Perth Mint silver sales continue to impress as precious metal markets correct
Summary
- The Perth Mint saw sales of gold and silver minted products hit 72,910 and 1,823,029 troy ounces respectively in June.
- The Perth Mint Depository saw minor inflows into gold products during May, with total holdings now 3% (gold) and 6% (silver) higher than they were one year ago.
- The Perth Mint’s ASX listed ETF, ASX:PMGOLD, saw holdings rise modestly, increasing by just over 1% during the month.
Manager, Listed Products and Investment Research, Jordan Eliseo said: “Gold and silver prices fell strongly during June, with the two precious metals down approximately 7% in US dollar terms. A rally in the US dollar driven by a more hawkish than expected US Federal Reserve drove the correction, with gold now down almost 15% from the all-time highs seen in August last year.
“Despite the correction, investors are still turning to precious metals, with many looking to take advantage of the recent weakness to build their holdings. This can be seen in the demand for gold and silver seen across The Perth Mint product range, especially minted product sales, which recorded another strong month in June.”
Minted Products
The Perth Mint sold 72,910 troy ounces of gold and 1,823,029 troy ounces of silver in minted product form during June.
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.
Current month sales of gold and silver sold as coins and minted bars in troy ounces
June sales
1 month
3 month
1 year
Long-term average
Gold
72,910
- 20%
- 44%
64%
55%
Silver
1,823,029
7%
14%
16%
98%
Change relative to prior periods
While gold sales fell relative to the very high volumes seen in the first few months of 2021, they remain well above long-term averages, while silver sales for The Perth Mint continue to track near all-time highs, with sales in June almost double their long-run average.
Troy ounces of gold and silver sold as coins and minted bars
December 2018 to June 2021
General Manager Minted Products, Neil Vance confirmed that FY2020/21 had challenged The Perth Mint in terms of its capacity to keep up with strong demand for bullion coins and bars. “We have ended an incredible year with another stellar month for our silver products. The market momentum meant that we sold all the silver coins that we could make in June.”
“Gold sales came off the levels seen in the boom months of February to May, due mainly to a drop off in European sales. Nevertheless, it’s been no less an impressive year overall for our gold coins and minted bars.”
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.
The Perth Mint Depository
Total gold holdings in The Perth Mint Depository recorded a minor increase in June, rising by 1% for the month, while holdings of silver remained static. Despite minor inflows for gold, the total value of precious metal holdings declined in June, driven by the 7% correction in gold and silver prices (in US dollar terms) seen during the month.
Over the 12 months to end June, total holdings of gold and silver increased by 3% and 6% respectively, with the majority of inflows taking place in the lead up to the all-time highs seen in the US dollar gold price in August 2020.
Total troy ounces of gold and silver held by clients in The Perth Mint Depository
June 2018 to June 2021
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.
Perth Mint Gold (ASX:PMGOLD)
Total holdings in Perth Mint Gold (ASX:PMGOLD) increased by more than 1% in June, with these inflows seeing investors end the month with 236,506 troy ounces (7.36 tonnes) of gold backing their holdings.
These inflows saw total holdings in PMGOLD return close to their all-time high, with the minor uptick in demand occurring despite the sharp gold price correction in June, which has seen holdings across the global gold ETF sector decline.
Monthly change in troy ounces held by clients in Perth Mint Gold (ASX:PMGOLD)
January 2015 to June 2021
Source: The Perth Mint, ASX, LBMA
Despite the minor increase in holdings, the value of PMGOLD holdings fell during June, driven by the almost 5% decline in the Australian dollar gold price. PMGOLD ended June with a market value just above AUD 550 million, having risen by approximately 5% in the last 12 months.
