Bullion Sales in Free Fall
Sales of American Gold Eagle coins as reported by the U.S. Mint crashed in May to 65,000, from 147,500 in April, a smash of almost 56%. Spot Gold is off 5% in the last two weeks.
Sales of Silver Eagle one ounce bullion coins continued a free fall in May, off by some 575,000 from April, a sales decline of 23%. The U.S. Mint reported total sales of 1,904,500 Silver Eagle Bullion Coins in May and overall sales of 11,579,500 year to date. Sales this year of Silver Eagles have been the highest seen in a decade, but it appears the euphoria has eroded, with spot silver now at $14.07, down 12% in the past two weeks and 26% over the past year.
Yesterday, the US Mint announced the end of the long standing allocation programs for Gold and Silver American Eagle bullion coins. This should have implications for the few coin collectors who have been eagerly awaiting the collectible proof and uncirculated versions of the coins.
The news comes via a brief memorandum sent to authorized purchasers of US Mint bullion coins, which stated, “Effective immediately, the United States is lifting the allocation process. You may place your orders under the standard ordering procedures.”
There are no signs the crash in demand for bullion coins is ending. We will continue to monitor market developments.