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