Gold Price

Gold Coin Premiums Narrow - US Mint Reports Large Drop

Written by Economic Calendar     September 02, 2016    

Gold futures finished Friday’s session slightly higher as the US Labor Department’s report that the US economy added a smaller-than-expected amount of jobs in August dulled expectations that the Fed would increase rates in September.

The price movement; however, was muted as market participants still believe that a rate hike will occur by year end.

On Friday, gold futures added 0.7% to settle at $1,326.70 an ounce. Over the week, gold gained 0.1%.

Gold’s subdued activity over the week extended to the gold coins market and there were some slightly adjustments to gold coin premiums. When it came to the major American gold coins, American Gold eagle coin premiums increased slightly to $58.90 over spot, up just slightly from last Friday when the premium was $59.48. Premiums on American Buffalo coins took a bigger hit, declining to $60.21 from $62.20 last Friday. Note, that last week premiums on American Buffalo were the highest of all the major gold coins.

When it comes to international coin premiums, premiums on Australian Philharmonic ended at $49.08 Friday, down slightly from the $49.57 last week, while premiums on Canadian Maple Leaf dropped to $45.81 from $46.27.

Meanwhile, government data released this week showed a dramatic fall in US Mint sales of American Eagle gold coins in August, while silver coin sales saw an even steeper decline. The US Mint sold 58,500 ounces of American Eagle gold coins in August, up 52% from July but down 40% compared to August 2015. Silver coin sales dropped to the lowest since late-2013. The retreat is sales is being attributed to the pull-back in the metals’ prices. Investors in physical gold typically increase their purchases when they think prices are poised to rise.