Australian Kangaroo sales jump on silver surge

While gold’s historic highs have been the talk of the town for much of 2020, silver has also been firing on all cylinders.

The precious metal breached USD 25 an ounce last night to trade near six and a half year highs – and it has been matched by overwhelming demand from investors worldwide.

The extraordinary investor appetite for silver coins has been reflected in record sales of our iconic Australian Kangaroo 1oz Silver Bullion Coin, with more than 10.7 million sold in the past financial year.

Silver demand rise mirrors gold growth

Following a price fall in March, investors flocked to silver as an alternative safe-haven asset in the second quarter of the year amid ongoing uncertainty in the wake of COVID-19. 

While there was significant growth in silver exchange traded products (ETPs), which reached 925 million ounces at the end of June, retail bullion sales also jumped by an estimated 60% year on year.

According to The Silver Institute, in the first half of 2020 “silver bar and coin sales surged in response to a deteriorating economic outlook linked to the global COVID-19 pandemic.” 

A trusted manufacturer and supplier of quality silver coins and bars and one of only a handful of mints to remain open throughout the COVID-19 crisis, The Perth Mint has seen a significant uptick in demand for its products. 

Among the most popular choice is its Australian Kangaroo Silver Bullion Coin, which is a relatively new offering but undeniably one of the most sought after in recent years. 

A staple of the Australian bullion range

With a design honouring the classic depiction of the native marsupial which has graced the Australian Kangaroo gold release for more than two decades, the Silver Kangaroo has been an investor favourite since its introduction in 2015.

It was unveiled as the first Australian coin to be struck from 99.99% pure silver to the exacting standards and unwavering quality for which the Mint is renowned. Designed to meet the requirements of bullion coin ‘stackers’, the coin’s success lies in a combination of factors including its trusted legal tender status, guarantee of purity, convenient 1oz format and exceptional affordability.

Available in a range of convenient quantities including individual purchase, in tubes of 25 and even a ‘monster box’ of 250 coins, the Silver Kangaroo offers investors a wealth of choice. 

Quickly becoming a staple of the Australian bullion range, it has sold in excess of 35 million coins since its inception and more than 10 million in the past year. 

Manager Minted Products Neil Vance said it was proof that The Perth Mint is taking more Australian silver bullion products to the world than ever before.

“Demand this year has been incredible,” he said. “Being one of the few global mints to remain open during COVID-19, we've taken stringent measures to keep our people safe and continue to supply investors around the world with quality gold and silver products.” 

“The Silver Kangaroo is a key part of that strategy as one of our major investor coins and an extremely popular annual release.”

Reasons to invest in silver 

Silver is rallying for many of the reasons that gold is, in that they are both precious metals that are sought as a refuge in times of economic uncertainty and financial market instability. 

However, unlike gold, which is seen more as a monetary metal by the market, silver is also widely used in industry, which is one of the reasons why silver price movements can often be more volatile.

Manager Listed Products and Investment Research Jordan Eliseo says, “Right now, we think investors are attracted to silver for a few reasons. The first of those is momentum, with the price almost doubling from the lows seen in mid-to-late March.” 

“The second reason is that silver is still historically cheap relative to gold. Today you need approximately 80 ounces of silver to buy one ounce of gold, whereas in 2011 you needed only 35 ounces of silver to buy that same ounce of gold.”

There are no guarantees history will repeat, but a growing number of investors are positioning their portfolios to benefit should silver outperform gold in the years to come, as it has over the past three months.

An attractive option for those wishing to invest in the precious metal, the 2020 Australian Silver Kangaroo has an unlimited mintage.

Resources

Silver investment demand up by 10% in first half of 2020, The Silver Institute

Disclaimer:
Past performance does not guarantee future results.
The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.