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U.S. Mint Gold-Coin Sales Rebound In July, Increase 42.9% M-o-M

Kitco News

(Kitco News) - After what has been a lackluster year for precious-metal bullion coins, demand started to pick up in July, according to sales data from the U.S. Mint.

The increase in bullion sales came as gold and silver prices dropped to a one-year low last month.

Sales figures from the U.S. Mint show 35,000 ounces of gold in various denominations of American Eagle Gold coins, a 42.9% increase compared to June. Bullion sales are up 100% compared to July 2017.

July was the Mint’s strongest sales month since the start of the year. Despite the pickup in sales last month, demand is still muted, with the Mint selling a total of 155,500 ounces of gold so far this year, down 26% from 211,000 ounces sold during the same time last year.

However, some analysts are optimistic that the market is imminently poised for a turnaround. In a recent interview with Kitco News, Maxwell Gold, director of investment strategy at ETF Securities by Aberdeen Standard Investments, said that he expects physical demand to put a floor in the market around $1,200 an ounce.

He added that he sees the current low gold price as an attractive entry point for investors to build a strategic position as part of a balanced portfolio.

“I am paying attention to gold at these levels because they are below my base-case scenario and if gold were to slip below $1,200, that would be an even stronger signal that investors need to look at gold as a strategic asset,” he said.

Physical silver demand also picked up in July, albeit at a weaker pace compared to gold. The U.S. Mint said that it sold 885,000 one-ounce America Eagle silver coins, a 103% increase from June. However, compared to last year, sales are down 61%.

So far this year, the Mint has sold 7.7 million ounces of silver, down 47.5% from 14.6 million ounces sold within the first seven months of 2017. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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