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Thursday, 26th February 2009 (796 views)

Rising demand is creating a shortage of gold coins, it has been claimed.

The world's mints are struggling to output enough of the precious metal, as investors step up their efforts to safeguard their money in the current economic climate, the Financial Times reports.

As a result, premiums on gold coins are rising above the price of spot gold by as much as five per cent, with items such as the US Mint's American Eagle and South Africa's Krugerrand proving popular with buyers.

Over 193,000 ounces of the American Eagle were sold in the first seven weeks of 2009, with Michael Kramer, president of the MTB in New York, telling the news source that the industry is struggling to keep up with the high sales figures.

"There is demand for double or triple what the US Mint is able to produce,” he was quoted as saying, adding that the demand has been "extraordinary".

In related news, India Post announced this week that it is expanding its sale of 24-c gold to the state of Kerala, Commodity Online reports.

 

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