Tuesday, October 25, 2016
Authorised buyers have purchased a total of 768,000 troy ounces of the US Mint’s flagship 2016 American Eagle gold bullion coins so far this year, according to the latest figures.
The figure is the total of one ounce, half, quarter and one tenth of an ounce versions of the bullion coin, with 24,000 ounces sold in the most recent weekly update. The coin is currently marking its 30th anniversary since its introduction.
Total sales so far for the 2016 American Buffalo one troy ounce gold coins stand at 163,000, with 5,000 purchased in the latest weekly statistics, Coin Update reported.
In what has been a volatile year in the US, with the race for the White House helping to increase the popularity of gold as a safe haven for investors, it looks likely that sales of both types of bullion coin will surpass last year’s figure. In 2015, 801,500 ounces of Gold Eagles and 220,500 ounces of Gold Buffalos were sold.
The Mint sells directly to authorised buyers – or official dealers – who then sell the coins on to the public. The high levels sold this year are evidence of the strong appetite among investors for gold bullion coin collecting.
Gold bullion coin collecting is a popular way to invest in gold. As well as the intrinsic value of the gold contained in the coin, investors are often able to make an additional profit on the rarity of their coins when they come to sell.
As well as gold coins, the US Mint also produces investment coins in silver and platinum. Already this year, the total mintage for coin of all precious metals is ahead of last year, which stood at 212,000.
Figures released by the Mint also showed that 2016 currently has the second-highest production of the highly valuable five ounce America the Beautiful gold coins after 2011, when it made 465,100 pieces.
Monday, October 17, 2016
Gold investors will be watching the markets carefully this week after the precious metal ended last week flat following a rise in the value of the US dollar.
There is no market data that is likely to impact on the price of bullion due until the end of the week, when the US Federal Reserve Chair Janet Yellen is due to speak at the Boston Fed economics conference.
There is strong sentiment in the market that the Fed will raise US interest rates before the end of the year, which tends to make gold investments less attractive to investors.
Ronald Leung of Lee Cheong Gold Dealers in Hong Kong told Reuters: “There are a
lot of expectations of a Fed rate hike in December, which will be bearish for gold.”
INTL FCStone analyst Edward Meir added in a note: “We think its (Federal Reserve's) rate hiking trajectory will remain very much intact.
“As a result, the dollar will likely push higher going into year-end, offering gold its most formidable headwind and even countering the impact of weaker equities.”
Mr Leung pointed out that uncertainty – which is good for the price of gold – is likely to continue in the run up to the US Presidential election in November. If Hillary Clinton is victorious, he believes the US currency could rise further and reduce the gold price. However, that is without taking into account any unexpected geopolitical events which may happen in the interim.
A pause in the high prices of gold seen throughout the year would mark a good time to buy, but the price remains strong for those who have held their bullion for some time and are looking to make a profit.
In other precious metals news, silver, platinum and palladium all closed the week down in value.
Monday, October 10, 2016
Gold jumped back in early trade today (Monday 10 October), following its worst week since June when it lost value in eight consecutive trading session.
Today at 07:45, the precious metal was selling for £1,021.49 per troy ounce, after falling to a low of £989.37 last week.
Analysts said the price was lifted by Chinese buyers returning to the market after the holidays, a weaker dollar and expectations in the market that further increases in interest rates in the US this year will be gradual.
Richard Xu, of Chinese gold exchange traded fund HuaAn Gold, told Reuters: “Gold prices are quite appealing after the recent correction. In China, what we see today (after a week-long holiday) is that there is some demand to buy gold following its dip.”
The improved prices came after last week’s big jump in the price of the US dollar, which hit its highest levels since the end of last year. When the dollar rises in value, gold tends to lose value and vice versa.
The dollar was up after strong statistics on US manufacturing and employment, which suggested that the cost of borrowing would be increased before the end of the year. Higher interest rates increase the cost of holding gold, which is a non-yielding commodity.
However, a crash in the value of the pound at the end of last week, which dipped to its lowest level in three decades as traders worried that the UK will go for a ‘hard Brexit’ from the EU, helped to restore some value to the precious metal.
Investors will be watching the markets, and world events, closely this week to see what direction gold will take. If you’re looking to begin a gold investment, there may be the opportunity to get in at a slightly lower price than has been the norm for much of the year.