Source: Bloomberg – U.K. Royal Mint Gold Coin Sales More Than Tripled in April
Britain’s Royal Mint, established in the 13th century, sold more than three times more gold coins this month than a year earlier as prices declined.
Sales are more than 150 percent higher than last month, according to Shane Bissett, director of bullion and commemorative coin at the Royal Mint. Gold is down 11 percent this month, heading for the biggest drop since September 2011.
“Since the dip in the price of gold we have seen increased demand for our gold bullion coins from the major coin markets, and this presently shows no sign of abating,” Bissett said by e-mail in response to questions from Bloomberg. “The Royal Mint continues to supply to its customers and is increasing production to accommodate the higher demand.”
Gold plunged into a bear market on April 12 as investors switched into stocks and the U.S. dollar. Metal for immediate delivery rose 0.8 percent to $1,424.59 an ounce by 4:13 p.m. in London, down 15 percent for this year.
The U.S. Mint said yesterday it suspended sales of its smallest American Eagle gold coin after demand more than doubled from a year earlier. A surge in gold demand in Turkey is causing delays in coin deliveries by the Istanbul-based mint, Chief Executive Officer Sadettin Parmaksiz told Haberturk April 19.
Standard Chartered Plc said yesterday its gold shipments to India last week exceeded the previous record by 20 percent and were double the total of the week before.
“The concern is really how long it can last,” said Dan Smith, an analyst at Standard Chartered Plc. “A lot of people surge in on the low prices and then they are likely to back away a bit as prices rally and they’ve restocked.”