By Dr. Constantin Gurdgiev

Based on data from the US Mint we can now update H1 2012 figures for sales of the US-minted gold coins. As the background – new coins issued by the US Mint, in my opinion, represent a much more fundamentals-linked asset as the demand for these coins differs, if only subtly, from the demand for gold as an asset:

* Coins are purchased by long-hold collectors;

* Coins are easier to purchase and store than gold bars, attracting more demand from savers, rather than speculative investors; and

* Coins are used frequently to store inter-generational wealth and start family savings schemes

* All of this means that correlations between demand for coins and gold price should be less pronounced and that is exactly what we observe throughout the historical and current data:

So with that in mind, what should we expect from the gold coins sales. (Cont.)

Full text is available on Dr. Gurdgiev’s blog, True Economics