Bullion faces headwinds as demand dip extends into August
Bullion faces headwinds as demand dip extends into August
- The Perth Mint sold 34,875 troy ounces (oz) of gold and 792,503 oz of silver in minted product form during August 2023.
- The Perth Mint Depository saw total gold holdings decrease by 0.42%, while silver holdings dropped by 0.46% during the month.
- Holdings in The Perth Mint listed ETP, ASX:PMGOLD, decreased for the month, down marginally by 0.06%.
Starting August at a little over USD 1,960, gold’s downward trend during the early part of the month was driven by a stronger US dollar and higher yields. Neither July’s Producer Price Index showing core CPI rose in line with market consensus (released 11 August); or minutes of the Fed’s July meeting expressing concerns about the pace of inflation (released 16 August), produced any firm conclusion on the likelihood of further US rate hikes.
Despite this apparent ambiguity, yields and the US dollar rose, while gold continued to languish below USD 1,900 until popping over this level late in August. Nevertheless, gold had lost about 0.50% by the end of the month.
Silver prices continued their upward trajectory from July, climbing a little over 1.25% in US dollar terms to end the month above USD 24.50, with a US led focus on a green energy transition continuing to support the metal.
In Australian dollar terms, silver was materially higher in August, up near 5% for the month.
The Gold Silver Ratio dropped and ended the month on 79.40.
Minted products
The Perth Mint sold 34,875 oz of gold and 792,503 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, and against monthly average sales dating back to mid-2012.
Precious metal
Current month
One month %
Three months %
12 months %
Long-term average
Gold
34,875
-21%
-52%
-59%
-34%
Silver
792,503
-8%
-58%
-52%
-26%
AUGUST 2023 SALES OF GOLD AND SILVER SOLD AS COINS AND MINTED BARS (TROY OUNCES) AND CHANGE RELATIVE TO PRIOR PERIODS.
General Manager Minted Products, Neil Vance identified a number of headwinds facing bullion sales. “The market for physical silver in Germany has been hit by the impact of a hike in VAT to 19% on non-EU silver bullion coins,” he said. “In the US, our distributors continue to report a slowdown in both gold and silver from the heightened levels of demand we experienced during the pandemic.”
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. For more product information visit the bullion web page.
The Perth Mint Depository
In August, total gold holdings in The Perth Mint Depository decreased by 0.42%, with silver holdings down by 0.46%. Compared to 12 months ago, gold holdings were down 7.69%, while silver holdings were down by 4.44%.
TOTAL TROY OUNCES OF GOLD AND SILVER HELD BY CLIENTS IN THE PERTH MINT DEPOSITORY AUGUST 2020 TO AUGUST 2023
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. For further information visit the depository web page.
Perth Mint Gold (ASX:PMGOLD)
Total holdings in Perth Mint Gold (ASX:PMGOLD) dropped during August by 142 oz (0.06%). This brings total holdings in PMGOLD to 239,430 oz (7.45 tonnes).
MONTHLY CHANGE IN TROY OUNCES HELD BY CLIENTS IN PERTH MINT GOLD (ASX:PMGOLD) AUGUST 2020 TO AUGUST 2023
The total value of PMGOLD holdings at the end of August was AUD 718 million with the increase in value attributed to a rising gold price which was trading a little under AUD 3,000 oz at month end.
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.
DISCLAIMER
Past performance does not guarantee future results. The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.
