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Gold Bullion Demand Surges - Perth Mint and U.S. Mint Cannot Meet Demand
Gold Bullion Demand Surges - Perth Mint and U.S. Mint Cannot Meet Demand
- Perth Mint sees surge in demand and cannot keep up with demand
- “Our biggest restriction is the amount of unrefined gold we’re getting in from producers”
- Very high demand for Perth Mint coins, bars coming from Asia, U.S. and Europe
- U.S. Mint sees highest sales of gold coins in over 2 years
- U.S. Mint restrictions on silver coins due to very high demand
- Gold sentiment has moved from despondency to depression (see chart)
- Current negative sentiment despite strong demand is good contrarian indicator
Perth Mint Gold Bar (1 kilo)
Depressed prices have led to the usual market response, a surge in physical demand for coins and bars globally.
This is confirmed in conversations we have had with our refiner and mint partners in recent days. There are growing shortages of supply of small coins and bars. This is resulting in delays in receiving bullion and indeed to rising premiums.
Asian gold demand picked up this week keeping premiums robust and slightly higher in the world's top gold buying regions.
Treasurer for the Perth Mint, Nigel Moffatt has said that the mint has seen a surge in demand for physical gold since the price dropped below $1,100 per ounce.
In an interview on Bloomberg’s “First Up” show he said “Our biggest restriction is the amount of unrefined gold we’re getting in from producers”, adding, “everything we get in is going straight out the door as soon as we refine it.”
Moffatt says that the Perth Mint is seeing strong demand for kilo bars which go to Asia - particularly India, China and now Thailand - adding that traditional buyers in Asia tend to “stock up” on gold when the price falls.
There is also a huge demand for coins from individual buyers in the U.S. and Europe:
Gold “is going straight out the door as soon as we can find it.”
“Our only restriction on coin sales right now is the amount we can produce.”
“We’d be selling more if we could find skilled press operators.”
Sales of Perth Mint Certificates remain robust and he adds that the Perth Mint has seen a lot of interest in its new Depository Online Service despite the fact that it has not yet been officially launched nor has there been any publicity for it.
Perth Mint Gold Nugget (1 oz) in GoldCore London Office (Bloomberg)
He points out that central banks are still accumulating gold despite the negative sentiment because “gold still has intrinsic value”.
He does not see the price of gold dropping a whole lot further given the cost of production, although he believes that we may see a fall to $1000 before the price moves upwards again. It now costs on average around $1,000 to mine one ounce of gold.
Meanwhile the U.S. Mint has reintroduced its sales of Silver Eagle coins (1 oz) following a three-week suspension.
On July 7 The U.S. Mint was forced to suspend sales having exhausted its inventory which suggests there was either a shortage in physical silver blanks or of physical silver bullion that makes the blanks. However, they have placed restrictions on sales and sales remain “allocated” to wholesalers in order to maintain some supply.
The U.S. Mint is legally required to supply as much silver as is needed to meet demand. Their inability to do so shows demand remains very robust.
So far this month the Mint has sold 4.03 million Silver Eagles. In June total sales came to 4.8 million coins. There are reports that 2.6 million coins were sold this week alone. So, despite having not been available for three weeks, in July Silver Eagle sales are down only 17% on the previous month.
The U.S Mint is also seeing strong demand for Gold Eagle coins, especially one ounce, which - at 136,500 - is more than double the June figure and is the highest demand since the bear raid which saw prices fall in April 2013.
There has been an unprecedented barrage of negative publicity towards gold in recent weeks. This negativity is not supported in any way by the activity in the markets for physical gold where shortages are showing up despite falling prices.
We believe this to be a good contrarian indicator that gold’s recent bout of weakness is drawing to a close and that the bull market may be set to resume once the current period of weakness runs its course and the forces of supply and demand reassert themselves.
Shortages, delays in delivery and rising premiums suggest that the long awaited short squeeze may be developing.
This shows the importance of taking delivery of bullion or owning allocated, segregated gold coins and bars of which you can take delivery.
MARKET UPDATE
Today’s AM LBMA Gold Prices were USD 1,080.05, EUR 985.45 and GBP 694.19 per ounce.
Yesterday’s AM LBMA Gold Prices were USD 1,085.65, EUR 989.74 and GBP 695.36 per ounce.
Gold and silver on the COMEX fell 0.9% and 0.4% yesterday - to $1,088.10/oz and $14.74/oz.
Silver for immediate delivery has fallen 1.1 percent to $14.66 an ounce, poised for the biggest monthly retreat since September.
Platinum fell 1.4 percent to $978.05 an ounce and July’s 9.6 percent drop is set to be the biggest since 2012. Palladium declined 2 percent to $611.45 an ounce, heading for a third monthly loss.
Gold is down for a sixth week in a row, on course for its longest losing streak since 1999. It is down more than 7 percent in July, the most in any month since June 2013. Sentiment is as bad as we have seen it and some suggest it is as bad as in 1999 and 2000 after the 20 year bear market.
Extreme negativity appears to be already in the price and weak hands have been shook out of market. That is not to say that gold cannot go lower and we remain cautious in the short term.
Gold remains vulnerable as we enter August - a month of declining liquidity when markets may be vulnerable to bear raids. Lower prices are possible and the $1,000 per ounce level may need to be tested before we see a bottom.
Gold in USD - 10 Years
Bullion looks good value at these levels and investors will soon be presented with an opportunity to allocate funds to bullion at very depressed prices. Dollar cost averaging and gradually accumulating remains prudent and will protect against downside risk.
Stocks, bonds and many property markets are at all time highs and look very toppy and vulnerable to sharp corrections - particularly in September and October - the traditional time for sharp stock market corrections and indeed crashes.
It is a good time to rebalance and to reduce allocations to risk assets and increase allocations to gold - or indeed allocate to gold for the first time, if an investor does not own gold … as the vast majority of investors do not given the very low levels of gold ownership among investors in the western world.
Many of the risks that preceded the 2008 crisis are bubbling under surface and new global debt crisis is coming … the question is when?
Physical gold will again protect and grow your wealth in coming years. We know we will be accused of 'talking our book' and Martin Armstrong may call us ‘gold promoters’ but we genuinely believe and the academic research, empirical data and historical record shows that gold is a safe haven that will protect investors in the long term again coming volatile months and years.
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chirp
We are far away from the UP. The deflation pressure is heading stronger to wages and commodities, inflation pressure towards housing and food.
Price of gold in AUD has been much steadier than USD.
The big manipulation in USD bought Gold.AUD down from $1,800 to $1,600 then to $1,400 pretty steady between $1,400 and $1,500 since.
http://www.goldpriceoz.com/goldpricegraph/aud-gold-price-per-ounce-10-ye...
The good thing if your not in USD is that..
So holders of Gold in Australia have an even better upside to look forward to in AUD gold price.
AUD was in 60s and 50s during Ausralia's last real recession. And with housing bubble even larger than ever...well these figures could be seen again. Especially with Australia's closer connection to China than the 1990s.
http://www.smh.com.au/content/dam/images/3/3/c/n/0/image.related.article...
I use the Perth Mint
Perth Mint produce their own bars and coins.
http://www.perthmint.com.au/gold-refinery.aspx
How to say in many words what could be said in three. "We are hoping". verses "We believe this to be a good contrarian indicator that gold’s recent bout of weakness is drawing to a close and that the bull market may be set to resume.." - Sounds like Gold needs to see a doctor by the description...buy silver.
The Perth Mint is its own business but guaranteed by the West Australian state govt. Not Australian govt. It does have licence to produce legal tender bullion coin.
But beware...all these orgs have their force majeur get out clauses that can make life difficult if shit hits fan Though the Perth Mint gets audited regularly i believe
From Thomson Reuters GFMS Gold Survey 2015 Q2 Update
-Physical gold demand was at its weakest since 2009, down 14% year-on-year in the second quarter as few markets
report increases and Chinese buyers stayed away from gold.mson Reuters GFMS Gold Survey 2015 - Q2 Review and outlook.
"Almost all major physical gold markets suffered in the second quarter as demand for bars and coins fell another 12%
year-on-year and were some 63% below the Q2 2013 peak. In the largest consuming sector, jewellery, fabrication
declined by 6% year-on-year while consumption was down by 9%. In country markets seasonal strength has seen India
reclaim the top spot in regard to total gold consumption; however the first half was finely balanced with China pipping
India at 394 tonnes versus 392 tonnes"
Gold Bugz, I keep fucking telling you....this is not the time to be buying. This is the time to be standing pat. But for the fucking love of God do not buy any more AU.
USD CASH IS COIN OF THE REALM THESE DAYS! Money on the barrel head.
Yes, maybe $1,100 is the floor. Maybe. Maybe not and you get fucked down to $700/$800
Someone once said: "Ignorance is bliss till reality hits." If you lived in Venezuela or Brazil, Argentina or perhaps Greece right now; would you want your "savings" in the local currency or the the shiny gold or silver stuff? They are debt-tied to the toxic USD or Euro. Price isn't the issue. However; never put all your eggs in one basket and have baskets in many places.
you idiot, Venezualians or Brazilians would have been very fine if they owned the green USD. and even better if they bought S&P with it.
whats gold got to do with that ?
What they gonna do in the USA...hold ruppia, AUD, Euro..if and when SHTF?
Problem is nobody knows whats gonna happen with other currencies, but do know that gold holds its purchasing power in devaluing currencies. Rather than wait and rush to the best looking exits when the time comes, which they wont get through, at the last moment, best thing to do is own gold as insurance.
Oh my god that's sooo believable coming from Rueters. You really scared the shit out of me.
Shanghai Withdrawals Explode, Crimex Registered Gold on Fumes:
http://winteractionables.com/?p=23472
Why not inform people that the US monetary gold reserves, held in the Global Debt Facility that is administered by the World Bank and IMF, are going to be minted into currency to replace the fiat currency that is issued by the Network of Global Corporate Control? https://s3.amazonaws.com/khudes/Twitter8.1.15.pdf Those dufuses switched the link to hide my previous fax to the County Executives of America, in which I refer to the interregnum in the US https://s3.amazonaws.com/khudes/Twitter6.19.15.1.pdf to this document https://s3.amazonaws.com/khudes/Alternative+to+WWIII.pdf
I'll buy your worthless pet rocks, bitchez!
okay so when I google for the following using PAST MONTH:
GOOGLE: Perth Mint unrefined gold producers sales
just now I then get the folloiwng top 20 sites as the first hits but they are all blogs I have never heard of
except for Zero Hedge of course.
so I guess I am not impressed at all.
how are they doing with uncirculated US 100 dollar bills at the ***US*** Mint?
www.blogparser.com
www.coincommunity.com
www.ecoinnews.com
www.financialjuice.com
www.goldcore.com
www.gumtree.com.au
www.moneyandmarkets.com
www.moneyandmarkets.com
www.pacificrimcoin.com
www.perthmintbullion.com
www.scoop.co.nz
www.zerohedge.com
app.feed.informer.com
biznewsindex.com
economyreport.net
goldchat.blogspot.com
harveyorganblog.com
inagist.com
market-robots.com
research.perthmint.com.au
they are all blogs I have never heard of
Satire, eh?
So you have been here for over 5 years according to your history..
You have been exposed to Financial Juice articles, dozens of times, if not much more.
This article is a GoldCore article.
LOL
The U.S. Mint is no longer "required to supply as much silver as is needed to meet demand."
See: "Coin Modernization, Oversight, and Continuity Act of 2010"
The Treasury is required to strike the coins in both quantities and qualities that the " Secretary determines to be sufficient to meet public demand. "
Subtle change in the wording.
Any other asset that keeps falling in price while the demand is surging?
I'd love to see this stuff in real estate. The more people bid on a homes the more the prices fall.
Maybe this time is really different ?
/s
Failure to distinguish between the prices for physical and paper makes for difficult criticism of this article and its commentators.
Failure to recognize that all financial transactions in the physical metails market involve discounts and premiums.
Faillure to know the history of this sector leads to more error.
Failure to understand that the trolls which exist on all sides of this market include central banks all the way to 12 year olds with an ipad.
What a long strange trip it's been!
So, any thoughts on whree to buy PMs? What premiums are y'all seeing?
Buy only Sovereign bars & coins; not the generic. There are few exceptions; one is the Sunshine Mint because of the security features. If the CHTF, you can expect many MORE fakes to show up, but then again how much of the fiat currency is fake that is in circulation? Only God knows.
Everyone notices premiums go up when price goes down in fiats. I guess right now the closest fiat value you can attach is troy ounce+premium. Gordon Gekko has a good site, wish he would put out another story.
Find your local coin shop- less overhead. Maybe less variety.
I buy going up (to a point) and going down.
depends whether you have 1000$ to spend, 10000$, 1 million , 10 millions or 1 billion....
silver.com has perth bars for those of you who dont want to wait for more deflation...........
Truth is, there's no problem finding lots of gold, there is absolutely no shortage.
If you go to the main avenues in NYC, London, Tokyo, Geneva or Singapore, you can buy kilos of 99.99% certified gold bars without notice. people do it every business day.
if you want to buy TONS of gold, you can give a call to a big physical bullion dealer, he'll make a 5 or 10$ wide bid/offer price.
There may be a temporary supply problem on some gold coins, because hoarders of perth mint golds (which is a tiny fraction of all available golds) are all goldbugs who will "never" sell, and it takes time to melt some gold, but hey if there are loonies ready to pay a 50$ premium to get those coins, surely they're going to take the trouble to melt a few bars to meet that demand, in a few weeks its done.
end of story
With or without tungsten? With or without customs approval?
The US is Exporting Gold at about 600 Tons a year over the last 6 years, while producing only about 231 Tons per year.
US Year: 2010, 2011, 2012, 2013, 2014
Gold Production:
Mine: 231 tons, 234 tons, 235 tons, 230 tons, 211 tons,
Exports, 383 tons, 644 tons, 695 tons, 691 tons, 430 tons,
Imports, 616 tons, 550 tons, 326 tons, 315 tons, 315 tons,
http://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2015-gold.pdf
Looks like we export 200 tons at least for scrap, and import 200 tons at least for scrap (conservative). So scrap or recycling are big pieces of the business.
So our net position is growing, not shrinking.
1141 + 2122 - 2843 = 380
And many mines are idling along due to the closeness of the current spot price to their production nut, while others are shut down and waiting.
To quote Monty Python: "I'm not dead yet."
Thanks for the figures, by the way. Very interesting.
Good response. I'm not firing on all cylinders this weekend.
But I'm kind of thinking.
Yeah, Net we bring in Gold. But who is involved in the Gold Scrap or Recycling? Is there a higher value on Gold Mining Production or Gold Minting?
I tend to think we should retain gold holdings and that even gold sales should be restricted or controlled like capital controls to keep gold in the USA.
But I'm not an Expert.
I appreciate Risk and stupid government memes.
Facts: Commodities, PM and Gold are part of an industrial sector, with limited corporations or company involvement...
Fair Question: Does the size of the commodity or gold market matter to world security or national security?
Rebuttal: Fiat Currency is much larger that Gold Currency could ever be, Gold Could not ever finance Farms, Factories, Franchises, or Secondary, IPOs, or Company/Corporate Mergers, Take-Overs, or LBOs.
Gold Net, Gold Imports, Gold Exports, Gold Scrap?
The Gold Paradigm reminds us to think locally, think budgets, think Stock Piles, Think PM & Resources Reserves, think of 20 year or 50 year plans, and think of tax burden of our kids with current exponential federal spending and liability.
That is all. But you don't want to try to think and think of these things if you are broke.
Aw: My post is a little confusing and I am a little bit drunk. I'll look tomorrow to make up for English Behavior and look for British follies.
there's a lot of demand for gold coins from small retail investors like GoldCore's readers.
however let's do some math
- 2015 American Gold Eagle Sales by OZ:
July, 170,000
http://www.usmint.gov/about_the_mint/index.cfm?action=PreciousMetals&typ...
with 1OZ=1100$ thats 187,000,000$ of sales per MONTH, less than a penny stock
for those who say that gold is money, EURUSD trades way more than 187,000,000 every millisecond.
and whats the DAILY turnover on COMEX ? 232,000 onces equivalent.
http://www.cmegroup.com/market-data/volume-open-interest/metals-volume.h...
so which is one is the more relevant market ?
but there are still readers in denial, and believing whatever BS dishonest gold brokers and peddlers are telling them...
Just curious. Do you follow SGE gold withdrawal figures and Indian gold demand figures? Also are you aware of Swiss import and export figures? If so what might those be?
You can reason out that a global demand could decrease for individuals, if for no other reason than we are in a global recession. However the Central Banks and Sovereign Wealth funds can't seem to get enough of it. Seems like everyone wants their gold back; why all the trouble if it is only "rocks"?
kuro_neko; is that gold 100 in the COMEX Futures... meaning 100 oz X 232,000 = 232,000,000 gold oz??
http://www.cmegroup.com/trading/metals/precious/gold_contract_specifications.html
yes you're absolutely right. the unit for a comex contract is 100 oz
so the DAILY volume on COMEX is more than 100 times the monthly sales of US mint coins. there's like 25 business days in a month so the MONTHLY turnover of COMEX is more than 2,500 times the monthly turnover of US mint coins.
no wonder you have to look at the COMEX and not US mint sales stats to know where the relevant info for price/demand/supply.
GoldCore and its likes is total BS. but people never really want to learn.
Cognitive Dissonance at its best.
Does COMEX deliver real gold on those contracts? If so how much?
They changed to cash settlement within the contracts and have not delivered on physical since 2011.
in a futures market, if you are long a contract, you can CHOOSE to stay long at expiry and get physically delivered. or you can elect to roll your position to the next contract.
100% of the long positions at expiry in the COMEX futures were delivered. simple and verifiable truth.
in practice, most of the longs (and shorts) don't want to go to delivery, because of the costs involved (exchange fees, storage fees,...). they are involved in futures just to hedge some (physical ?) exposure.
there is absolutely nothing abnormal about it. Government Bond Futures are the most traded futures. Those futures are deliverable. the open interest is quite often (much) higher than the amount of available deliverable bonds, but everything goes smoothly as both shorts and longs roll their positions into the next contract. Nothing wrong here.
only people who don't understand futures market complain.
people who cry for manipulation point out the short OI position, but don't take into account the long OI position. its only half of the story.
"Long and short position don't want to go on delivery...". This is what comex rely upon to sell unlimited amount of paper gold over and over. So your qoute of 100% delivery is false when it comes to physical.
"100% of the long positions at expiry in the COMEX futures were delivered. simple and verifiable truth."
Please provide link to verifiable truth
*crickets*
ribbit... ribbit...
Plenty of gold around like pet rocks. Why don't you buy DGLD and short it. Also I encourage you to invest heavily in stocks.
im not discussing about whether to buy gold or not.
actually i think its much better proposition to buy now at 1100$ than 1800$ or 1500$ like GoldCore, and his friends at ZH did.
and looking to buy some.
but my reasons to buy have NOTHING to do with a physical scarcity which absolutely does NOT exist at all.
Currently the ONLY scarcity is in dollars willing to buy gold. those whining and complaining here just don't have those dollars, having spent them at much higher prices.
Why is the market so low today ? because there's plenty of sellers. All those who bought GLD ETFs on the way up are (forced) sellers today. A lot of leveraged longs from Asia are being liquidated as the financial stress is too high there. this flow is expected to continue for a while but it may be already factored at these current prices.
end of story
actually i think its much better proposition to buy now at 1100$ than 1800$ or 1500$
You THINK it's much better? You think? What do we have to do to make you 100% certain?
So would it be safe to say that you think there is no manipulation of the price of gold?
if you mean by manipulation somebody/someone pushing the price hundreds of dollars (or more) lower than it should be, absolutely not.
if you mean that in an empty market, around the fixing hours, some HFT or traders, maliciously push the price down *OR UP* (they don't care which way as long as they make a profit), it happens but thats peanuts. it could last for a few minutes, good maybe for 1% or 2% maximum. beyond those minutes and such a price move, somebody will take advantage of the artificial price to buy or sell against it and things correct very shortly (= a few minutes) after.
Barclays traders were caught and fined for that.
This is, of course, exactly correct; as anyone who can think clearly could figure out for themselves; but you're dealing with deluded members of a cult, here. I up ticked you just because you tried to tell the truth. But Pearls before swine.
Would this be evidence of manipulation?
-- Was the Banque de France's director of market operations, Alexandre Gautier, telling the truth when he told the London Bullion Market Association meeting in Rome in September 2013 that the bank is secretly trading gold for its own account and the accounts of other central banks "nearly on a daily basis"? (See: http://www.gata.org/node/13373.)
-- Is the Bank for International Settlements telling the truth when it maintains in its annual report that it does the same sort of secret trading on behalf of its member central banks, trading not only gold itself but also gold futures, options, and other derivatives? (See:http://www.gata.org/node/12717.)
-- Is the BIS sincere when it advertises that it undertakes secret interventions in the gold market for its members? (Seehttp://www.gata.org/node/11012.)
-- Was CME Group, which operates the major futures exchanges in the United States, telling the truth last year when it told the U.S. Commodity Futures Trading Commission that it is offering volume trading discounts to central banks for secretly trading all contracts on its exchanges? (See http://www.gata.org/node/14385.)
-- Was CME Group telling the truth last year when it told the U.S. Securities and Exchange commission that its customers include governments and central banks? (See http://www.gata.org/node/14411.)
-- If central banks are indeed doing so much secret trading in the gold market and other markets, what are their objectives and might this secret trading be intended to manipulate markets, support government currencies and bonds, and deceive and cheat investors who think that markets are free trading?
There is a lot more documentation suggesting as much here:
http://www.gata.org/node/14839
And this?
http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-met...
Please explain
"smiley face"
No problem ordering bullion online. The problem may be actually getting it. Bullion direct files chapter 11 bankruptcy.
http://www.coinweek.com/bullion-report/bullion-direct-another-bullion-bi...