This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: U.S. Mint can’t keep pace with demand again, Goldman chief calls silver a supercharged version of gold, and amateur prospector unearths a long-lost golden treasure from Medieval times.
U.S. Mint runs out of gold and silver coins
Just when we’d hoped the U.S. Mint might’ve worked its way through the pandemic-driven backlog of gold and silver coins, a new surge in demand worsened supply shortages. Last year, the U.S. Mint saw a 258% increase in purchase of gold coins and a 28% increase in silver coins, with heavy buying continuing into 2021. They probably didn’t plan for what happened next…
On the heels of Reddit’s wallstreetbets triumphant (if brief) GameStop frenzy, the day traders searched for a new target. Some have settled on silver. Amid claims that silver’s price should be closer to $1,000 than $25, day traders have flocked to both gold and silver. This made the ongoing supply crunch even worse.
While silver’s price is still trading around $27, the supply dynamics tell a different tale. The U.S. Mint sold 220,500 American Eagle gold bullion coins in January 2021, a staggering 290% year-on-year increase from last January. It’s not just unexpected demand that’s causing problems, though.
As noted by a retailer of precious metals coins, “There was going to be a backlog in the silver bullion supply chain that rendered silver eagles more scarce either way.” This is because the U.S. Mint is currently changing designs for its American Eagle gold and silver coins, expected to debut this summer. Once available, the U.S. Mint will ration distribution of gold, silver and platinum coins to dealers due to heavy demand.
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