Skip to content
HTML5 Incompatible Browser
Gold Banner

Is demand growing for gold coins as a store of wealth?

*Los Angeles Times, by Tom Petruno, August 22, 2008

“U.S. Mint Runs Out of 1-ounce Gold Coins as Demand Jumps

Gold-market bulls couldn’t buy publicity much better than this: The U.S. Mint says it has run out of 1-ounce American Eagle gold coins because of rocketing demand.

That may have helped fuel a sharp rebound in gold futures prices Thursday, although the metal also got plenty of help from rising U.S.-Russia tensions, a falling dollar and renewed buying of commodities across the board.

The Mint told coin dealers last week that its inventories of 1-ounce Eagles had been temporarily depleted because of ‘unprecedented demand.’  The Mint sells only to a small number of dealers, which then distribute the coins to other sellers, such as coin shops. The prices retail investors pay change daily and are based on the market price of gold plus a small premium.

The government has sold 60,000 1-ounce gold coins this month, up from 47,500 in all of July and just 13,000 in June. Sales of U.S. silver Eagle coins, meanwhile, have been hot all year, leading to rationing of those coins by the Mint.

Coin dealers confirm that they’ve been swamped with orders over the last month as the price of gold dived from $977.70 an ounce on July 15 to $786 last Friday, the lowest since December.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

Monex Bullion Investor