US Mint Sells Record 63,500 Ounces Of Gold In One Day

Tyler Durden's picture

One of the more curious revelations of the New Normal is the fundamental dichotomy when investing between paper "investors", or those who chase returns based on intangible, fiat-based and central bank-backed promises, such as capital appreciation or cash flow streams, and those who would rather convert their paper money into hard assets, even if said assets can not be, in the immortal words of Warren Buffett, fondled, or otherwise generate a cash-based return. Such as gold.

Today provides perhaps the perfect example of how the former increasingly trade on nothing but momentum and speculative mania (such as the previously reported record inflow of foreign capital into the Japanese stock market well after the bulk of the easy upside has already been made and at this point there is mostly downside) and where buying begets only more buying, while rampant selling only leads to liquidations, while those who invest in hard assets (and thus have little to no leverage) have become the true value investors, purchasing more as the price of the underlying asset drops. Yes, a novel concept to most High Frequency Trading vacuum tubes, and the momentum-chasing, equity trading "expert" du jour, but nothing new to Indians, Australians, Chinese or the Japanese.

And apparently to at least some Americans.

According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

Punchline number one, as the chart below shows, is that the more the price of gold fell, the more aggressive the purchases of physical gold through the Mint became, rising to 96,500 oz in the last two days alone. Buying more of something you want when the price drops: what a stunning concept - explain that to the algos who nearly crashed the German stock market overnight.

Punchline number two, of course, is that the US mint charges a hefty premium for purchases: much more so than traditional vendors like Apmex or Gainesville Coins, and is usually the last resort for when nobody else has any physical at a lower premium to spot (or any metal in inventory).

So how long until the US mint "runs out" of American Eagles and Buffaloes in inventory, along with the depletion of all other precious metal vendors? And what happens if the price of paper gold hits zero (or goes negative) courtesy of bank and financial institution liquidation selling of paper derivative contracts nebulously referencing some yellow metal somewhere, even as suddenly there is no physical to be delivered to anyone, anywhere?

Inquiring minds really want to know.

h/t Alex, source US Mint

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TwoShortPlanks's picture

Why trigger a paper sell off only to have a physical run follow straight after; they knew that was a given.

Propping up the USD or Gold Run trigger????

50/50 I reckon.

WayBehind's picture

At this cheap price, I would expect more sales ...

CharlieSDT's picture

Go. To. The. Coin. Shop.

What? You're saving the cash for something else? Overpriced College tuition, no way dude, that's a scam. A diamond ring for your mediocre entitled Western girlfriend? Please, I beg you, don't. A new flat screen TV or iPhone 5, a new car, some overpriced drinks to hit on so-so chicks? This is not the right time for that. Buy gold. Buy silver. Buy some peace of mind. Gold has no counter party risk. You can't print it. It has secrecy in an age of Big Brother monitoring all other financial transactions. And, there's a huge paper market for it that is crashing and the dealers are still selling the physical for the same basic price.

This is a once in a lifetime opportunity, in my opinion. Buying gold right now is like stepping out from in front of an onrushing bus with two seconds to spare. Waiting till later (for those without any yet) is like trying to stop and pick up a coin in the street first.

http://www.singledudetravel.com/2013/04/back-up-the-truck/

toys for tits's picture

It's Germany that is ordering eagles in order to get their gold back.

erg's picture

By my count, that's 13.229 Bernankes worth it's weight @ 300/pop.

Supernova Born's picture

Gold just took another big drop.

Japan and Europe banks are bleeding deposits like stuck pigs.

Physical gold rush.

Bankster propaganda on Bloomberg, CNBS at an all time high.

aka Gil's picture

The cartel's response to a record day of gold selling by the US Mint is to attempt yet another price smash. Desperation, perhaps?

markmotive's picture

Who's buying? Mom and pop or institutional investors?

RockyRacoon's picture

Your answer -- dig it:

The Price Smash – Who, What, How and Why? Theodore Butler

As for the Mint, it's dealers who plan to make a little in the future, and I'd suspect a lot of it is going to foreign buyers.  After all, it's cheap enough.

Manthong's picture

I'll gladly pay you a future Tuesday for an A.G.E. today.

Fish Gone Bad's picture

If people are willing to kill or die for gold, I am buying.  Oh wait, I have it already.  Now things get interesting.

GetZeeGold's picture

 

 

Quickly divest your bank account into gold.....before the common central bankster crooks can steal it.

 

Baby go go....or get Cyprioted.

http://www.youtube.com/watch?v=xoEgVp6ZJNM

samcontrol's picture

ok. I'll ask for the last time.

I cannot transfer my bank account into gold.

Next best thing?

SafelyGraze's picture

the article implies that the mint could run out of gold

that is impossible since it is part of the treasury whose debts are backed by the FFCoUSG

http://www.treasurydirect.gov/indiv/research/articles/res_invest_article...

 

HulkHogan's picture

That chart shows that the buying went up only 25% more than the Jan 1st'ish big buy. That makes me nervous. Gold and Silver prices will continue to fall unless there's much more buying than that.

FEDbuster's picture

Gold plated tungsten rounds? The Bernake bought a 3-D printer with gold infused ABS plastic medium?

Flagit's picture

haha, did you decide your article was 9 years old?

 

the tip should have been gold at $400/oz.

cynicalskeptic's picture

Gold eagle proofs go on sale Thursday (today) at noon.  Despite the price drop and grid pricing you're not seeing a price reduction yet.  Will the price stay lopw enough through next Wed for a reprice?

auric1234's picture

I think the cartel wants to maintain this price level for a few days. Otherwise they could have been more agressive on Wednesday, when the upward momentum was fading.

Perhaps they want all dealers to run completely dry before slaming the price down again, so that noone can take the opportunity. Or perhaps they got shit scared on the physical market response and they will pause a little before the next move.

 

smlbizman's picture

it doesnt matter....there is the paper price and there is the cash price....call the bulion banks and see if they will give you a cash price...so imho i think what the mints sell it for is the "cash" price....and has very little to do with the paper price

Pegasus Muse's picture

"Gold just took another big drop."

A reader posted this article yesterday.  It explains much.

We Have Seen Gold Prices Act Like This Before

http://www.alhambrapartners.com/2013/04/15/we-have-seen-gold-prices-act-like-this-before/

Bendromeda Strain's picture

+ 31.1034  Everyone should read this as many times as is necessary to achieve understanding. This guy nails it imo. Thanks for sharing that link again.

I think I need to buy a gun's picture

the mines have to be hurting,,,,,where is all this gold coming from is the Bernak selling directly?

TwoShortPlanks's picture

Excuse to confiscate? (Hegelian Dialectic in motion?)

Beam Me Up Scotty's picture

"And what happens if the price of paper gold hits zero (or goes negative)"

Make it go negative.  Then they, and everyone else can pay me to take their gold from them!!

JoeSexPack's picture

"You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:"

 

Got that when I clicked graph.

 

Since your name was taken, I changed 1 letter.

fourchan's picture

lol record sales causes, record price drop, only in america.

wee-weed up's picture

Hey, Kick 'em while they're down...

it's the Bernanke & TBTF way!

tekhneek's picture

He keeps link baiting that. I signed up because I wanted to see it, but he's been spamming that link for days now.

Here's the graph: http://imgur.com/2TwuP6a

tekhneek's picture

I don't comment much anymore. I'm a lurker now :)

How's life Ms?

noless's picture

just like my automated credit card transfers(playing nicely because i'm supposed to), balance is positive, so shouldn't i be generating interest on the account equivalent to charged? no? well fuck you then i guess. I love that their software lets me overpay but i would probably still get charged interest on a positic account, fuck this shit.

 

for note; yes, failure, but seriously, zirp? nirp? fuck you, i'de rather underproduce.

Spider55's picture

How can you tell if they are selling phsical or paper gold? Just wondering

GetZeeGold's picture

 

 

It's all paper these days. Don't believe me? Try to take delivery of a Comex contract.

 

I double dog dare you.

new game's picture

conmex has a problem, kinda like the coke dealer that snorted all the stuff.

the corzine legacy continues...

WhiteNight123129's picture

The Gold move is 100% Japan related.

Japan has 20 times debt to GDP or war like Debt.

Japan consumes 20 % of budget interest even with very low rates.

FIRST THINGS WE ALL KNOW. BRIEF RECAP.

Japan has now a trade deficit because of Fukushima and because they move some their logistics out of the country to hedge against earthquakes.

More people are now moving out of the workforce then entering so in aggregate they are di-savings, creating problem for demand for JGBs.

So the debt situation is the most serious.

There is a way to avert that, and taking down the Gold price.

Japan wants to inflate away in an orderly way (like Britain post world war II) However the currency had declined by 25% in a short period of time
At the same time the Gold price in Yen was breaching a 30 years all time high.

The backdrop of this breach was a QE announced which is 2 times larger in proportion than the US.
Normally an old all time high breached after 30 years with such a backdrop would mean Gold off the races in Yen.
That would have potentially created a panic since Gold since Gold is purchased in panic.
Gold shapes inflation expectation and the secondary effect could be a disorderly JGBs.
Remember that the JGBs were showing great volatility BEFORE with 2 stops in JGBs market.
So who did the take down?
My answer is Global central banks who have debt problems and need to maintain negative interest rates on their Gov bonds.
Why? If the JGBs go disorderly, it would immediately trigger uneasiness with other sovereign bond markets.
Hence the Gold price in Yen, which could be the fuse for this event had to be squashed.

Who squashed it?

People who can do it. And they should do it in order to avoid a big problem for Japan and the rest of the world.

People from ECB (Draghi), to BoE, the US Fed.

How did they do it?

First a short recommendation by Goldman on Wednesday last week

Next Draghi says Cyprus has to sell its Gold.

However, how reliable is Goldman in warning its clients about an impending bubble?

Absolutely not reliable.

Remember Abigael Cohen in 1999 (Goldman was the biggest IPO promoter of internet bubble)

Fabrice Tourre was structuring crap to be sold to clients (while Goldman was short subprime with AIG)

Goldman made a call for 200 USD oil back in 2008.

So this is why Gold had to be squashed, the JGBs  were stopped because of daily limits while the Gold price in Yen was moving strongly above its 30 years all time high while Japan was announcing massive QE.

We had a 7 sigma move in Gold, even in 1970s you never saw a 7 sigma move, while at the same time the government with the highest risk of disorderly adjustment being halted for excessive move down? How often are the JGBs halted?? And on the same day that Gold has a 7 sigma move down.

http://www.cityam.com/blog/volatility-jgbs-sees-them-halted-again

 

Soros had figured it out that central banks would not let a panic start on the Gold in Yen terms, and he sold his Gold back in September and started to buy puts on the Yen.

samcontrol's picture

+10

A small reset so they can all buy on the cheap...They may rewash and redo a couple more times.

I will sell my paper pms when we get a bounce and play the way central banks and GS do. If you can,t beat them join them.

Bendromeda Strain's picture

Thanks for showing Tyler's wisdom in using a reptile brain for the traders (attempted) pondering "If they are selling... I wonder who is buying".

Pool Shark's picture

 

 

Though required to mint them by law, the US Mint still hasn't produced any of the 2013 America the Beautiful 5-ounce silver bullion coins.

When they do release them, they will be one of the best ways to buy silver bullion: they carry about the same premium as Silver Eagles, but they mint only a tiny number of them (only 20,000 of the Hawaii Volcanoes and Denali; versus nearly 40,000,000 Silver Eagles), so the numismatic value will be high.

In fact, the Hawaii and Denali coins sold just a few months ago for $180.00 each are now fetching $300.00 on e-bay and at APMEX.

http://www.usmint.gov/mint_programs/atb/?action=sbcInvestors

http://www.usmint.gov/mint_programs/atb/?action=mintageTotals

http://www.providentmetals.com/bullion/silver/us-slv/america-the-beautiful-5-oz.html

http://www.apmex.com/Product/68005/2012_5_oz_Silver_ATB___Denali_National_Park_Alaska.aspx

http://www.ebay.com/itm/2012-5-oz-Silver-ATB-Coin-Denali-Alaska-America-the-Beautiful-/140948682563?

 

Pool Shark's picture

 

 

Yep, you can subscribe to the series (that's the uncirculated P numismatic version) but the Mint still hasn't announced a release date.

However, the numismatic versions carry a MUCH higher premium than the bullion versions, even though the mintages for the bullion versions are only slightly higher. Before the recent plunge in silver/gold prices, the premium on the 5-ounce bullion coins were right around $3.00/ounce; about the same as for Silver Eagles.

Even now, you can still get the remaining 2011 bullion versions (with higher mintage figures) for under $140 each at Provident.

When the series is complete in 2020, I expect collectors will be paying a pretty penny for complete sets of all 56 coins. Even now, the initial 2010 coins are all going for well in excess of $200 each as collectors who started late, scramble to put together complete sets.

Captain Benny's picture

Hah, good luck having a complete set.  My bet is that the entire system fails long before then.

fourchan's picture

lol for real i literally laughed out loud^

Pool Shark's picture

 

 

Well, if the system does callapse, and you can't sell them; at least they make really cool coasters...

 

Lore's picture

Just give me the damn bullion. I couldn't care less whose face is on it.  I just want OUT OF MAFIA PAPER.  And yes, that includes coupons like BitCoin.

GetZeeGold's picture

 

 

Reap the wind.....the bitcoin way.

 

new game's picture

anyone seeing a trend

guns

ammo

gold