subject: Demand For Physical Gold Bullion Declines In Latest Month [print this page] The United States Mint introduced the American Gold Eagle in 1986 as part of a program authorized by Congress to provide a method for American to invest in physical precious metals. The Gold Eagle coins were struck in 22 karat gold and offered in four different bullion weights. The coins proved to be instantly popular with precious metals investors.
After more than two decades of relatively steady availability, problems for the program began to arise in the middle of 2008. At this time, uncertainties about the economy and other financial instruments caused a resurgence in precious metals investment as investors sought a safe haven. Sales of the United States Mint's gold and silver bullion coins rose to unusually high levels.
The increased level of demand led to some problems. The bullion coins themselves were often in short supply, which prompted the US Mint to sometimes suspend sales of the coins. A rationing program was put into place for extended periods of time, when full demand could not be met. Finally, certain bullion coins such as fractional weight gold eagles and certain collector coins like proof gold eagles were delayed or canceled.
The situation persisted for more than two years. Even as the stock market rebounded and some claimed an economic recovery had taken hold, many investors still sought a store of value in precious metals. During this time, the price of gold also moved higher, enticing more investors.
In the most recent month, the US Mint's American Gold Eagle sales fell to their lowest level since June 2008. Across available one ounce and fractional weight bullion coins, sales of 41,500 ounces were recorded. This low monthly level follows three months of sales greater than 150,000 ounces per month. Was the last month an aberration, or a sign that the long period of elevate physical precious metals demand is finally abating?
