Monday, May 9, 2011

American Eagle Coin Sales Jump In Early May

The recent plummet in gold doesn't seem to have hurt sales of American gold Eagles, which are flying off the shelves. Already, in the first week of May, sales are 57% of the entire month of April. If the rest of the month goes like the first week, then May's sales will be the highest since March of 1999.
“It could perhaps be explained by restocking, but it’s also likely related to the return of European sovereign concerns to the headlines,” Edel Tully, an analyst at UBS AG in London, said today in a report to clients. “Higher prices prompt greater coin demand, particularly if the reason for higher prices is fear.”

Gold coin buying accelerated even as prices dropped 4.4 percent last week, the most in almost a year....

Evidently, retail physical demand remains robust. Even if gold does cave in further as spring turns into summer, sales of Eagles will help moderate the extent of the decline. As long as gold's in a long-term bull market, buyers even at $1,550+ should make out fine over the next few years.

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