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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Monthly Sales - June 2015

STATISTICS

Total ounces of gold and silver sold by The Perth Mint in June 2015 as coins and minted bars.

  - Gold (Au): 31,019oz

  - Silver (Ag): 384,586oz



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Understanding Gold

Topics [ buy gold online buy gold bullion online buy gold ]

RESEARCH BLOG

A wire story that caught our eye this morning arrived under the headline “The Three Books You Must Read if You Want to Argue About Gold”. In it, Bloomberg editor Tom Keene recommends a trio of publications worthy of examination. (A well-read version of his second endorsement, The Power of Gold by Peter L. Bernstein, is a permanent fixture on this writer’s desk!)

 

The point is that before jumping into precious metal, it is essential to understand as much as possible about the history of gold and its contemporary role. And on this score, Anthony Hart has been providing extremely valuable insights recently on our Research blog.

After examining 12 reasons that justify the ownership of gold, this week he looked at 12 counter-arguments, making the point that readily accepting the positives and ignoring the negatives “is potentially a one way trip to the poor house”.

Anthony discusses contentious issues about gold under headings such as “No Yield”, “Ownership Costs”, “Government Confiscation” and “Barbarous Relic”, before weighing the pros and cons of ownership against each other and concluding that it’s unwise to put all your eggs in one basket.

With significant understanding of gold, Anthony offers his personal perspective to end the series: “The way I personally view ownership of gold is as a pure savings and wealth preservation vehicle, with a little insurance thrown in,as opposed to as an ‘investment’ (investment in this case being an allocation of capital which is put at risk in the attempt to significantly grow overall wealth).”



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How Much Gold Is Enough?

Topics [ gold investing investment gold investment invest in bullion gold bars gold bullion bars buy gold bullion bars ]

PRECIOUS METAL SERIES – 6

If you’re persuaded by the argument that it’s important to diversify your investment portfolio with gold as an insurance against global gloom-and-doom scenarios, you need to consider how much gold is enough.

Roughly two years after the price of gold had declined from its all-time high in 2011, Professor of Economics at Harvard University, Greg Mankiw, concluded that it still made sense to hold a “small sliver” of gold in his portfolio. About 2 percent, he said.

In response, financial advisor, author and advisory board member Joshua M Brown argued that amount was nowhere near enough.  “It’s not ever going to have a large enough impact on a portfolio to matter,” he stated. But in advocating 25 – 50 percent of total assets, was he going over-the-top?

How Much Gold Is Enough?

The World Gold Council (albeit an industry body) is well respected for its research and analysis. Its suggestion falls into line with the many more moderate recommendations we’ve seen. Having crunched some relevant numbers, it states that “modest allocations to gold of 2 – 10 percent can protect and enhance the performance of an investment portfolio. A 5 – 6 percent allocation is optimal for investors with a well-balanced 60/40 portfolio.”

While warning that 20 percent is way too much, former hedge fund manager and now popular US financial commentator Jim Cramer also favours 10 percent as an upper limit. “I consider gold as an insurance policy and no worthwhile insurance policy should be 20 percent of the money you have invested," he said recently.

Ultimately, of course, it’s down to you, but take time to research the topic before deciding your personal ‘allocation to gold’.



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12 Reasons To Own Gold

Topics [ gold investing gold bull market gold bear market ]

RESEARCH BLOG

Perth Mint finance manager Anthony Hart held the fort over on our Research blog this week with a couple of posts that summarised many of the arguments in favour of owning gold.

Anthony neatly analysed 12 key reasons he considers crucial for investors to consider:

  1. Excessive Global Debt
  2. Low Interest Rates
  3. Money Printing
  4. Currency Wars
  5. Financial System Fragility
  6. Geopolitical Risk
  7. The Rise Of Chindia
  8. Equity Market Valuations
  9. Diversification
  10. Eliminate Counterparty Risk
  11. History
  12. Insurance

In the interest of balance, Anthony will shortly be presenting reasons not to own gold. To stay on top of the debate, head over the Research blog to read his current posts now.



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Monthly Sales - May 2015

Topics [ buy silver buy gold ]

STATISTICS

Total ounces of gold and silver sold by The Perth Mint in May 2015 as coins and minted bars.

  - Gold (Au): 21,671oz

  - Silver (Ag): 337,511oz



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Gold Prices In Aussie Dollars

Topics [ buy gold online buy gold coins buy gold bullion online ]

GOLD PRICE

When the nightly newscaster reports the price of gold per toz, more often than not it is quoted in US dollars. That’s because gold is traded on commodities markets in US dollars. Of more interest to investors in Australia, however, is the price of gold in our local currency.

Gold looks more affordable in Australia when the Aussie rises against the US dollar. Conversely, it becomes more expensive when the Aussie weakens against US dollar. So whether you’re buying, or selling gold, it makes sense to keep an eye on this important relationship.

The red line in this graph shows the price of gold* in US dollars for the past six months. The blue line shows the gold price in Australian dollar terms over the same period. The latter reflects not only the inherent value of gold, but also the relative strength of the Aussie against the Greenback.

 

*Perth Mint Spot Price



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