Monday, January 30, 2017
High sales of gold bullion coins was an international phenomenon in 2016 as investors sought the safety of the precious metal to store their wealth and Australia was no exception.
It’s one of the latest countries to release figures confirming the trend. Figures from the Perth Mint in Australia showed that sales of both gold and silver bullion coins were up last year compared to 2015. Overall, sales of gold coins and bullion bars were 14.2 per cent ahead of 2015, at 520,295 troy ounces, up from the 455,630 ounces sold in 2015.
The strongest month for sales was October 2016, when a total of 79,048 troy ounces were moved, and after a dip in November, the year ended with strong sales of 63,420 troy ounces of coins and bars. The figure was almost 16 per cent up on a monthly basis and showed a 58.2 per cent increase on December 2015.
The story for silver bullion coins and bars was strong too in 2016. The Perth Mint sold a total of 12,236,766 troy ounces last year, a rise of 5.5 per cent on the previous year and up by 61.7 per cent from the 7,567,467 troy ounces shifted in 2014. The busiest month for silver sales was March 2016, when the mint sold more than 1.7 million troy ounces, Coin News reported.
Meanwhile, gold itself was down in value last week, marking its first weekly loss of 2017 as the US dollar rose in value by 0.2 per cent.
ING analyst Hamza Khan told Reuters: "The dollar is being a big influence on gold right now, so that's what's behind the current move.
Monday, January 23, 2017
The arrival of President Donald Trump in the White House to take up the reins has helped the gold price surge to its highest levels for two months.
Concerns about the direction of the new US President’s economic policies and a fall in the value of the dollar saw the price of bullion hit £1,001.34 per troy ounce at the close of play on Friday. Today (Monday January 23) it stood at £974.05 at 09:00.
Analysts are expecting market volatility which could spell another golden patch for the precious metal’s value, due to ongoing uncertainty. According to OCBC analyst Barnabas Gan, this could continue for the first 100 days of the new presidency, Reuters reported.
Markets are concerned about President Trump’s protectionist statements and promises of spending increases and tax cuts, which will increase gold’s attraction as a safe haven for investors.
HSBC analyst James Steel said: “The incoming US administration is still a relatively
unknown factor, certainly in comparison to other incoming administrations in recent decades.”
Meanwhile, although the Philadelphia Federal Reserve President Patrick Harker said he expects the cost of borrowing to rise three times this year, depending on the US’s economic performance, this may not be until later in the year. Generally, when interest rates rise, the price of gold falls.
INTL FCStone analyst Edward Meir said: “Tone set by Trump will likely lead the markets to conclude that Trump's legislative goals may now be harder to achieve as there will not be much bipartisan goodwill or a honeymoon period to work with.
“All this means is that investors could now start to coalesce around the notion that the Fed will stay on hold for longer than expected, which in turn should be constructive for
Monday, January 16, 2017
A new year means new editions of gold bullion coins to collect and the US Mint is reporting a higher first day demand for its 2017 American Eagles than last year’s variation.
Available in four sizes, ranging from one troy ounce to one-tenth of a troy ounce, a total of 68,000 ounces were sold on January 9, the first day they became available. The figure is 8,000 higher than in 2016, or up around 15 per cent.
The most popular was the one troy ounce American Eagle, which sold 46,000 compared to 41,500 first day sales a year earlier. There were also improvements in the half-ounce sales, up to 16,000 from 12,000; quarter ounce coins sold 26,000 compared to 22,000 in 2016; and the tenth of an ounce variety shifted 75,000 coins compared to 70,000 the year before.
However, fewer buyers were tempted by the one troy ounce Buffalo coin, which sold 20,500 on its first day – 500 fewer than on its initial release in 2016. However, it shifted a further 2,000 on its second day of sales, Numismatic News reported.
The strong demand wasn’t just limited to gold bullion coins; collectible silver coins also had better first day sales in 2017 than they did in 2016. This year, official buyers snapped up 3,747,500 silver American Eagles – a rise of 35 per cent on the previous year.
The high demand from buyers to start the new year comes after a good performance at the start to 2016 when a total of 5,954,500 silver American Eagles, 124,000 ounces of Gold Eagles and 34,000 Gold Buffaloes were sold during January.
Last year, 985,000 ounces of American Eagle coins were sold – the highest number since 2011 - 219,500 American Buffaloes were shifted, marking the coin’s fourth most successful year, and the silver American Eagle had its fifth most successful year on record with 37.7 million ounces sold.