We had a good laugh around the office when CNBC started running segments about how awesome gold coins were. You would think that people would have learned since scams like Goldline have been exposed, but sadly, that wasn’t the case. At least… that wasn’t the case according to the pundits.  Marketwatch now reports:

The U.S. Mint’s gold-coin sales have fallen for a third straight year as the gold market undergoes big changes in its investment landscape to allow more choices for investors.

Sales of 753,000 ounces of American Eagle gold coins last year tumbled 25% from 2011, according to data from the U.S. Mint reported earlier this month. That was the lowest yearly sales total since 2007. In December, sales rose 16% from a year earlier, but fell 44% from the prior month. Read the WSJ story: U.S. mint gold-coin sales fell 25% in 2012.

At least investors may be growing more wary of gold coins as a means of investing in gold. Granted, gold coins from the US Mint aren’t really a bait and switch scam in the manner of Goldline… although they’re still going to be marked up somewhat compared to bullion or gold futures. And there are still a ton of investors who believe that gold is the answer to their prayers, even though the yellow metal has been demonstrating its typical volatility and tendency to cycle downward after a run up:

Chart courtesy Finviz.com. Disclaimer: past performance is not necessarily indicative of future results.

We know the general desire to own gold will never go away… no matter what the evidence against trying for a buy and hold gold position. In the meantime, we’ll take solace in knowing that investors have at least begun to shy away from the coin version.