U.S. Mint sees strongest gold bullion demand in 23 years

4.7.22 - Strongest Gold Demand in 23 Years -US Mint

Gold last traded at $1,933 an ounce. Silver at $24.64 an ounce.

NEWS SUMMARY: Precious metal prices rose on safe haven buying and dollar weakness. U.S. stocks fell as investors reacted negatively to the latest Fed communications.

Kitco--"Rising inflation and safe-haven demand resulted in extraordinary demand for physical gold in March, capping off the best start to the year in more than two decades.

In its latest sales data, the U.S. mint reported that it sold 155,500 ounces of various denominations of its American Eagle Gold bullion coins, up 73% from last month. The U.S. Mint saw its best March performance since 1999.

March ended a solid quarter for bullion demand. The U.S. mint sold 426,500 ounces of gold between January and March, up 3.5% from the first quarter of 2021. Similar to its monthly says, this was the mint's best quarter in 23 years.

According to analysts, two factors are driving demand for physical precious metals: inflation and Russia's war with Ukraine. Analysts are focusing a lot of attention on Europe's economy as the region faces rising consumer prices and the growing threat that Russia could weaponize its energy commodities as it faces growing sanctions against Western nations.

'People increasingly realize that high inflation is not temporary but has come to stay - and most likely get even worse, especially in Europe,' said Thorsten Polleit, chief economist at Degussa, in an email statement to Kitco News. 'The war in Ukraine represents a huge risk for the eurozone. For instance, if the inflow of oil and gas and coal from Russia into Europe comes to a shrieking halt, a very severe recession with mass unemployment and the collapse of various industries would be most likely.'"