The mint sold 147, 000 ounces of United states Gold Eagles in various denominations totaling 200, 500 coins. That was a 67% increase from March.
So far this year, the US Mint has sold 661, 500 ounces of United states Eagles. For the year, gold bullion demand is up a staggering 617%. When you factor away COVID-19-related sales disruptions, bullion sales are up 400% over the 5-year average among 2015 and 2019.
A market strategist informed Kitco News that the surge in demand for physical metallic reflects growing investor stress and anxiety bubbling under the surface.
“ Bullion sales better reflect the anxiety investors are sensation right now. When you hear economists talk about a recession, it starts to make sense why bullion sales are so strong. Gold will always be a long-term store of value. ”
“ I don’t think it’s going to be a mild recession. I believe this recession is going to be even worse than the Great Recession that will started following the 2008 financial crisis. ”
The mainstream doesn’t seem to have picked up on this indeed, but the demand for actual gold may indicate at least some people are beginning to worry.
Institutional investors concentrate more on the futures marketplace. As Peter noted in a recent video on gold’s recent performance, the popular still thinks the Given is going to successfully fight inflation by raising interest rates and believes the central financial institution has the tools to get inflation back to 2%.
“ Rather than fearing inflation, they’re fearing the particular fight against inflation. ” Schiff said. “ Because how s the Fed going to fight inflation? It’s going to jack up interest rates. It’s going to have a tight monetary policy. In fact , it’s also going to start shrinking the total amount sheet. It’s going to start taking cash out of circulation — quantitative tightening. It’s going to reverse all of that inflation. It’s going to suck upward that liquidity. And that is what is scaring investors out of buying gold and silver. They still have self-confidence in the Federal Reserve. ”
Peter said faith in the Fed is misplaced, and he stressed that the Fed is only pretending it’s going to combat inflation .
“ Because it’s also pretending the economy will be strong enough to withstand the fight. It’s not. Even though the fight is usually inadequate to solve the pumpiing problem, it’s going to cause a big problem for the economy that is so levered up on debt. ”
A senior commodities broker with RJO Futures informed Kitco News that he doesn’t think interest rates can go excessive higher because of the government’s huge twin deficits – spending budget and trade .
“ Gold futures are capped by rising interest rates, yet people have been going out to buy the physical metal to have some ‘ real money’ stashed away. ”