Perth Mint Demand Highest Since Lehman Brothers, Refines Coins, Bars During Weekend

Tyler Durden's picture

Submitted by GoldCore

Perth Mint Demand Highest Since Lehman Brothers - Refines Coins, Bars At Weekend

Gold is slightly lower today after yesterday's consolidation on last week's gains.

Premiums continue to rise on physical product across the world to reflect a significant increase in demand and very tight supplies. Premiums on gold and silver coins and bars are increasing across the world - from London to Frankfurt to Zurich to Turkey to Dubai to Mumbai to Singapore to Hong Kong to Tokyo and across the U.S. 

Physical gold stocks held at CME Group's Comex warehouses in New York have dropped to a near-five year low in a further sign that gold's recent weakness has unleashed a nascent mini gold rush of demand as people all over the world scramble to own bars and coins. 

Premiums to secure supplies in India jumped to five times the level before the slump. 

Physical bullion coins and bars for immediate delivery are not available in much of the world including in the Middle East and Singapore.

Consumers in Singapore and Hong Kong have seen premiums on bars rise sharply and Standard Merchant Bank (Asia) Ltd. said that “physical metal is still not available.”


Gold in USD, 3 Day – (Bloomberg)

Australia’s Perth Mint, the largest refinery in Australia and one of the largest in the world, said that demand has jumped to the highest level since the Lehman crisis in 2008.

Demand has been robust due to currency devaluation concerns and then the 15% price fall led to a massive surge in demand as store of wealth buyers leapt at the chance to acquire physical bullion at much cheaper prices. 

This led to the Perth Mint which refines nearly all of the nation’s bullion, having to stay open over the weekend to meet orders.

There’s been strong interest, including from the U.S., with buyers confident that the metal will rebound from the decline, Ron Currie, sales and marketing director, told Bloomberg in a phone interview from Perth.


Gold in Euros, 3 Day – (Bloomberg)

“We haven’t seen levels like this since the 2008 global financial crisis,” Currie said yesterday. “Compared to March sales, April sales have doubled or tripled,” he said.

“We worked all weekend to keep the factory running to make more stock and that was only to fill orders,” Currie said from the facility founded in 1899. “We’re being inundated with people buying products.”

As the Perth Mint's Approved Dealer in the EU, GoldCore are seeing a similar increase in demand - particularly for Perth Mint gold bars and allocated bullion accounts. 


Gold in British Pounds, 3 Day – (Bloomberg)

Bullion buyers who had been planning to buy coins and bars in the coming months have brought forward their purchases due to the much cheaper prices and concerns about rising premiums and difficulty in securing supply.

“We’re seeing people are coming into the market because the price has come down, they think they can afford it now and expect that it will go up again,” Currie said. “The U.S. has got the money to purchase metal and is doing so as a hedge,” he said, referring to individual investors. “It’s extremely busy for us in the U.S.”

Coin sales by the U.S. Mint are set for the highest month since December 2009, while premiums to secure supplies in India rose to five times the level before the slump.

While prices have gained 11 percent from a two-year low on April 16, they are still heading for the biggest monthly loss since December 2011.

Increased physical purchases may help to offset declining holdings in ETPs, which are on course for a record contraction in tonnage terms this month, according to data compiled by Bloomberg. Holdings have contracted 168 tons in April as weak more speculative hands were shook out of the market on the price decline.

Billionaire John Paulson, the biggest investor in the largest exchange-traded product backed by bullion, reiterated his bullish view on prices. 

The U.S. Mint said on April 23 it suspended sales of coins weighing a 10th of an ounce after demand more than doubled from a year earlier. The mint has sold 209,500 ounces of gold coins so far in April from 62,000 in March, according to data compiled by Bloomberg. The U.K. Mint said purchases tripled in April.

Gold is now testing resistance at the 50% retracement level and further price weakness is possible. However, the fundamentals remain as sound as ever and securing ownership of gold and silver bullion coins and bars at these prices and at these still relatively low premiums remains very prudent.

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GetZeeGold's picture

 

 

Remain calm......all is well.

Lets_Eat_Ben's picture

"G'day mate. What's the good word?" "More Tung...gold needed over here!"

 

Yeah...I'm going to need you to go ahead and come in this weekend OK? Great.

GetZeeGold's picture

 

 

I'm going to see if the ammo plant is hiring.....these work conditions suck.

Abraxas's picture

In other news, bitcoin soared in price due to decrease in mining and surging demand. Also, there is a genuine shortage of binary bits.

GetZeeGold's picture

 

 

I've got a portable hard drive I could loan you....let me know.

Abraxas's picture

Definitely! I'm also interested in buying some property on Mars. I hear that's going to be a hot cookie in the future.

francis_sawyer's picture

It ain't the kind of place to raise your kids... In fact, it's cold as hell...

Abraxas's picture

In that case, perhaps we can send our illustrious leaders and their families over there.

GetZeeGold's picture

 

 

Just make sure you make room the incestuous media.

He_Who Carried The Sun's picture

Don't you get it?

.
Ze Big Boys have left the trade.

After India's wedding season (May)

the entire trade will collapse again...

GetZeeGold's picture

 

 

After 6000 years.....I guess this is the end.

Shell Game's picture

So Morrison wasn't wrong, he was just early..?

macholatte's picture

 

One reason why the Perth Mint stays open ...... to make money (pun intended).

Check this out. Here's the Perth website showing spot prices in AUD and USD. Notice something different than other companies that post these kind of quotes? Yup. They're not really the spot price. When was the last time you saw a $12 spread between bid and ask on gold spot?  Apparently what Perth is calling spot prices is what they use as buy and sell prices.  Is this an example of just another government deliberately publishing misleading information? What's that about a spider and a fly?

http://www.perthmint.com.au/metalprices.aspx

Here's the Kitco website

http://www.kitco.com/market/

 

Ident 7777 economy's picture

So, like, if I could immediately take delivery on 1 oz. Perth Gold and turned around to sell it back the next second I would be out 12 US?

TwoShortPlanks's picture

Perth Mint 1 Gram Bar...LOL...how old is that?

Nassim's picture

Actually, the Perth Mint is under the tutelage of the government of West Australia - not the Federal government of Australia. They play their own tune and guarantee the solvency of this Mint.

Hulk's picture

I miss the Earth so much, I miss my wife...

/sarc

fonzannoon's picture

funny how decrease in mining and surging demand causes prices of botcoin to soar

yet gold has surging demand....and lower prices...

April 29 (Reuters) - Newmont Mining Corp, the largest U.S.-based gold miner, reported a sharper-than-expected drop in first-quarter profit on Monday, as gold and copper shipments fell more than 10 percent and realized prices for the metals slid.

 

Consolidated all-in costs rose 7 percent to $1,086 an ounce in the quarter, mainly due to lower gold and copper production, and the company said it still expects the metric to come in between $1,100 and $1,200 an ounce in 2013.

 

Newmont also cut its planned capital spending by $100 million, to between $2.0 billion and $2.2 billion for 2013.

GetZeeGold's picture

 

 

yet gold has surging demand....and lower prices

 

We subsidize milk......why not gold?

It doesn't cost us anything to print the money we do it with.

machineh's picture

'Surging demand' is for gold coins, a tiny component of the gold market that's accessible to retail buyers.

The coin market is like the penny stocks of the gold market. That's why the gold charlatans keep huffing and puffing about it.

Needless to say, the nickel-and-dime odd-lotters who bargain-hunt by scooping up gold coins are to be faded.

Back up the dump truck, raise the bed, and bury their ass!

Pegasus Muse's picture

au contraire.  your assertion does not appear to be backed up by the facts ...

=====

Casey Research

Jeff Clark, Senior Precious Metals Analyst

 

April 30, 2013 10:30am

You've undoubtedly read about the dramatic increase in demand for gold and silver bullion products since the big correction two weeks ago. Supply has gotten tight, premiums are rising, and inventory is hard to come by, especially for certain silver products.

But it's worse than you may know. Many of these reports come from the retail side of the business, including those from sovereign mints. This information is indicative, but more important is the activity among the wholesalers. It's possible the retail trade is just experiencing a giant bottleneck, which would come with a different set of conclusions than if behind the scenes the wholesale industry is seeing net sales.

So we decided to talk to the wholesalers directly: the bullion banks, traders, and refiners. These entities typically deal in wholesale trades only, exclusively in large amounts, and solely with major entities that include dealers and investment funds.

There was a catch, however. In speaking with these entities, we realized one thing: they won't publicly reveal themselves. So we can't tell you who they are, and in fact, they wouldn't speak by phone, only in person. This means you have to take our report on trust – or not – as you wish; we simply don't have permission to reveal names (we did ask). We can say this, though: we spoke with almost all the major ones.

Here's a summary of what they told us occurred during the week of April 15-19 (the 15th was gold's 9.3% selloff)…

 

continued: http://www.caseyresearch.com/articles/buy-gold-now

DosZap's picture

IMHO these mining companies are idiots.THEY could set the price for PM's if they just would.

At 12-1300.00oz cost to get an ounce, they should add their markup and the min for 1oz would be at least $1500.00 Before hitting the refineries.

James_Cole's picture

IMHO these mining companies are idiots.THEY could set the price for PM's if they just would.

Hmm..what I'm wondering is, are the mining companies truly idiots (for not setting the price etc.) OR is there POSSIBLY something you don't understand about the market they exist in? /sarc

boogerbently's picture

Do you think IF miners raised prices, gold purchasing would slow/stop ?

Kitco +/- premium avg. today:

gold 4%, silver 20%.

Of course that's WITH the "Let's all buy silver tomorrow and crash the market" agenda.

Lets_Eat_Ben's picture

Have a BTC position do ya? Can you explain how it works to all those rich dummies? Dr. Paul, who has studied monetary theory for many many years saya BTC is "a little too complicated".

 

As is so often the case, on this issue I agree with Dr. Ron Paul:

"To tell you the truth, it's little bit too complicated. If I can't put it in my pocket, I have some reservations about that. But it has been designed in the free market. If it is a means of exchange, it would not ever be illegal...People want to see something they can know what it is, they can define it, touch it and put in their pocket. If you do not have a computer and someone running the computer and calculations, you don't have it. I am not a big supporter of that, but I am not opposed to it. I admit, I do not fully understand what is going on with it."

Abraxas's picture

I wouldn't touch the goddamned thing. I'm still trying to understand how the paper money works, let alone the electronic one.

GetZeeGold's picture

 

 

It's technical.....don't worry about it. Just get in.

machineh's picture

That's exactly what the boiler rooms in Boca Raton tell the suckers ... don't think, just buy.

Special price just for you, pal!

Dr. Richard Head's picture

Maybe the dingo ate your metals.

kliguy38's picture

Of course.....all boiling frogs just need to relax and enjoy the bath........once the realization that gold becomes THE asset to own it will be way too late for the sheep........Silver however will be the money that has the greatest move........as the poor man's gold outperforms. Gold is the money of Kings and not for mom and pop to be concerned about. BTW the "Kings" don't want to mess with silver......movement and storage of the actual physical becomes problematic.

Aeternus's picture

Perth mint is churning out bars on the weekends now eh? Are they hiring? I could use some extra gold, er, I mean work.

 

https://www.youtube.com/watch?v=fyklt01lN_I

akak's picture

Personally, I find the products of the Perth Mint to be as ugly as sin, both their coins AND even their bars.  Why they are fixated on putting the dullest of dullest matte finishes on every one of their coins and bars is utterly beyond me --- I have NEVER seen gold manufactured into such ugly products as the Perth Mint churns out.  Talk about taking the shiny out of the shiny!

(And let's not even talk about the shamefulness of continuing to put that foreign figurehead hag on the backside of every Australian coin.  My God, grow some balls you Aussies and kick the bitch out, and off, already!)

Lets_Eat_Ben's picture

This damn bubble just won't stay popped!

apberusdisvet's picture

Haven't seen MDB lately; has his FED troll license been suspended?

espirit's picture

Please, don't troll for trolls.  We get enough as it is.

Sudden Debt's picture

On Discovery channel there was this docu about a goldmine in America.

What fucking amazed me was that it took 4 BIG ASS DUMPSTER TRUCKS FILLED WITH ORE TO PRODUCE ENOUGH GOLD FOR 1 WEDDING RING!!!

THOSE DUMPSTER TRUCKS WHERE 2 STORIES HIGH!! MOVING HOUSES!! THE FUEL COST ALONE IS NUTS!

and enough gold in a wedding ring... is on average 3,4 grams... maybe 5 grams if you have really fat sausage fingers....

 

 

LouisHill's picture

I think it is 3 grams per ton of ore. They could not do it for 3 grams per truck load. The reporter probably got it wrong.

James_Cole's picture

The grades are actually getting pretty ridiculous, some mines they were trying to get away with what would be the equivalent of 3 grams / truck. Didn't see this doc but it's possible. 

http://www.novagold.com/upload/mining-matters/WhyGold_grade_cost.jpg

 

SpanishGoop's picture

Discovery filmed in the wrong mine.

In a good mine it only takes a wheelbarrel full of ore, seeing the price of gold now.

 

eigenvalue's picture

I'm more interested in you and your wife's doggy style stuff.:)

Alpha Monkey's picture

I don't trust Discovery or Nat Geo.  It seems any gold documentaries I've seen on nat geo have a negative bias.  Plus they are owned by the MSM conglomerates that run the same anti-gold financial news.

For example:

CBC "Secret world of Gold" - about paper manipulation of prices by large financial institutions.

Nat Geo "Secret world of Gold" - about south american peasants strip-mining and poisoning themselves with mercury to get a few grams of gold a day.

akak's picture

The so-called National Geographic channel is a farce and a total mockery of what it once was, having become one of the main propaganda channels of the status-quo power structure in recent years.  Just look at their programming lately:  anti-drug, anti-'hoarders', anti-gold, pro-police, pro-military.  Sickening.

Colonel Jessup's picture

Watch the one on Canadian TV, probably widely reported here, that goes into more detail. It's called the secret world of gold, and it's a very informative piece. Talks about secured vs. unsecured bullion accounts - and why soverign nations like Germany can't get their gold on demand.

Colonel Jessup's picture

Watch the one on Canadian TV, probably widely reported here, that goes into more detail. It's called the secret world of gold, and it's a very informative piece. Talks about secured vs. unsecured bullion accounts - and why soverign nations like Germany can't get their gold on demand.

espirit's picture

Gold has fundamentals?

Whowouldathunk?

/sarc

madcows's picture

Looks like lots of people aren't buying the "Everthing is fine" Public Announcements.

Debeachesand Jerseyshores's picture

Just buy Gold and Silver at these good prices.

buzzsaw99's picture

I find your lack of faith (in joobux) disturbing. http://www.youtube.com/watch?v=EsyzRUKwgng