The recently depressed international gold price, which had been dithering around 1165 USD/oz, has caused a statistically significant surge in demand for the commodity over the last week or so. Investors from Germany and the USA are returning to the marketplace in their droves after several years of sitting on their hands. Markets closed on Friday at 1189.01 USD/oz, having seen a jump of almost 30 USD/oz in just a few hours.
Bullion sales of both gold coins and gold bars at North American and European mints have shot up, with many individual investors showing an interest in acquiring small gold bars in particular. Reports say that sales volumes such as these have not been seen since the gold price took a 200 USD/oz tumble back in April 2013 in just a couple of days. Germany’s Degussa Group – Europe’s largest gold and silver trader – has reported sales at three times their usual level. The group’s CEO, Wolfgang Wrzesniok-Rossbach, said, “We had to extend trading hours by half an hour on Friday evening, as there were so many people still waiting to make purchases.”
Only last Friday, the US Mint sold 1,425,000 oz of silver bullion American Eagles, representing the greatest level of sales this year since 13th January, the day on which the new 2014 coins first became available. Sales of the gold American Eagles were also up, with the Mint selling 67,500 oz during October, but on Monday alone, sales of 12,000 oz were seen, equating to about a fifth of October sales.
Scott Spitzer, of Manfra Tordella & Brookes, considers 1180 USD/oz to be somewhat of a benchmark at the moment when it comes to attracting investors, and believes the recent fall in the gold price below that level has drawn many investors back to the market. Daniel Marburger of coininvest.com has also said that with gold prices being as low as they are at the moment, “it is a great entry point” for price-sensitive investors.
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