Tags: Fiscal Cliff | gold | coins | soar

Financial Times: Sales of Gold Coins Soar

Wednesday, 12 Dec 2012 07:58 AM

By Michael Kling

As the country gets closer to falling off the fiscal cliff, sales of U.S. gold coins have already shot up in a rocket.

Sales of American Eagle gold coins soared 131 percent in November, rising sharply after the election, according to the Financial Times.

The reason: Fear and disenchantment with Washington. The coin buyers see more gridlock in Washington as the fiscal cliff approaches and more quantitative easing from the Federal Reserve.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

"You've got a lot of people who are very worried about the economy. With the election they saw that nothing was going to change," Terry Hanlon of bullion dealer Dillon Gage told the Times.

Sales at Dillon Gage in November were 32 percent higher than were sales in October, said Hanlon.

In addition, dealers are stocking up on gold coins before the end of the year when the U.S. Mint stops producing 2012 coins and starts next year's coins, according to the Times.

Although large institutional players have backed away from gold in recent weeks, causing the metal's price to falter, gold coin sales are dominated by retail buyers.

The Royal Canadian Mint, the Times notes, also reported a jump in sales of its Maple Leaf gold coins.

"The fiscal cliff is causing a huge stir in investment markets, and this is precisely why gold coin sales skyrocketed in November," says Arthur McGuire, vice president of precious-metal dealer Gold Coin.

"Many wise investors know that no matter what the fiscal cliff resolution is, the U.S. economy is still in a deep financial hole, and this is good for gold."

Gold has already increased over 600 percent since 2001, reflecting 12 years of consecutive price gains, McGuire notes. Analysts at Gold Coin predict that gold coin sales will continue to increase as more investors invest in gold as a safe haven, pushing gold coin prices to over $2,000 per ounce in 2013.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

© 2015 Moneynews. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

El-Erian: Greek Election May Unlock Pandora's Box for Global Markets

Sunday, 25 Jan 2015 20:16 PM

The outcome of the Greek elections is indicative of a broader political phenomenon in Europe that involves the growth of . . .

Lundberg Survey: Deep Drop in Gasoline Prices Diminishing

Sunday, 25 Jan 2015 19:39 PM

The average price of regular gasoline at U.S. pumps dropped 13.3 cents to $2.0691 a gallon, as the plunge may be abating . . .

Keep in Mind Tax Deductions for Sales Taxes, Charitable Expenses

Friday, 23 Jan 2015 13:08 PM

Don't look now, but tax season is coming upon us. Kiplinger has assembled a list of the most overlooked tax deductions. . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved