Sales of gold and silver coins by the US Mint more than doubled to record levels in February even as hedge fund managers like George Soros pulled money out of exchange traded products for the yellow metal.
Exchange traded gold holdings dropped by 109 tonnes in February, falling to a five-month low at 2,503 tonnes. However, sales of American Eagle gold coins jumped by 283 per cent to 80,500 ounces compared with February 2012 and silver coin sales more than doubled to 3.4 million.
February 2013 was the third highest month for gold coins sales by the US Mint since September 2011 when gold set an all-time high of $1,923 an ounce. Why are we seeing this wide disparity between sales of coins and the ETPs?