Lower Gold Prices, Higher Inflation May Be Driving Sales.
U.S. Mint Sold 21,500 one ounce American Gold Eagle Coins in June.
Gold Eagle coin sales jumped 16% month over month and 438% on a comparable year basis.
The U.S. Mint sold 21,500 one ounce American Gold Eagle coins (AGE’s) in June 2018. This reflects a 16% increase in sales of AGE’s from May 2018 when 18,500 were sold.
Sales of American Gold Eagle coins in June 2018 were up 437.5% from 4,000 sold in June 2017.
May 2018 gold eagle sales of 18,500 were up 68% from May 2017 sales of 11,000.
June was the third month in a row that 2018 sales topped 2017 sales, solidifying a change in fortune for gold eagle sales that began in April and gained steam in May.
Sales of one ounce American Gold Eagle coins through the first five months of 2018 were 87,500, down from the 141,000 sold in the first six months of 2017.
Rising Gold Sales – Inflation Stirs
American Gold Eagle sales tailed off after the election and inauguration of Donald Trump in late 2016 and early 2017. Gold sales generally pick up when there is economic or political uncertainty or rising inflation. The U.S. economy has fared better than expected since Trump took office, with unemployment at near twenty year lows and wages beginning to rise. Inflation during the first year and a half of President Trump’s first term had remained quiescent, until recently.
A key inflation indicator, the Personal Consumption Expenditures price index hit a six year high of 2.3% in May.
American Gold Eagle sales picked up in May and June with their strongest comparable months since 2016 – before the election of Donald Trump.
While there have been whiffs of geo-political uncertainty (North Korea, Iran and Italy) domestic political uncertainty (Mueller investigation) and economic uncertainty (Deutsche Bank) these situations have not spiraled out of control – yet. However, Trump’s recent Supreme Court win in the travel ban case that affirmed his order constitutional and the retirement of Justice Kennedy, paving the way for another Trump appointee to the Supreme Court, have whipped his Democratic and left wing supporters into a frenzy, promising massive civil disobedience and in some cases violence.
Investors buy gold for insurance against inflation, political or financial uncertainty. The best time to buy gold is before any of these events happen.
Sales of American Gold Eagle Coins
American Gold Eagle sales in January 2018 were a solid 36,000 sold, down, however from 86,500 sold in January 2017 and down from 38,000 sold in December 2017. February, March and April sales of 5,000 and 2,500, 4,000 respectively, were uncharacteristically low compared to recent years’ monthly sales, although April 2018 sales were higher than April 2017 sales. May sales spiked to 18,500.
Given that gold sales from Germany, to Turkey to India, to Russia to China, continued to be strong in 2018, lower U.S. Mint gold sales were puzzling. Sales of gold at the Perth Mint also remain strong in 2018.
The following charts show one ounce American Gold Eagle sales by month for the years 1987 – 2018.
Sales of American Gold Eagles were elevated from 2009 – 2016, but fell in 2017 and continued to fall in the first quarter of 2018. American Gold Eagle sales in the second quarter of 2018 have increased.
Gold Prices Have Risen Over Ten Years
Gold prices have traded in a tight range during 2018. Generally gold sales increase when there is price volatility and decline when prices are stable. Gold prices in 2018 year to date are down about $55 or 4.2%.
BGASC.com sells American Gold Eagles at competitive prices. American Gold Eagles are available for sale individually in current dated or random back dated years.
All American Gold Eagle coins are IRA eligible.
About the American Gold Eagle coin: The obverse of an American Gold Eagle coin boasts the same design as the obverse of the “Saint Gaudens” U.S. $20 gold piece, or “double eagle” that was minted from 1907 – 1933. The front of a Saint Gaudens and American Gold Eagle coin features a walking lady liberty depiction designed by famed sculptor Augustus Saint- Gaudens.
American Gold Eagle sales data from USMINT.GOV
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.