Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
According to the latest figures from the US Mint sales of American Eagle gold coins – a good indicator of overall retail demand in the US – jumped 16% month-on-month in October to 67,500 ounces.
It is the third month in a row of rising sales and October sales were the second highest this year after a very strong start to 2014 with 91,500 ounces sold in January.
October sales increased by just under 40% from the corresponding month in 2013. Year to date sales total 446,500 ounces – still well below the 752,500 ounces sold during the first ten months of 2013, however.
Gold Eagle sales soared following the global financial crisis to top 1.4 million ounces in 2009, but have been declining since then for a total of 856,000 in 2013.
Sales of American Eagle silver coins mostly tracked gold bullion sales, but over the last couple of years have been diverging.
Just under 5.8 million were shipped in October, the second best month in history after January 2013 and a 87% surge over October last year.
Year to date sales now total 38 million, slightly behind purchased over the same period in 2013, but the second highest figure on record.
Judging by strong and rising sales since July, 2014 could set a new record for annual silver coins sales. American Silver Eagle sales totalled 42.6 million in 2013.
The American Eagle gold and silver were launched in 1986 with more than 20 million ounces of gold and 390 million silver ounces sold since then.
