US Mint Gold Coin Sales in 2010

The year 2010 is turning out to be yet another profitable year for US Mint gold coins. The demands for the coins are at levels last seen in 1999. In fact, the demand is at a level that is threatening to wipe out the gold reserve of the US Mint.

This increase in demand for gold bullion coins coincides with the decline in the value of the dollar. In early 2010, Reuters quoted US Mint spokesperson as saying, “Many investors, both retail and institutional, have sought gold as a safe-haven asset in times of economic uncertainty. Sales of the American Eagle coins increased by 214 percent in the month over April during a time when concerns about sovereign debt in the euro zone raised fears of a larger macro-economic effect.”

US Mint Gold Coins: Fact and Figures for May 2010

In May 2010, the sale of the coin broke all previous records of sales figure for a single month. Regarding this, a US Mint spokesperson said to Reuters, “In January 1999, the U.S. mint sold 208,500 gold 1-ounce coins, with only five other months exceeding May’s gold coin sales since the program was launched in 1986. While in 2010 the U.S. Mint has sold only 1-ounce gold coins, in past years it has sold other coin sizes as well. Comparing only American Eagle gold 1-ounce coins, the biggest monthly sale occurred in October 1986 with 609,500 coins sold.”

In May 2010, the US Mint managed to make record shipping of 190,000 one-ounce gold American Eagles. In June of the same year, the Mint introduced the 22-carat 2010 American Eagle Gold Bullion Fraction Coins and they too managed to attain a sales figure of 310,000 within the first five days of their production. These numbers, although high, fell short of the 2009 sales figure of 345,000 within the first day of going on sale.

This high demand has led to a temporary halt in the production of such coins by the Mint. The official website says, “Production of United States Mint American Eagle Gold Proof and Uncirculated Coins has been temporarily suspended because of unprecedented demand for American Eagle Gold Bullion Coins.” The reproduction will start once they have sufficient numbers of gold bullion blanks.

In August 2010, the US and Western Europe are still facing huge government budget deficits and investors are not showing much faith in the world’s major currencies.