Tuesday, 5 February 2013
American mint coin sales and gold prices in troy ounces
The facility of the U.S. Mint coin sales
Gold and silver are available in various forms. Each of these types of investments is tied to specific, but inter-related supply-and-demand profiles. To the top investment opportunities in the U.S. market include the physical produced by the Mint U.S. Mint coins. Investor demand for these coins was in recent weeks despite the standing hereby unrelated fund sales, which have affected gold, quite stable. The facility of the U.S. Mint coin sales offer us great insight into the demand for physical metal.
The bullion coins from the U.S. Mint American Eagles hot. Their value is based solely on the spot price of gold and silver, and there is no charge for the rarity of a coin. Therefore investors per dollar is much more necessary physical metal, as is the case for expensive collector coins. I've always been of the opinion that it is wiser to maximize the total gold and silver shares, rather than reliance on rare coins.
The Eagle bullion coins found their origins in the Gold Bullion Coin Act of 1985, which came into force under Ronald Reagan. At the beginning of the 1980s, foreign investment coins won, such as the famous South African Krugerrand in popularity. The U.S. Congress proposed U.S. competitiveness in this prestigious national market. Therefore, the U.S. Mint got the instruction to produce gold coins only of gold, which was promoted in the U.S. in the previous year.
This measure has proven to be incredibly successful, but also caused controversy. In the final essay in this series, I discussed how the U.S. Mint could not meet the growing demand and was forced to discontinue sales temporarily. Conspiracy theorists were furious because of the Gold Bullion Coin Act, the U.S. Mint entitled thereto, "to mint gold coins and to issue ... in quantities sufficient to meet public demand."
By and large, however, the American Eagles have been a great success. They provide a fantastic opportunity to invest in physical gold and silver. They look beautiful, are portable and easy to buy and sell as they are recognized worldwide. They can hide at home, so no bank closure can jeopardize access to these coins and they can be confiscated by any government. I started in 1998, I create my own store.
Besides the obvious benefits of physical gold and silver American Eagles possessions offer a unique insight into the trends of the physical supply and physical demand. The sales figures for the U.S. Mint will be published very detailed and transparent to investors, which is why it is extremely interesting to throw from time to time have a look. They reflect the prevailing mood in the physical bullion market against the best.
However, there are some factors that must consider. First, please refer to the installation of the U.S. Mint coin sales exclusively on new coins. Eagles will never be destroyed. Therefore, there is a large supply of coins for the previous year, exceeding the annual Nine bid. When you walk into an ordinary Münzhandlung, they will try to sell you the coins of the past years, the seller has repurchased by other investors. New sales are thus only the tip of the iceberg.
Second, there are numerous other private investors for investments for physical gold and silver. These include foreign coins, bars, even minted coins, rare coins, old currency, etc. Some of these forms offer much lower premiums over spot prices as Eagle bullion coins, especially for silver. Consider, then, that the U.S. Mint sales figures reflect only a small part of the total physical market.
Nevertheless, the production of the U.S. Mint is based on the real demand of the coin dealers. If the inventory of coin dealers enough through sales of the investors, they have to buy new Eagles by the U.S. Mint. The increase in production of the U.S. Mint is always a response to the growing demand from coin dealers, which in turn is the result of a growing investor demand for physical gold and silver. Therefore, sales of the U.S. Mint are quite revealing.
The figures are published monthly for the Eagle gold and silver coins. In the following charts this Münzverkäufe and daily gold and silver price trend shown since the beginning of their secular bulls. Despite the impression that 2012 was a bad year for precious metals, the new physical demand from investors for American Eagles actually stable up high. This is certainly a bullish omen.
The price of gold is shown in red, represented the monthly Gold Eagle Sales of the U.S. Mint in ounces in Blue, and the average annual values of these monthly sales figures on the basis of numbers read in yellow. In the early years of the gold bull market gold was not for mainstream retailers. There were not many investors who invested in gold. Therefore, I am proud that we have our readers the one ounce gold bullion coins to recommended at a cost of 264 USD already in May 2001.