ximmy
31st July 2015, 02:00 PM
Sales of Perth Mint Certificates remain robust and he adds that the Perth Mint has seen a lot of interest in its new Depository Online Service despite the fact that it has not yet been officially launched nor has there been any publicity for it. He points out that central banks are still accumulating gold despite the negative sentiment because “gold still has intrinsic value”.
He does not see the price of gold dropping a whole lot further given the cost of production, although he believes that we may see a fall to $1000 before the price moves upwards again. It now costs on average around $1,000 to mine one ounce of gold.
Meanwhile the U.S. Mint has reintroduced its sales of Silver Eagle coins (1 oz) following a three-week suspension.
On July 7 The U.S. Mint was forced to suspend sales having exhausted its inventory which suggests there was either a shortage in physical silver blanks or of physical silver bullion that makes the blanks. However, they have placed restrictions on sales and sales remain “allocated” to wholesalers in order to maintain some supply.
The U.S. Mint is legally required to supply as much silver as is needed to meet demand (http://www.resourceinvestor.com/2015/07/31/metals-market-update-july-31). Their inability to do so shows demand remains very robust.
So far this month the Mint has sold 4.03 million Silver Eagles. In June total sales came to 4.8 million coins. There are reports that 2.6 million coins were sold this week alone. So, despite having not been available for three weeks, in July Silver Eagle sales are down only 17% on the previous month.
The U.S Mint is also seeing strong demand for Gold Eagle coins (http://www.resourceinvestor.com/2015/07/23/smash-gold-price-leads-high-demand), especially one ounce, which – at 136,500 – is more than double the June figure and is the highest demand since the bear raid which saw prices fall in April 2013.
There has been an unprecedented barrage of negative publicity towards gold in recent weeks (http://www.resourceinvestor.com/2015/07/28/inflation-deniers-emboldened-golds-struggles). This negativity is not supported in any way by the activity in the markets for physical gold where shortages are showing up despite falling prices....
Shortages, delays in delivery and rising premiums suggest that the long awaited short squeeze may be developing.
http://www.resourceinvestor.com/2015/07/31/perth-mint-and-us-mint-cannot-meet-demand
He does not see the price of gold dropping a whole lot further given the cost of production, although he believes that we may see a fall to $1000 before the price moves upwards again. It now costs on average around $1,000 to mine one ounce of gold.
Meanwhile the U.S. Mint has reintroduced its sales of Silver Eagle coins (1 oz) following a three-week suspension.
On July 7 The U.S. Mint was forced to suspend sales having exhausted its inventory which suggests there was either a shortage in physical silver blanks or of physical silver bullion that makes the blanks. However, they have placed restrictions on sales and sales remain “allocated” to wholesalers in order to maintain some supply.
The U.S. Mint is legally required to supply as much silver as is needed to meet demand (http://www.resourceinvestor.com/2015/07/31/metals-market-update-july-31). Their inability to do so shows demand remains very robust.
So far this month the Mint has sold 4.03 million Silver Eagles. In June total sales came to 4.8 million coins. There are reports that 2.6 million coins were sold this week alone. So, despite having not been available for three weeks, in July Silver Eagle sales are down only 17% on the previous month.
The U.S Mint is also seeing strong demand for Gold Eagle coins (http://www.resourceinvestor.com/2015/07/23/smash-gold-price-leads-high-demand), especially one ounce, which – at 136,500 – is more than double the June figure and is the highest demand since the bear raid which saw prices fall in April 2013.
There has been an unprecedented barrage of negative publicity towards gold in recent weeks (http://www.resourceinvestor.com/2015/07/28/inflation-deniers-emboldened-golds-struggles). This negativity is not supported in any way by the activity in the markets for physical gold where shortages are showing up despite falling prices....
Shortages, delays in delivery and rising premiums suggest that the long awaited short squeeze may be developing.
http://www.resourceinvestor.com/2015/07/31/perth-mint-and-us-mint-cannot-meet-demand