Gold Buyers Stocking Up on Gold Bullion in Case of Economic Crises

Gold-BullionThe ups and downs of the economic market in the last decade have sent gold buyers in the direction of buying gold bullion coins. Statistics indicate that the sale of American Eagle coins have been increasing, with 1.1 million sold in 2012 and 1.5 million in 2013. The increase in gold bullion coin sales, according to the U.S. Mint’s website, also extends into this year, with about 500,000 sold already in the first quarter of 2014.

These coin sales come at the helm of a diving gold market, with recent sessions showing that gold finally steadied after two weeks of losses in the U.S. After nearly two months of inflows, the 25 tonnes of outflow in April was met with a level of relief from the exchange-fund. This change is considered a positive for gold dealers that are afraid the interest in gold has waned.

“Having gold and silver means that you can trade with any currency around the world,” explains the president of Accurate Precious Metals Refinery. “Gold and silver are an asset for anyone that wants to back to the dollar. When you’re investing like this, you can sell gold in the dollar form, or in the Yen, or any other currency that you choose.”

The constant flux in gold prices has often been a factor in the sporadic national interest in gold. The nation’s job market affects gold prices as well, and recently, economists projected a 210,000 increase in jobs and a decrease in the nation’s unemployment rate to 6.6%, and these changes cause dips and peaks in gold prices. In addition, geopolitical issues have also shifted the prices of gold over the years. The Ukraine situation that escalated after the Olympics triggered an increase in gold coin purchases within the U.S. in smaller markets. One precious metals trade and exchange dealer in Dallas, Texas, reported seeing an rise in their gold sales in the last few months as a results of this international crisis.

Despite the increase smaller dealers have seen, there are also reports that overall gold sales did not spike after Ukraine’s political problems. Even with the rise and fall in gold prices in the last few months, the demand of gold has only increased slightly, but remains lower than last year’s market, according to Reuters.

But these national numbers have not stopped buyers who are considering their interest in gold as part of a “security blanket,” in case the U.S. market crashes again. They are looking at cyber breaches, as well as national disasters that continue to ravish the nation as an indicator that having some actual gold can be their savior when banks are unavailable for transaction. With the level of disaster Hurricane Sandy inflicted on America, and security breaches like the one Target experienced, these buyers could have a point.

Investors Chronicle