$20 Gold Coins Gain, Sales of Newer U.S. Gold Coins Slows Posted by Brian Ford on August 26, 2013
New data indicates that a new trend may be developing in the gold market. Modern-day gold bullion coins, such as American Eagles and Buffaloes, have been at the height of their popularity for the last few months. Dives of the gold spot price only served to strengthen demand for U.S. gold coins dated 1986 or more recently, while gold bullion bars and certified gold coins remained “on the shelves collecting dust” far longer than is customary.
However, a recent report by the U.S. Mint shows that sales of American Eagle gold bullion coins, American Buffalo gold bullion coins and other U.S. Mint products are slowing drastically. Analysts have blamed the disappearance of the recent buying frenzy on a “recovering economy” but that “logic” is virtually implausible to believe if you have common sense and know how to read.
On the contrary, our economy seems to be falling into more of a rut, and the Great Recession of just a couple of years ago could soon be considered a bump in the road compared to the bevy of economic potholes that the United States is destined to plow into over the next few years. Why, then, are so many people refusing to buy the U.S. Mint’s wares? And why are some people going so far as to sell their gold bullion?
More investors are educating themselves about the dangers of holding bullion coins and bars. Two of the main dangers are exposure to gold confiscation and the risk of lost profitability. Certified gold coins (for the purpose of this article we are speaking of pre-1933, U.S.-minted, common-date gold coins with Mint State encapsulations from either PCGS or NGC) are becoming household investors’ “go-to” gold investment, and even though some coins are 200-400 percent below their historical highs, premiums have started to rise rapidly to account for all the investors targeting what is a very small amount of available coinage.