cheka.
20th February 2016, 05:03 AM
http://www.brecorder.com/markets/commodities/america/278955-us-gold-coin-investors-join-buying-frenzy-on-steep-price-surge.html
NEW YORK: Gold's biggest one-day price surge in more than seven years spurred a buying frenzy for U.S. bullion coins as small and large investors bet that volatile currencies and global economic concerns will lift its value even higher.
The spurt of U.S. activity was in marked contrast to the lackluster response in Asia, the world's biggest precious metals market.
"Based on our normal volumes, yesterday we had about a 300-percent increase in our sales," said Eric Gozenput, president and chief executive of Bullion Exchanges, a physical dealer based in New York's Diamond District and with a growing online retail business.
"With (Federal Reserve chairwoman) Janet Yellen speaking yesterday and possibly going to negative rates, that caused a massive rush towards precious metals."
Sales were still strong on Friday, he said, when the price fell around 1 percent from Thursday's one-year high as investors took profits.
On Thursday, spot gold prices surged as much as 5.3 percent to $1,260.60 an ounce as global financial concerns, a lower dollar and tumbling stock prices prompted investors to seek refuge in bullion.
When Yellen told lawmakers that the Fed had not taken negative interest rates off the table, prices went even higher.
"On a day like yesterday when everybody's talking about what's going on with precious metals, everybody goes online and starts buying, hoping not to miss the move," Gozenput said.
One-ounce American Eagle and Canadian Maple Leaf gold coins were Thursday's hottest items being purchased primarily by private individuals for their own investment, Gozenput said.
Terry Hanlon, president of Dillon Gage Metals, one of the world's biggest physical precious metals dealers that is based in Addison, Texas, said Thursday's sales volume was 4.5 times that of the same time a year ago.
Banks, fund managers and internet dealers were the main buyers of primarily one-ounce bullion coins, though silver and gold bars were also flying off the shelves, he said.
"Usually you don't see the reaction as quick as it was yesterday," Hanlon said.
"Historically, everyone's waiting to see what the next day's going to do, but it was so huge yesterday, so people just thought it was a break out and jumped all over it."
U.S. Mint sales of American Eagle gold coins in February are at 40,000 ounces, already more than double February 2015 sales but just a third of January's sales, data showed.
NEW YORK: Gold's biggest one-day price surge in more than seven years spurred a buying frenzy for U.S. bullion coins as small and large investors bet that volatile currencies and global economic concerns will lift its value even higher.
The spurt of U.S. activity was in marked contrast to the lackluster response in Asia, the world's biggest precious metals market.
"Based on our normal volumes, yesterday we had about a 300-percent increase in our sales," said Eric Gozenput, president and chief executive of Bullion Exchanges, a physical dealer based in New York's Diamond District and with a growing online retail business.
"With (Federal Reserve chairwoman) Janet Yellen speaking yesterday and possibly going to negative rates, that caused a massive rush towards precious metals."
Sales were still strong on Friday, he said, when the price fell around 1 percent from Thursday's one-year high as investors took profits.
On Thursday, spot gold prices surged as much as 5.3 percent to $1,260.60 an ounce as global financial concerns, a lower dollar and tumbling stock prices prompted investors to seek refuge in bullion.
When Yellen told lawmakers that the Fed had not taken negative interest rates off the table, prices went even higher.
"On a day like yesterday when everybody's talking about what's going on with precious metals, everybody goes online and starts buying, hoping not to miss the move," Gozenput said.
One-ounce American Eagle and Canadian Maple Leaf gold coins were Thursday's hottest items being purchased primarily by private individuals for their own investment, Gozenput said.
Terry Hanlon, president of Dillon Gage Metals, one of the world's biggest physical precious metals dealers that is based in Addison, Texas, said Thursday's sales volume was 4.5 times that of the same time a year ago.
Banks, fund managers and internet dealers were the main buyers of primarily one-ounce bullion coins, though silver and gold bars were also flying off the shelves, he said.
"Usually you don't see the reaction as quick as it was yesterday," Hanlon said.
"Historically, everyone's waiting to see what the next day's going to do, but it was so huge yesterday, so people just thought it was a break out and jumped all over it."
U.S. Mint sales of American Eagle gold coins in February are at 40,000 ounces, already more than double February 2015 sales but just a third of January's sales, data showed.