U.S. Mint sells 147k ounces of gold last month, a sign of growing investor anxiety

6.2.22 - U.S. Mint sells 147k oz of gold in May

Gold last traded at $1,869 an ounce. Silver at $22.30 an ounce.

News Summary: Precious metal prices jumped Thursday as Treasury yields and the U.S. dollar retreated. Stocks turned higher as investors shook off a weak Microsoft outlook and Fed hike fears.

Kitco--"While gold prices appear to be trapped in neutral below $1,850 an ounce, physical demand for the precious metal appears to tell a different story, one of growing investor anxiety, according to some market analysts.

In its monthly sales data, the U.S. Mint sold 147,000 ounces of gold in various denominations of its American Eagle Gold bullion coins, the best May performance since 2010. Compared to April, sales are up 67%. For the year, bullion demand is up a massive 617%.

Even taking COVID-19-related production issues out of the equation, U.S. gold bullion sales are up more than 400% from the five-year average between 2015 and 2019....

'Bullion sales better reflects the anxiety investors are feeling right now. When you hear economists talk about a recession, it starts to make sense why bullion sales are so strong,' he said. 'Gold will always be a long-term store of value.'

Daniel Pavilonis, Senior Commodities Broker with RJO Futures, also said bullion sales better capture the current sentiment in the marketplace....

'Gold futures are capped by rising interest rate, but people having been going out to buy the physical metal to have some 'real money stashed away,' he said.

Pavilonis added that he is ultimately bullish on gold as there is solid demand for the precious metal. He said that he sees gold as undervalued given where inflation is and how persistent it will be through 2022."