(Kitco News) - While Asian consumers have been purchasing physical gold at an unprecedented pace, record-high prices throughout 2024 have deterred many Western investors from entering the bullion market, according to sales data from some of the world’s largest sovereign mints.
Production data from the U.S. Mint reveals that it sold 412,000 ounces of gold in various denominations of its American Eagle gold coins. This marks a significant decline of more than 59% compared to the one million ounces sold in 2023.
Meanwhile, the U.S. Mint sold 24.862 million ounces of silver in 2024, slightly up from 24.75 million ounces sold in 2023.
Analysts note, however, that U.S. Mint production data only reflects activity in the primary market. Bullion dealers reported that the secondary market was extremely active last year as sellers sought to capitalize on higher prices.
Danielle Oliari, Chief Operating Officer of CNT Depository, commented during the London Bullion Market Association’s Precious Metals Conference that her company observed robust activity in the secondary market. She noted that due to weak mint production, the secondary supply is what helped to meet demand.
The U.S. Mint is not alone in its underwhelming sales performance. Data from the Perth Mint indicates a 41% drop in sales compared to the previous year. Australia’s sovereign mint sold 391,606 ounces of gold in 2024, representing a 65% decline from its record high achieved in 2022.
However, breaking the broader trend, the British Royal Mint reported strong growth throughout 2024, particularly in the final quarter of the year. The British Mint does not provide specific sales data, and the data it publishes is based on direct-to-consumer sales, while the Perth Mint and the U.S. Mint sell their bullion coins to dealers.
Stuart O’Reilly, Market Insights Manager at The Royal Mint, told Kitco News that total revenue from bullion coin sales rose 47% in 2024 compared to 2023.
“This suggests that economic uncertainty and heightened geopolitical risk have driven investors towards safe-haven assets,” O’Reilly said. “Another record quarter for bullion coin sales also reflects a renewed focus on tax-efficient investing.”
O’Reilly added that bullion sales hit a record in the final quarter of 2024, with a 56% increase compared to the third quarter.
“More broadly, demand for bullion is rising steadily, with a 9% increase in customers buying bullion from The Royal Mint’s website in 2024,” he said. “Bullion was particularly in demand between October and December 2024, with a 41% increase in customers year-on-year. Across 2024 as a whole, the total volume of bullion transactions was 12% higher than in 2023.”
