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Physical gold and silver demand remains strong as investors sell paper - dealers

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(Kitco News) - While the paper gold market recently saw significant selling pressure, the physical market continues to see unprecedented demand in a tight marketplace, according to accredited physical dealers.

“Professional bullion dealers we've talked with the past week say one of their biggest problems is keeping up with gold and silver inventory to meet the demand for filling orders from retail customers. Some customers have sold a relatively small number of gold coins to take profits, but there have not been any reports of massive panic selling when prices recently fell," said Richard Weaver, president of the Professional Numismatists Guild, in a press release Tuesday.

Not only has the physical precious metals market seen a lack of panic selling, but Weaver said that dealers are also seeing a generational shift in their customer base.

“For the first time in a long time, we are seeing buyers in their 20’s and 30’s entering the market for physical gold and silver,” Weaver said.

Looking at the latest sales data, so far this month, the U.S. Mint has sold 91,500 ounce in various denominations of American Eagle Gold bullion coins. So far this year, the U.S. mint has sold 586,000 ounces of gold.

Physical silver has also attracted significant investor attention this past month. According to sales data, the U.S. Mint has sold nearly 2.6 million one-ounce silver coins. Sales are at their highest level since March, when the mint sold nearly 5.5 million silver coins.

So far this year, the U.S. Mint has sold roughly 16.3 million America Eagle Silver coins.

While demand for physical bullion remains strong, Professional Numismatists Guild continues to warn investors to only buy accredited dealers.

“Know your dealer to avoid potential bullion scams,” advised Weaver.

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