US Mint gold coin sales and VIX at weakest in a decade

Very low gold coin sales and VIX signal volatility coming

Gold rises 1.7% this week after China’s Golden Week; pattern of higher prices after Golden Week

U.S. Mint sales do not provide the full picture of robust global gold demand

Perth Mint gold sales double in September reflecting increased gold demand in both Asia and Europe

Middle East demand likely high given geopolitical risks

Iran seeing increased gold demand and Iran’s gold coin price up by 5%

Trump’s war mongering could see demand accelerate

Germany seeingvery robust demand and now world’s largest gold buyer

Editor: Mark O’Byrne

VIX v US Mint gold salesSource: ZeroHedge

US Mint coin sales fell to a decade low last month. This follows poor sales since the beginning of 2017. In the third quarter sales reached nearly 3.7 million ounces. September gold coin sales were down a whopping 88% compared to the same period last year.

Year to date sales at 232,000 ounces are 66.5% lower than the 692,500 ounces delivered during the first nine months of 2016, according to the U.S. Mint.

American Eagle gold coin sales did see a slight uptick in demand from very low levels and increased by 11,500 ounces in September which was up by 21.1% in August.

US Mint- gold coin sales

Is this pick-up in US coin demand a sign of things turning around? Perhaps, but we believe the low coin sales this year might say something else about the wider economy. It is also important to look at gold coin and bar sales across the globe to get a better feel for actual demand.

Sign of the end, but for what?

Bloomberg were quick to point out that US Mint sales were at a decade low.

They believed this was due to investors turning ‘sour on bullion’ and that gold’s appeal ‘is waningas retail investors seek better returns in equities, lured by the S&P 500 Index’s climb to records.’

Bloomberg chart gold coin sales

However, the picture of declining gold coin sales has not been taken against the backdrop of the last decade.

ZeroHedgewere quick to spot a potential pattern and correlation with the VIX which may point to increased volatility and uncertainty and a prompt recovery in the gold price:

The first nine months of 2017 have seen demand for gold coins slump. As stocks soar unendingly (and vol drops unerringly) the US Mint notes that sales of coins is at its weakest in a decade as complacency in the face of ever-increasing potential-crisis-events nears record highs.

The question is what happened the last time the public gave up on buying protection against the idiocy of the political cycle?

The answer is awkwardly simple everything collapsed.

Thisis important news for those who are getting wary about the massive complacency and irrational exuberance currently seen in global stock and bond markets.

It’s not all about theU.S. Mint gold coin demand

Given how much Trump dominates the headlines it might be hard to remember that U.S. demand is not a reflection of total gold demand.

Whilst the U.S. Mint poor gold coin continued in September,their cousins ‘down underR