About Perth Mint Bullion Blog

You are invited to engage with senior representatives of The Perth Mint, including CEO Ed Harbuz, on The Perth Mint Bullion Blog. Use the comments section to post your views and/or questions in response to our regular articles, and join a vibrant community of people who share an interest in superb quality gold and silver bullion bars and coins.

PLEASE READ
Our Blog Disclaimer.

Our Comments Policy.
Our Copyright Policy.

Perth Mint Bullion BlogSubscribe
« Back to full list

Hot Money Is Distorting The Precious Metals Markets - Bron Suchecki

Topics [ depository gold bull market sell gold gold bear market buy gold ]

IN THE NEWS

Why is the gold price weaker? It’s mostly big money speculators, hedge funds and people in it to make a quick buck, according to Bron Suchecki, The Perth Mint’s Manager, Analysis and Strategy. They’re playing the trends and if they think the trends are against them, they all start piling out, he says.

Making his latest media appearance on the Financial Survival Network, Bron reports that while Perth Mint Depository had not seen much buying recently, there had been no radical selling from existing customers either, which is a positive sign for everyone with a strong commitment to gold.

And on a personal note, Bron says he is unfazed by the dip in the gold price, but suggests if you are feeling stressed about volatility, then maybe you have too much allocation to gold in your investment portfolio?

Listen in full to Bron in discussion with Kerry Lutz now.



Blog DisclaimerComments PolicyCopyright Policy

New Volume Discounts Make Buying Bullion Cheaper

Topics [ gold coins bullion coins silver coins buy silver buy gold ]

BULLION BARS AND COINS

Significant savings can be made on Australian gold and silver bullion coins from The Perth Mint thanks to the introduction of lower thresholds for volume price breaks.

For example, silver investors previously needed to buy 100 or more 1oz coins to receive a saving of $1.50 per coin. Under the new, lower thresholds, they can now take advantage of the same saving on an order of just 20 coins.

Even more remarkable, the saving of $3.50 per coin that previously began on orders for 500, now applies to purchases of only 100 or more 1oz coins.

The new volume thresholds mean similar savings also apply on 1kg, 10oz, 5oz, 2oz and 1/2oz coins, making it more affordable than ever to stack silver in any of these popular sizes.

There’s equally exciting news for investors purchasing 1oz, 1/2oz, 1/4oz, 1/10oz and 1/20oz gold bullion coins.

Incremental savings now apply on volumes of 5, 20 and 50. As an example, buyers of 1oz gold bullion coins will save around $17 per coin when buying just 20 or more.

Comprehensive details about the price per coin under our new volume pricing structure are available on individual product pages at www.perthmintbullion.com.


The Perth Mint has boxes, trays and 20-coins rolls for customers taking advantage of volume discounts.



Blog DisclaimerComments PolicyCopyright Policy

What’s So Important About Gold?

Topics [ gold bull market invest in gold buy gold ]

WHAT OTHERS ARE THINKING

At this stage of the gold bull market, it is important to get your rationale for buying gold right, says John Stepek.

Gold is no longer a contrarian bet.

It features regularly in the money sections of newspapers. There are ‘we buy your gold’ shops everywhere. And more and more funds and financial services companies are setting up to cash in on the boom.

It’s not a bubble either. It’s still held in contempt by the economic ‘elite’. Apart from the odd dissenting voice buried in the back pages, you’ll rarely find a pro-gold story in the FT or The Economist, for example.

But gold’s appeal has certainly been rediscovered by the wider investing public. And it’s little wonder why. Because those ever-so-clever central bankers screwed up badly.

The Best Way to Think of Gold

I find that the best way to think of gold is as a currency.

Gold has been used as money throughout history. That’s because it’s well suited to being money.

It’s durable – you don’t have to worry about it rotting or rusting, so you can hold on to it if you don’t want to spend it right away.

It’s fungible – one bit of gold of a given quantity is just like another. And it’s portable, within reason.

Indeed, gold had an official role in the monetary system right up until 1971, when Richard Nixon severed the link between gold and the US dollar.

What’s special about gold is that it’s a currency that no one can print. You have to dig it out of the ground. It also can’t go bust. History is littered with paper currencies that are literally worthless. Gold’s value has never fallen to zero.

So at a time when central banks are printing money like mad, with no clear idea of what impact it might have, it makes sense that demand for gold increases. Because, to put it simply, the amount of paper money in the world is going up a lot faster than the amount of ‘real money’ – gold.

That’s the case for owning it, and I think it’s a sensible one. But how much of it should you own?

Gold as Insurance

I like gold. But after 11 years of constant increases, I believe we’re nearer to the end of the gold bull market than to the start. This is the stage where more and more people are going to start piling in for the wrong reason. They’ll buy gold because it’s going up, not because it’s a sensible investment.

That means that this is also the stage where – even though there are likely higher peaks ahead of us – some people are going to start getting badly burnt in the inevitable panic sell-offs.

So it’s important to get your rationale for buying gold right. It’s not 2001 anymore. You can’t just buy it and sit on it, safe in the knowledge that chances are, it will never ever be that cheap again, and that you’ll always be able to sell at a profit.

And if you’re hoping to ‘ride the bubble’ when it comes, put that thought out of your head right now. That way, financial disaster lies. Timing a bull or bear market is painful. No one can know when the final peak or trough will come.

So what do you do?

Well, another way to think of gold is as an insurance policy. You don’t put your entire portfolio in gold. It’s something that you hold to insure the rest of your portfolio against financial disaster.

The possibility of such a disaster seems quite high just now, which is why the insurance policy (gold) is more expensive than it once was.

So we’d suggest that you invest 5-10% of your portfolio in some form of physical gold (gold stocks are separate – they’re driven by more than just the gold price, and they’re certainly not insurance).

And when you check your portfolio every six months or so, you rebalance accordingly – if gold’s share of your portfolio is creeping higher, sell some and invest in something else. If it’s dipping, then top it up.

That way, you’ll profit from the inevitable ‘bubble’ phase. But you won’t be left over-exposed when prices go down, as they one day will.

And when the gold bull-run is over, you’ll be pleased. Because when the gold price re-enters a bear market, it’ll be because the wider economy is finally turning around. And you’ll be able to buy cheap insurance again for the next crisis.

(Re-posted from MoneyMorning Australia)



Blog DisclaimerComments PolicyCopyright Policy

Billionaire Investor Sees Parabolic Spike For Gold

Topics [ gold prices buy gold ]

WHAT OTHERS ARE THINKING

“The reason gold is the single biggest asset in my portfolio is because I believe it’s going a lot higher… it’s going to have a parabolic spike, caused by some event or some loss of confidence… that will cause gold to go through the roof, and then everybody will want to own it…I don’t think we’re even close to that yet…gold will probably have a much greater run than some of the other hard assets because it’s also a currency.”

Billionaire Canadian businessman Frank Giustra moved heavily into gold in 2002 when it was trading under $US300. A decade later he explains why he’s still a “gold bug”.

Full story: ceo.ca



Blog DisclaimerComments PolicyCopyright Policy

Billionaire Investors Buy ETF Gold - Reactions

Topics [ buy gold ]

IN THE NEWS

“Billionaires Soros, Paulson Bet Big on Gold” screamed the abc news blog following last week’s revelation that both billionaire fund managers had increased their stakes in the biggest exchange-traded fund backed by gold.

Many interpreted the news as a great sign for the yellow metal.

"The fact that you have one guy (Paulson) who made the most money in his gold fund is increasing his holding, you have to feel confident about that if you are a gold bull," Arbitrage LLC’s Mihir Dange told Reuters.

“Nobody better understands trading and the global financial system than Soros,” MarketWatch quoted Atyant Capital’s Vedant Mimani, and the fact that he is re-buying gold “is something to make note of.”

Describing their move as a “smart one”, Phil Oakley at MoneyWeek confirmed: “Gold is worth holding, if only as a form of insurance against paper money going bad – which it eventually will, if all the printing continues.”

On the other side of the equation, Forbes blog published a piece by Nigam Arora asserting “Paulson and Soros are two of the world’s most accomplished investors, but neither Paulson nor Soros has a good track record when it comes to precious metal investments.”

The decision to buy is definitely an interesting one given that Soros called gold “the ultimate asset bubble” in January 2010.

The famous quote was cited by The Telegraph’s Garry White who said “Mr Soros’s words of wisdom on the gold price have not always been worth following.”

Other investors meanwhile dumped their gold ETF holdings. “Vinik Assessment Management's Jeffrey Vinik and Eton Park Capital's Eric Mindich dumped their shares in the SPDR Gold Trust as of June 30,” Mineweb reported.



Blog DisclaimerComments PolicyCopyright Policy

Is Central Bank Buying Good Or Bad For Gold?

Topics [ gold market gold prices silver prices buy gold ]

IN THE NEWS

In 2011 net purchases of gold by central banks amounted to the highest seen since 1964. Matthew Partridge wonders whether this is a signal for the rest of us to get out of gold given central bankers are “never great market timers” and in the words of Erste Group Research’s Ronald-Peter Stoeferle, “tend to be civil servants with an extremely pro-cyclical investment behaviour”. Partridge doesn’t see reason to worry given that the majority of banks presently acquiring gold are in developing economies and generally playing ‘catch-up’. It might be different, however, had they been from developed economies.

Full story: MoneyWeek

Another analyst who’s sees the gold price on its way up to over $US2,000 is Tom Fitzpatrick of Citigroup. He notes that the 2010-2012 gold charts looks strikingly similar to the 2005-2007 charts – and if this continues then the next move will be a huge jump up!

Full story: King World News

Gold futures in New York extended gains to a third session on Friday. The metal saw weekly gains of 2.2% settling at US$1,618 an ounce after France and Germany pledged to support for the euro. Up 5 cents at US$27.50 an ounce, silver rose 0.7% on the week.

Full story: MarketWatch



Blog DisclaimerComments PolicyCopyright Policy

Confirm
No
Yes