|US Mint Resumes Sale Of American Eagle Silver Coins |
Los Angeles CA, (Tangible Investments) - by James O'Dell - The Gold price continues to hover above 5-1/2-year lows in early trading on Monday, as the yellow metal gained 0.28 percent to $1,103.40 an ounce, at the time of this writing, on bargain hunting and short selling after rebounding $9.50 or 0.87 percent on Friday to finish the week at $1,100.30 an ounce. The price of Silver is up 0.14 percent to $14.72 an ounce, after adding $0.01 to end the week at $14.70 an ounce, while the Gold/Silver ratio rose to 74.85.
The week began with the Gold price sliding $45.55 on high volume to $1,088.05 an ounce, shortly after the open of the Shanghai Gold Exchange (SGE) on Monday, when a massive number of lots were traded on a key contract, compared to less than 27,000 lots traded on Friday. Average volume for July had averaged fewer than 30,000 lots until Monday.
Chinese investors were seen as the most likely sellers of the Gold said analysts who speculate that at least one major fund saw a thin market with Japanese markets closed and pushed the Gold price through support, having already sold Gold short.
“Summer is often a seasonally weak period for Gold and Gold stocks, with things turning back up in mid-August,” said Adrian Day, of Adrian Day Asset Management. Louis James of Casey Research says that sharp losses across the metals complex “belies the rosy picture of economic recovery driving the markets. And that makes a sharp reversal [in Gold] a distinct possibility.” James cautions that while the price of Gold will likely remain volatile in the shorter term, “I see the current meltdown as a buying opportunity.”
In the meantime, the U.S. Mint announced last week that it would resume sales of its popular American Silver Eagle coins on an allocated basis, starting July 27. The mint has been sold out of its American Eagle Silver coins since July 7 after Silver prices dipped under $15 an ounce, which created “significant demand” for the popular coins.
According to sales data, more than 2.7 million Silver coins have been sold so far in July, well ahead of the 1.98 million coins sold in July 2014. For the year, more than 24.5 million Silver coins have been sold, according to the mint. The mint also shows strong demand for Gold bullion coins, with sales of its American Eagle Gold Coin hitting 101,000 ounces so far this month. Last year the mint sold 30,000 ounces of Gold for the entire month of July. The U.S. Mint has sold 374,000 ounces of Gold in various denominations, so far this year.
The World Gold Council (WGC) said last week that the Gold price already reflects a rate hike later this year. "…as we see it, higher interest rates will not improve fixed-income’s prospects as a way to balance tail risks," said the WGC. "At current yield levels, bonds are likely to have limited upside and, in our view, would therefore be less effective than Gold in mitigating equity risk. We believe that this will help Gold demand because some investors will use Gold to complement bonds in managing equity risk and diversifying their portfolios."
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