The U.S. Mint has run out of inventory of its one-tenth ounce American Eagle gold bullion coins after selling an astonishing 175,000 ounces of gold coins thus far in April. The record is 231,500 ounces which was set in December 2009. This is the first time since November 2009 that the mint has had to stop selling a product due to overwhelming demand.
“It’s panic. This is one of the busiest times in quite a while. People think gold’s at the lows and they want to take advantage,” said Michael Kramer, president of Manfra, Tordella & Brookes (MTB), a major U.S. coin dealer in New York.
Robert Wenzel of EconomicPolicyJournal.com says the bottom line is that the selling of gold hasn’t come from the general public. It’s panic from larger investors and traders in gold. The general public is taking advantage of the drop in price and buying to protect themselves from inflation.
And the fact that demand for the one-tenth ounce coins is up more than 118 percent compared to the same period in 2012 further confirms that the buying is coming from the public who tend to buy gold in smaller quantities.
But this is just the beginning. It is still a very small percentage of the public who are buying gold. When you start hearing your neighbors and people at work talking about how they are buying gold, then we may be approaching a bubble in the gold market. Gold prices will probably be several times higher than now by that time.
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