By Kitco News
Tuesday January 10, 2017 08:26
(Kitco News) - Along with the paper precious metals market, the physical market is off to a good start as the U.S. Mint said it saw strong demand for gold and silver bullion coins on the first day of sales in the new year.
The U.S. Mint started selling 2017-minted gold and silver coins Monday and reported strong demand compared to last year’s first-day sales. According to a press release, the mint sold 68,000 ounces of gold in various denominations of American Eagle gold bullion coins.
The Mint said that first-day sales increased 15% compared to 2016. One-ounce Buffalo bullion coins was slightly weaker, with first-day sales of 20,500 coins, down by 500 coins compared to last year.
Silver was even in stronger demand. On the first day of the new year, the Mint said it sold more than 3.7 million one-ounce coins, an increase of 35% compared to last year’s initial sales.
The coin sales come as gold and silver has seen a strong start to the year. Tuesday, on increased safe-haven demand, February Comex gold futures rose to their highest level in over a month. The market is holding onto most of its gains, last trading at $1,183.50 an ounce, up 2.7% since the start of the year. At the same time, March Comex silver futures last traded at $16.64 an ounce, up more than 4%.
This was found at Kitco.com
The five-year-high total came even after a slow December
The United States Mint finished off 2016 American Eagle gold bullion coin sales with its slowest month of the year, but that didn’t prevent the year-end total from being the highest since 2011.
December saw 29,000 ounces of American Eagle gold bullion coins sold, a low total likely due to production of the 2016 version of the coin being halted in November. 2016 sales overall ended at 984,500 ounces.
That tops the previous four years, which featured the following year-end totals:
2015: 801,500 ounces
2014: 524,500 ounces
2013: 856,500 ounces
2012: 753,000 ounces
In 2011, however, the Mint sold 1,000,000 ounces of American Eagle gold bullion coins.
In 2016, November was the high month for sales.
The 147,500 total ounces of the gold bullion coins, which range in weight from one-tenth ounce to an ounce, sold during the month of November were more than the total ounces sold in any other single month since July 2015, when 170,000 ounces were sold.
Since the start of 2013, only two monthly totals other than July 2015 surpass November 2016 in terms of ounces of American Eagle gold bullion coins sold — January 2013 and April 2013.
In fact, only nine of the 48 months since the start of 2013 have posted American Eagle gold bullion coin sales that have surpassed 100,000 ounces.
Monthly American Eagle gold bullion sales have risen consistently since July, when only 38,500 ounces were sold. In August, 58,500 ounces were sold. In September, the total was 94,000, and in October it reached 116,000 ounces.
Will the strong trend continue?
Hard to say. While gold has been a hot investment throughout most of 2016, the price of gold has fallen from more than $1,300 in early November to $1,159 as of Jan. 4, 2017.
The falling value of gold may slow the pace of sales as purchasers wait for a bottom to be reached. Or it could be that the bottom has just about been hit, and purchasers will be looking to add gold on the cheap.
Mint officials announced Nov. 30 that production of 2016 bullion coins had ended, but indicated the Mint would continue selling remaining inventory until it is depleted.
The Mint will begin accepting orders from authorized purchasers, without allocation, for the 2017 American Eagle and American Buffalo gold bullion coins on Jan. 9.
This article was found at CoinWorld.com