Gold coin sales surged in the US following the Presidential Election. The demand for this precious metal was driven by concerns surrounding the country’s rising debt and the lack of initiatives to address this.
Sales of the American Eagle gold coins rose by a whopping 131% in November 2012. Sales of these coins, which are the most sought after among gold coins, reached a record level in over two years. The Royal Mint of Canada also reported record sales in a month in 2012.

Terry Hanlon, president at Dillion Gage, which is among the largest bullion dealers in the US, pointed out that the sales jumped “within a day or two” of the Presidential Election. Hanlon added that a lot of people have been left feeling anxious that nothing would change after the elections.
Although coins comprise of a very small part of the total gold market, the surge in sales of gold coins depicted that people resort to gold as a form of investment during times of uncertainty. The worry stemmed from the political standstill in the capital city and speculation over more quantitative easing being adopted by the Federal Reserve after the completion of ”operation twist” by the end of 2012.

The head of precious metals at a leading bank said that it seemed like people had lost faith in ‘Uncle Sam’. The surge in sales does not imply any fondness for gold. Rather people are investing into the precious metal to secure their wealth.

However, the gold market has been skirmish for some weeks despite the rising sales for gold coins. James Steel, head of precious metals strategy at HSBC in New York said, “The institutional investors cut back and are more on the sidelines now,” while adding, “But the coin market is dominated by retail investors and the man on the street is still pretty committed to gold.”
Dealers rushed to stock up before the year ended, as the US Mint stops the production of 2012 coins and begins manufacturing coins for 2013. This further boosted the sales of gold coins.

Dealers indicated that the jump in sales of gold coins were mostly driven by a rise in demand. Terry Hanlon said that his bullion dealer company witnessed the highest sales recorded on many days in November 2012, resulting in a 32% spike in overall sales volume when compared to the prior month. The head of sales at Royal Canadian Mint, Chris Carkner, also mentioned that November 2012 was a strong month for their sales. Maple Leaf coins are one the top contenders for circulation of gold coins in the world, along with the American Eagle gold coins.