Muenze Oesterreich AG (MUEN), the Austrian mint that makes Philharmonic coins, expects “quite good business” for gold in the next couple of months as central banks continue to print money and on wealth-protection demand.
While mints from the U.S. to the U.K. reported a surge in sales after gold’s plunge into a bear market in April lured buyers, the Austrian mint sold the same amount of ounces from January to May as in the first five months of 2012, Marketing and Sales Director Andrea Lang said in an e-mailed response to questions from Bloomberg yesterday.
“We expect quite good business for the next couple of months,” Lang said. “Same good reasons for buying gold as a year ago are still valid. Global stimulus forecasts and effectively negative interest rates are helping gold, as well as the fact that it is seen as a safe haven.”
Gold entered a bear market in April as some investors lost faith in the traditional store of value. Futures in New York slumped 13 percent in two days and have recovered 6.8 percent since the April 16 low to trade at $1,411.80 an ounce.
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Britain’s Royal Mint, which saw its gold-coin sales triple in April, said a surge in demand continued into June.
“Since the dip in the price of gold, the Royal Mint has seen a steep increase in demand for its gold coins which has continued over recent weeks,” Shane Bissett, director of bullion and commemorative coin at the Royal Mint, said today in an e-mailed response to questions from Bloomberg.
The U.S. Mint said this week its gold and silver coin sales may be a record this year if demand continues at the current pace. The mint sold 12,000 ounces of American Eagle gold coins this month, compared with 70,000 in May and 209,500 ounces in April.
In contrast, investors in exchange-traded products sold $6 billion worth of bullion last month as they put more money into stocks and bonds, London-based ETFGI Ltd. said June 5. Sales from gold ETFs so far this year have surpassed combined inflows over the past two years.
“Because it is seen as an anchor of stability, even central banks are investing in gold,” Lang said. “Private investors in particular have realized that physical gold is perhaps an even safer asset than ETFs.”
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