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US Mint Sells More Gold Coins In May Than Any Month Since January 1999
If anyone wants to know the reason why PHYS is once again trading at about a 10% premium to NAV all over again (yes mere days after the follow on offering) look no further than the US mint. Reuters reports that "The U.S. mint sold 190,000 1-ounce American Eagle gold coins in May, the largest number since January 1999, and the most in any month so far in 2010, according to a spokesman for the U.S. agency." At least the mint still has gold coins to satisfy record demand. Buyers in Europe unfortunately are not so lucky, which is why in Greece recently an oz of sold for as high as $1,700.
In January 1999, the U.S. mint sold 208,500 gold 1-ounce coins, with only five other months exceeding May's gold coin sales since the program was launched in 1986, the Mint's spokesman told Reuters.
While in 2010 the U.S. Mint has sold only 1-ounce gold coins, in past years it has sold other coin sizes as well.
Comparing only American Eagle gold 1-ounce coins, the biggest monthly sale occurred in October 1986 with 609,500 coins sold, the Mint said.
Many investors, both retail and institutional, have sought gold as a safe-haven asset in times of economic uncertainty. Sales of the American Eagle coins increased by 214 percent in the month over April during a time when concerns about sovereign debt in the euro zone raised fears of a larger macro-economic effect.
The price of gold bullion reached a record high last month at $1,248.95 per ounce.
As the US Treasury will gladly tell you, there are some products for which demand increases proprtionally with price. While Tim Geithner would like you to believe this means Treasuries, gold is rapidly replacing Treasuries in this regard. As to questions about whether gold is in a bubble, we can't claim to know the answer at this point. Please ask us again when gold trades at $5,000.
h/t Rusty Shackleford
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Dumpster, I am unclear here ---- just who is it who you are saying hardly has a clue?
client 9
as a person scrolls the various topics on zero hedge ,
the gold topics draw like flys to fly paper some of the most inane and garbled understanding about gold ,
the stuff is so wrong and so idiotic that one wonders what gets into the chaps that post ,
its like they open their mouths and expose a deep vacuumof understanding . The quality of understanding is so ridiculous that these chaps should not speak again for the brain sloshes and gibberish comes dancing out.
its like they need to show contempt for something they have no understanding about , and fail miserably.
a well thought out gold rebutal would suffice ,, but the tripe and crap should be reserved for a fifth grade clusterfork..
I, too, have wondered why they bother. What's it to them?
You may have heard of 'stealth marketing', plugging your product in comments around the web. I propose the term 'stealth-trashing', designed to scare the newbies back into the corral.
There's no bubble in gold prices. Oh no. We've never seen this movie before:
http://www.usagold.com/reference/prices/2010maygoldprice.gif
Great looking chart genius(s). Nothing unusual about it! Sure, it might spike some more, but Gold $5000 sounds like Nasdaq 5000 to me. I'm just an ignorant bloke of course.
You guys crack me up. So self-righteous about your silly little yellow metal.
You want a good inflation hedge? Buy real estate with locked-in long term financing in a good area and some TIPS.
And you disingenuous, ignorant and outright lying hysterical gold-haters really crack ME up!
So self-righteous and defensive about your fraudulent paper Ponzi schemes.
Go learn some history, asshole. Most gold haters are Americans, I have noticed, precisely because most Americans are utterly ignorant of history, particularly monetary history, and even worse, are arrogant and smug in their ignorance.
Love/Hate connotes unhealthy attachments to inanimate objects. Don't fall in love with an investment, it will end up biting you in the butt Mr. Akak. It's just money or store of money after all. The rest of your comments are just speculative ad hominem attacks and irrelvant of course. My point is that when the masses run to something:
US Mint Sells More Gold Coins In May Than Any Month Since January 1999 (oh me oh my!)It is a strong indicator that cooler heads may want to do the opposite.
But you do whatever makes you feel good and good luck to you (and all) with it!
You may be right, I may be crazy....