Twisted Titan
1st June 2011, 12:12 PM
(Bloomberg)-- U.S. Mint Silver Eagle Coin Sales Through May Best Since 1986
The U.S. Mint sold 3.65 million ounces of American Eagle silver coins last month and had the best January through May sales since 1986 as prices for the metal almost doubled.
Sales of the coins climbed 30 percent from 2.819 million ounces in April, taking the total for the year so far to 18.9 million ounces, the mint’s website shows. That compares with 15.2 million in the first five months of last year and is the most ever, according to data going back to 1986. American Eagle gold coin sales fell 0.9 percent to 107,000 ounces last month.
Silver futures jumped as much as 90 percent to a 31-year high in New York between January and April and gold reached a record in May as concern about Europe’s debt crisis, faster inflation, a weakening dollar and unrest in northern Africa and the Middle East spurred demand for a protection of wealth.
Silver then plunged as much as 35 percent as CME Group Inc., the Comex owner, raised margin costs to curb price volatility.
While silver “is beginning to move from the fringes with a little bit more mainstream demand, we’re still far from everyone piling in,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “Some are buying purely for the safe- haven demand and are worried about fiat currencies. “
“There’s trust in silver and gold.”
The mint, located in Washington, D.C., said last week that its San Francisco facility will start producing American Eagle silver coins to meet demand at “unprecedented high levels,” and the plant can produce as many as several hundred thousand coins a week. The mint typically produces bullion coins in West Point, while other coins are made in locations including Philadelphia and Denver.
Demand for physical metal helped silver rise in nine of the past 10 years and gold complete a decade of annual increases, the longest run of gains in at least nine decades in London. Investors in exchange-traded products have accumulated about $122 billion of precious metals, according to data compiled by Bloomberg.
Silver futures for July delivery traded at $38.17 an ounce on the Comex by 8:06 a.m. London time and are up 23 percent this year. Spot prices touched a record $49.79 in London on April 25.
Gold for August delivery was at $1,533.40 an ounce, after reaching $1,577.40 on May 2. It’s up 7.9 percent this year.
The mint sold 514,500 ounces of American Eagle gold coins so far this year. That compares with 521,500 ounces in the same period last year and 554,500 ounces in 2009.
For some people “it’s getting too expensive to buy an ounce of gold,” and they can buy silver more easily, O’Byrne said.
The U.S. Mint sold 3.65 million ounces of American Eagle silver coins last month and had the best January through May sales since 1986 as prices for the metal almost doubled.
Sales of the coins climbed 30 percent from 2.819 million ounces in April, taking the total for the year so far to 18.9 million ounces, the mint’s website shows. That compares with 15.2 million in the first five months of last year and is the most ever, according to data going back to 1986. American Eagle gold coin sales fell 0.9 percent to 107,000 ounces last month.
Silver futures jumped as much as 90 percent to a 31-year high in New York between January and April and gold reached a record in May as concern about Europe’s debt crisis, faster inflation, a weakening dollar and unrest in northern Africa and the Middle East spurred demand for a protection of wealth.
Silver then plunged as much as 35 percent as CME Group Inc., the Comex owner, raised margin costs to curb price volatility.
While silver “is beginning to move from the fringes with a little bit more mainstream demand, we’re still far from everyone piling in,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “Some are buying purely for the safe- haven demand and are worried about fiat currencies. “
“There’s trust in silver and gold.”
The mint, located in Washington, D.C., said last week that its San Francisco facility will start producing American Eagle silver coins to meet demand at “unprecedented high levels,” and the plant can produce as many as several hundred thousand coins a week. The mint typically produces bullion coins in West Point, while other coins are made in locations including Philadelphia and Denver.
Demand for physical metal helped silver rise in nine of the past 10 years and gold complete a decade of annual increases, the longest run of gains in at least nine decades in London. Investors in exchange-traded products have accumulated about $122 billion of precious metals, according to data compiled by Bloomberg.
Silver futures for July delivery traded at $38.17 an ounce on the Comex by 8:06 a.m. London time and are up 23 percent this year. Spot prices touched a record $49.79 in London on April 25.
Gold for August delivery was at $1,533.40 an ounce, after reaching $1,577.40 on May 2. It’s up 7.9 percent this year.
The mint sold 514,500 ounces of American Eagle gold coins so far this year. That compares with 521,500 ounces in the same period last year and 554,500 ounces in 2009.
For some people “it’s getting too expensive to buy an ounce of gold,” and they can buy silver more easily, O’Byrne said.