US Mint – increased demand for bullion coins

The US Mint is the world’s largest producer of gold and silver bullion coins. The bullion coin program provides consumers a simple and tangible way to acquire precious metal coins. Investors purchase bullion coins for the intrinsic metal value and the United States Government’s guarantee of each coin’s metal weight, content, and purity.

The Mint sells the coins to the authorized purchasers at the same market price paid for the metal, plus a premium to cover bullion program operating costs. Authorized purchasers agree to maintain an open, two-way market for these coins, assuring their liquidity. This allows the public to purchase and sell bullion coins at the prevailing market price, adjusting for any premium the authorized purchaser applies.

The Mint reported that in terms of ounces sold, 49.7 million ounces of bullion was sold in fiscal year ended September 30, 2015, including a record-breaking 47.9 million American Eagle Silver Bullion Coins. This is the most bullion and the most American Eagle Silver Bullion coins that was ever sold since the Mint began selling it in 1986. The bullion coin program revenue, net income, and ounces sold all increased compared to the previous fiscal year. Revenue totaled $2,126.1 million, up 17.2 percent from $1,814.4 million last year. Net income increased 117.9 percent to $61.0 million from $28.0 million.

Demand was higher for gold and silver bullion coins, but not for platinum coins. The Mint was not able to secure a supply chain of blanks that met delivery requirements to produce platinum bullion coins in fiscal 2015.

Demand for bullion coins are dependent on trends in commodity market prices. These commodity prices are, in turn, dependent on variables such as global supply constraints, perceived strength as a safe-haven asset, currency exchange markets, and earnings potential from other commodities or investments.

For fiscal year 2015 US Mint reported that gold bullion coin sales increased 316 thousand ounces to 1,018 thousand ounces, with a 54.6 percent increase in American Eagle Gold Bullion Coin ounces sold compared to fiscal 2014.Gold bullion revenue increased by 32.8 percent to $1,231.8 million because of increases of 7.8 percent in American Buffalo and 41.3 percent in American Eagle revenue, respectively.

Coinciding with more gold volume and revenue, fiscal year 2015 gold bullion net income increased $4.6 million, driven by a $4.8 million increase in American Eagle Gold Bullion Coins. American Buffalo Gold Coin earnings decreased by $0.2 million.

What these figures indicate is that there is increased demand for bullion coins by investors. The coins are easy to purchase and store. If you are thinking of purchasing bullion coins for your IRA, an IRS sanctioned custodian must store the bullion coins on your behalf. To find out more about bullion coins for your IRA and get a free information booklet go to Regal Assets. Regal Assets specializes in IRA gold rollovers.

According to a report published on king5.com, King Five news website the top five most popular bullion coins, based on global sales are:

Globally, gold has universal appeal for its financial value, cultural value and vanity value. Gold is used in jewellery, used to diversify risk in financial portfolios and protect the wealth of nations. This means that there will always be demand for gold no matter what stage we’re at in the economic cycle. Different players will provide demand at different points in the economic cycle.

Gold is a unique diversifier in financial portfolio as it uncorrelated with the economy. Get your free gold information kit to-day and find out if you should buy gold for your IRA.