Mint sales subdued as gold hits another record high

The Perth Mint sold 25,884 troy ounces (oz) of gold and 647,382 oz of silver in minted product form during August 2024.  

Opening the month around USD 2,400, the gold price gained for a number of trading sessions as the market digested comments that followed the US FOMC meeting. While the Funds rate was kept steady as widely expected, the Chair Jerome Powell’s comments that the easing of monetary policy was ‘imminent’ were positive for gold. Like other assets, gold was heavily impacted when the S&P 500 had its worst day since 2022 and traded below USD 2,400. But after this gold went on a run, hitting a record spot high of USD 2,531.60 on 20 August. This was driven by number of factors including rate cut expectations, renewed geopolitical concerns in the Middle East sparking demand for safe haven assets, and momentum buying in the market after gold broke through some resistance barries. At the end of the month gold was trading above USD 2,500 for a 4% gain in August and a year-to-date gain of a little over 22%.  

In Australian dollar terms, the gold price moved lower in August impacted by the strengthening AUD which rose more than 7% to 0.6824 on 29 August. This was reflective of the clear switch of monetary policy stance by the US Federal Reserve as opposed to the Reserve Bank Australia (RBA) which has signalled it expects to hold rates higher for longer, pushing the AUD higher. Early in August, the local gold price briefly traded above AUD 3,800. By end of the month gold was trading a little above AUD 3,700 to give a year-to-date gain of 22%.  

Silver traded in a volatile fashion during the month of August, at one point trading below USD 27, when all asset classes suffered a brief correction, but then rallied over 10% and was trading above USD 30 in late August. By the end of the month silver was trading around USD 29.50 to return a gain of over 3% in August and a year-to-date gain of 24%.  

The silver price in Australian dollar terms at the end of August was lower as the gain in the USD price was offset by the strengthening Australian dollar resulting in a monthly loss of nearly 1.5% but year to date a gain of 24%.  

The Gold Silver Ratio was above 86.50 at the end of August, increasing because of the outperformance of gold during the month.  

Minted products 

The Perth Mint sold 25,884 oz of gold and 647,382 oz 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. 

AUGUST 2024 SALES OF GOLD AND SILVER SOLD AS COINS AND MINTED BARS (TROY OUNCES) AND CHANGE (%) RELATIVE TO PRIOR PERIODS. 

The Perth Mint’s General Manager Minted Products, Neil Vance, said the market appeared to be stabilising after a few years of sustained demand.

“Conversations with colleagues overseas in the industry reflect what we’re seeing here at The Perth Mint which is a return to the sales volumes we experienced pre-pandemic,” Mr Vance said.

“Mints have always been subject to the ebbs and flows of market demand for precious metals. It was unusual to experience the volume of sales we did for the length of time we did but it does appear we are returning to the market normal we’ve seen in previous years.”    

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. In addition, periodic releases and series offer investors a choice of alternative design themes.

Bullion coins released in August 2024

Australian Brumby 2024 1oz Silver Bullion Coin

For more new product information visit the bullion web page.

Please note: The figures stated in this article are for total monthly ounces of gold and silver shipped as minted products by The Perth Mint to wholesale and retail customers worldwide during August 2024. They exclude sales of cast bars and other activities including sales of allocated/unallocated precious metals for storage by The Perth Mint Depository.

Perth Mint Gold (ASX:PMGOLD)

Perth Mint Gold is an exchange traded product (ETP) that allows investors to trade in gold via a stock broking account as they would shares on the ASX. To learn more, visit the PMGOLD web page. PMGOLD webpage.

Total holdings in Perth Mint Gold (ASX:PMGOLD) increased during August, with holdings increasing by 9,246 oz (3.64%). This brings total holdings in PMGOLD to 263,424 ounces (8.19 tonnes) continuing the recent growth in the product.

MONTHLY CHANGE IN TROY OUNCES HELD BY CLIENTS IN PERTH MINT GOLD (ASX:PMGOLD) AUGUST 2021 TO AUGUST 2024