UNITED STATES August 05 2014 2:29 PM NEW YORK (Scrap Register): United States Mint gold and silver coins sales dropped during July this year.
US Mint data showing that combined American Eagle and Buffalo gold coin sales totaled 35,500 ounces in July, down 45% from 64,500 in June and down 49% from 69,000 in July 2013.
American Eagle silver coin sales in July were 1,975,000, down from 2,692,000 in June and 4,406,500 in July 2013.
HSBC's view on coins sales drop:
Higher gold prices for much of July might have hurt demand for gold coins, but the pullback toward month-end may help revive that buying.
Coin sales are often used as a barometer for retail investors as demand typically rises during periods of price drops and weakens during periods of price rallies.
The drop in sales for July suggests a softening in retail gold demand given relatively more expensive bullion prices for July as they averaged 1,312 an ounce, compared to 1,283 an ounce for June. The recent pullback in bullion prices to below USD1,300/oz may increase retail investor’s appetite for gold, said HSBC.