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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Calls Of A Silver Shortage Often Misleading

Topics [ coin production buy silver online buy silver bullion online buy silver buy silver coins ]

BULLION BARS AND COINS

Internet chatter about a looming shortage of silver should be treated with a healthy dose of skepticism.

As we’ve seen recently, this conversation tends to surface whenever one or more of the world’s major mints announce they’ve sold out of silver bullion coins because of a spike in demand. The hype causes some buyers to panic and pay too much.

There have been a number of temporary coin shortages since the global financial crisis. But the scarcity of coins available for sale on each occasion did not equate to a shortage of metal in world wholesale markets.

What they actually reflected were constraints in the production capacity of bullion mints around the world.

The ability to produce new coins quickly is necessarily held in check by the slowest process in the manufacturing chain – which in coining includes mining, refining, blanking, minting and distribution.

It’s like a baker with only one oven. It doesn’t matter how much flour or how many mixing machines he has, he’s only going to be able to produce so many loaves of bread per day, explains Bron Suchecki on our Research Blog.

One of the major bottlenecks in precious metal coins is the manufacture of blanks, also known as planchets. It’s a surprisingly complex procedure demanding amongst others things rolling, annealing and surface treatments, not to mention a lot of weighing and measuring because of the value of the metal involved.

 

Because it’s problematic for blank makers to speed up production, you’d probably ask why they don’t expand their factories? Or why mints don’t stockpile their blanks? Good questions that Bron answers comprehensively in Coin Shortage FAQs: telling a real shortage from a capacity shortage, which, as the title suggests, also provides crucial advice on how you can tell whether the next purported silver shortage could actually be a real one!



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10 Kilo Dragon Gold Coins In The Making

Topics [ coin production Australian Lunar gold bullion coins Year of the Dragon ]

PICTURE OF THE DAY

 

In a prelude to a video we're shooting inside the Mint factory, here's a photograph of a 10 kilo pure gold Lunar bullion coin in the making. The freshly minted coin is about to be removed from the press and from here we will continue to work on it in the finishing area. Stay tuned to see more of the process and the final product alongside its 10 kilo silver Dragon counterpart.



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New Coin Press Delivered Through The Roof!

Topics [ coin production ]

BULLION BARS AND COINS

We took delivery of a new, specially-made Grabener 1,000 tonne coin press at The Perth Mint this week. A group of executives and fascinated staff watched nervously as the huge (and expensive) piece of equipment was craned high into the sky and down to the factory-floor through a temporary opening in the roof. When commissioning is complete, the new coin press will provide extra production capacity for our large silver coins, particularly the Mint’s popular 1 kilo Australian Kookaburra, Koala and Lunar releases.

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