Sales Of U.S. Gold Coins Still Strong Despite Commodity Rout

Contrary to the price drops in commodities, including gold itself, sales of gold Eagles is up so far this month.

The U.S. Mint sold 85,000 ounces of American Eagle coins since May 1 as the Standard & Poor’s GSCI Index of 24 raw materials fell 9.9 percent. The last time sales reached that level, bullion rose 21 percent in the next year. Gold will advance 17 percent to a record $1,750 an ounce by Dec. 31 and keep gaining in 2012, the median estimate in a Bloomberg survey of 31 analysts, traders and investors shows.

Krugerrands are also selling at record levels, and the American Precious Metals Exchange had three of their best weeks in April and early May. Historically, strong physical gold demand has gone hand in hand with future price increases.