Insights

American Eagles lose some of their luster

U.S. Mint's bullion coin sales drop during July
By , Coin World
Published : 08/06/12
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American Eagle and American Buffalo gold and American Eagle silver bullion coins lost some of their luster with investors in July, as sales by the U.S. Mint to its authorized purchasers dropped significantly from the previous month.

Combined sales of American Eagle 1-ounce, half-ounce, quarter-ounce and tenth-ounce gold coins in July reached 30,500 ounces, slightly more than half the number of ounces sold in June. July’s sales did not include any half-once gold American Eagles.

Through the first seven months of 2012, the U.S. Mint has recorded sales of 374,000 ounces of American Eagle gold bullion coins, an average of 53,429 ounces per month.

During the first seven months of 2011, American Eagle gold sales totaled 640,500 ounces, and went on to reach calendar year sales of 1 million ounces.

The sales of American Buffalo 1-ounce gold bullion coins in July reached 4,000 coins compared with 10,000 in June. Sales for the first seven months of 2012 have reached 79,000 coins, down 12,500 coins compared with the same 2011 period.

Between Aug. 1, 2011, and Aug. 1, 2012, the London PM fix spot price for one troy ounce of pure gold reached a high of $1,895, on Sept. 5, 2011, and a low of $1,531 on Dec. 29. The Aug. 1, 2012, closing spot price was $1,599 per troy ounce. Historical closing spot prices on the London market can be found at www.kitco.com.

American Eagle silver dollar sales in July reached 2,278,000 coins compared with 2,858,000 in June. Cumulative sales for the first seven months stand at 19,670,000 pieces, a monthly average of 2.81 million coins. Maintaining that monthly average would bring the calendar year 2012 sales total to 33.72 million coins, down 14.7 percent from 2011’s record total of 39,868,500 coins.

Between Aug. 1, 2011, and Aug. 1, 2012, silver reached a high of $43.29, on Aug. 22, 2011, and a low of $26.16, on Dec. 29. The Aug. 1, 2012, closing spot price was $27.87 per troy ounce.

The U.S. Mint does not directly sell the bullion coins to the public. The Mint instead sells the bullion coins to a network of authorized purchasers, who acquire the coins from the Mint for the spot price of the precious metal on a given day on the London metals market plus a small premium. The authorized purchasers may then sell the American Eagle and American Buffalo bullion coins to dealers and the public.

Monthly sales totals for American Eagle platinum, gold and silver bullion coins and American Buffalo gold bullion coins, posted cumulatively daily at the Mint website at www.usmint.gov, may include coins dated from more than one calendar year and do not represent mintages for a particular date. ■

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