US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low

Tyler Durden's picture

Three weeks ago, we reported that the US Mint had run out of physical silver on the same day silver plunged to its lowest price in 2015. This happened just days after the UK Royal mint announced that "during June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece."

While the surge in physical demand clearly did not explain the liquidation in the price of "paper" silver, we are still hoping that the OCC writes us back with an explanation why this happened, and maybe it can clarify also just how much more silver the mint will sell before it runs out of silver in inventory again as it did 20 days ago.

We bring all of this up because just like 20 days ago when unstoppable demand for physical silver met an immovable paper silver selling object (with the "object" for now winning), so earlier today the price of gold tumbled to the lowest level in 5 years, some $1,072 per ounce, before it staged a dramatic comeback closing just under $1,100...


... thanks in no small part to the illegal spoofing we noted earlier.


And lo and behold, just like in the case of silver three weeks ago, today's gold liquidation was not due to selling of physical metal. In fact, quite the contrary: according to the US mint, so far in July the mint has sold a whopping 143,000 ounces of physical gold - the most in over two years, or since April of 2013 - even as the price of gold briefly slid to the lowest level in 5 years.

In other words, retail investors, who have bought over 7 million ounces of gold since January 2008 or the one third the total "held" currently by the GLD ETF, were eagerly buying up all the physical they could get their hands on, or said otherwise, "taking delivery" at the prevailing price, a process which practically assures that the US Mint will be out of gold in the next few days.

We wonder when some central banks, the bulk of whose gold remains in "deliverable" format, decide to do the same? A few more down days in the stock market, coupled with a record high hedge fund short interest, and we just may get our answer.

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knukles's picture

So were all the buyers Chinese?

kliguy38's picture

nahhh.....just me i think based on my conversations with my buddies......

Bilderberg Member's picture

Normal lack of Supply and over Demand at work

knukles's picture

Talk about lack of normal, there's always Murphy's Law: You wait and wait, but the minute you use the stethoscope to listen to your balls, the doctor walks in.

BoNeSxxx's picture

I've been watching the buyer premium since the smack down in AU... My very unofficial finding is that it has gone up 20% in the last 10 days. Bullish phyzzz.

Latitude25's picture

Same here and for Ag also.  Those backdated ASEs held their value pretty well through the smackdown.

philipat's picture

Why not just appoint Nanex to supervise the "Markets"? In that way, we could disband the SEC, CFTC etc. and save a shit load of money AND have much better Regulation?

Unless, of course, "Regulation" is not the intended outcome?

Badsamm's picture

What the fuck does the FBI do? Can't they shoot somebody?

booboo's picture

If there is so much more paper gold out there would it not be in the best interest of someone with deeeeeep pockets to sell the shit out of their paper drive and down the cost of paper knowing physical would follow in order to buy the real thing at a lower price? just asking

philipat's picture

Yes, but the only people who could do that are on the inside and benefitting from free money from The Fed. And the PM market is small potatoes in relation to Derivatives on Forex etc. so it would not be a smart move to piss off The Fed by making just a few Hundred Billion on PM upward manipulation? Sorry but it isn't going to happen.

Model T's picture

You know nothing. Less than nothing.

BoNeSxxx's picture

Care to elaborate? And begin, oh I don't know, a discussion (you know, on a discussion board)?

If not, please refrain from posting ever again. You waste space with bullshit comments like this.



Ain't that the truth!

WillyGroper's picture

Sorry for OT folks, but you got to hear this.

Obummer & Mr. Ed have received summons  by the Sanhedrin

DollarMenu's picture

I'll bet they both have prior engagements that they are unable to re-schedule.


Pickleton's picture

but the minute you use the stethoscope to listen to your balls,



Uhhhhhhh, ok. 

Zero Point's picture

He's a piker. I rummage the drawers for drugs.

chubakka's picture

hm, i have to try that.  

ebworthen's picture

"No demand to see here, move along people, move along."

The nice thing about physical is it isn't on anyone's database.

rejected's picture

When I go to the sellers I buy from and log in all past sales are shown... wouldn't take much for an interested party to determine how much and where.

Of course due to a boating accident and selling ,,,

Mintcoin's picture

Gold and silver is common, not rare. You've been duped! There is tons and tons of the cursed stuff. 

Kaervek's picture

Mintcoin has you duped brother, enjoy being fleeced - or are you the one fleecing the sheep?

Latitude25's picture

Yeah it was in my area.  We've had a big influx of them buying houses to park money in.

Model T's picture

Just like the recent down days in Silver; todays price action in Gold was caused by selling of physical metal. As physical as it gets; big bars of real gold. By whom ? By Hedge Funds and ETF's. Why ? People are rather stupid and move in crowds. But try to avoid outright insanity and don't pay any attention to nonsense like this article.

wrs1's picture

Wow, imagine, people buying gold and storing it.  How is that different than the increase in oil surplus?  You think it's any different?  None of these price dips in gold where the mint sold a lot of gold have preceded a large price increase on the CRIMEX.  It's really just chumps buying more gold from those who don't wan it anymore.  Clearly there is a massive surplus of gold and the price is going much lower.  Ask yourselves where the mint is getting all this gold they keep selling?  

nmewn's picture

True, gold needs batteries, devices, passwords, encryption, accounts and the internet to be viable too!

Its...perfect ;-)

Moccasin's picture

I have never had to plug my gold in to make a trade.

Fahque Imuhnutjahb's picture

IMF, World Bank, BIS, leased, re-re-rehypothcated, weak hands, recycling brokers, sympathetic western regimes, rap artists' grills & bling, leprechauns 

atoast2toast's picture

chumps buying more is true 


I just come on here every few days to say 


"buy the fucking dips, keep stacking the phyz bitches" 

Callz d Ballz's picture

Please keep suppressing the price, thanks

Model T's picture

It's not possible for a manipulator to change the trend of a market; eg. to change a bull market into a bear market"--- Martin Armstrong. Also, very obvious if you actually study the facts of the subject. The prices will reverse and start upward again when it's time for them to do so. Which will be when the "mass mind" is more worried about the Government, and their own futures, than they are about the 6% they thought they were going to make on the Stawk Market.

Wild E Coyote's picture

Don't be naive. It is possible to manipulate markets. It is being done now. And it is being exposed daily.

Model T's picture

What you're acctually thanking is the mass stupidity of the human animal; as there is no "manipulator".

TeethVillage88s's picture

Who'd a Thunk?

Well maybe many at ZH.

This a has been a message from your ZH Sponsor.

general ripper's picture

A lot of people who bought gold on the high side may be buying now to average down?

22winmag's picture

I'm buying gold... on credit!

nmewn's picture

These damned freedom lovers! Will we ever be shed of them!

zipit's picture

Try not to lose it in boating accident

Latitude25's picture

Yeah some stupid CC company sent me a card with a $22k limit.  Now I just want to time a major PM purchase within a month of a debt jubilee.

Fahque Imuhnutjahb's picture

I gotta feelin' we, or at least I, won't qualify for the jewbull-e.

netpounder's picture

They want to drop the price using credit?  We bring it back up using their own credit.  In the end, their vaults will be empty and full of Matrix digits only they can see.

Latitude25's picture

So wait a minute.  It's not a Giffen Good?

Soul Glow's picture

Warren tried to substitute tungsten but couldn't find a buyer.

Bay of Pigs's picture

Nobody ever talks about his shitty silver trade when he dumped the whole lot of it for almost nothing (to SLV).

Charlie Munger must have had his dick up Uncle Warrens ass then...

seek's picture

Price elasticity really is a thing. Something the MMT guys and TPTB seem to ignore when they manipulate shit.

Fukushima Fricassee's picture

I will take 2 oZ troy for 750 ml of Pappy 23