Investors and Collectors Buy The Dip in Gold and Drive American Gold Eagle and Gold Buffalo Sales Higher.
After a 58% increase in sales of one ounce American Gold Eagle coins (AGEs) in September over August, sales of AGE’s in October through mid-month are on pace to surpass September’s totals. Sales of American Gold Eagles are on pace to have their best year since 2012.
Sales of one ounce American Gold Eagle coins were 50,000 in August, 79,000 in September and were at 57,500 as of October 14, a monthly run rate of 115,000.
During the first week of October, gold prices fell from approximately $1325 an ounce to about $1250. The drop in prices set off a gold buying frenzy at the U.S. Mint.
Total Coins Sold Attributable to American Gold Eagles by Mid- October were 109,500 Coins
Through mid- October 2016, the U.S. Mint also sold 40,000 one tenth ounce AGEs; 8,000 one quarter ounce AGEs, and 4,000 one half ounce AGEs. Together with the 57,500 one ounce American Gold Eagles sold through mid- October, the U.S. Mint has sold a total of 109,500 American Gold Eagle coins in various denominations representing 65,500 ounces of gold. In August and September 2016, the U.S. Mint sold a total of 58,000 and 94,000 ounces of gold in the form of American Gold Eagle coins, respectively.
American Gold Buffalo Sales Also on the Rise
The U.S Mint also sells gold in the form of one ounce American Gold Buffalo coins. Sales of American Gold Buffalo coins are also on the rise in October. Through mid October, the U.S had sold 12,000 American Gold Buffalo coins, up from the 9,000 sold in August and well ahead of the pace of sale in September when 17,500 were sold.
Increased Interest In Gold in 2016
An increased interest in gold in 2016 has made gold one of the best performing financial assets through June 2016. While U.S. Mint gold sales have increased year over year, they are far from the manic sales of 1998-1999 and 2009 and 2010 when well over a million one ounce American Gold Eagle coins were sold each year. U.S. gold investment has increasingly taken the form of gold exchange traded funds (ETFs) or other non-physical gold products. In eastern countries like China, India and Russia, increased gold demand has been in the form of physical gold bullion, due in part to lack of trust in financially traded investment vehicles.
One Ounce American Gold Eagle 2016 Sales Projection
As of the end of September 2016, U.S. Mint has sold 565,000 one ounce American Gold Eagle coins in 2016, up from 520,000 or 9% sold from January – September 2015. Through mid-October the US Mint had sold 622,500 one ounce American Gold Eagle coins.
If sales of one ounce American Gold Eagle sales average 62,777 a month (565,000 one ounce gold eagles sold through September, divided by nine), sales will be about 750,000 one ounce AGE’s in 2016 or about 20% higher than the 626,500 one ounce AGEs sold in 2016.
American Gold Buffalo 2016 Sales Projection
If sales of one ounce American Gold Buffalo sales continue at an average of 16,500 month. (149,000 sold from January – September), sales in 2016 would be about 200,000. The annual record for sales of American Gold Buffalo coins is 323,000 set in 2006, the first year of the coin’s mintage. Through mid-October, the US Mint had sold 161,000 one ounce American Gold Buffalo coins.
About the American Gold Eagle coin
American Gold Eagle coins are made of 22K gold (.9167% gold). 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.
About the American Gold Buffalo Coin
American Gold Buffalo coins are 24K gold while American Gold Eagle coins are 22K. One ounce American Gold Buffalo coins are slightly smaller and lighter than their one ounce American Gold Eagle counterparts that contain 3% silver and 5% copper mixed in the alloy, bringing the total weight of a one ounce American Gold Eagle coin to nearly 1.10 ounces.
The American Gold Buffalo is the U.S. Mint’s answer to 24K gold coins issued by the Canadian and Austrian Mints. American Gold Buffalo coins are only minted in one ounce sizes, unlike their American Gold Eagle counterparts which are minted in one ounce, one half ounce, one quarter ounce and one tenth ounce sizes. In 2008, however, the U.S. Mint produced American Gold Buffaloes in one, 1/2, 1/4 and 1/10 ounce sizes. The coins were sold individually and in complete sets.
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.