Gold Coin Demand Met by
The Royal Canadian Mint has been able to sustain
its inventory of gold coins, unlike the U.S.Mint,
as physical demand for gold has surged in
September due to volatile markets and financial
The U.S. Mint suspended one-ounce Buffalo gold
coin sales to authorized dealers Thursday when
demand exceeded supply. For the same reason in
August, the Mint had to suspend and then resumed
one-ounce American Eagle gold coin sales to
dealers on an allocated basis.
The Royal Canadian Mint has not turned away
buyers this year. Nor has it plans to do so — to
the contrary of reported market talk.
"Although we are facing growing demand, we can
keep producing the coins to meet the demand as
best we can," said Christine Aquino, Royal
Canadian Mint spokeswoman.
Why are Canadian gold coins, like the Maple
Leaf, still available to dealers when U.S.
American Eagle and Buffalo coins have faced
suspensions and allocations?
For one thing, the U.S. Mint relies on third
party vendors to supply major materials, like
coin blanks, in its manufacturing process. The
Royal Canadian Mint does not, resulting in
"The mint controls the gold bullion
manufacturing process from start to finish: we
refine our own gold, roll our own strip, make
our own blanks and strike our own coins," Aquino
Gold has gained about 20 percent since the
collapse in the share price of Lehman Brothers
on September 11. The yellow metal has long been
considered a safe-haven for investors during
times of economic stress and uncertainty, which
has spurred gold’s physical demand.
London gold climbed 3.3 percent for the week,
and closed to $902 an ounce on Friday.