According to a Bloomberg report, the US Mint complex in West Point, N.Y., is taking measures to reduce the spread of COVID-19 among its employees and expects production slowdowns for the next 12 to 18 months. According to a US Mint document, the facility can no longer simultaneously produce both gold and silver coins, forcing it to choose one metal over another.
With all of the economic chaos and uncertainty spurred by the government lockdowns in response to coronavirus, the demand for physical gold and physical silver has skyrocketed. That has put a significant squeeze on the supply of gold bullion products.
That squeeze is about to get tighter.
The sale of American Gold Eagle coins surged in September, according to the latest data from the US Mint. Investors snapped up 60,500 ounces of Gold Eagle bullion coins in various denominations. That compares with just 35,500 ounces in August — a 41% increase.
Gold sales at Australia’s Perth Mint rose to their highest level in nearly a year in August as investors took advantage of gold on sale.
According to the mint, sales of gold coins and minted bars surged 30% to 38,904 ounces last month. It was the strongest month of gold sales since November 2017. Sales were nearly doubled from a year ago, according to the mint.
“Lower bullion prices continued to support interest in our minted products among investors,” a company spokesman said.