Perth Mint stops taking new gold orders amid huge demand
Posted on 22 November 2008 with no comments from readers
The Australian, Sydney
Saturday, November 22, 2008
Fears of the unknown long-term effects from the global financial crisis have sparked a new gold rush.
With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.
As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion (A$50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.
Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.
He said Europe was leading the demand, with Russia, Ukraine, Middle East, and US all buying — making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.
“We have never seen this before and are working right at capacity. And we are seeing it from clients in the shop buying one ounce, right up to 30,000 ounces from overseas clients,” Mr Currie said.
Robert Jaggard, manager of bullion and rare coins dealer Jaggards, said business had picked up strongly and he expected it to increase further.
“All around the world there has been a heavy run on physical gold and there is a shortage of supply,” he said.
Mr Jaggard, who has been dealing in gold for 40 years and is an agent for the Perth Mint, said some clients were buying up to $1 million worth of gold, paying a premium above the spot price.
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This is it, gold prices will roar ahead from here – but too late if you have not bought anything yet from Perth. Try the gold ETF, GLD on the NYSE or the silver ETF, SLV.
The Obama Cabinet appointments look highly gold positive – inflation is coming back big time. Beside Bernanke in his helicopter is dropping money already.
Do you think silver will finally start increasing in price? The price of it just looks so sad currently…
Yes I am absolutely sure that as gold takes off silver will outperform. The supply of silver is even tighter than gold and investment demand is very high – in Dubai they are flying in silver bars for investors now because local stocks are exhausted. The Comex silver price is even more of a nonsense than for gold – the highest physical premiums are being paid on silver not gold. Silver is highly volatile – both on the up as well as the down.
My gold is doing damn well, its at an all time high in Sterling terms. My silver is down 40% in Sterling terms…;-( I really hope things turn around.
I just took delivery of your book yesterday and read the first chapter. I look forward to finishing it!
Where does Dubai fly its silver bars in from?
Most likely Europe – but I don’t know for sure. Enjoy the book – I am sure silver will outperform gold in the end. I met one of the world’s biggest gold fund managers last week and he agreed.
Adam Hamilton has a whole article dedicated to silver this week!
http://news.silverseek.com/Zealllc/1227287315.php
Talked to Perth Mint today – only bullion coin sales are suspended – trading in allocated and unallocated bullion continues unchanged. However, the shortage is still significant of course.
I hope it reflects soon in the price. This correction feels like it has been dragging on.