Saturday, August 3, 2013

US Mint Sales of Gold and Silver Coins: July YTD Update. Record Silver Eagle Sales.

Sales of gold Eagle and Buffalo coins by the US Mint were 69,000 ounces in July, compared to 74,000 ounces in June.  As of July, year to date gold sales are 859,500 ounces which is 90% more than in 2012 and 17% more than in 2011.

Sales of silver Eagles by the US Mint were 4,406,500 in July, compared to 3,275,000 ounces in June.  Year to date silver Eagle sales are a record 29,450,000 ounces and up 50% from 2012.

The US Mint reduced their retail price for an uncirculated Gold Eagle to $1,625 from $1,725 at the beginning June.  An uncirculated silver Eagle retails for $43.95.  

A quick survey of 3 internet coin dealers shows that pricing for gold and silver Eagles is about $70 and $2.50 over spot respectively.  These price premiums are based on purchasing one coin.  The dealers all offer volume discounts for larger purchases.  Spot market prices are currently $1,312 and $19.92, respectively.

The supply chain has absorbed the spike in gold demand in mid-April due to the price smack-down.  There has been no evidence of shortages or delivery delay from the US internet coin dealers.  There continue to be reports that market dynamics are much tighter in India, China, and Dubai.  Buyers completely absorbed the April spike in demand and continued to buy at historically strong levels in May, June, and July.  The large demand in April was not simply a 'pull forward' of future months' demand.  

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