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US Mint Sells Record 63,500 Ounces Of Gold In One Day
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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This is a great chance to sell your physical at a premium and buy GLD (more gold for the same amount) ;-)
I'd buy Gold and Silver from the U.S. Mint if the over spot price from dealers wasn't so high, jeez!
Pamp Suisse, Credit Suisse, Perth Mint Kangaroos 1-3% lower.
And the over spot on Silver is 9%-10% unless you buy a 100 oz. bar.
http://www.usmint.gov/downloads/mint_programs/am_eagles/AmerEagleGold.pdf
WHEN YOU DECIDE TO INVEST
IN GOLD, CHOOSE AMERICAN
EAGLE GOLD BULLION COINS
FROM THE UNITED STATES MINT.
Founded in 1792, the United States Mint is
a bureau of the Department of the Treasury.
The official mint of the U.S. government, it
makes the Nation’s circulating legal-tender
coinage, and it is regarded worldwide for its
meticulous craftsmanship.
The United States Mint also produces proof,
uncirculated and commemorative coins;
Congressional Gold Medals; and silver, gold
and platinum bullion coins. American Eagle
Gold Bullion Coins are minted at the United
States Mint at West Point, New York.
When you decide to invest, choose an
American tradition. A portfolio diversifier.
A great gift or reward. Invest in American
Eagle Gold Bullion Coins. Choose Eagles first.
You should take a look at Sprott's PSLV, trading just over the spot price of silver, or even at a discount at some time throughout the day. Although you have a guarantee to physical silver with PSLV, I will admit you still can't stack it ......
fuck sprott and his get rich bullshit
possesion only
why should i trust that human.
i trust no one...
Prices today are meaningless! They will all change according to what we do next! http://www.cecm.sfu.ca/~rpearcea/dontpanic.pdf
The Mint should probably keep their gold.
Just saying.
There will be a time when mint condition means non-existent.
Somebody announced a sale on gold and silver. What were they thinking; that nobody would come. They must have found a new supply somewhere. Everyone wands gold and silver.
http://www.youtube.com/watch?v=vWz9VN40nCA
Bearish for gold definitely. Start accumulating as many USDs as possible.
LOL
Will do! LOL...
...not everyone is selling:
Central Banks Are Buying Gold
"What is more, the central banks of emerging economies are also likely to take advantage of the low price level to buy additional gold to diversify their currency reserves."
http://homment.com/central-banks-gold
Confidence has been lost, I repeat confidence has been lost.
Those bank holiday's Celente likes singing about are coming.
Royal Canadian Mint also reports exceptionally high demand for its gold and silver coins
the Royal Canadian Mint also reports exceptionally high demand for its gold and silver coins. Thus there continue to be two different viewpoints on the gold market: in contrast to the high coin sales, gold ETFs are still experiencing outflows.
http://homment.com/royal-canadian-mint
No Problem - The US is using the German stock file of gold at the fed to meet demands !
Is so strange to see the MSM out there everywhere trying to scare people out of gold still. Every type of psychology in the book.
Problem for the MSM is they have no credibility left. All the people with half a brain are looking to pick up gold, and the remainder will be toast at the end of the day.
And the MSM, will collect their pieces of silver from TPTB to try and betray the public good.
Perhaps best if they fool the libtards a while longer. I don't want any of those twats surviving the financial apocalypse.
To me its pretty obvious that we could run into a big short lack of delivering physical metals. Big Gold Producers have Cash Costs at about 1.300 USD....And producing costs are rising all the way...To satisfy physical demand there is a need for a much higher prize....
A prize under 1.300 USD will be a really dangerous zone for any kind of miners....HUI would bottom maybe....
I rather fondle my gold instead of leaving toilet paper in a bank so it can be stolen!
reporting from istanbul, turkey... 1/16 oz coins are totally sold out. they are nowhere to be found. 1/4 oz coins are selling for 7% premium (unusually high for turkey) and only 1 out of 4 shops have them.
Thx 4 the update :-)! That confirms the weird situation around physical demand.
This is an interesting report. Of course, everyone should know that sales from the mint are inversely correlated with the price of gold/silver. There were huge spikes of sales in the early '80's, then they dropped off a cliff... yup, more proof that people don't know history. You don't have to believe me, look at mint sales yourself and a chart of gold, the more the retail public buys, the closer it is to a top. Buy gold when no retail buyers are interested