Daily Gold Coin Market Update
Inspired by increased investment due to economic concerns, gold coins led a record 2009 in United States bullion sales. With sales of nearly $1.7 billion, the US Mint exceeded 2008 sales totals of American Buffalo gold coins as well as both Gold and Silver Eagle coins.
These record sales were generated on 1.425 million Gold Eagles, 28.77 million Silver Eagles and 200,000 American Buffaloes. The Mint also reported that bullion coins accounted for nearly 58% of the department’s revenue for the year, up from 34% in 2008. The Mint was able to meet the demand for 22-karat gold and silver one-ounce bullion coins by the third quarter of the fiscal year.
Several reasons account for the high performance of bullion sales. First, the demand for circulating coins was at a 45 year low with the poor economy reducing sales and causing many Americans to cash in coins they were holding. Even with an increase of $1 coins, total currency production was at its lowest in 12 years, resulting in a higher than average percentage of bullion sales.
Second, the continued problems with the US economy are likely leading more people to invest in silver and gold coins. While dollar-based investments such as real estate continued to suffer, precious metals continued a nine-year trend of gains, making them more attractive investment vehicles. With real estate values plummeting in 2009 and banks barely paying interest, gains by gold, silver and platinum have inspired a shifting of assets for many people.
With the US Mint predicting low coin volumes again for 2010, the country is sending the signal that the economic crisis is not over. Silver and gold coins represent an asset-based investment that has performed well during financial struggles in the past, and will likely be looked to by many investors in 2010 who are seeking ways to protect and grow their wealth.
Michael Williams
Senior Staff Writer - Gold-Coin.com
