Gold coin sales register fifth best year since
2002, 30% increase over 2014
Global investors
snapped up a record 89.6 million one ounce silver coins in 2015, according to
USAGOLD’s annual survey of global bullion coin sales. The strong 2015 showing
follows an equally impressive 2014 for silver coins at 77.9 million ounces and
2013 at 85.4 million ounces. Year over year, silver bullion coin demand was
up 14% from 2014. Last
year was a banner year for gold bullion coin sales as well – the fifth best
since 2002. National mints sold 2.75 million ounces in 2015 – an impressive 30%
increase over 2014.
There was nothing to distinguish 2015 from previous years
except that the price was right for both metals. Gold started the year at
$1188 per ounce and ended it at $1061. Silver, the more volatile of the two
metals, began the year at $15.73 per ounce and ended at $13.83. If nothing
else, seasoned precious metals buyers – and that is the group that dominated
the action in 2015 – like a bargain. Retirement investors are a large and
consistent demand source, particularly for the U.S. Mint’s gold and silver
American Eagle coinage.
As you can see from the charts, demand for both metals
grew significantly after the 2008 financial crisis and never returned to
pre-crisis levels. The persistent demand over the period indicates lingering
concerns among investors about the economy and the potential for a similar
crisis at some future date.
Past supply disruptions signal more of same for
future
The U.S. Mint reports sales for the silver Eagle would
have been much higher in 2015 if it could have secured more coin planchets.
Planchet manufacturers have consistently been unable to supply enough blanks
to meet the extraordinary demand over the past several years. The mint
suspended silver Eagle sales this past July when a sharp price decline
generated huge demand among investors. It did not begin delivering wholesaler
orders again until mid-August.
The U.S. Mint has suspended wholesale allocations for one
or both metals in 2009, 2011, 2013, 2014 and 2015. Since the 2008 crisis,
there have been numerous stoppages at other national mints in the face of
strong, unprecedented investor demand for both gold and silver bullion coins
that depleted stocks. As a result, worries about potential supply disruptions
consistently haunt the bullion coin market.
Bill Bonner, the long-time market analyst who founded the
Agora publishing empire, recently warned investors about the potential for
further disruptions:
“[T]here will be one important difference between the new
super spike and what happened in 1980. Back then, you could buy gold at $100,
$200, or $500 per ounce and enjoy the ride. In the new super spike, you may
not be able to get any gold at all. You’ll be watching the price go up on TV
but unable to buy any for yourself. Gold will be in such short supply that only
the central banks, giant hedge funds, and billionaires will be able to get
their hands on any. The mint and your local dealer will be sold out. That
physical scarcity will make the price super spike even more extreme than in
1980. The time to buy gold is now, before the price spikes and before
supplies dry up.”
The U.S. Mint reports continuing high levels of demand
thus far in 2016 with mintage figures for both gold and silver bullion coins
running well ahead of 2015’s pace.
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Note about the charts: USAGOLD publishes these
composite graphs of global gold and silver bullion coin sales annually from
production figures published by the world’s leading national mints. As far as
I know, the graphs are the only ones of their kind. We usually publish this
report in late spring or early summer due to the reporting schedules of the
various mints. Though the United States Mint publishes its mintage figures
monthly at its website, others, like the Austrian and Royal Canadian mints,
report annually and usually not until May or June of the following year. As a
result, it is usually nearly mid-year before we get the complete picture and
are able to pass it along.
I would like to thank our webmaster, Jen Dentry, for
constructing the charts on bullion coin demand and coordinating data
compilation with the various national mints. In turn, we would like to thank
the national mints for working with us to make these charts possible.
