Photo by: Reuters
NEW YORK – Sales of American Eagle gold coins in May increased by 433% from April, and were the highest May sales since 2015, US data showed on Thursday.
US Mint sales of American Eagle gold coins totaled 24 000 oz in May, up from 4 500 oz in April, the data showed. May figures were the highest since 2015, when 21 500 oz of American Eagle gold coins were sold by the US Mint.
Geopolitical jitters from concerns of a planned, then canceled, then revived US-North Korean summit to seal a denuclearisation deal likely drove investors to purchase gold coins in May, said Walter Pehowich, executive VP of investment services at Dillon Gage Metals.
Additionally, spot gold prices saw a brief rise during the last few days of the month as a political crisis in Italy provoked heavy selling on European financial markets. Gold is seen as a safe haven in times of political uncertainty. However, spot gold prices were headed for a May close about 1.3% lower than April.
"Even though the (US) Mint sold more gold coins this month, the low demand is keeping the premiums low, between 1 and 1-1/2%," Pehowich said, muting further gains.
US Mint May American Eagle gold coin sales were up 54.8% from the same month last year, when the US Mint sold 15 500 oz of gold coins.
May sales of US Mint American Eagle silver coins fell 58.5% from April to 380 000 ounces, the lowest May since 2005, the data showed.
Spot silver prices rose 0.26% in May, the first monthly increase since January.
"One of the reasons why silver prices aren't going anywhere, is because there's an abundance of silver in the market right now," Pehowich said.
The silver coin sales were down about 85% from the year prior, when the US Mint sold nearly 2.5-million ounces of American Eagle silver coins. US Mint American Eagle platinum coin sales totaled 10 000 oz in May, compared with none in April. The US Mint last sold platinum coins in February, when it posted 20 000 oz.