The US Mint reported that Gold Eagle and Silver Eagle sales through the first seven months of 2014 were down significantly as compared with 2013 sales for the same period. Dorothy Kosich, writing for mineweb.com, concluded: Investors’ lack of interest in gold and silver is being blamed for a substantial decline in American Eagle coin sales in July.
Obviously, a lack of interest resulted in reduced sales. But, what’s not mentioned in her article is that reduced sales and slow buying periods for the metals often come at market bottoms.
It is also true that huge buying volumes often occur at market tops.
Gold Eagle sales through July totaled 296,000 ounces, down 56.4% from the same period of last year when 679,500 ounces were sold. It is the slowest start through the first seven months of the year since 2008.
Silver Eagle sales totaled 26,103,500 ounces through July, down from the 29,450,000 sold through July last year. Whereas Gold Eagles sales during the same period last year fell 56.4%, Silver Eagle sales slipped only 11%.
With the gold/silver ratio at 65, it makes sense to buy silver instead of gold—if you can handle silver’s bulk and weight.