Gold sales ease during volatile markets
- The Perth Mint sold 53,976 troy ounces of gold and 1,467,229 troy ounces of silver in minted product form during August.
- The Perth Mint’s ASX listed ETF, ASX:PMGOLD, saw holdings decline modestly, falling by 1% for the month.
- The Perth Mint Depository’s holdings of gold and silver were flat during August, with their value sitting just above AUD 6 billion.
Manager, Listed Products and Investment Research, Jordan Eliseo said: “Precious metal prices were volatile during August, with gold and silver falling by 8% and 9% respectively in US dollar terms early in the month. Both metals rebounded, with gold finishing the month trading back above USD 1,800 per troy ounce, down just 1%, while silver finished the month above USD 24 per troy ounce. Continued concerns over the spread of the Delta strain of COVID-19, a dovish US Federal Reserve, and heightened geopolitical tensions contributed to the rally off the intra-month lows.
Despite the tailwinds, the pace of investment into precious metals was far more subdued relative to the levels seen during 2020, with a continued surge in equity markets driving investors into risk assets.”
The Perth Mint sold 53,976 troy ounces of gold and 1,467,229 troy ounces of silver in minted product form during August.
The table below highlights how these numbers compare to sales seen one month, three months and one year ago, and against monthly average sales dating back to mid-2012.
Current month sales of gold and silver sold as coins and minted bars
Change relative to prior periods
While sales for gold in particular fell relative to the very high volumes seen in the first few months of 2021, they remained comfortably above long-term averages, demonstrating the ongoing investment demand for precious metals.
General Manager Minted Products, Neil Vance said sales of Perth Mint physical gold bullion in August reflected an easing of demand among its key distributors worldwide. However, he noted, “demand for our gold coin and minted bar products remained comfortably above pre-COVID levels, which averaged 33,690 troy ounces per month between August and October 2019. Meanwhile, Perth Mint silver coins remained a key focus for investors. Higher output was achieved in August 2021 as coin presses were brought back online after a period of maintenance.”
The Perth Mint manufactures and markets the Australian Precious Metal Coin and Minted Bar Program. Trusted worldwide for their purity and weight, the coins include annual releases of the renowned Australian Kangaroo, Kookaburra, Koala and Lunar series.
The Perth Mint Depository
Total gold holdings in The Perth Mint Depository were static during August, with the value of these holdings coming to more than AUD 6 billion.
Over the 12 months to end August, total holdings of gold and silver increased by 8% and 2% respectively.
The Perth Mint Depository enables clients to invest in gold, silver and platinum, with The Perth Mint storing this metal in its central bank grade vaults. Operated via a secure online portal, a Depository Online Account allows investors to buy, store and sell their metal 24/7.
Perth Mint Gold (ASX:PMGOLD)
Total holdings in Perth Mint Gold (ASX:PMGOLD) fell by almost 3,000 troy ounces in August, with this decline representing one of the largest monthly outflows in the past five years. These outflows saw investors end the month with 232,653 troy ounces (7.24 tonnes) of gold backing their holdings.
With gold prices largely flat in Australian dollar terms during August, these outflows saw the total value of PMGOLD decline to just above AUD 575 million.To learn more about investing in PMGOLD, download our PMGOLD Factsheet.
Gold market report – Q3 2022
Demand for gold coins and bars rose 36% year-on-year (YoY) in Q3 2022, the World Gold Council (WGC) has reported.