Despite gold's dull activity in 2021, it saw an impressive increase in physical demand throughout the year.
The updated sales data released by the US Mint on Monday showed that demand for physical gold reached its highest level since 2009. According to the US Mint, more than 1.25 million ounces of gold were sold in various denominations of their American Eagle gold coins last year. This is an increase of 48%.
According to the sales data, the mint's busiest month last year was in January when 220,500 ounces of gold were sold. Another memorable month for the mint was June, with 182,000 ounces of gold sold as the gold price fell more than $ 100 in a month as the Fed announced it was considering cutting its monthly bond purchases by the end of the year.
August was another busy month for the mint as 136,000 ounces of gold were sold. In early August, there was a sudden collapse in the gold market, which led to a price decline by more than 4% over the year, namely to a new low. However, investors were quick to buy back the drop below $1,700 per ounce.
October and November also saw strong gold sales. As inflationary pressures surged, hitting multi-year highs, physical gold began to grab the attention of investors again.
Analysts note a high physical demand for gold, as investors take strategic positions in their portfolios. Many economists say that precious metal remains an attractive means of protection against inflation.
According to the president of Universal Coin & Bullion and named as Dealer of the Year of the American Numismatic Association in 2021, Michael Fuljenz, said last year that his investment company saw that new customers showed interest in gold.
However, the silver market has lagged behind while demand in the gold market has reached its highest level in more than a decade.
The U.S. Mint sold 28.275 million ounces last year, which is 6% less than in 2020 when more than 30 million ounces were sold.
Nevertheless, the demand for silver was very strong at the beginning of the year as more than 12 million ounces were sold in the first quarter.
In 2021, the U.S. Mint sold 75,000 ounces of platinum coins, which is 32% more than last year. Demand for physical platinum has risen to its highest level since 1998.
The World Platinum Investment Council said that as it develops and moves towards green energy, the undervalued precious metal is attracting the attention of new investors.
One area of platinum demand that is attracting attention is the growing hydrogen economy. Platinum is the most important metal used to separate hydrogen and oxygen in the water. The hydrogen is then used to generate electricity and can also be used in fuel cells to drive vehicles.
