This page has been archived and commenting is disabled.
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.
Breaking News and Research Here
Follow GoldCore on Twitter, GoldCore on Facebook, GoldCore on LinkedIn
»
- GoldCore's blog
- 32903 reads
- Printer-friendly version
- Send to friend
- advertisements -
Audit reveals no Au in Ft. Knox. Fed issues statement saying janitors misunderstood when the Fed said Au was a worthless relic.
Lots of folks seem to be buying up all that gutter metal and the pet rocks, too.
Hm.. maybe they should let the spot rise a bit, if they want to hang on.
Hello friends. According to reports from my contacts in SE Asia, demand for physical gold bullion from individual consumers has picked up considerably. I just spoke to my dealer friend locally, and they are running out quick. I'm surprised its taken this long, but we have apparently reached the point where shelves are running empty.
I believe retail demand is the only way for price to rise. We appear to now know perhaps that $1100 is a floor. We shall see. I did NOT see this at $1300 or $1200.
Are they seeing any difference between coins and bullion?
A few kg is all I want?
- 2015 American Gold Eagle Sales by OZ:
January, 81,000
February, 18,500
March, 46,500
April, 29,500
May, 21,500
June, 76,000
July, 170,000
http://www.usmint.gov/about_the_mint/index.cfm?action=PreciousMetals&typ...
I agree looks like strong sales.
Once the big reset kicks in, gold will go to $500/oz as traders sell the only liquid asset they have to pay margin calls. Once the flow is exhausted gold is going up and it will stay up for a long time.
That would be a very short window and by the time the "average Joe" found out; you couldn't find it.
You're right in that the price will drop but the only ones to benefit will be the big traders... no gold will actually be bought by a real person for those prices... just as today with an artificial constraint on sales because there stock is held at prices higher than spot.
Citizens of the United Apostates of America, Do not buy US Mint products, unless you want Bath House Barry to seize your bullion for face value as did that other tyrant FDR, the UAA Government can call back any coin for face value. Buy Canadian Maple Leafs or some other such coins, but not Silver or Gold Eagles
I stick to pre-1964 US silver coinage, pre-1933 US gold coinage as well as the old 20 Franc Swiss Helvetica and French Rooster and Angel gold coins.
Bath House: My fellow citizen-serfs, all your Au is worthless. Please trade it in at the new Reggie Store for gas coupons!
Gas coupons - thank goodness I thought I was going to have to pay the EPA to haul away this useless toxic gold. All heil the wise and mighty Bath House.
ALL HAIL OBAMUS REX!
FORWARD SOVIET!
One of the great head scratchers for me is the fact that the export of gold is considered as belonging on the revenue side of a country's earnings when in fact it is really a capital outflow given that gold is money.
Janet:
"Sorry it has come to this, but I am throwing out good bullion bars into the dumpster behind the Fed! Au has no value! Do NOT trust in gold or silver! Thousands of years of history show it has no Value! Buy USTs!"
You Morons! Why CBs throw that stuff out into their dumpsters every day!
Paper is the place to be!
Buy Paper!
Come on. It's not that bad. It's a pet rock. Your kids can pass it around to the neighbors.
My pet Rock is for me and me alone to pet.
INDICTMENT
Americans are criminals because Americans violate the Constitution of the United States of America.
The U.S. President Obama, the entire U.S. Congress, the CIA, the FBI, the U.S. Military, and the entire Police Force of these United States SWORE to protect, serve and uphold the U.S. Constitution.
The U.S. Constitution forbids usage of debt as money (referred to as 'notes') and stipulates that only gold and silver can be used as money.
Yet,
Americans commit or support and condone the murder and torture of human beings throughout planet earth in the name of democracy and freedom, all for the sake of acquiring Constitutionally fraudulent and illegal Federal Reserve Notes a.k.a (counterfeit) U.S. Dollars.
Since the United States is a democracy and Americans only elect Democrats and Republicans who perpetuate this unlawfulness,
Americans are indicted criminals according to the United States Constitution.
Spread the word.
Excellent point regarding money and the U.S. Constitution.
(We are a representative republic, by the way, not a democracy.)
Yes, so there is even less of an excuse why "We the People" have sat back and allowed Government to evolve into the fascist reality of today? Democracy is two wolves and a sheep deciding what's for lunch and the Founding Fathers quite deliberately avoided the use of the word entirely. In a Constitutional Republic, it is "We the People" who remain in charge...in theory.
True, but when we went the way of Federalism, it was only a matter of time until neither one mattered - like, right now...
Despite MSM propaganda gold is changing from a supposed commodity back to money and soon to be a giffen good as the panic begins.
No wonder the price is plummeting.
Oh, wait...
Demand has nothing to do with price. Huh ? Uh-well, okay. Whatever.
A jokey remark; and a reading skills test; sadly the readership failed; quite predictable.
And why would you now generally offend the readership?
Hardly endearing...but of course bullion trolls come in many guises.
Over the last 6 weeks or so the price of Gold is down about $100 whilst the physical demand has exploded. Your explanation?
My explaination would be that physical demand hasn't actually "exploded".
Of course those trying to sell you gold, you know the ones who were talking up 3-5K oz about 18 months ago, but are now trying to say it's an excellent time to buy cos it's cheap, those people, yeah those people will happily talk in terms of "explosive physical demand".
Sales is sales man. Truth is no one knows and most of it is a crock of shit.
I don't know about the opaque world of central bank sales and transfers but I do know about the production and distribution of smaller coins and wafers.
In recent weeks gold coin sales have approached the numbers we saw in December and early January. Far more is going out the door than being offered. That is the case with almost every dealer in North America.
The buying is mostly by those who routinely "buy the dips" but we are seeing new buyers step up to the plate. Many folks are concerned about financial fraud, war or even systemic related financial collapse. Gold and silver coins separate some of their wealth from the predatory financial sector and corrupt governance.
Most of the hits on gold and silver price occur as positive fundamental issues come to the fore. The hit on precious metals is always accompanied by financial media stories aimed to keep people out of the sector. The hits are engineered to reap profits on the paper exchanges and keep the public out of the sector. I don't know how long they can manipulate the price but eventually all artificial markets end.
As an aside.... 70% of my invest-able assets are in the form of gold specie. The remaining 30% is cash, silver and some gold shares. I don't know where else I would put my savings in such an environment.
Here here.
My portfolio sounds very similar to yours...and for the exact same reasons.
It's nice to know I'm not alone.
The Perth Mint is THE Australian Government Mint.
What does the Australian Government gain by reporting this?
The US Mint RAN OUT of Silver. They SUSPENDED SALES for Three Weeks.
What does the US Government gain by reporting this?
These are not people out selling product as hucksters. THESE ARE SUPPLIERS. The information is VERIFIABLE.
The Truth is that if there were a plethora of PHYSICAL SUPPLY then Major World Government Mints would have an abundance of supply and NOT SLOW, or OUTRIGHT SUSPEND, Minting Operations.
You are so full of shit.
Did you even bother to read the article before commencing the trolling? The TITLE is "Gold Bullion Demand Surges"
Hell no it doesn't.
Take for intstance today's release of the US Mint's American Liberty 2015 High Relief Gold Coin. It's already on backorder and only $1490. Spot is $1095 so that's only a $395 premium.
What will today's Silver Price look like two years from now ? That's what I'm interested in. I think the answer is; it'll look pretty good. Being willing to buy into a market that has had the living snot pounded out of it; and that "everyone" has turned their back on; is what separates the big winners from the 99%; who end up; whinning.
It seperates the huge balls from what Reggie shoves up Obama's ass, OK sorry but not only that pile of shit but the whole federal govenment has turned against the people and fucked up the world. Obama is in fact a fucked up confused queer fool.
Just what does that have to do with the FRAUDULENT PAPER MARKETS and the lack of Physical Supply at sub $1100/ozt prices?
(Troll Tactic: Distraction)
He might talk to the chap in the Office next door, Bron Sucheki who would NEVER agree that PM prices are being suppressed by Central Banks in the paper futures markets by creating infinite amounts of naked shorted "Paper Gold" and that real physical supply and demand have absolutely no impact on the "Market" price.