Perth Mint dominates the global bullion market: sells 114,000 ounces of gold in November while the US Mint sells 6,000

Perth Mint dominates the global bullion market: sells 114,000 ounces of gold in November while the US Mint sells 6,000

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Editor’s note: The article has been updated to include comments from the US Mint.

(Kitco News) – November’s rally in gold and silver had a modest impact on physical demand; however, the Perth Mint continues to dominate the market as it saw strong bullion demand last month.

In its latest sales report, the Perth Mint said it sold 114,304 ounces of various gold products last month. The Mint added that gold bullion sales were down 38% from record highs in October. At the same time, demand fell by 1% compared to November 2021.

The Mint’s General Manager of Minted Products, Neil Vance, said some of the drop in demand resulted from the Mint holding back some production.

“Despite this, ounces of gold sold as minted commodities were at their second highest monthly level this fiscal year,” it said in a statement.

According to some analysts, Perth Mint continues to see healthy international demand for its bullion with growing markets in Asia, the Middle East, particularly India and Europe.

Meanwhile, in North America, the U.S. Mint said it sold 6,000 one-ounce America Eagle bullion coins last month. The pace of sales in November was at its lowest since December 2019.

However, some analysts said low production could be linked to some production issues as the Mint started producing coins from 2023.

“The US Mint has been allocated to our authorized buyers since July 2022, and based on our production plan, we have stopped production of American Eagle Bullion in September 2022, so that the Mint can begin minting coins for the launch of the CY 2023 bullion coin program which will launch on January 3, 2023,” U.S. Mint spokesman Michael White said in a comment to Kitco News.

Jonathan Da Silva, a trader at Kitco Metals, said he still sees healthy demand for America Eagle products; however, he added that rising prices coupled with high premiums were keeping some investors on the sidelines.

“We see some customers buying gold bullion coins for tax reasons, but because of the premium situation, you’re betting gold above $2,100,” he said.

Similar to gold, the Perth Mint is experiencing healthy, albeit weaker, silver demand. The Australian Mint said it sold 1.315 million ounces of silver in November, down 34% from last month and 14% on the year.

The Perth Mint noted that physical demand fell as silver prices rose more than 9% against the Australian dollar.

As the US Mint’s gold sales fell to their lowest level in three years, it reported strong demand for silver. The US Mint said it sold 1.4 million ounces of silver in November, its best month since March.

The silver market continues to struggle with growing physical demand. The unprecedented appetite for silver coins has kept premiums high, near 100%.

Last month, the Silver Institute said it expected demand for the precious metal to hit a new all-time high of 1.21 billion ounces, putting the market in a huge deficit of 194 million ounces. .

Demand for physical bullion is expected to reach 329 million ounces, up 18% from last year.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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