Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Investors scoop up new U.S. platinum coins as gold slumps

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/01/2014 | 11:54pm CEST

U.S. retail investors have raced to scoop up the government's newly launched platinum coins, data shows, as industrial metals prices outperformed bullion, a long-time favorite among collectors.

In the first three weeks since relaunching the American Eagle platinum coins on March 10, the U.S. Mint sold some 10,000 ounces, data showed. In March, platinum prices rose almost 1 percent, sharply outperforming gold's 3 percent fall.

Sales of the Eagle platinum coins remained small compared with sales of lower-cost established products like silver coins, but the total is almost a third of the 33,000 ounces sold in 2008 before the government abandoned the product due to weak demand.

Dealers said the early, brisk pace of sales reflects pent-up demand and worries about future supplies from top-producing country South Africa. Platinum held by the world's major exchange-traded funds was currently at their highest level in at least four years, Reuters data showed. <GOL/ETF>

"The outright platinum market has actually been performing better than gold and silver, and that has helped attract some investors to the physical platinum market," Said Roy Friedman, executive vice president at Dillon Gage, a major U.S. coin wholesaler in Dallas.

Investors have been piling into the platinum market on hopes that an improving global economy will boost the metal mostly consumed by the auto industry.

The Mint resumed selling its platinum bullion coins on March 10, ending a four-year absence from the market.

Demand for gold coins, considered a benchmark for retail appetite for bullion, sank as investors continued to liquidate stockpiles.

Gold coin sales totaled just 21,000 ounces in March, its lowest in seven months and its weakest March since 2007. It is down 70 percent from a year ago.

Wealthy investors continued to sell used coins, flooding the beleaguered market with secondary supplies and hurting demand for new 2014 coins.

"The sales of new gold eagles have been impacted by several large institutional investors' liquidation of previous years' gold Eagles," Friedman.

"Consumers and investors alike have been taking advantage of the lower-premium non-2014 coins."

Investors started liquidating stocks of older-dated coins in February due in part to the sudden recovery in bullion prices. The sales were conspicuous coming early in the year, usually a time when investors load up on new gold coins.

The trend fed worries that investors are cashing in stockpiles hoarded during the long rally in bullion prices that ended last year. It also undermined hopes that tensions between Russian and Ukraine may reignite demand for gold as a safe-haven investment.

Last year, gold price fell $225 on April 12 and April 15, a record two-day drop that unleashed years of pent-up demand for gold coins among retail investors. However, the wave of strong retail buying faded by the second half of the 2013.

U.S. coin sales tend to be highly seasonal, with the strongest performance at the start of the year as investors seek the most-recent mintage, and the fourth quarter usually being the quietest of the year.

Meanwhile, sales of silver Eagles rose 60 percent year-over-year to 5.35 million ounces in March, the highest in 14 months, as dealers stocked up on inventory after the Mint had boosted its inventory.

Increased supply of silver coin blanks and stronger inventory at the U.S. Mint allowed dealers to buy more silver coins in March, Friedman said.

(Reporting by Frank Tang; Editing by David Gregorio)

By Frank Tang

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
03:28a Asian shares retreat from highs after Trump tax plan
03:27a 1 IN 4 FHBS WILLING TO COMPROMISE ON SPACE TO BUY PROPERTY : research
03:27a MANHATTAN : Quarterly Report 31 March 2017
03:27a AER AUSTRALIAN ENERGY REGULATOR : reports on 8-9 February high wholesale electricity prices in South Australia and New South Wales
03:26a SUNCOR ENERGY : Canada's Suncor posts better-than-expected first-quarter profit
03:24a EMIRATES TELECOMMUNICATIONS GROP : Digital shift factor in Q1 profit growth-Etisalat CEO
03:24aDJSAMSUNG ELECTRONICS : Says It Won't Become a Holding Company
03:23a SEIBU : Sports schedule for Friday, April 28
03:22a AFRICAN ENERGY RESOURCES GUERNSEY : March Quarterly Activities and Cashflow Report
03:22a APPEA AUSTRALIAN PETROLEUM PRODUCTION & EXPLORAT : Gas export controls no substitute for genuine reform
Latest news
Advertisement
Hot News 
-10.26%French stocks hit nine-month high as earnings power European shares
3.81%ANTHEM : Membership, Operating Revenue Beat Expectations
7.45%CROESUS RETAIL TRUST : Says It Was Approached With Offer
3.39%América Móvil Says Wireless Price War Has Eased
-1.40%NASDAQ : Acquisitions help Nasdaq beat profit estimates
Most Read News
06:38p Tesla hikes pay to quell unrest at key German supplier
07:58p CONOCOPHILLIPS : Cenovus faces investor displeasure after ConocoPhillips deal
08:19p SAMSUNG ELECTRONICS : sees stronger earnings from chips, phones after first-quarter profit jump
06:19p PayPal offers positive outlook, beats expectations
06:35p AMGEN : Cost controls help offset lower Amgen first-quarter drug sales
Most recommended articles
04/21 TWENTY FIRST CENTURY FOX : Government extends period for regulators to report on Sky-Fox merger
09:26p SUNCOR ENERGY : Canada's Suncor posts better-than-expected first-quarter profit
09:24pDJSAMSUNG ELECTRONICS : Says It Won't Become a Holding Company
09:15p Companies cheer Trump tax cuts, but jobs are less certain to follow
09:15pDJTrump Administration Launches Probe of Aluminum Imports -- 2nd Update