NEW YORK/LONDON (Reuters) Sept. 25 — The U.S Mint told dealers Thursday it again was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins.
In mid-August, a shortage of American Eagle one-ounce gold coins due to “unprecedented” demand had forced the U.S. Mint to temporarily suspend sales of the popular coins.
Coin dealers in North America have reported a surge in buying of bullion coins and other gold products as troubles in the financial markets prompted people to seek a safe haven in precious metals.
Looking ahead, gold should draw support from physical demand in the world’s largest consumer India, which is approaching its traditional wedding and festival season.
Also on the agenda is the end of the fourth year of the Central Bank Gold Agreement Friday.
The World Gold Council said last month around 319 tonnes of gold have been sold so far by the European Central Banks that signed the agreement, out of a quota of 500 tonnes allowed in each year.
“It will be interesting to see how much of the allocation has been taken,” Moore said. “It looks as if it could be fully taken up.”
While that news may temporarily faze the market, it is unlikely to do any lasting damage to confidence in gold’s ability to weather the financial and economic storms.
A measure of investor interest in gold is the record holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, which on Sept. 23 hit a record 724.94 tonnes.
SPDR has seen its holdings increase by 18 percent, or more than 100 tonnes, since Sept. 15.
