1 tons in the three months through June and coin demand slid 50 percent to 46.3 tons. Global consumer demand was down 42 percent to 784.9 tons, according to the report.

Total consumption in China, which overtook India as the biggest user last year, dropped 52 percent to 192.5 tons, the council said. Indian demand fell 39 percent to 204.1 tons, returning as the largest purchaser on a quarterly basis for the first time since the end of 2012.

The decline in demand for gold seems to be feeding upon itself as lower prices beget lower demand.  As gold prices climbed towards $2,000 an ounce during 2011 buyers tripped over each other to get into gold.  Ironically, buyers have now gone on strike as gold has become available at bargain prices.

The sale of gold bullion coins has been in a downward slump since 2009 when sales soared to record levels during the height of the financial meltdown.  There are many things happening in the world today that cause serious people to think that 2009 was just a warm up for what’s to come next – if this is correct, the demand for gold could turn sharply higher in a very short period of time.

Total gold bullion coin sales through August 2014 are shown below.

Based on the year to date figures, gold bullion coin sales could well end the year at about half of 2013 totals.

Gold Bullion Coin Sales Rise, Silver Bullion Coin Sales Could Hit All Time Record High in 2014

american-silver-eagleGold and silver bullion coin sales by the U.S. Mint during April turned in mixed results with gold sales up and silver sales down.  Despite the fact that gold and silver are in the bargain basement due to price declines, investment demand remains relatively subdued due to tapering of money printing by the Federal Reserve and the apparent recovery of the U.S. economy.

Investor perceptions of precious metals as a safe haven appear diminished despite the ongoing and unprecedented monetary easing by central banks and unrestrained government borrowings.  Gold began the year selling for $1,225 per ounce.  After reaching a high of $1,385 on March 14 gold  declined to a current price of $1,281.25 leaving it up on the year by 4.6%.

The U.S. Mint reported that sales of the American Eagle gold bullion coin in April totaled 38,500 ounces up 83% from 21,000 ounces sold in the previous month but down by a substantial 81.6% from April of 2013 when the Mint sold 209,500 ounces.  After dropping for three years in a row since 2009, sales of the American Eagle gold bullion coins increased in 2013 to 856,500 ounces up by 13.7% from total sales of 753,000 ounces in 2012.

(Sales figures for gold bullion coins on the charts below are as of April 30, 2014.)

 

Gold Bullion U.S. Mint Sales Since 2000
         Year                            Ounces Sold
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
2013 856,500
2014 182,000
TOTAL                               9,041,000

Total sales of gold bullion coins year to date total 182,000 ounces.  Based on the current sales rate through April 30th, annualized sales of gold bullion coins would come in at 546,000 ounces, the lowest amount of sales since 2007 when only 198,500 ounces were sold.

Silver Bullion Coin Sales Could Reach Another Record in 2014

Sales of the American Eagle silver bullion coins remained strong in April with a total of 4,590,500 coins sold, down slightly from the previous month’s sales of 5,354,000.

The one ounce American Eagle silver bullion coin remains extremely popular with investors.  Total coin sales during 2013 reached an all time high of 42,675,000.  The previous record sales year going back to 2000 occurred in 2011 when investors scooped up 39,868,500 coins.  If the current sales pace continues, total sales of the silver bullion coin during 2014 could reach a record breaking 55 million ounces.

Silver Bullion Coin Sales Soar In March, Gold Coin Sales Slump – Are Coin Buyers Stupid?

2014-proof-gold-eagleThe March sales report of American Eagle bullion coins by the U.S. Mint showed a large drop in gold bullion coins while sales of the ever popular silver bullion coins soared.

Sales of the American Eagle gold bullion coins in March totaled 21,000 ounces, down by 32% from February’s total of 31,000 ounces and down by a dramatic 66% from March 2013 when 62,000 coins were sold.  Year to date sales through March of 143,500 ounces of the American Eagle gold bullion coins plunged 51% from the comparable period last year when the U.S. Mint sold 292,500 ounces.

The decline in sales of gold bullion is in marked contrast to last year when sales boomed despite an almost 30% decline in gold prices, the worst performance since 1981.  Investors in physical gold across the globe viewed the decline in gold as a buying opportunity.  Sales of gold coins in 2013 by The Perth Mint soared over 40% while sales by the Royal Canadian Mint surged over 80%.  Sales of American Eagle gold coins by the U.S. Mint in 2013 jumped by 6.3% to 800,500 ounces.

Are Gold and Silver Bullion Coin Buyers Stupid?

While gold rebounded in 2014 from a low of $1221 to as high as $1385 before pulling back to a current price of $1284, perhaps buyers are waiting to see if the rally in gold will continue or if gold will decline again in 2014 as predicted by the likes of Goldman Sachs.  Long term it does not matter since the entire concept of fiat money has never ended well over the long term.  According to Bloomberg, the “long term” may be upon us sooner than many think.

Sound money and sound banking policies of governments have always been suspect but since the financial crisis of 2008, the entire concept of sound money has been utterly abandoned on a global basis as central banks printed trillions of dollars to support a financial system that imploded due to over indebtedness.  “Curing” the problem of too much debt with more debt and printed fiat money has in many people’s mind saved the world financial system, a tenuous theory at best.

1881-CC-Morgan-Dollar

According to the Bank for International Settlements, the amount of global debt (primarily government borrowings) has soared by a staggering 40 percent to $100 trillion since 2008 with the U.S. in the lead increasing the national debt to $12 trillion from $4.5 trillion at 2007 year end.  Fast forward to the next recession which could have its roots in a variety of events from the collapse of Japan’s epic empire of debt to the start of a serious military conflict over Ukraine driven by the warmongering military industrial complex in the U.S.  Another serious economic crisis, whatever its genesis, will result in money printing on an unimaginable scale as central banks do the only thing they can do which is to print more money.

Buyers of physical bullion are long term investors who understand what’s happening and are buying the only true money that cannot be debased by government profligacy and rapacious tax policies.  In the meantime, fluctuations in the price of gold caused by speculators such as hedge fund operators who can push around the price of physical gold without ever owning it through the use of futures contracts or options merely provide fantastic buying opportunities when they slam down gold prices.  Long term gold and silver are the only protection to preserve wealth against governments determined to debase fiat money to keep the highly leveraged financial system from imploding.  Current gold buyers will at some point will be holding an asset that soars in value as confidence in central banks completely evaporates as the value of paper money collapses.

American Eagle silver bullion coins meanwhile continue to soar and are a much more affordable option for many buyers compared to gold.  March sales of American Eagle silver bullion coins soared in March to 5,354,000 ounces, up by 43% from the prior month’s sales of 3,750,000 ounces and up by 60% from the March 2013 sales of 3,356,500 ounces.   Sales of silver bullion coins also increased dramatically in 2013 to a new record high of almost 42 ounces, up from almost 34 million ounces in 2012.  Based on annualizing the year to date sales of silver bullion coins, 2014 could turn out to be another block buster year with sales approaching another record of over 55 million ounces compared to 42 million ounces in 2013.

Buyers of physical gold and silver are long term investors who are intelligently protecting their wealth against governments hell bent on inflation and debasement of the currency in order to keep the house of debt cards from collapsing.  Accordingly, short term declines in the sale of gold bullion coins is totally irrelevant.

U.S. Mint Runs Out of Silver Bullion Coins – Gold and Silver Coin Sales Hit Record Levels in November

rooseveltLong term proponents of sound money cannot seem to get enough of U.S. Mint produced gold and silver bullion coins.  Ever since the financial crash of 2008 many Americans remain profoundly skeptical of the paper dollar system backed by the “full faith and credit” of a nation that has borrowed itself into poverty and promised more in social benefits than the economy can possible provide.

From 2000 to 2007 sales of the U.S. Mint American Eagle gold bullion coins averaged about 341,000 ounces annually.  After the crash of 2008 exposed the risk of paper assets, sales of the gold bullion coins have averaged about 1,011,300 ounces annually from 2008 to 2013.

Year to date sales of the American Eagle gold bullion coins as of the end of November totaled 800,500 ounces, surpassing total 2012 sales of 753,000 ounces.  For November the U.S. Mint sold 48,000 ounces of gold bullion coins, slightly below the sales figures of 48,500 for the previous month.  Since 2000 investors have stashed away 8.8 million gold bullion coins currently worth about $11 billion.

Gold has retained its value throughout human history and strong demand for gold over the ages has resulted in the depletion of most gold deposits on the planet.  As noted in a previous post, about 75% of all gold deposits have already been mined which forebodes a future gold shortage.

american-silver-eagleAs noted in a previous post, sales of the U.S. Mint American Eagle silver bullion coins hit record annual sales volume in  November.  The U.S. Mint sold a total of 41,475,000 silver bullion coins as of November 30th, surpassing the previous record sales year of 39,868,500 coins in 2011.

Sales of the American Eagle silver bullion coins for November came in at 2,300,000, a decline of 787,000 coins compared to 3,087,000 in the previous month.  The lower sales figures for November do not reflect a drop in demand for silver bullion coins but rather the opposite due to the fact that the U.S. Mint has run out of coins due to unprecedented demand.

This same shortage situation existed last year when the Mint ran out of silver bullion coins in mid December  with orders for the new 2013 silver bullion coins not being accepted until January 7, 2013.  This situation resulted in a three week period during which the American Eagle silver bullion coins were simply not available.

The period of time during which silver bullion coins will be unavailable from December 2013 to January 2014 will be even longer than last year.

peace dollar

According to coinupdate.com silver bullion coins will not be available for investor purchase for over a month and supplies will be rationed when available.

The United States Mint recently provided authorized purchasers with information on year end ordering procedures and the availability of 2014-dated releases for the American Eagle and American Buffalo bullion programs. Based on the details provided, it seems that the American Silver Eagle bullion coins will experience roughly one month of unavailability between the final allocation of 2013-dated coins and the release of the first 2014-dated coins.

The situation for American Silver Eagle bullion coins differs from the prior year. Authorized purchasers will be offered the last weekly allocation of 2013-dated coins on Monday, December 9, 2013. With demand continuing to run ahead of the available supplies, the allocation will likely be quickly depleted.

The 2014-dated Silver Eagle bullion coins will not be available to order until Monday, January 13, 2014. The initial release will be subject to the US Mint’s allocation program, which rations supplies amongst the authorized purchasers.

With such a severe shortage of silver bullion coins, expect buyer premiums to increase significantly over the next two months.

U.S. Mint Gold Coin Sales Soar 273% in October

gold-bullionAlthough sales totals vary from month to month, annual sales of the U.S. Mint American Eagle gold bullion coins are running at triple the levels prior to 2008 when the wheels came off the world financial system and central banks began an orgy of money printing.

From 2000 to 2007 the average yearly purchases of the American Eagle gold bullion coins totaled 341,500 ounces per year.  From 2008 to 2013 annual purchases of the gold coins have spiked by 300% to an average annual rate of 1,011,000 ounces.

After lackluster sales of gold coins in the slow months of August and September sales soared in October as investor demand for physical gold surged.  Total sales of the American Eagle gold coins for October 2013 came in at 48,500 ounces, an increase of 273% over the September total of 13,000 ounces.   October sales of gold bullion coins for the comparable prior year period totaled 59,000.

The U.S. Mint American Eagle gold bullion coins remain the premier method of building wealth through periodic purchases.  The American public can’t seem to get enough of the bullion coins and the desperate actions of global central banks to keep the financial system afloat with a deluge of paper money can only cause more financial anxiety and more gold purchases going forward.

2013 sales through October 2013

With two months still remaining in 2013, investors have already purchased almost the same amount of gold bullion coins that were sold for all of 2012.   Year to date sales of the American Eagle through October total 752,500 ounces compared to 753,000 ounces for all of 2012.

 

Gold Bullion U.S. Mint Sales Since 2000
         Year                           Total Ounces
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
2013 752,500
 TOTAL                               8,755,000
(above 2013 totals through October 2013)

The American Eagle gold bullion coins cannot be purchased by individuals directly from the U.S Mint.  The coins are sold only to the Mint’s network of authorized purchasers who buy the coins in bulk based on the market value of gold and a markup by the U.S. Mint.  The authorized purchasers sell the gold coins to coin dealers, other bullion dealers and the public.  The Mint’s rationale for using authorized purchasers is that this method makes the coins widely available to the public with reasonable transaction costs.

gold-buffalo

The public is allowed to purchases numismatic versions of gold coins directly from the U.S. Mint.   One of the most popular numismatic gold coins is the American Buffalo, available in both one ounce gold reverse proof and one ounce gold proof.

U.S. Mint Runs Out of Gold Bullion Coins

tenth oz gold-eaglesWe already knew from numerous previous reports that demand for physical gold and silver has soared since the early April precious metals crash.  Further confirmation of vanishing physical gold and silver inventory was provided today by the Untied States Mint.  Authorized purchasers of gold and silver bullion coins were informed by the U.S. Mint that sales of the one-tenth ounce American Eagle bullion coin would be immediately suspended due to depleted inventories of the coin.

As short term paper speculators run from the precious metals markets, long term investors have been lining up around the block to buy physical gold and silver.  Numerous coin and bullion dealers have reported growing shortages of gold and silver and premiums have expanded as demand overwhelms supply.

Based on mid month sales reports for the American Eagle gold bullion coins, it looked like monthly sales would exceed 167,000 ounces, the highest since December 2009 when the financial system was still in a meltdown.  As of today, U.S. Mint sales of gold bullion coins has reached 183,500 ounces, an astonishing increase of 818% over the prior year’s monthly sales of 20,000 ounces.  April sales to date have increased by 196% over March sales.  For all of 2012, average monthly sales of the American Eagle gold bullion coin were 62,750 ounces.  Gold bullion coin sales by the U.S. Mint are shown below; figures for 2013 are through April 23rd.

 

Gold Bullion U.S. Mint Sales Since 2000
Year Total Ounces Sold
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
2013 476,000
TOTAL                                      8,478,500

Sales of the American Eagle silver bullion coins, which had already been selling briskly before the April silver smash-down, continue to sell at a rapid pace.  Total monthly sales as of April 23rd have reached 3,232,000 ounces, almost as much as the previous month’s total and 112.6% higher than the comparable month of 2012.

The steep correction in gold and silver prices that occurred in early April has certainly not disturbed the fundamental long term reasons for buying precious metals.  Expect the buying stampede to continue.

Physical Demand For Gold and Silver Skyrockets – Gold Bullion Coin Sales Highest Since December 2009

1881-CC-Morgan-DollarWe 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.

2013-Australian-Kangaroo-1oz-Gold-Bullion-Coin-Reverse-S

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.