U.S. Mint August Sales of Gold Coins Slump to Lowest Since 2007
Sales of gold coins by the U.S. Mint fell to the lowest in six years in August, retreating for the fourth straight month.
Sales reached 11,500 ounces, according to data on the mint’s website. That’s the lowest since July 2007 and down from 50,500 ounces last month and 39,000 a year earlier. Coin sales have dropped since April, when they surged to a 40-month high of 209,500 ounces as prices tumbled into a bear market.
Gold has declined 17 percent this year as some investors lost faith in the metal as a store of value as equities rallied and the dollar climbed 4.8 percent against 10 major trading partners. Prices have also dropped on concern that the Federal Reserve will curb its stimulus efforts, reducing demand for precious metals as a hedge against inflation.
“After the April surge we have not really seen that kind of demand as the equity market and dollar look more attractive,” Paul Kavanaugh, the director of business development at FuturePath Trading LLC, said in a telephone interview from Chicago.
Silver-coins sales dropped to 3.625 million ounces in August, down from 4.407 million last month, the data showed. Annual sales so far for the year stood at 33.1 million ounces compared with 33.7 million sold in 2012.
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