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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More Dangerous Phase Of The Global Debt Crisis Looking More Likely – GoldCore

Topics [ financial crisis gold market gold prices sovereign debt ]

WHAT OTHERS ARE THINKING

Gold futures in New York were driven to a three-week high on Monday as ongoing concern about Greek sovereign debt heightened the safe-haven appeal of the metal.

But Greece is not the only problem for Europe where the threat of sovereign default and contagion increases by the day, says GoldCore, the Ireland-based precious metal specialist.

Here’s their analysis and the likely consequences for gold demand in the foreseeable future.

“Greece is facing the threat of further severe austerity measures and a plan for unprecedented outside intervention including in the collection of tax and wholesale privatization of Greek state assets. The severity of the plan and the fact that it would in effect spell the end of Greek sovereignty and a forced move towards a European fiscal union may lead to its rejection by opposition Greek parties who may seek a fairer alternative.

Greece is just one of the sovereign debt crisis facing the Eurozone. Portugal and Ireland are bracing for debt crisis contagion to reach their shores and in both countries the crisis is deepening.

Portuguese bonds have come under heavy selling pressure again this morning with 10 year bonds rising to 9.822% and two-year note yields were 21 basis points higher at 11.53% this morning. The spread or yield difference between German 10-year bunds and Portuguese securities of a similar maturity widened to a record over 678 basis points in London this morning. This is the highest since Bloomberg began collecting the data in 1997.

In Ireland, Transport Minister Leo Varadkar sparked alarm and confusion over the weekend when he said the government may need further funding from the European Union and IMF next year as Ireland will be shut out of bond markets for 2012 and possibly even in 2013.

Irish 10 year bond yields surged over 11% last week and remain over 11% at 11.07% this morning.

Punitive “bail outs” have clearly not worked and have simply managed to transfer massive debts from profligate banks to western nations taxpayers who were already struggling with very high debt levels.

A continuation of these misguided policies makes a second more dangerous phase of the global debt crisis increasingly likely and means that diversification into gold remains prudent and safe haven demand for gold will remain robust for the foreseeable future.”

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FAQ 3: Why Do You Require My IDs?

Topics [ buy silver online buy gold online where to buy gold where to buy silver ]

WEBSITE INFORMATION

We’ve covered this issue before but it is still one of the most popular questions we get asked by people registering to buy gold and silver bullion on www.perthmintbullion.com.

When you register, we ask for a primary identification document containing your photo and current residential address - an Australian Driver Licence or Passport is perfect.

If the ID document does not contain a photo or address, you’ll need to supply a secondary ID document containing your current residential address – for example a recent utility bill.

Individuals in Australia should complete their ID checks either at The Perth Mint Shop or at one of 3,200 participating Australia Post retail outlets - click here for more information. For overseas clients, we require you to send us two certified/notarized ID documents.

We make these ID checks under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 which requires us to be able to appropriately identify customers of bullion products.

The legislation considers bullion to be something that could be used to transfer cash to organisations involved in illegal activities. The requirement doesn’t just apply to The Perth Mint – it applies to anyone in Australia who supplies gold bullion.

Under the Act, which is administered by AUSTRAC, the limit for bullion trade without identification is A$5,000.

Even if you intend to buy precious metal in minimal quantities, we still insist on completion of the ID check. That’s because, like other online retailers, we face an unfortunate threat from internet fraudsters.

Hopefully, you do not consider the requirements draconian. You only have to identify yourself to us once – not for every transaction. And remember, the legislative requirements do not automatically involve reporting your details to any Government authority.

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Gold And Silver Bar Demand To Remain Strong

Topics [ gold market silver bars gold prices gold bars silver prices silver market ]

TREASURY VIEW

With physical demand for metals, particularly silver, soaring over the past few months, keeping abreast of demand has been a challenging task. Speculative demand for silver saw the price rise by an extraordinary 80% in the three months leading up to end April, when silver hit a high of USD49.80 in New York. With gold hitting new highs on a regular basis, silver in the $25 - $30 range had strong appeal to speculators when compared to its $50 high back in 1982.  So silver took on the role of “Poor Man’s Gold” and was hit by a wave of speculative momentum that took it almost without pause to within a whisker of its all-time high.

But just short of the magical $50 level, markets were hit with a combination of factors that caused the silver price to retrace by 30%: a rise in the Chinese inflation rate cast doubt over ongoing demand for commodities, commodity funds exiting silver as it reached their target level, and futures exchanges increased their margin requirements on certain commodities including oil and silver. The silver price, which had seemingly risen as if on an escalator, came down via a lift. In a telling statistic, the major silver Exchange Traded Funds (the favoured media for speculative traders) reported redemptions totalling 1,040 tonnes in the first week of May, an amount equivalent to about 40% of the funds’ silver inflow throughout the whole of 2010.

At The Perth Mint we have seen record demand for silver through our Retail, E-commerce and Perth Mint Depository (PMD) outlets, both in physical and unallocated form. As at 1st May, PMD closed its doors to unallocated silver sales, a victim of its own success, and now offers a Pool Allocated option in which silver investors buy into a pool of physical metal held in the Mint’s vaults. Bar lists are published weekly on our website but unlike the superseded unallocated product, this metal ownership option attracts a modest storage charge. Over the first fortnight of operation, Pool Allocated silver holdings have grown significantly.

Significant physical demand for silver bars has been experienced, with the 10 ounce, 20 ounce, kilo and 100 ounce bars proving the most popular. However, this recent surge in demand has exceeded our capacity to produce them. In response, additional silver refining and barring equipment is being installed at the refinery which is intended to increase capacity to double the current level. It is expected that this new equipment will be commissioned and operating at full capacity in early July.

Gold bar demand continues at a high level, prompted by continuing concerns over the US economy and persisting sovereign debt crises in Europe. Over the past six months, China’s presence as a gold buyer has become ever more apparent, and unlike India, whose legendary demand is driven by perceptions of good value (and therefore price inelastic), China’s demand appears strong notwithstanding the current price. The refinery meets this demand by producing on average six tonnes of kilo bars per week which are readily snapped up by eager buyers.

Despite the recent downturn in prices, physical bar demand for gold and silver remains at very high levels and looks like remaining so for the foreseeable future.

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Mint Gears For All Out Production Of 1oz And 1 Kilo Silver Bullion Coins

Topics [ silver bullion coins Australian Koala buy silver bullion online ]

BULLION BARS AND COINS

The Perth Mint has further streamlined its silver bullion coin range in order to focus production on 1oz and 1 kilo sizes.

The decision to temporarily suspend 2oz and 1/2oz sizes (10oz and 5oz coins are already suspended), frees up additional manufacturing capacity so that we are in the best position to satisfy soaring demand for our two most popular coin sizes.

Koala Back Orders Accepted

We’re currently making 1oz and 1 kilo Australian Koala silver bullion coins. If and whenever Koalas are temporarily unavailable on the website, you can place orders at current prices for later delivery by calling the Perth Mint Bullionline on 1300 201 112.

Kilo Kookaburra and Rabbit Coins Available Soon

When the full commissioning of our new 1000-tonne coin press is complete, we will re-commence production of 1 kilo Kookaburra and Lunar Rabbit silver bullion coins for expected availability in late June/early July. As previously announced, 1oz Kookaburra and Lunar Rabbits are sold out.

High Worldwide Demand

This unprecedented call has been forced upon us by the very high investment demand following silver’s recent price volatility. We believe other mints worldwide face the same challenges, with some now refusing to take new orders or reducing the number of customers they are prepared to supply.

The measures we’ve taken are based on our frank assessment of what is best and fairest for all Perth Mint customers. And contrary to inevitable speculation and erroneous online “chatter”, The Perth Mint does not face any shortage of silver. These moves are designed to increase our silver coin output, albeit in only two sizes.

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Perth Mint Answers Calls For ‘Back Orders’ On Silver Bars

Topics [ silver bullion prices silver bars buy silver invest in silver ]

BULLION BARS AND COINS

We are now accepting orders for 10oz and 1 kilo silver bullion bars whenever they are shown as out-of-stock on the bullion website.

The move brings the web sales policy into line with The Perth Mint Shop and follows recent blog comments from customers expressing their willingness to wait for deliveries.

Physical availability of silver bullion bars is currently affected by the reorganisation and expansion of production facilities at The Perth Mint refinery. This is resulting in periodic stock-outs, which have been further exacerbated by soaring demand since silver’s recent price correction.

Anyone unable to order 10oz or 1 kilo silver bars via the website is invited to call our Bullionline on 1300 201 112. Your back order will be accepted at the price current at the time of your call.

However, you will have to wait for actual delivery and our Customer Service Officers will provide you with an estimated time only.  

The decision to accept back orders counters speculation that The Perth Mint was unwilling to sell silver when the priced dipped dramatically two-weeks ago. The bullion website crashed at that time because of unparalleled levels of traffic (something we have subsequently looked at from a technical point of view).

The argument is incorrect anyway, as there is no conceivable benefit to The Perth Mint to cease trading when the price of metal falls. As explained in a recent posting by my colleague David Kerbey, for every ounce of bullion our customers commit to buying, we immediately purchase the equivalent amount of precious metal on spot markets.

In other words, the bullion price we offer retail customers is simply a reflection of the price at which we are able to purchase it ourselves!

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Perth Mint Sells-Out 1oz Kookaburra And Lunar Mouse Silver Bullion Coins

Topics [ silver bullion coins Australian Lunar Australian Kookaburra ]

BULLION BARS AND COINS

The Perth Mint has reported two more sell-outs from the Australian Silver Bullion Coin Program.

The 2011 1oz Australian Kookaburra has sold its total mintage of 500,000, while the 2008 1oz Australian Lunar Mouse has reached its 300,000 mintage limit.

Introduced in 1990, the 1oz Kookaburra was traditionally restricted to 300,000 coins annually. But the Mint’s decision to increase the mintage for the first time in 20 years has been vindicated with the full half-million coins sold in eight months.

Meanwhile, the Australian Lunar Silver Bullion Coin Series goes from strength-to-strength. All four 1oz coins released since the start of Series II – the 2008 Mouse, 2009 Ox, 2010 Tiger and 2011 Rabbit – are now fully sold.

Buyers in search of current 1oz Australian silver bullion coins can still acquire the unlimited 2011 Australian Koala.

Fresh designs for 2012-dated releases, including the much-anticipated Year of the Dragon coins, will be announced by the Mint in September/October.

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