US Mint gold coin sales at two-year high as prices tumble

New York (Aug 2)  American Eagle gold coin sales surged to the highest in more than two years, U.S. Mint data showed on Friday, after prices tumbled as much as 8 percent to a 5-1/2-year low and spurred a buying spree in the United States.

American Eagle silver coin sales jumped to 5.5 million ounces, the highest since January despite a 2-1/2-week halt in sales after the Mint ran out of supplies.

Sales of American Eagle gold coins jumped to 170,000 ounces in July, up 124 percent from June and the highest since April 2013, when a historic selloff in bullion unleashed a surge in pent-up demand, ending a decade-long run-up in prices.
 
The surge in demand this month came as spot gold prices fell to $1,077 an ounce, on expectations for a U.S. interest rate hike and after a dramatic selling spree took place during early Chinese trading hours.

In silver, the Mint halted sales of 2015 American Eagle coins on July 7 after selling out as the price of spot silver tumbled to a seven-week low. Silver prices extended their descent to a six-year low at $14.33 an ounce.
 
"I don't think anyone anticipated the sales in silver. This is normally a quiet time," said Ellen McCullom, U.S. Mint plant manager at West Point, New York, in a Thursday interview, adding that they had "normal" inventory levels.

Sales resumed on Monday and 2.82 million of the 3 million ounces allocated sold this week, Mint data showed.
 
The Mint has allocated 1 million ounces of the silver coins to be sold next week, McCullom said.

"This is selling at such a high rate," said Jennifer Butkus, production manager at the Mint, adding sales appeared to be on track for 40 million ounces by the end of the year.

Just over 44 million ounces of American Eagle silver coins sold in 2014.

Source: Reuters