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Physical Gold Bullion Demand Sharply Increases During September

ByRyan Silver
Published 10/06/2014, 07:52 PM
Updated 07/09/2023, 06:32 AM
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The sharp pullback in gold prices and increased geopolitical tensions have boosted interest for physical gold from retail investors. As the price continues to fall, demand for gold from all over the world continues to rise and constrain supply. The gold price is currently sitting at a crucial spot at $1,200 which has been strong support since mid-2013.


During September, the U.S. Mint has sold around 50,000 ounces of their American Eagle gold coin. This sales figure is double what the Mint sold last month which was 25,000 ounces. The American Eagle is the most popular coin on the market and analyzing its sales figures is often a good way of quantifying the demand for physical bullion. However this sharp demand increase in U.S. gold coins is also evident in large gold bars that are being purchased by the super wealthy.

According to the founder of UK’s number one bullion online dealer BullionByPost, demand for ‘Italian Job’ style gold bars, weighing 12.5kg and worth almost $500,000 each has more than doubled since the same time last year. “These gold bars are usually stored in the vaults of central banks and are the same ones you see in the film ‘The Italian Job’,” added David Cousins, bullion executive from London based ATS Bullion. The sales of 1kg gold bars, worth about $40,000 each, has also doubled when compared to the same period last year, according to ATS Bullion sales figures. Will this sharp increase in gold bullion demand continue for the remainder of 2014? And if so, how long will it take for the supply of gold to become so constrained that is causes the market price to rise? 

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