Saturday, September 27, 2008

Canada Mint Says Able To Meet Demand For Gold Coins

OTTAWA, Sept 26 (Reuters) - The Royal Canadian Mint is not suspending sales of its gold bullion coins and is able to meet rising investor demand for the precious metal, a spokeswoman said on Friday.

"Although we are facing growing demand, we can keep producing the coins to meet the demand as best we can," said spokeswoman Christine Aquino.

Investors are increasingly interested in gold products as the crisis ripping through financial markets makes them appear as the safest haven.

Coin dealers from the United States and Canada have reported a surge in buying of coins and other gold products. On Thursday, the U.S. Mint was forced to temporarily suspend sales of its American Buffalo 24-karat gold one-ounce bullion coins because strong demand depleted its inventory.

There had been market talk that Canada might make a similar move. But Canada's mint is less reliant on external suppliers than its U.S. counterpart.

"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 said.

U.S. gold futures jumped 4.3 percent on Friday and traded above $920 an ounce on safe-haven buying and jitters over the outlook for a $700 billion rescue package for the creaking U.S. financial sector. (Reporting by Louise Egan; editing by Rob Wilson)

Source: Reuters.Com

No comments:

Post a Comment