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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 gold has a role in every portfolio

Topics [ gold investment ]

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

The World Gold Council, however, says investment demand for gold exceeded 1,500 tonnes in 2016. As well as being the second-best year on record for inflows to gold exchange-traded funds (ETFs), sales of coins and bars also finished the period strongly.

Despite Buffett’s objections that gold does not pay interest or dividends, many people are clearly ignoring his advice, including dispassionate buyers with objective and logical reasons for adding gold to their portfolios.

Store of wealth

To further understand gold investors, it is helpful to recognise gold’s function as an asset that withstands depreciation over time. For hundreds, if not thousands of years, humans have been psychologically attached to gold as a solid store of wealth.

Today, the overwhelming majority of gold is either in bullion vaults or as jewellery, as a protection against declining values among other assets such as cash.

This is a result of the fact that gold has historically acted as a hedge against inflation. As the famous anecdote tells us, an ounce of gold was enough to purchase a fine toga in Roman times and today is still able to buy a decent suit.

Professor Roy Jastram provided statistical evidence of gold’s property as an inflation hedge 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 considerable fluctuations, gold has held its value over the centuries.


The precious metal is an unparalleled wealth protector in volatile markets.

Diversification

Gold can be a diversifier because traditionally it displays a negative correlation to equities – it tends to increase in value when they decline. In this way, gold may play a role in mitigating overall losses in fluctuating markets.

This was apparent in the the global financial crisis. Many investors sold out of what they perceived to be higher-risk investments and piled heavily into precious metals in a classic demonstration of confidence in gold as a means of protecting wealth. The subsequent spike in the price of gold to more than US$1,900 an ounce.

Geopolitical tension

Gold has shown its ability to outperform other assets in times of geopolitical tension. Armed conflict almost inevitably pushes the gold price higher, as happened during the 1991 Gulf War and the subsequent Iraq War.

Currently, tensions surrounding North Korea and uncertainty over US President Donald Trump’s ability to push his growth agenda through Congress, threatens to undermine confidence in global markets. These are precisely the types of situations in which gold can become a sought-after haven.

However, even in this environment it would be deeply unwise for anyone to invest solely in gold. According to various portfolio theories, just a modest allocation is enough to provide an effective insurance policy in times of crisis. The work of Richard and Robert Michaud indicates that investors who hold 2–10 per cent of their portfolio in gold can significantly improve performance.

How to buy

Gold can be acquired in several ways, starting with direct ownership in the form of coins and bars purchased from a reputable supplier. A depository service will keep it safe and secure for a fee.

Another approach is to use an exchange-traded fund. These offer convenience, but it’s important to ensure the fund owns the underlying physical gold. Gold mining stocks provide an interesting alternative for ASX investors, although you are also exposed to the overall performance of the company.

ASX investors looking for a more focused approach could choose to trade gold via their stockbroking account with PMG, a warrant providing a right to 1/100th of a troy ounce of gold created by The Perth Mint.

As Australia’s precious metals specialist, the historic Perth Mint is a London Bullion Market Association accredited refiner, producing the nation’s official bullion coin program, and providing a trusted range of investment and storage solutions. Owned by the Government of Western Australia, which guarantees all it precious metals, the Perth Mint is renowned worldwide for the quality and purity of products.

Currently accounting for 2.2 tonnes of client gold held in the mint’s security vaults, PMG is the only ASX gold product that can be redeemed for physical Perth Mint bullion coins or bars, and the option to take delivery can be exercised at any time. But the fact that PMG is 100 per cent physically backed and fully Western Australian Government guaranteed is what truly sets it apart.

This article originally appeared in ASX Investor Update



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Perth Mint unveils Australia’s official bullion coin program for 2018

Topics [ Year of the Dog Australian Kangaroo buy gold coins gold investment Australian Lunar Australian Koala bullion coins Australian Kookaburra buy silver coins ]

The Perth Mint has unveiled shining new designs for Australia’s official Bullion Coin Program.

Issued annually since 1987, the trusted releases offer an outstanding choice of pure gold, silver and platinum coins, each authorised by the Australian Government as official legal tender.

Characterised by outstanding craftsmanship, iconic artistry and assured purity, the new coins, which include the first ever Australian Kangaroo in pure platinum, will become available from The Perth Mint and its authorised dealers worldwide from 11 September 2017*.

 

2018 Australian Lunar Gold and Silver Bullion Coin Series

AVAILABILITY: 11 SEPTEMBER 2017

Extremely popular with investors and collectors, Australian Lunar coins celebrate the 12 animals of the Chinese lunar calendar. In 2018, artistry portraying a labrador retriever on the 99.99% pure gold releases, and German shepherds on the 99.99% pure silver coins, mark the Year of the Dog.

 

The Australian Lunar 2018 Year of the Dog Gold Bullion Coin Series is available in 1 kilo, 10oz, 2oz, 1oz, 1/2oz, 1/4oz, 1/10oz and 1/20oz sizes. A maximum mintage of 30,000 applies to the 1oz coin.

 

The Australian Lunar 2018 Year of the Dog Silver Bullion Coin Series is available in 1 kilo, 10oz, 5oz**, 2oz, 1oz and 1/2oz sizes. No more than 300,000 1oz will be released.

Availability of a special 10 kilo coin (maximum mintage of 100), will be announced later this year.

 

2018 Australian Kookaburra Silver Bullion Coin Series

AVAILABILITY: 4 OCTOBER 2017

Now struck from 99.99% pure silver, the Australian Kookaburra Bullion Coin Series was originally issued in 1990. In 2018, each coin portrays a stunning representation of the emblematic bush bird on a moonlit night.

 

The 2018 Australian Kookaburra Silver Bullion Coin Series is available in 1 kilo, 10oz, and 1oz sizes.

A maximum of 500,000 1oz coins will be released.

 

2018 Australian Kangaroo Gold, Silver and Platinum Bullion Series

AVAILABILITY: 23 OCTOBER 2017

Thanks to a landmark development, Australia’s original bullion coin series is for the first time offered in three highly sought after investment metals. Portraying imagery of the nation’s most evocative wildlife emblem, the Australian Kangaroo comes in 99.99% pure gold, 99.99% pure silver and 99.95% pure platinum options.

 

The 2018 Australian Kangaroo Gold Bullion Coin Series is available in 1 kilo 1oz, 1/2oz, 1/4oz and 1/10oz sizes. A new design featuring two kangaroos bounding across a rural landscape is included on the four smallest releases.

No more than 100,000 1/2oz, 150,000 1/4oz, and 200,000 1/10oz gold coins will be released.

In common with the 1 kilo gold coin, the 2018 Australian Kangaroo 1oz silver bullion coin and the new 2018 Australian Kangaroo 1oz platinum bullion coin portray classic artistry representing a ‘red’ kangaroo encircled by symbolic rays of sunshine.

 

2018 Australian Koala Silver Bullion Coin Series

AVAILABILITY: 8 JANUARY 2018

In 2018, the Australian Koala also comes in 99.99% pure silver. The 12th annual design portrays one of Australia’s most loved marsupials astride two branches in a flowering eucalyptus tree.

 

The 2018 Australian Koala is offered in 1 kilo and 1oz versions only. Just 300,000 1oz coins will be released.

 

For further information

Download a pdf of the 2018 Australian Bullion Coin Program brochure – ‘Investments destined to shine’.

 

How To Purchase

The following options exist for buyers of the 2018 Australian Bullion Coin Program:

1. Visit the Bullion Trading Room

Invest and pick up in-store from the Bullion Trading Room, 310 Hay Street, East Perth, seven days a week between 9am and 5pm (AWST).

2. Visit the Bullion Sales Website

Register at perthmintbullion.com to order online from the comfort and convenience of your own home between 8.30am and 5pm (AWST).

3. Telephone the Bullion Call Centre

Order from a Customer Services Officer on 1300 201 112 or +61 8 9421 7218 during Monday to Friday between 8.30am and 5pm (AWST).

4. Contact an Authorised Distributor

Contact your local authorised Perth Mint distributor in Australia/New Zealand, Asia, United States, Canada or Europe.


* coin availability dates are subject to minor change should production flexibility be required.
** availability of 5oz Year of the Dog silver bullion coin will available approximately two weeks after the official release date of 11th September.

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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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Where is it safe to store my precious metal investments?

Topics [ depository gold investment depository online ]

Do you want to invest in physical precious metal without the security risk of storing it at home?

The historic Perth Mint's depository was created in the 1990s to enable clients to invest in gold and silver without the need to take physical delivery.

Uniquely, our depository offers the only government guaranteed investment and storage program in the world, and uses the most extensive central bank grade vaulting facilities in the Southern Hemisphere.

Today, our depository has more than 30,000 clients worldwide. Last year alone, the value of precious metals on deposit at The Perth Mint increased from $2.69 billion to $3.11 billion.

For depository clients who would like to be able to react quickly 24 hours a day to the dynamic precious metals markets, you can buy and sell gold and silver through our easy to use and secure online trading platform, Perth Mint Depository Online.



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Perth Mint CEO to headline precious metals investment symposium

Topics [ gold market gold investment ]

The Perth Mint’s Chief Executive Officer, Richard Hayes, a precious metals industry expert, will headline a key group of speakers at the 7th Annual Precious Metals Investment Symposium, being held in Sydney in October.

A thought leader on the global precious metals market, Mr Hayes will share his knowledge and unique insights into the industry at the two-day event. He will also discuss the ‘case for gold’ and investing long-term in precious metals to build wealth and reduce risk.


Perth Mint Chief Executive Officer, Richard Hayes.

Symposium conference organiser, Kerry Stevenson, said, “As the leader of one of the world’s most prestigious precious metals businesses, we are delighted that Mr Hayes will kick off the Symposium.”

“Richard has a vast knowledge of the precious metals industry and I have no doubt delegates will be left both impressed and delighted,” she said.

Since taking the reins at The Perth Mint in July 2015, Mr Hayes and a new executive team have devised a business strategy to position the organisation as a global leader in the precious metals industry.

Mr Hayes is bullish about precious metals. “There is much to learn from the fortunes and misfortunes of others when it comes to investing in an asset of true value – gold,” said Mr Hayes.

Mr Hayes is currently the Chairman of the Gold Industry Group. With a finance and economics background, he has 30 years’ experience in the investment and precious metals sector. He joined Gold Corporation (trading as The Perth Mint) in 2003 as Chief Financial Officer and Deputy CEO, and previously held senior positions with AGR Matthey and Golden West Refining Corporation Ltd. 

With a theme of Investing for Real Wealth in a Volatile Global Market, this year’s forum will provide an opportunity for Australia’s business leaders and investors to come together to engage and network in one of Australia’s most important sectors.

The Precious Metals Investment Symposium will be held at  Four Points by Sheraton, Sydney Darling Harbour on Monday 10 and Tuesday 11 October 2016.

Mr Hayes will deliver his keynote address at 9am on Monday 10 October 2016.

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World Gold Council: Investor demand for gold soars in Q2 2016

Topics [ gold market gold investment ]

Some key findings of the latest WGC Gold Demand Trends report:

 • Q2 2016 continued in the same vein as Q1 with overall gold demand growing to 1,050 tonnes, up 15% from the Q2 2015.

 • Q2 investment demand was 448 tonnes, up 141% from 186 tonnes in the same period last year.

 • Investment has now been the largest component of global gold demand for two consecutive quarters – the first time this has ever happened.

 • H1 demand for coins, bars and especially exchange-traded funds reached 1,064 tonnes, up 16% from the previous first-half year record in 2009.

 • Western investors generated the bulk of this demand, with smaller-scale investors very much in evidence in the U.S. and Europe.

 • The jewellery sector was depressed, with high and volatile prices creating unfavourable conditions for consumers in most markets.

 • Q2 global jewellery demand fell 14% to 444 tonnes versus 514 tonnes in the same period last year.

 • At 77 tonnes, central bank demand decreased 40% in Q2 2016, compared to 127 tonnes in the same period last year.

 • Nevertheless, overall gold demand for Q2 2016 increased by 15% to 1,050 tonnes, up from 910 tonnes in Q2 2015

Download Gold Demand Trends Q2 2016



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