November 2016 Sales of Gold at the Perth Mint Remain at Elevated Levels for Third Month in a Row.
The Perth Mint sold 54,747 ounces of gold in November 2016. This was up 73% from the Perth Mint’s November 2015 gold sales of 31,644 ounces. November Perth Mint gold sales marked the third month in a row that the mint sold over fifty thousand ounces.
Higher November 2016 gold sales at the Perth Mint reflect a continued rebound from lower summer sales that had fallen after the Brexit election in June. The total gold sales reported by the Perth Mint include the wide variety of gold products it sells, including its popular Gold Kangaroo coins (pictured below) and the newly issued 2017 Australian Gold Rooster. Indeed, last month the Perth Mint specifically called out that the increased gold sales were in part due to the newly minted Australian Gold Rooster coin.
The 2017 Australian Gold Kangaroo coin is now available to order.
In the second half of 2015, gold sales spiked at sovereign mints all over the world as investor concern over political stability (eg. Grexit) and unorthodox central bank policies resulting in ‘stimulus” and negative interest rates drove interest in the yellow metal. Gold sales accelerated at the Austrian, Canadian, U.S. and Perth Mints especially during the second half of the 2015. In 2016, political and economic uncertainty continued as Great Britain took the unprecedented step of voting to leave the European Union and many central banks took their interest rates further into negative territory. The price of gold soared in the first half of 2016 along with record gold investment demand, according to the World Gold Council.
In late 2016, gold sales accelerated at the Perth and U.S. Mints as political uncertainty in Italy over its constitutional referendum, the U.S. Presidential elections and Brexit considerations drove investors to the safe haven gold.
Perth Mint Gold Sales 2015 – 2016
2016 Perth Mint Gold Sales Projection
If gold sales at the Perth Mint in 2016 continue at a pace of an average of 40,012 ounces a month, (January – November sales of 440,139 divided by eleven the Perth Mint will sell about 480,000 ounces of gold in 2016. If, however, gold sales continue their surge in December, the Perth Mint could sell over 500,000 ounces.
Perth Mint Sold Approximately 18 Times More Silver Than Gold In November
The Perth Mint sold 984,622 ounces of silver and 54,747 ounces of gold in November 2016 for a silver to gold sales ratio of 17.98 to 1. In comparison, in November, the U.S. Mint sold 3,061,000 American Silver Eagles and 129,000 one ounce American Gold Eagle coins in November 2016 for a silver to gold sales ratio of 24 to 1.
In March 2016, in a rare occurrence, Perth Mint’s gold sales of 47,948 ounces were higher than the U.S. Mint’s total gold sales of 46,500 ounces in March that included all denominations of American Gold Eagles and American Gold Buffalo coins. The one off triumph of the Perth Mint in March reversed in April. The U.S. Mint’s 105,500 ounces of gold sold in April was more than double the Perth Mint gold sales. In May, the Perth Mint’s 21,671 ounces was well below the U.S. Mint’s sales of gold attributable American Gold Eagle coins of 76,500 ounces without counting the 18,500 ounces of gold sold in the form of American Gold Buffalo coins. In June, the Perth Mint’s 31,368 ounces of gold sold was about half of the U.S. Mint’s sales of 62,500 one ounce American Gold Eagle coins.
In 2015, the Perth Mint sold 11,775,927 ounces of silver and 457,132 ounces of gold for a silver to gold sales ratio of 25.76 to 1. In 2015, the U.S. Mint sold 47,000,000 one ounce American Silver Eagle coins and 626,500 one ounce American Gold Eagle coins for a silver to gold sales ratio of 75.02 to 1.
While Perth Mint gold sales were up year over year, they have stagnated in recent years as have gold sales at the major sovereign mints – the Canadian, U.S. and Austrian Mints. Retail investors have flocked to silver coins. The second half of 2015 marked a return in the growth of gold coin sales at the world’s largest sovereign mints that continued into 2016 even as silver sales continued at record pace. Since September, gold sales are growing faster than silver sales.
About the Perth Mint:
The Perth Mint, located in Western Australia, is historically known for its gold sales. Australia ranks third in global gold production and has about ten percent of the world’s known gold reserves. Many of Australia’s gold mines are located in Western Australia where the Perth Mint was founded in 1899.
As a full service government mint, the Perth Mint produces legal tender gold and silver coins that are not intended, however, for general circulation. Australia’s general circulation coins are produced by the Royal Australian Mint. The Perth Mint focuses on minting precious metal bullion and collector coins and bars.
The Perth Mint has been refining about 300 and 400 tonnes of gold and silver each year and also supplies gold and silver blanks to other government mints. As a major producer of silver blanks, the Perth Mint has not experienced any production halts during the past year.
Perth Mint gold sales data: The Perth Mint Blog
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.