Dr. Constantin Gurdgiev has analysed the data of US Mint coin sales in December 2012 and has looked at them in their important historical context going back to 1986. He is one of the few academics in the world to have researched and written academic papers about gold.
We believe that the fall in demand is due to renewed complacency regarding the global debt crisis. It is also likely due to the fact that traditional buyers of gold coins and bars have secured their allocation to store of wealth gold bullion in recent years. It may also be because there are only a few new retail buyers coming into the bullion market in western countries – unlike in Asian countries and particularly China.
U.S. Mint data does not support the view of a dramatic, reckless, greedy buying of gold by the fabled speculatively crazed retail buyer or the fabled ‘gold rush’ that some headline writers and media commentators have claimed is taking place.
Three consecutive years of falling demand for gold coins and the lowest demand for U.S. gold coins since 2007 shows how those still calling gold a bubble, for very simplistic reasons, remain ill informed.
Bubbles are of course characterised by mass participation by the public and surging demand to record levels.