Demand for American Eagle gold coins hits record levels after US election
Since the U.S. presidential election, demand for American Eagle gold coins have soared, the Financial Times reported yesterday. The paper reported that in November, the U.S. Mint saw direct sales of the coins increase by 131 percent.
This demand has been largely attributed to small and independent investors, who are concerned about the nation’s ballooning debt and deadlocked leadership.
"You've got a lot of people who are very worried about the economy,” Terry Hanlon told the Financial Times. “With the election, they saw that nothing was going to change." Hanlon is a president of one the larger U.S. bullion dealers. Hanlon and other dealers report that demand for gold bullion and American Eagle coins increased within just days following the election.
Hanlon reported that his firm broke sales records on several days in November and that sales levels were 32 percent greater than in the month prior.
In addition to the U.S. Mint’s increase in sales last month, the Royal Canadian Mint also saw its strongest month of sales for 2012 in November. Much like the American Eagle gold coins, Canadian Maple Leaf gold coins rank among the most popular and prized gold coins in the world.
“November was a very strong month for gold Maple Leaf sales," said Chris Carkner, head of bullion sales at the Royal Canadian Mint.
In its reporting about the sudden demand increase for the already popular American Eagle gold coins, the Financial Times reported that investors, dealers, and coin collectors are buying up 2012 coins before the U.S. Mint discontinues the run and begins pressing 2013 coins in January. Among the year’s other historic significances, 2012 will be noted as the year when Mitt Romney lost the Republican bid for the White House, ensuring that Barack Obama would remain in office for four more years.
Concerned that the gridlock in Washington will remain the status quo and that the Federal Reserve will initiate a new round of quantitative easing, many Americans are turning to gold coins, and other precious metals to protect their assets.
Head of precious metals strategy at HSBC in New York, James Steel added, ”The man on the street is still pretty committed to gold."