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Perth Mint's Gold Coins and Bars Sales Highest In Year On Safe Haven Demand
Perth Mint's Gold Coins and Bars Sales Highest In Year On Safe Haven Demand
The Perth Mint's sales of gold coins and bars hit their highest in nearly a year in September as a fall in U.S. dollar denominated gold led to some buyers to accumulate bullion on the dip and the risks of terrorism and war led to safe haven demand.
Perth Mint Gold Bar (1 Kilo)
Concerns about the global financial system and economy are also leading to safe haven demand.
The Perth Mint runs the only gold refinery in Australia, the world's second-biggest gold producer after China.
Sales of gold coins and minted bars rose to 68,781 ounces in September, their highest since October 2013, data available on the mint's website showed.
Gold prices fell 6% in September, despite strong seasonality and increasing financial risks and concerns that geopolitical tensions may impact the global economy.
Silver coin sales totalled 756,839 ounces last month,compared with 961,977.07 ounces in the same period last year. Yet silver had a far greater price fall than gold.
This shows that the gold bullion buying was not solely people bargain hunting. Rather, gold demand was due to safe haven demand due to the increasing risk of terrorism and war in the Middle East and between the West and EU and Russia.
This risk remains and therefore the increased demand is not likely to be a mere blip on price weakness.
We strongly advise owning allocated and segregated individual bullion coins and bars stored in the safest vaults in the safest jurisdictions in the world.
MARKET UPDATE
Today’s AM fix was USD 1,214.50, EUR 960.99 and GBP 750.94 per ounce.
Yesterday’s AM fix was USD 1,208.50, EUR 958.75 and GBP 746.17 per ounce.
Gold in Singapore crept higher from $1,215 per ounce to over $1,220 per ounce prior to weakness in early morning trade in London.
Gold climbed $5.60 or 0.46% to $1,214.60 per ounce and silver rose $0.13 or 0.76% to $17.18 per ounce yesterday.
It is important to note that gold’s falls continue to be primarily in dollar terms and that gold in euros and pounds has seen only minor falls.
Indeed, gold in euros remains nearly 10% higher for the year and has risen from €876 per ounce to over €960 per ounce today.
Gold rose on Wednesday, rebounding from the end of quarter nine-month low near $1,200 an ounce, as concerns about the emergence of Ebola in the U.S. and disappointing U.S. factory data sparked a selloff on Wall Street which led investors to move funds into safe haven gold.
Gold in US Dollars - 2 Years (Thomson Reuters)
Also underpinning bullion was a weaker U.S. dollar and sharp falls in global stocks on concerns of a new global financial crisis. Sharply lower airlines and transport-related shares after the first diagnosis of Ebola in the United States also helped send the S&P 500 index down more than 1%.
Nouriel Roubini warned that the world is vulnerable to a new global financial crisis and markets are very complacent again.
While geopolitical risks have multiplied, global markets have “remained buoyant, if not downright bubbly,” said economist Nouriel Roubini in a column published Tuesday.
The global economy could be stuck in a weak growth rut for a long time as countries struggle to pull free from high debt levels and unemployment, the head of the International Monetary Fund warned today.
The economic rebound is even weaker than the IMF predicted six months ago, and countries risk getting stuck in a prolonged period of sluggish growth, especially in the euro zone, Christine Lagarde, the IMF's managing director, said.
The warning is belated and the IMF and manhy have ignored many signs that the economic recovery was tentative at best.
For undiversified investors who have piled into stocks and property, the belated warnings may be too late.
It remains a very good time to diversify with the price of gold near multi year lows and under valued & stocks, bonds & property looking very toppy. It is very reminiscent of 2005-2007 period.
Fail to diversify, prepare to fail ...
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That's all very well but physical demand is TANKING in the US, as per this FT Alphaville article http://ftalphaville.ft.com/2014/10/01/1991072/the-collapse-in-physical-d....
This also gives a good counter-balance to the gold permabulls with axes to grind, even if the tone of the article and the comments afterwards do Dan Norcini absolutely no credit.
http://www.traderdannorcini.blogspot.fr/2014/09/eurozone-inflation-data-...
The collapse in “physical demand” for precious metals in the USA Matthew C Klein | Oct 01 16:22 | 18 comments | http://im.ft-static.com/m/img/button_sprite.png);">http://im.ft-static.com/m/img/button_sprite.png);">ShareSome precious metal bulls like to dismiss price declines in gold and silver by pointing to the strength of “physical demand.” (Savers who put their wealth into precious metals never seem to get paid for this “physical demand”, but whatever…)
So we thought it would be worth sharing some charts from Nick Colas over at Convergex that track spending on gold and silver coins issued by the US Mint. This isn’t a perfect measure of “physical demand” for bullion but it ought to be consistent over time.
As you can see, American “physical demand” has collapsed from its peak levels, although silver seems to have held up somewhat better than its shinier cousin:
Bulls can reasonably argue that the declining American appetite for shiny rocks could be offset by rising demand from savers in China, India, and elsewhere. Even if that turned out to be true, it would tell us more about conditions in those economies and almost nothing about the long-term viability of the dollar as a fiat currency.
If gold went to $500 the AUD would be 0.40c ....sooo right now I should be buying USD by the bucket loads heh?? Then buy gold with that super strong USD when the AUD is .40 and gold $500 .... then wait for the massive rebound in gold.
err...think I will hold.
Is gold going down in fiat price? Mostly in USD terms....not so much in other fiats.
With Greenspan changing his public stance on gold, and other starting to speak about gold as if it were money. It won't be long until the reset happens, and all the talking heads are babbling on about how gold and silver has always been money, and that only a few on the fringes didn't know that gold, and silver was real money all along.
useless eaters.
Greenspan??? You have the gall to utter this shmendrick's name in public, after he has been singled out as THE prime Big Jefe in the 2007-2008 crisis because he was so wrong about interest rates precipitating the meltdown of the global equities market, the credit crisis, and now the 1Quadrillion Bond Market???
This is the man you cite for making a financial decision???
oh the horror......
I said he "changed his public stance"
Like any politician, he does not make any decisions of any consequence. Perhaps he gets to choose between blue, and black socks.
let's just say all the metal i bought hasn't increased in value at all, in fact i've lost well over 50k (in yellenbux) in the last five years buying it.
so yeah.
4.25 million Silver Eagles in Sept. 1.65 million silver eagles first 2 days of Oct. Pretty soon 1/2 billion of them in circ. amoung the public. That's called a viable deep currency...or MONEY.
went to a local coin dealer: American eagles for $25 wtf I said, he said yah we sell $6.5 over spot, I said "not to me"
"On a long enough time line all paper money goes to zero."
It's funny how that also happens to be it's intrinsic value.
You fucking pimp! It ain't a disaster investment if you cain't sell it in the aftermath of as dis-asster. Come into the fartland of Amouricia and trie to sill a Australasian cwine. It is a biatch to try to eben sell a Murician Aigble! Ah cud till yer stawries boutedn trine ter sell oddbollud qwines locullty, but twoud meke yery dick watter. Iff'n Joe SexPick doan recoonize hittn as guld, taIN'T GELT!
Huh?
That's Y it's called, "OZ".
(Ty, can I get a preview of that " Shocking French video" b 4 I buy it?? I don't want it to turn out to be one that shows how to make a baguettte.
Perth Mint's Gold Coins and Bars Sales Highest In Year On Safe Haven Demand
Perth Mint unloads record Gold coins and bars and collects record USD in exchange, they don't need Gold for safe haven.
Same sale opposite side of trade..
who is buying...not neccessarily USD... could be locals, europe etc.
Gold is cheaper for those who have USD ... not so much in other currencies.
If it is US buyers...then ...people dumping USD for gold
The point is Perth is getting rid of gold, as in selling it. Two sides to every trade.
it's a MINT. What else would they do?
I hear the bears like FlacoGee and say to myself that is of course entirely possible. Gold mining companies are stupid and will continue to develop even uneconomic deposits and sell production for whatever price to keep the lights on. Something like 75% of silver is produced as a byproduct, so that will also be heaped on the market at any price that helps subsidize their zinc, copper and lead a bit (that is the arb at the core of SLW's business model, after all). And so I hesitate to accumulate precious metals at these prices, and haven't bought in a long, long time, though I hold plenty.
Yet I also believe that the Fed, the BoE and others have used their existing monetary gold to fund various and likely extensive misdeeds over the decades and centuries, and have left none of their holdings unencumbered, if they still have any. This is not documented that I know about, but it makes sense when you think about the Nixon episode, the missing trillions at DoD, the massive hole left by the housing crisis... The system just has to be wildly undercollateralized, and if called, a serious problem in western banking will ensue. When that happens, you don't want to be rooting around for offers in physical.
So I abide, and occasionally find a miner that knows what he's doing and can make cash out of the ground. But it is probably unwise to understimate how long they can run the short.
It costs 2 cents to print a $100 bill. It costs zero cents to borrow a trillion into existence. Some people want hard cash. Real money.
Yeah. I get the consumers all have student, home, and car loans they can never pay backwith their new Obama minimum wage jobs and are starved for dollars. Not my problem. I don't need a lot of currency. What I want is real money.
Angels watch out for drunkards, children, and apparently knife catchers.
You would have to be have holes in your brain to knife catch metals at this point.
Silver to $5 and Gold to $500... sooner than you think.
"Silver to $5 and Gold to $500... sooner than you think."
Yeah and when that physical isn't deliverable, you'd be wishing for a swiss cheese brain pal...
Who is asking for physical? It has to be a current paper holder, so who are you speaking of ?
Germany asked and were told you know the game fuck off
"Silver to $5 and Gold to $500... sooner than you think."
That would be going full circle for me.