Precious metals extend yesterday’s strong advance; U.S. Mint posts best year for bullion coin sales since 2016

(USAGOLD – 1/5/2021) – Gold and silver extended their advances this morning with the yellow metal pushing over the $1950 mark to trade at $1952 – up $6.50 on the day. Silver is up 16¢ at $27.47. “Demand for United States Mint bullion products,” reports CoinNet.com, “surged in 2020 to the highest points in several years – for both gold and silver coins…2020 American Eagle silver coins jumped to 30,089,500 ounces this year, more than doubling the amount of a year ago…2020 American Eagle silver coins jumped to 30,089,500 ounces this year, more than doubling the amount of a year ago.” In both the gold and silver bullion coin categories, 2020 sales were the best since 2016. The demand for modern bullion coins is, to a large extent, the mirror image of declining currencies against gold, as shown in our Chart of the Day.

Chart of the Day

Gold in Major Currencies
Indian rupee, Chinese yuan, British pound, U.S. dollar, Japanese yen, European euro

line chart showing the performance of gold in various currencies for 2020

Chart courtesy of TradingView.com • • • Click to enlarge

Chart note: Gold rose sharply in six of the world’s top currencies in 2020 – Indian rupee (+28.1%); Chinese yuan (+17.3%); British pound (+21.2%); U.S. dollar (+25.1%); Japanese yen (+18.9%) and European euro (+14.8%). Gold’s gain in those currencies reflects concern among the citizenry of present and future debasement as well as the attendant systemic risks.

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