- Demand for physical gold this month at “a historically high level” – HSBC
- Q3 U.S. Mint gold sales set to dwarf those of previous two quarters
- Supply of physical silver “continues to be tight” and premiums rising
- China and India demand remains very strong
- Seasonal Asian buyers to add to demand in coming weeks
- Dovish Fed bullish for gold
Demand for physical gold and silver in August and September has been exceptionally strong as investors seek a safe-haven from market turmoil, as the global economy slows down and as it becomes clear that the Federal Reserve and central banks generally are slowly losing credibility and ultra loose monetary policies are set to continue for the foreseeable future.
BULLION COIN & BAR PREMIUMS & AVAILABILITY – September 18, 2015
|Gold Bars (1 oz – Perth Mint)||3.75%||In Stock|
|Gold Bars (1 oz)||4%||In Stock|
|Gold Bars (10 oz)||3.75%||Delivery Delay – 5 Days|
|Gold Bars (1 kilo)||2.00%||Delivery Delay – 5 Days|
|Gold Maples (1 oz)||4.25%||Delivery Delay – 5 Days|
|Gold Eagles (1 oz)||5%||Delivery Delay – 5 Days|
|Gold Krugerrands (1 oz)||4.25%||In Stock|
|Gold Philharmonics (1 oz)||5.00%||In Stock|
|Gold Buffalos ( 1 oz)||5.00%||In Stock|
|Gold Sovereigns (0.2354 oz)||8.50%||2015 In Stock|
|Gold Sovereigns (0.2354 oz – Pre 1933)||9.00%||Not available in volume|
|Silver Bars (100 oz Generic)||9.50%||Delivery Delay – October 4|
|Silver Bars (100 oz LBMA – Asahi Refinery)||9%||Delivery Delay – Nov 9|
|Silver Bars (1000 oz)||5.50%||Delivery Delay – 1 to 15 Days|
|Silver Eagles (1 oz)||35%||Not Available|
|Silver Maples (1 oz)||25%||Delivery Delay – Unknown|
Note: Given continuing and deepening delays for certain popular bullion coins and bars and rising premiums we believe it is important to keep our clients and subscribers aware of the most up to date premiums and availability. The prices quoted are indicative and can change at any time. We continue to be one of the most competitive bullion dealers internationally. The premiums quoted are for smaller orders and there are volume discounts and lower premiums on larger orders.
HSBC described gold demand from the U.S. Mint as being at a “historically high level” which indeed it has been. The bank report that the Mint has sold 322,000 ounces of gold in the first half of this month.
Of this, only 91,000 ounces were made up of Gold Eagle coins – the most popular coin with retail investors – although some market participants believe that some of the stock may be being accumulated by large institutional investors.
And yet, demand for gold eagles is still very strong with demand in Q3 set to dwarf demand of the previous two quarters. With two weeks still to go, total Gold Eagle coin sales have been a staggering 352,500 ounces.
That compares with sales of 146,000 oz in Q1 and 127,000 oz in Q2. So far this year Gold Eagle sales are almost 20% higher than last years total sales of 524,500 oz.
Silver eagle supply continues to be very tight with long delays and a lack of clarity about when supply will be available again. Premiums on Eagles have surged and some are selling for as much as 40% or more than $6 per coin over spot. Dealers report “unprecedented” demand for large silver bars.