November Boasts Highest Sales of US American Eagle Coins in 14 Years

The last time the classic American coin saw sales this high was in 1998, a celebrated year in which over 1.8 million ounces of American Eagles were sold. Last month, a total of 136,500 ounces of American Eagles were sold, triple the sales from last November, and the highest monthly total in 14 years.

The most influential factor in the month’s record sales is the uncertainty of the US economic situation and widespread fear of the ‘fiscal cliff.’ Safe-haven buying, triggered by the election, as well as some drastic price swings at the beginning and end of November also gave the American Eagle sales a boost. Both investors and speculators are hedging their investments in preparation for the volatile economic times ahead.

From Reuters:

“There is a new influx of new high-net-worth individuals that are buying a lot of gold, and they are taking physical possession of it,” said David Beahm vice president of Blanchard & Co., one of the largest U.S. retail coin and bullion dealers.

Investors are hoping that by stocking up on physical gold, they will be able to offset any negative economic consequences of the $600 billion in tax hikes and spending cuts set to go into effect at the beginning of the New Year. Many fear another recession if Washington is not able to stop us from driving off the ‘fiscal cliff.’

Adam Klopfentstein, a market strategist with Archer Financial Services, in a Nov. 9 Forbes article asserted that, “the fear index is creeping back into gold buying right now.”

The same article quotes Robin Bhar, a metals analyst with Societe Generale, as saying that many investors “reckon it’s probably worth having exposure to gold in case negotiations prove as difficult as they were in [2011] when debt-ceiling negotiations were drawn out.”

Although gold has enjoyed relatively higher prices since September, the spot price dipped below the $1,700 mark on Tuesday, prompting investors and speculators to wonder if we will see prices fall as far as they did this summer, when gold closed out at $1,573, its lowest of the year. Gold fell a bit more on Wednesday, finally closing at $1,694.

In a telephone interview with Bloomberg, the head of commodity strategy at TD Securities, Toronto Bart Melek, said: “Gold is being sold along with just about everything else in commodities with the worries on the fiscal cliff.”

If we see the price of gold continue to fall in the days to come, we will most likely see another monthly surge in gold coin sales, like we did in November, with more and more investors jumping on such low prices.

If you are worried about the near economic future and want to take advantage of falling gold prices, Gold Coin can facilitate a safe-haven buy for you. Our expert representatives can help you make the right gold coin or bullion purchase to help safeguard your finances during the chaotic weeks our economy stands to face. Feel free to contact us at 1-800-776-7253 and start building a safety net strong enough to get you through the possible recession to come.


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