US Mint Records 469% Increase in Gold Bullion Sales

The US Mint reported a colossal rise in gold bullion sales during the month of July. Sales were up nearly 470 percent year on year to reach 202,000 ounces of gold in July 2015, up from 35,500 ounces of gold sold in July 2014. In fact, July sales represented the highest growth rate in a year.

In total, the US Mint sold 571,500 ounces of gold in the first seven months of 2015, up 38 percent from the same period last year.

Barclays analysts believe that the recent drop in gold prices below $ 1,100 an ounce has encouraged investors to buy more gold bars. "This level of retail interest was last seen in early 2013, when the price of gold also fell violently," analysts said.

In addition, there was an increase in sales of silver bars compared to last year, which in July rose 180 percent year on year to 5,529,000 coins. Although silver sales in July were not above average, unlike gold, silver peaked in January this year.

Total silver sales in the past seven months totaled 27.315 million coins, up 4.6 percent from the 26.103 million coins sold in the same period last year.

Mint silver sales could be higher as the popular American Eagle silver coins were out of stock in mid-July after being caught off guard by increased demand after prices fell below $ 15 an ounce. Their sales resumed only at the end of the month.

Peter Hug, director of global trade at Kitco, said many of the bullion dealers were struggling to obtain a stock of silver coins and small gold bars. However, he added that he sees no resurgence to help keep gold trading prices above $ 1,100 an ounce and silver at $ 15 an ounce. “This is a demand to soften the wholesale liquidation of the precious metals complex at the expense of funds and liquidity needs from other investment classes,” he said.