Australian precious metals shine in Germany
German investors bought almost AUD500 million worth of Australian gold and silver coins last financial year, cementing The Perth Mint’s place at the top of trade relations between Australia and Germany.
On the eve of the 2017 Asia-Pacific Regional Conference in Perth, The Perth Mint’s Chief Executive Officer Richard Hayes said German investors had wholly embraced the Australian Bullion Coin Program since it was introduced 30 years ago.
Testimony to its desirability, German investors purchased 4.1 million precious metal coins, containing an aggregate 5.1 million ounces or 158 tonnes of gold and silver, worth some AUD447.5 million, in 2016/17.
This strong demand for Perth Mint products makes it once again Australia’s largest exporter, in value terms, to Germany.
It also means that the European powerhouse was the Mint’s most significant market for investment coins and bars this past year.
“German investors value quality. They want to be assured that their money is invested in products that will help protect their wealth during times of market fluctuation, and that they come with an internationally recognised seal of purity and transparency,” Mr Hayes said.
“This demand for indisputable quality matches our commitment to be a standard bearer in the world of precious metal investment-grade coins.
“The Perth Mint has established long-standing relationships with Germany’s leading banks, including Deutsche Bank, Bayern Landesbank, LBBW, Commerzbank and Heleba to create a national distribution network across the nation to satisfy investor demand,” Mr Hayes continued.
Since the introduction of the Australian Bullion Coin Program, German investor interest in coins from the four investment series – the Australian Kangaroo, the Australian Kookaburra, the Australian Koala and the Australian Lunar – has grown steadily, with Lunar coin issues particularly popular within the region.
“Australian gold has a global reputation for purity and ethical sourcing,” Mr Hayes said.
“This means our precious metal products are highly sought-after, and during times of heightened geopolitical tensions investors continue to turn to them as safe haven assets.
“German investors’ appetite for Perth Mint coins is an endorsement of our operations and continued investment in minting technology and expertise. It is also a vote of confidence in the Australian gold mining sector which delivers its doré product to us to process and manufacture.”
Australia is the world’s second largest producer of gold after China and The Perth Mint is focused on maximising its support of this vital industry.
Its mission is to continue to expand existing and create new markets for its products, and tailor its offerings to specific regions. For example, investors in Germany and the US prefer bullion coins but in China 1kg gold bars are the most popular products. Furthermore, the Mint’s markets are not confined to investors. Its precious metals offerings are also acquired by collectors and preferred by some of Asia’s most high-tech industries.
The Perth Mint is a key supporter of the two-day 2017 Asia-Pacific Regional Conference which celebrates Australia-Germany relations across trade and politics. The prestigious event commenced with a gala dinner last night (Friday 3 November) hosted by Germany’s President Frank-Walter Steinmeier and Australia’s Prime Minister Malcolm Turnbull MP.
Notes for media about The Perth Mint:
- Refines more than 90% of Australia’s newly mined gold as well as gold and silver produced in other countries.
- Refined 334 tonnes of gold and 540 tonnes of silver in 2016/17. The total value of metals refined is more than AUD18 billion.
- Has a rigorous and internationally accredited quality system integrated into its refining process which tracks the origin of gold, confirms its purity and protects its quality.
- Sold 158 tonnes of gold and silver products into Germany in 2016/17, worth close to AUD500 million.
- Germany was its largest market for minted coins and bars last financial year.
- Germany and the US are its leading coin markets.
- Is Australia’s leading exporter, in product value terms, to Germany.
- Stores more than AUD3 billion of precious metals on behalf of clients.
- Is accredited by the London Bullion Market Association (LBMA), Tokyo Commodity Exchange (TOCOM), New York Commodity Exchange (COMEX), Dubai Multi-Commodity Centre (DMCC) and Shanghai Gold Exchange (SGE).
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