With the New Year of 2016 quickly approaching, gold and silver investors are holding their breath. According to Coinworld.com, December proved a bit tricky for bullion sales, though a large dip wasn’t experienced.
As we welcome 2016, experts are expecting the prices of gold and silver to stay low, meaning another strong year of sales for gold and silver bullion investors. However, some are questioning just what the low numbers of December mean for the industry.
An estimated 2,000 ounces of gold coins (consisting of both American Eagle and American buffalo coins) were sold in December alone, while 2.3 million ounces of silver were sold. This marks the tail-end of a strong year for bullion, which included one million ounces of gold and 47 million ounces of silver coins sold. While these numbers certainly aren’t dismal, they are considered a bit low for the gold and silver bullion industry. However, an analyst at Bullionvault.com cites the bear market of the industry for this dip.
The past few years have proven very profitable for the U.S. Mint and sales of the American Gold Eagle coin; in fact, approximately $7.6 trillion worth of gold is circulated or deposited by the United States alone. Making up 80% of gold bullion in circulation in the country, the American Gold Eagle coin is a popular investment choice, especially in silver.
Citing a research report released by Barclays, analysts don’t see a connection between lower numbers of bullion sold with a consistent trend, instead citing a depleted stock for the decrease. The same analysts expect demand to pick up next year since metal prices are continuing to hover at lower levels.
Although December proved a bit tumultuous for bullion, don’t expect the trend to continue into the new year. Analysts expect 2016 to bring with it a new life for gold and silver, as well as more opportunities for investors.