Wednesday, April 24, 2013

American Eagle Gold Bullion Coin Sales Suspended; U.S. Inventory Depleted

The U.S. Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion's plunge to two-year lows depleted the government's inventory. Bottom line: The selling in gold that has occurred isn't coming from the general public.

So far in April, the U.S. Mint has sold 175,000 ounces of American Eagle gold coins, putting it on track to challenge a high of 231,500 ounces set in December 2009.

"It's panic. This is one of the busiest times in quite a while. People think gold's at the lows and they want to take advantage," he said in an interview with HuffPo.

The buying by individuals in the wake of the curious decline (Ron Paul has commented on one single seller of 55,000 ounces crushing the market with sloppy massive selling) seems to be global. Gulf News reports:
Dubai: The manic buying of gold jewelry at local shops since April 12 is now pushing up the premium retailers need to pay to ensure they have enough stock coming in on a daily basis.

Premiums have touched $5 an ounce in the wholesale trade and even bullion banks have raised theirs to $2-$3 an ounce for deliveries.

“Since the afternoon of April 12 gold retail sales shot up by nearly three times over the next seven days and this represents the best phase for Dubai’s gold trade in the last 12 years,” said Cyriac Varghese, general manager at Sky Jewellery. “But it has also led to pressure for retailers on the inventory side and there is a bullion shortage – our instructions are to snap up any supply so that stocks are constantly replenished.

2 comments:

  1. and yet rice of gold is down. nobody wants gold? i don't get it. My local coin shop has increased is his prenimum over spot because of the demand for gold and silver is high. Gold and silver can't really be down due lack of demand. How are the spot prices for gold and silver determined? However spot prices are determined appear to have little to do with market demand

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    1. well because demand for gold coins is still up even though gold bullion might have dropped a little

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