Gold sales remain steady with strong demand from the USA
- The Perth Mint sold 72,889 troy ounces (oz) of gold and 1,881,001 oz of silver in minted product form during May.
- The Perth Mint depository’s total gold holdings decreased by 1.00%. Silver holdings dropped by 0.89% during the month.
- Holdings in The Perth Mint listed ETP, ASX:PMGOLD, increased for the month, up 0.63%.
In early May we saw gold jump back above USD 2,000 and hit a near record high based on a combination of factors, including comments off the back of The Federal Open Market Committee (FOMC) meeting and the US regional banking crisis.
Post this early month activity, gold traded in a range from USD 2,000 to USD 2,050. On 17 May 2023, gold traded under USD 2,000 an ounce for the first time in more than two weeks. By 25 May 2023, gold was trading as low as USD 1,940. The drop was driven and sustained by the strengthening US dollar. By month end gold had recovered slightly to be trading a little over USD 1,955 representing a monthly decline of more than 1.3%.
Gold in Australian dollar terms ended the month slightly more than AUD 3,000. The local gold price moved flat during May. A decreasing USD gold price was offset by a rising AUDUSD FX rate. Early in the month gold breached AUD 3,100 but this was a short-lived spike.
Silver had a bounce early May hitting nearly USD 26 but then dropped over the remainder of the month even experiencing a one day drop of 5% off the back of traders taking profit. During the month, silver in USD terms experienced a drop of nearly 6.50% with a smaller decrease in AUD terms which was protected by a rising FX rate.
At the end of the month the Gold Silver Ratio was at 83.50 after seesawing throughout the month.
Minted products
The Perth Mint sold 72,889 oz of gold and 1,881,001 oz of silver in minted product form during May.
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
72,889
-3%
40%
-26%
37%
Silver
1,881,001
-3%
27%
-15%
76%
May 2023 sales of gold and silver coins and minted bars (troy ounces) and change (%) relative to prior periods.
General Manager Minted Products, Neil Vance said: “Although silver was down 3% for the month, our production was at full capacity, and we sold to that capacity for the month. Gold continued to hold up well with strong demand in the USA”.
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
Total gold holdings in The Perth Mint Depository decreased by 1.00%, while silver holdings were down 0.89% in May. Compared with 12 months ago, gold holdings were down 7.61%, while silver holdings were down by 3.34%.
Total troy ounces of gold and silver held by clients in The Perth Mint Depository May 2020 to May 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) gained during May, with holdings increasing by 1,499 oz (0.63%). This brings total holdings in PMGOLD to 240,901 ounces (7.49 tonnes).
Monthly change in troy ounces held by clients in Perth Mint Gold (ASX:PMGOLD) May 2020 to May 2023
By the end of May the total value of PMGOLD holdings was AUD 728 million, with the gold price trading more than AUD 3,000 oz.
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.
