If you’re looking for bubbles, don’t look at gold coins

The physical and paper markets do not support the bubble top in gold argument often presented by media. The talking heads will become gold's biggest supports towards the end of the mania stage. Today's skepticism suggests that gold still has a long way to run.

US Mint Coin Sales (oz) and Spot Price of Gold (USD)


Headline: If you’re looking for bubbles, don’t look at gold coins

Once again, the evidence above does not imply any definitive conclusions as to whether gold is or is not a “bubble”. Instead, it points to one particular aspect of demand for gold -- the behaviourally anchored, longer-term demand for gold coins as wealth preservation tool for smaller retail investors. Given the state of the US and other advanced economies around the world since January, 2008, U.S. Mint data does not appear to support the view of a dramatic over-buying of gold by the fabled speculatively crazed retail investors that some media commentators are seeing nowdays.

Source: theglobeandmail.com