US Mint Sells Fewer Gold Coins in September

SALES OF investment Gold Coins by the United States Mint fell in September from the previous month – despite the sharp fall in the Gold Price – official figures show.

The US Mint sold 115,500 ounces of the bullion version of its American Eagle Gold Coins in September – down from 167,500 ounces the previous month.

The bullion version of the American Eagle is the most popular US Mint coin aimed specifically at investors. It contains 916 parts-per-thousand (91.6%) Gold Bullion.

The less popular American Buffalo bullion Gold Coins – which contain 9999 parts-per-thousand (99.99%) of gold – also saw sales fall, dropping from 28,000 ounces in August to 13,000 ounces last month.

The actual prices paid for US Mint bullion Gold Coins depend upon individual dealers; it is not possible to buy such coins directly from the Mint itself.

The US experience appears to contrast with that of India, where dealers report the drop in Gold Prices has been welcomed ahead of a number of major festivals.

"The sudden fall in price of gold has added to the festive spirit among people, who are also preparing for the upcoming wedding season," says Mohandasbhai Shah, who owns Jaipur Diamonds Jewellery House in Chandigarh, northern India.

The State Bank of India – a commercial bank that sells gold to its customers – has seen "an 8-to-10% increase in retail sales" of Gold Coins over the last week, according to H.S. Gopinath, SBI's chief manager (gold division).

The lower gold price has taken time to filter through to Indian consumers – and there is some evidence that rising prices can lead to boost in demand. 

"People generally purchase coins for investment purposes and they prefer waiting for a day or two for the prices to fall further," says Gopinath's colleague N K Talwar, SBI's assistant general manager.

"Apparently, with a slight rise of Rs 600 in Gold Price [last] Wednesday, the sales shot up."

Buying Gold? Get the safest physical gold in the world – investment grade, securely stored and at the lowest possible prices – with the world's largest online investment gold service BullionVault...