U.S. Mint Eagle Gold Coins May Pace Silver Sales, Dealer Says

The U.S. Mint’s sales of American Eagle gold coins may keep pace with silver coins later this year, according to Dillon Gage Metals, one of 11 dealers authorized to purchase silver coins in the U.S. directly from the mint.

Following are comments from Terry Hanlon, president of the Addison, Texas-based company. He commented in a phone interview Jan. 10.

On silver and gold coins sales:

“Silver always gets more attention than gold at the beginning of the year. Those are coins that have had problems with allocations, more so than gold. The U.S. Mint has always geared up to provide enough gold.

‘‘As the year goes on, the gold sales will increase and keep up with the pace of silver Eagles more. There aren’t that many people ‘buying the date’ at the beginning of the year in gold, as they do with silver, and if they do, they do this in fractionals.

‘‘Another part is affordability: people really feel they are getting more bang for the buck and it provides an opportunity for a lot of smaller investors to get into precious metals.’’

On seasonality and availability of silver coins:

‘‘Every year the demand for newly minted Eagles is a big target. It starts with collectors, and then it also leads into the investors that also want to own physical metal. And they’ve got last year behind them, they know where they stand financially, whether they can buy more. Dealers are more apt to take whatever inventory they can because they know they’ll move this product.

‘‘Many times the U.S. Mint has coins left with the old dates, and they force an allocation of buying some percentage of the new year’s purchase along with the old dates. It didn’t happen to the American Eagles this year, so it gave dealers the freedom to buy as many of the 2012 dates as they wanted. The dealers felt some freedom they haven’t felt in a while, and they jumped on as well. ‘Them’ being us as well.”

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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