Over the past two months, demand for the US Mint’s American Eagle gold coins has withered. This slackness comes after the demand rose by 14 per cent last year to 856,500 ounce. At 124,514 ounce now, the sales have dropped 46 per cent year-on-year.
Consumers are probably cautious after gold prices rallied sharply, from $1,201/ounce in end-December last year, to $1,326/ounce in February. Or, it could also be that investors who bought coins last year are booking profits now. This leaves fewer investors coming to the mint to buy coins.
Gold is at $1,383/ounce now. The tension between Russia and the US over Crimea is helping the price of gold, which has been a classic safe haven.
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