Friday, September 26, 2008

US Mint: Demand has exceeded supply for gold coins

From Reuters:

NEW YORK (Reuters) - The U.S Mint said Thursday it was temporarily suspending sales of American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.

"Demand has exceeded supply for American Buffalo 24-karat gold one-ounce bullion coins, and our inventories have been depleted. We are, therefore, temporarily suspending sales of these coins," the Mint said in a memorandum to authorized American Buffalo dealers.

This is nearly unheard of - a price decrease in gold triggering a leap in demand for physical gold. What's going to happen when the price increases - complete hysteria?

Doesn't it seem slightly unusual that you can't find any physical gold to buy anywhere near current spot prices? I'm not inferring that spot prices are being artificially held down...that was soooo two weeks ago. Before the US government committed another trillion dollars or two to the bailout - er, rescue - of irresponsible financial institutions.

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