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US Mint Sells Less Gold Coins,
While Silver Coin Figures Oscillate




Since the mid-April fall, the appetite for precious metals has undergone various changes.
Prime Values has taken a look at the figures reflecting US precious metal coin sales during the first 6 months of 2013.

If we look at the number of silver and gold coins sold by the US Mint, we can easily understand when and why the appetite for the metals increased and decreased in the USA and the western world in particular.

For example, the fall of gold's price immediately triggered a hunger for the yellowish shiny metal, but the further cascade-like price drops have dampened the appetite.

Not true for silver: "poor man's gold" sales have oscillated the entire year. Nor clear bullish, nor clear bearish sentiments are reflected by the figures, but rather a "wild" oscillation.



US Mint Gold Coin Sales Dropped


Official data by the US Mint reflects a staggering decrease in the sales of the highly popular 22 karat American Gold Eagles since the April dip - both in terms of ounces and in terms of coins.

There are 4 sizes for these coins: 1, 1/2, 1/4, 1/10 ounces.

The numbers have been decreasing during the January - March period from 150,000 ounces (275,200 coins) to 62,000 ounces (103,000 coins).
The April gold price dip then fueled appetite for the metal, pushing up sales to 209,500 ounces (312,500 coins). The sales skyrocketed during the 2nd half of the month, rather.

By visiting the provided link, you will be able to notice the decreasing figures since then: May - 70,000 ounces (129,500 coins), June - 57,000 ounces (113,000 coins), July - 50,500 ounces (90,000 coins).

Physical demand for gold is strong in Asia, but the west seems to have diminished appetite for it. Less gold is bought in the USA and in Europe as well.



US Mint Silver Coin Sale Figures Oscillate Wildly


One ounce Silver Eagle coins were sold in substantial amounts this year, oscillations are still undergoing, no clear bullish or bearish sentiment is reflected.

January was the month of the highest sales: 7,498 million coins and ounces as well, because these coins only come in a single form - one ounce size.

Ups and downs the rest of the period:
3,356 million in February, then 3,356 million in March, but the April dip increased the appetite for silver, so sales reached 4,087 million.

Since April, figures were 3,458 million, 3,275 million, 4,406 million for May, June and July, respectively.



Conclusions


Gold is an expensive commodity and it has already gone very high, making it a very risky asset to possess. One has to take an immense risk when buying it, therefore the recent crash of its price has had a tremendous emotional effect on those who bought physical gold.

Currently, silver is more attractive. It's reflected in the coin sale figures as well.
Silver is cheaper than gold and it has already reached very low lows, having "danced" already in the 18-19 $ interval, even. After the 47 $ peak silver price in April 2011, current prices of around 20-21 $ per ounce are very attractive, indeed.

The silver bubble popped much earlier than the gold bubble. Gold's price is still quite high and there's a long way down and many fear the crash to continue and indeed, there are solid reasons for this.

Oddly, gold's volatility is scaring investors away. It's unusual for an asset believed to be stable to behave like this. During times like this, gold's price often varies 100-150 $ up and down, which makes it more risky to buy.

Silver is traditionally a highly volatile metal. But exactly during this period the price variations are milder. Sideways trading has been continuing since mid-May with slight spikes and dips, but quick compensational moves having followed rather quickly.





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