(Reuters) – Demand for U.S. gold coins has fell in latest weeks as the unprecedented buying by retail investors that assisted bullion prices retrieve from their historic sell-off four months before has almost disappeared.
Record highs in U.S. supply markets, blended with little clarity about when the U.S. central bank may start curbing its bond-buying stimulus have provoked investors to contain back their personal gold buys.
With less than 2 weeks left in August, total sales of U.S. Mint American Eagle gold bullion coins for investors stood at 3,000 ounces on Monday. That is a far bawl from 39,000 ounces for the entire of August 2012 and the monthly mean of almost 100,000 ounces for the first seven months of this year, according to facts and figures on the U.S. Mint website.
Projected sales for this month will be one of the lowest tallies for August since the U.S. Mint launched the American Eagle coins program for investors in 1986.
Michael Kramer, leader of Manfra, Tordella & Brookes (MTB), a foremost U.S. coin trader in New York said “Demand right now is next to nothing,”
Different previous years when sales were restricted by a need of gold coin blanks, the U.S. Mint has not skilled any supply issues this time round.
Personal gold coin sales are highly seasonal and are typically slowest in the summer months of June, July and August when many investors are on holiday, dealers said.
But August sales at just a part of the meteoric grades of latest months will reignite anxieties that going out personal demand could eliminate a key cost support for bullion.
Much of the recovery in charges since their fall in April has been attributed to little investors and collectors buying anything from jewelry to coins at cut-rate prices.
Bullion posted a record two-day $225 drop in mid-April as institutional investors’ dragged cash out of gold wagering on an end to the U.S. Federal Reserve’s years-long incentive program.
Prices have rebounded 15% since hitting a three-year low at $1,180 an ounce on June 28. On Monday, gold was down 0.7% at $1,366 an ounce.
But the highs in equity markets and resurgent doubts that the Fed will taper its massive incentive earlier rather than subsequent have scupper physical gold buys.
Kramer said “There are abounding of persons who would purchase an entire allotment more, but there has to be clarity which way gold is going, and that’s what people are waiting for,”