Gold Demand 'Causing Coin Shortage'
Source: World Gold Council (2/26/09)
"There is demand for double or triple what the U.S. Mint is able to produce."
The world's mints are struggling to output enough of the precious metal, as investors step up their efforts to safeguard their money in the current economic climate, the Financial Times reports.
As a result, premiums on gold coins are rising above the price of spot gold by as much as 5%, with items such as the U.S. Mint's American Eagle and South Africa's Krugerrand proving popular with buyers.
Over 193,000 ounces of the American Eagle were sold in the first seven weeks of 2009, with Michael Kramer, president of the MTB in New York, telling the news source that the industry is struggling to keep up with the high sales figures.
"There is demand for double or triple what the U.S. Mint is able to produce," he was quoted as saying, adding that the demand has been "extraordinary."