UNITED STATES July 13 2016 9:39 PM
NEW YORK (Scrap Register): Societe Generale said that there is a diverging trend in the sale of U.S. coins -- the premia on gold coins has been trending higher on increasing safe-haven interest, while silver coin premia have been falling.
The U.S. Mint sold 103% more one-ounce American Eagle bullion coins in the first half of 2016, compared to the same period a year ago, while silver-coin sales were up 20.5%, the bank added.
SocGen explains that authorized dealers commit to buying a portion of monthly coin output, and the Mint adjusted its production volume upward this year after last year's strong demand.
Dealers' inventories have been rising. The premium charged over spot metal prices accounts for minting and sales costs, as well as supply-demand fluctuations, SocGen noted.
Gold and silver American Eagle premia surged in the second half of last year, before coming off at year-end. Over the course of this year, gold coin premia has been trending higher, said SocGen.
The gold investment product market has been supported by increasing safe-haven interest. It is quite likely that the increase has been driven by growing demand, limited supply or a combination of the two. By contrast, silver coin premia has been sliding downward. The decline suggests lackluster demand, ample supplies or both.