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Gold bullion sales forecast to be strong at the start of 2016

Monday, December 28, 2015

Demand for gold bullion coins is predicted to be robust in 2016 thanks to the continued good value investors are obtaining from the lower price of the precious metal.

The US has been leading demand this year with strong coin sales seen over the course of 2015, with some slackening off during December, according to the US Mint. However, analysts believe this is due to lower availability of coins, not a lack of desire to buy.

In November, the US Mint revealed it had sold all of its 2015 one troy ounce gold American Eagle bullion coins and would not be making any more.

Barclays said: “The slow sales pace in December was supply driven, in our view. We expect strong demand at the start of next month once new supply comes from the US Mint, due to lower prices.”

Both gold and silver coin sales have been strong this year, especially in the second half of 2015. In November, sales of American Eagle bullion coins were 185 per cent higher than the previous month, and figures from just before Christmas show that sales of this particular coin are more than 50 per cent higher than last year.

Investors are benefiting from the lower gold fix price, which is around eight per cent down on last year, according to the London Bullion Market Association’s figures.

There has also been record demand for US Mint silver coins, which broke sales records for the third year in a row.

Trade has been slow, as is expected, over the Christmas period when many traders are taking a festive break. But the signs are that investors will continue to snap up bullion coins in the New Year to take advantage of the current low prices for precious metals. While now may not be the best time to sell at a profit, buying bullion coins when gold prices are weak is a sound strategy for longer-term private investors.