And these record sales numbers were before the Cyprus fiasco...

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Eagle Sales Soar Even as Metal Prices Fall

Debbie Bradley

March 18, 2013

Sales of 1-ounce silver and gold American Eagle coins are soaring as market prices for the precious metals drop.

In fact, February sales of gold Eagles from the U.S. Mint were up 240 percent year over year, with sales of silver Eagles up 126 percent from February 2012 to 2013. The total number of troy ounces of gold sold during the two months in the form of Eagles was 230,500. For silver, the total was 10,866,500.

“More buyers are turning to physical gold and silver because of concerns over the U.S. debt and the crisis this huge debt level may bring to the U.S. economy over the next several years,” said Michael Haynes, CEO of American Precious Metals Exchange (APMEX).

Gold sold for about $1,750 an ounce a year ago, while today it hovers around $1,575. Silver dropped from around $34 an ounce in February 2012 to around $29 a year later.

“January and February for us were record type months,” Haynes said. “Our volume is extremely good; the physical markets are alive and well.”

Its APMEX Bullion Center on eBay had two of its top selling days ever in February, he said, and was frequently among the top 10 sellers on eBay.

Haynes called it “a perfect example of how many of the investors outside of the coin and bullion markets are being introduced to gold and silver.”

People are taking note of how the federal government debt is creeping up toward the debt ceiling, he said.

“Basically, you can’t grow the debt at 15 percent and grow the economy at 2 percent and expect to have a good result,” Haynes said.

That’s what people who are buying silver and gold bullion coins are thinking about, he said. And they like having their investment within reach.

“They prefer the physical because it is tangible and it’s not a promise like a piece of paper,” Haynes said. “They don’t want to ask anybody if they can have it.”

And the World Gold Council confirms that the annual net purchases of physical gold bars and coins have more than tripled since 2008.

While gold and silver Eagles are the most popular 1-ounce bullion coins in the U.S., Haynes said they by no means make up 50 percent of sales. Canadian Maple Leaf gold and silver coins also sell well, he said.

“A lot of people like Australia’s Kangaroo. It has a low premium over gold content. If you compare the Kangaroo and the Eagle, the Kangaroo is a little less expensive,” he said.

The Krugerrand is popular, but probably comes in at No. 4, he said, while in Europe it would rank first or second.

New Johnson Matthey 1- and 10 -ounce silver bars are really popular he said, as well as fractional bars.

So is now the time to buy silver and gold?

“It’s difficult to time markets. You don’t know what you don’t know,” Haynes said.

The best thing to do is look at your total investment portfolio, he said. Many financial advisors recommend a 5 percent minimum investment in precious metals.

Coin collectors have traditionally seen gold and silver as an investment hedge, Haynes said.

“Now the rest of the world is starting to figure it out, and they figured out it’s not just a speculative thing. They are figuring out that precious metals belong as a basic part of an investment portfolio.”