About Perth Mint Bullion Blog

This blog discusses The Perth Mint's bullion coins and bars, providing information about our latest designs, mintages, sales volumes and sell outs. On a broader front, we share relevant research and opinions for anyone interested in gold and silver bullion investing.

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Why invest in gold?

Topics [ gold minted bars gold investing gold bull market gold investment ]

Many investors are averse to gold because, as Warren Buffet argues, it’s an unproductive asset. Whereas equities and property are useful and provide a return, gold “doesn’t do anything but sit there”. Consequently, it has little inherent value from his point of view.

So why do some people ignore the advice of the world’s most famous investor and buy gold? In short, they believe it has a valuable role to play in protecting their wealth. How is this so and how can Australian Securities Exchange (ASX) investors take advantage?

Over time, gold is considered to hold its value in real terms. According to the old adage, throughout history an ounce of gold has always bought a man’s quality suit. The World Gold Council illustrates the point with a similar analogy. Back in 1971, USD 25,000 – the equivalent of 700 ounces of gold – was enough to purchase a family house. That amount of cash today would hardly pay for a mortgage deposit, whereas 700 ounces of gold, worth approximately USD 875,000, is still enough to get a foot on the property ladder.

The Perth Mint Gold Cast Bars

Professor Roy Jastram provided statistical evidence of gold’s ability to provide a hedge against inflation in his seminal work, The Golden Constant. His detailed examination of the English and American financial systems between 1560 and 2007 concluded that despite some severe fluctuations, gold has held its value over the centuries, offering an effective means of protecting wealth.

While it would be unwise for any investor to invest solely in gold, it is worth considering the shiny yellow metal for portfolio diversification. Thanks to its ‘safe haven’ characteristics, gold tends to have a low correlation to ‘risk’ assets – that is it tends to go up in value when other asset classes go down. In this way, it can play an effective role in mitigating overall losses during the downside of the business cycle.

History shows that in extreme circumstances, many investors join a ‘flight to quality’. As we saw in 2008 – 2009, when confidence in the global financial system was severely tested, many sold out of what they perceived to be higher risk investments and piled heavily into gold. The subsequent spike in price to more than USD 1,900 per ounce proved to be a great strategy in preserving portfolios values.

Advisors who support the role of gold in a portfolio generally recommend an allocation of somewhere between 5% and 10% to provide ‘insurance’ against similar crashes.

Today, the argument for an allocation to gold is strengthened by uncertainty on several macroeconomic and geopolitical fronts. Commentators see significant risk in the underlying strength of the Chinese economy, protectionist trade policies, Brexit and the forthcoming Euro elections, as well as emerging tensions in the Korean peninsula and the Middle-East region. So called ‘black swan’ events, any unforeseen development with the power to shock markets, remain an ever present possibility.

Fortunately, gold is no longer the preserve of institutions or wealthy private investors. It’s readily accessible in the form of retail bullion bars and coins to Exchange Traded Funds. Servicing clients from ‘mum & dad’ investors, through to Self-Managed Super Funds, institutional and sovereign buyers, The Perth Mint offers a range of different ways to gain exposure to gold – including a wide choice of physical products for delivery or safe storage, certificates, and a product designed specifically for anyone preferring to trade via the ASX.

Perth Mint Gold (PMG) is a warrant providing a right to 1/100th of a troy ounce of gold created by the Mint. Traded on the ASX under the code PMGOLD, its price closely tracks the international over-the-counter market spot price of gold in Australian dollars. While not the only warrant available to investors who prefer to hold gold within their stockbroking account, it does offer an exclusive and invaluable set of reassurances – not least The Perth Mint’s status as a global leader in precious metals.

Established in 1899 to refine Australian gold and to make sovereigns, today’s modern Mint operates across the precious metals value chain, including refining, manufacturing, investing and storage.

As the operator of Australia’s only gold and silver refinery accredited by the London Bullion Market Association (LBMA), clients are assured of the stated weight, purity, and integrity of its gold, silver and platinum products.

During the past 30 years, the Mint has made almost 51 million bullion and numismatic coins, which have the reputation for being among the highest quality coins in the world. In the process, it has added value to nearly 270 tonnes of gold and more than 3,000 tonnes of silver.

Also offering secure storage for investors who prefer not to take physical delivery, its depository currently manages precious metal valued at more than AUD 3.11 billion on behalf of more than 30,000 clients worldwide.

Accounting for a further 2.2 tonnes (at the time of writing) of client gold held on the Mint’s secure premises, PMG is the only ASX gold product which can be redeemed for physical Perth Mint bullion coins or bars, while the option to take delivery can be exercised at any time. But it is the fact that PMG is physically backed and fully West Australian government guaranteed that truly sets it apart.

As with its certificate and depository investment solutions, The Perth Mint backs every ounce of PMG gold it sells on a 1:1 basis with physical metal – ensuring that all metal held on its clients’ behalf is 100% backed. As an institution subject to rigorous corporate governance and control, this undertaking is critical to the Mint’s exemplary reputation.

Investors can also have complete confidence in the Mint’s ability to deliver from the fact that since 1971 it has been wholly owned by the government of Australia’s largest resource rich state, which guarantees its liabilities - including obligations under the PMG Terms and Conditions. Enshrined in the Western Australian Gold Corporation Act 1987, under which the Mint’s operator Gold Corporation was created, Section 22 states:

“The payment of the cash equivalent of gold due, payable and deliverable by Gold Corporation ...  is guaranteed by the Treasurer, in the name and on behalf of the Crown in right of the State." 

The Perth Mint’s government guarantee is unique in the world, offering all investors an unprecedented level of security. Consequently, for those seeking gold with the same ease and convenience of trading in shares, together with one of the lowest management fees associated with any gold exchange traded product, The Perth Mint’s PMG could be the perfect answer.


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Monthly Sales – May 2017

Topics [ silver bullion coins minted bars gold bullion coins ]

Total ounces of gold and silver sold by The Perth Mint in May 2017 as coins and minted bars:

  - Gold (Au): 29,679 oz

  - Silver (Ag): 826,656 oz



This chart shows total monthly ounces of gold and silver shipped as minted products by The Perth Mint to wholesale and retail customers worldwide. It excludes sales of cast bars and other Group activities including sales of allocated/unallocated precious metal for storage by the Depository.



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Facts behind gold’s huge importance revealed

Topics [ gold market gold refining ]

It is a well told story that the discovery of gold helped transform 19th century colonial Australia into one of the most economically dynamic and socially diverse nations of the modern era.

Probably less well known is the fact that gold continues to play a fundamentally important role in the Australia’s fortunes, providing employment for thousands of people, particularly in regional communities, and generating wealth for the nation via taxes and royalties.

Unveiled today, research compiled by the Gold Industry Group in association with Deloitte Access Economics reveals that:

 • Australian mines produced more than 280 tonnes of gold, about 9% of global production, in 2016.

 • The gold mining sector currently provides full time employment for more than 26,000 people.

 •  About 50% of investment in mineral exploration goes to the gold sector – worth AUD 617.6 million in 2016.

 • Australia now has 66 operating gold mines, and 14 of the world’s largest.

 • The direct contribution of the mining of gold ore is estimated to be AUD 5.9 billion.

Which all helps to explain why Australia continues to be ranked second on the Reuters/GFMS league table of most prolific gold producing nations.



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NEW 2017 Australian Koala 1oz Silver Bullion Coin with Rooster Privy Mark

Topics [ Australian Koala buy silver bullion online ]

This new Australian Koala coin offers precious metal investors another excellent opportunity to acquire silver in the form of an official limited mintage release.

Struck from 99.9% pure silver, the coin’s modified Koala design incorporates a privy mark paying homage to this year’s ruling animal from the ancient Chinese lunar calendar.

With a limited mintage of just 25,000, the coin is likely to be popular among both investors and collectors, particularly those born in the Year of the Rooster, which includes 1921, 1933, 1945, 1957, 1969, 1981, 1993, 2005 and 2017.

Prospective buyers can visit The Perth Mint Bullion Trading Room at 310 Hay Street in East Perth, or call our Bullion Line on 1300 201 112. Alternatively, registered clients can order online at perthmintbullion.com.

This coin is also distributed by Perth Bullion Co within Australia, and by Apmex internationally.

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World Silver Survey 2017

Topics [ Silver Price silver market ]

The Silver Institute, an international association drawing its membership from organisations in the silver industry, has released its 27th annual World Silver Survey. Produced by the GFMS Team at Thomson Reuters, the latest survey offers global supply and demand statistics for 2016.

Some key findings of the latest World Silver Survey:

 • The annual average silver price rose 9.3% in 2016 to USD 17.14 per oz, its first rise since 2011.

 • On the supply side, total supplies fell 32.6 million ounces (Moz) to 1,007.1 Moz.

 • Global mine production recorded its first decline since 2002, down 5 Moz to 885.8 Moz.

 • Others key supply factors included less silver scrap, and a contraction in producer hedging.

 • Total physical demand fell by 11 percent in 2016 to 1,027.8 Moz, pulled lower by weaker offtake for jewellery, silverware and retail investment.

 • Physical and exchange-traded product investments fell to 253.8 Moz in 2016, down 7 percent from 2015. Demand for coins and bars declined 83.9 Moz to 206.8 Moz compared to 2015.

 • Industrial applications, the largest component of physical silver demand, were lower by just 1 percent, reaching 561.9 Moz.

 • Demand from the photovoltaic industry jumped 34% in 2016 to a record high of 76.6 Moz, largely on increased requirements for solar panels in China and the United States.




Click here to read the full World Silver Survey 2017 9 (12.57 MB pdf)

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Monthly Sales – April 2017

Topics [ silver bullion coins minted bars gold bullion coins ]

Total ounces of gold and silver sold by The Perth Mint in April 2017 as coins and minted bars:

  - Gold (Au): 10,490 oz

  - Silver (Ag): 468,977 oz



This chart shows total monthly ounces of gold and silver shipped as minted products by The Perth Mint to wholesale and retail customers worldwide. It excludes sales of cast bars and other Group activities including sales of allocated/unallocated precious metal for storage by the Depository.



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