Gold advances third straight day; U.S. Mint gold and silver bullion coin sales rocket higher

(USAGOLD – 11/3/2020) – Gold advanced for the third straight day as investors contemplated election day with trepidation, virus case counts mounted both in the U.S. and overseas, and the dollar dropped sharply in overseas trading. The yellow metal is up $12 at $1909. Silver is up 20¢ at $24.38. Most of the incentive in the gold and silver markets since early in the year has been inspired by a perceived need for a store of value. Investor demand for physical gold and silver has grown notably over the course of the year – a trend resulting in strong bullion coin sales at the world’s largest and most prolific national mints, the U.S. Mint included.

“You will not hear about this in the mainstream financial press,” says Moe Zulfiqar of the Lombardi Letter there’s a gold rush happening at the moment, and it’s getting bigger. It makes a strong case for much higher gold prices. Understand that gold prices move based on demand and supply. If demand is increasing, price tends to move higher. Right now, there’s a perfect storm brewing even with the precious metal prices near their all-time highs—demand is surging. Want proof? Just look at mint sales around the world to get some idea of what’s happening. … I see a time when there could be a massive divergence between physical gold and paper gold. Meaning, you might get completely different gold prices when you go buy physical gold bars or coins versus when you buy gold futures and options.”  (Please see our Chart[s] of the Day and note immediately below)

Chart[s] of the Day

bar chart showing U.S. Mint gold coin production 2011 to present

bar chart showing U..S. Mint silver coins production 1022 to present

Charts courtesy of GoldChartsRUs.com

Chart note:  Through October 2020 the U.S. Mint has sold 709,500 ounces of gold in the form of American Gold Eagles and 24,533,500 one-ounce silver American Eagles. That compares with 152,000 ounces and 14,863,500 ounces respectively for all of 2019.  In percentage terms, gold Eagle sales are up 467% and silver Eagle sales are up 165%. 

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