Tuesday, January 2, 2018

Paper driving the gold price both up and down as U.S. Mint coins sales for 2017 worst in a decade

For investors of gold and silver, it has always been easier to buy paper gold products than to own the physical bullion.  And because of this, it has been fairly easy for the Comex and LBMA to control prices using paper contract derivatives since they rarely have to fight against actual market factors such as supply and demand.

Which is how we come to an interesting dichotomy here at the beginning of 2018, where the price of gold had its best year since 2011, and at the same time sales of physical coins from the U.S. Mint declined to their worst levels in a decade.

It was a tale of two markets for gold in 2017, as prices made their biggest gains since 2010, but U.S. Mint coin sales were the weakest in a decade. 
The U.S. Mint said that sales of American Eagle gold and silver coins were the lowest since 2007 and American Buffalo coins had the worst year on record. 
The majority of analysts blamed the results on range-bound gold prices and excitement surrounding the U.S. equities market. 
According to the latest data, a total of 302,500 ounces of the gold American Eagle coins were sold in 2017, which is one-third less than in 2016, when a total of 985,000 ounces was sold. This marked the worst year since 2007 — a year that saw only 198,500 gold ounces sold. 
On top of that, sales of Buffalo gold coins were the worst ever, with only 99,500 ounces sold in comparison to 2016 results of 219,500 ounces.
Sales of silver American Eagle coins were also the worst since 2007, with only 18,065,500 ounces sold, well down from the 2016 figure of 37,701,500. In 2007, sales were only at 9,887,000 ounces. - Kitco


With the spot price up over $13,000, how long before the cartel shorts the market and drives down the price?

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