Gold is Selling at a Premium to Retail Investors

$XAU $GLD

Retail buyers for gold coins and bars are now paying a healthy premium per oz for the precious Yellow metal.

Retail consumers who want to buy gold coins usually have to pay more than the per-ounce prices quoted on financial markets in London and New York.

That premium has jumped to $135 oz, more than 3X from 8 wks ago

There has never been a time for American Gold Eagles at this premium level.

The surge is being exacerbated by coronavirus-related lockdowns, which have led to a squeeze in the supply of coins and bars available for shipment around the world.

At the same time, bullion’s status as a safe-haven has been luring investors cautioned by economic turmoil.

“For every coin we mint, be it gold or silver, we could probably sell 5 or 6 of them,” the Perth Mint

Until the world catches up with the imbalance and gets back to a normal balance of supply and demand, the premiums will hold.

Gold-coin premiums tracked by Certified Coin Exchange are at the highest levels in 6 yrs, data shows.

Last year, bar and coin demand fell by 20% to the lowest level since Y 2009, hurt by costlier prices that discouraged retail bullion buying globally, according to the World Gold Council (WGC).

That began to reverse in Y 2020, with investors buying up coins sold by the US Mint in March at the fastest pace in over 3 years.

There is a factor in the market that many of the buyers do not trust the system anymore and want to get their precious Yellow metal in their hands for certain.

Have a healthy day, Keep the Faith!

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