Gold Coin Mark Hits All-Time High – Again
June 10, 2010 - Fueled by the mounting European debt crisis, the price of gold hit a new record this week amid increased demand for gold coins and bullion.
The price of gold climbed to $1,252.11 Tuesday, June 8, the second time in as many months that a new high has been set. The previous top mark was set on Wednesday, May 19, when gold reached $1,243.10 an ounce.
Popular gold coins are actually trading above market value as some dealers worldwide are reporting a difficulty in filling larger orders. One-ounce coins were selling between $1,268 and $1,292 from various sources on Thursday, June 10.
In order to match the tightening of supplies, blank production has increased to its highest level since 1985, with some refiners reporting an increase in output by as much as 50 percent. Despite the boost, some European dealers claim they will not be able to fill any orders for gold coins until August.
A proposed capital gains tax increase in England is also fueling the buying frenzy, especially in Europe. Gold coins are exempt in the new U.K. prime minister’s financial plan, which would more than double the tax rate on British capital gains.
With no end in sight to the economic crisis in Europe, the demand for gold coins is not expected to decrease any time soon. Analysts note sales in the U.S. and Russia remain strong, and many predict European purchases will grow even more as additional E.U. countries add their names to the list of failing financial institutions.
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
