AOL Money & Finance

Gold bullion sales hit record

More

Investors are rushing to buy gold bars and coins. The US Mint sold 92,000 American Eagle coins last month, four times that sold a year ago and more than it shipped in all of 2007

This is not only a US phenomenon. Other countries' mints are reporting strong sales. John Reade of UBS reported large purchases of coins, seen as a safe haven investment.


Inflows into gold backed exchange funds surged in January pushing holdings to an all time high of 1,317 tonnes. Barclays Capital (NYSE:BCS)saw that last months flows of 105 tonnes amounted to half of the world's gold mine output for January. Mr. Reade said that investment in gold could double in 2009 compared with 2007.

UBS(NYSE:UBS) and Goldman Sachs(NYSE:GS) said that some clients are hoarding gold in their vaults. They said this hoarding could drive prices over $1000 per ounce this year.

Jewelry demand has fallen because of the current worldwide downturn. However, investor buying is keeping demand strong. Gold is being used to protect against weakness in world banking systems.

Would you buy gold or silver?

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA-154.4810,309.92
NASDAQ-37.612,138.44
S&P 500-19.141,091.49

Last updated: November 27, 2009: 08:44 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines