Why Are Retail US Mint Gold Coin Sales on the Rise?



Coin sales rise

The retail coin sales of US mint coins for September and hit 110,000 ounces. The figure topped the August sales total. The outflow of gold ETFs has also fallen. However, inflows were seen in September of close to 4.2 tons. Investors are keeping off from extreme long or short positions. United States Mint bullion sales on Monday logged gains of 7,500 ounces in gold coins and 871,000 ounces in silver coins. Sales splits in gold coins include 6,500 ounces in American Gold Eagles and 1,000 ounces in American Gold Buffalo coins.

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Commodities fall

Owing to haven calls, gold has seen a rise from July lows. However, gold is still down by 4.91%on a year-to-date, or YTD, basis. Gold futures have seen five down days out of the past ten trading days as of September 29. Gold was ranked as the third-best performer among the commodities listed on the S&P GSCI, or Goldman Sachs Commodity Index.  The S&P GSCI itself has given up ~1.5% in September.

January platinum fell by $28.80, or 3%, to $922.50 an ounce, ranging from $916–$952 on September 28. Palladium for December delivery fell $15.75, or 2.4%, to $651.85 per ounce, trading between $644 and $670.15. Last week, platinum tumbled 3.4% while palladium surged 9.3%, the biggest weekly increase since December 2011.

Precious metals-backed Mining ETFs like Sprott Gold Miners ETF (SGDM) and VanEck Vectors Junior Gold Miners (GDXJ) have both seen negative returns on a 30-day trailing basis. Theses ETFs gave up 6.9% and 5.16%, respectively, of their prices.

Precious metals mining stocks that saw falling stock prices on Monday, September 28, include Kinross Gold (KGC), Newmont Mining (NEM), AngloGold Ashanti (AU), and Gold Fields (GFI). These four stocks together contribute 16.8% to the VanEck Vectors Gold Miners ETF (GDX).


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