Massive Demand for Gold Coins

The U.S. Mint on Tuesday reportedly sold out of 2016 American Eagle one ounce, quarter ounce and one-tenth ounce gold coins. According to a report featured on, the mint’s data points to sales of 984,500 ounces of gold in various denominations of American Eagle coins had been sold year-to-date. This represents the highest level since 2011, when one million ounces in coin form were sold.

According to the same article, the mint reported November as being the busiest month for sales, with total sales of 147,500 ounces. This figure represents a 27 percent increase from October, and a whopping 52 percent increase over November 2015.

Two potential conclusions that may be drawn from this data include:

  1. Demand for physical gold may increase significantly as uncertainty increases. Donald Trump was not expected to win the Presidency. With his surprising victory comes a significant number of unknowns. How will he tackle the sluggish economy? Will interest rates remain low? Will new fiscal policies fuel inflation? These are just some of the questions investors are asking right now. It comes as no surprise to us, therefore, that demand for physical gold bullion may increase. Gold has been considered a reliable store of value and protector of wealth for centuries, and is often referred to as a “safe haven” asset. We’ve said it before and we will say it again: People tend to turn to gold when they don’t know where else to turn.
  1. Dips in the price of gold are gobbled up by investors: It’s no secret that gold prices saw a significant slide in the aftermath of the Trump victory. As we have pointed out before, however, such price dips often run into heavy buying interest. Surely there must be a reason for this, right? We believe the U.S. Mint sales data simply points to bargain hungry gold buyers stepping up their game on any significant breaks in price. For the long-term investor, a decline in the price of gold of $50, $100 even $250 or more really may not mean much. Gold is purchased for many reasons besides potential price appreciation, and time and time again we have seen investors scoop up the yellow metal when prices slip. To build long-term wealth and security, sometimes you have to see the forest through the trees.

In our view, the recent dip in gold prices is nothing more than exactly that-a dip-before turning higher once again.

If you are considering adding real, hard assets to your overall holdings, now is the time to act.

Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our precious metals professionals can guide you through the process of acquiring physical gold, and can even show you how to buy and hold physical gold using your IRA account.

Don’t let this opportunity to buy gold at what we feel is a significant discount pass you by. Explore your options for physical gold ownership today. Call us at 1-800-341-8584 to get started.

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