Wednesday, October 2, 2013

US Mint Sales of Gold Coins slow in September. Silver sales decelerating.

Sales of gold Eagle and Buffalo coins by the US Mint were 23,000 ounces in September, compared to 21,500 in August and 69,000 in July.  September gold sales were 7% more than in August, which was the lowest month since June 2008.  As of September, year to date gold sales are 904,000 ounces which is 56% more than in 2012 and significantly less than in 2009, 2010, and 2011.  The US Mint reported September sales of 10,000 gold Buffalo coins and 13,000 ounces of gold Eagle coins.

Sales of silver Eagles by the US Mint were 3,013,000 in September, compared to 3,625,000 ounces in August.  September sales were the lowest month of this year and 7% less than in September 2012.  Year to date silver Eagle sales are a record 36,088,000 ounces which is 40% more than 2012 and significantly more than in earlier years.

The US Mint decreased the retail price for an uncirculated Gold Eagle by $50 to $1,625 during September.  An uncirculated silver Eagle retails for $43.95 which is unchanged from July and August.

A quick survey of 3 internet coin dealers shows that pricing for gold and silver Eagles is about $65 and $3.00 over spot respectively.  The premium for gold Eagles is the same as last month while the premium for silver Eagles has decreased about $1.00.  These price premiums are based on purchasing one coin.  All dealers offer volume discounts for larger purchases.  Spot gold and silver market prices are currently $1,318 and $21.88, respectively.

Coin dealers are currently offering to pay about $25 and $1.75 over spot to purchase gold and silver Eagles, respectively.  This seems reasonable because the US Mint charges dealers 3% for gold and $2.00 per coin for silver premiums.  Dealer purchase premiums are not hinting at supply constraints as they were in April and May.

Coin sales by the Austrian and Australian mints have followed the same trend as US Mint sales.

1 comment:

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