Gold coins popular again after gold price drop

Sales of gold coins and gold bars at the Perth Mint rose in September to 62,552 troy ounces and thus reached the highest level since January last year. The Australian mint also saw a strong increase in demand for investment silver, as demand for 1.3 million troy ounces doubled last month. That was the highest volume since March 2016.

According to the mint, the drop in the price of precious metals over the past month has been a major contributor to this increase, as consumers take advantage of the lower price to buy gold and silver.

The Gold price fell below $1,200 per troy ounce in September, hitting its lowest level since early 2017. Measured in euros, the gold price recently reached its lowest level since the beginning of 2016. Silver has also been under pressure in recent months, with the price in September reaching its lowest level in more than 2.5 years in both euros and dollars. The precious metals are under pressure due to the US central bank's interest rate hikes and a generally positive sentiment about the recovery of the global economy.

Perth Mint launched new gold and silver 'Lunar' coins in September

Consumers get in after price drop

Due to the fall in the price of gold and the rise in the US stock markets, interest in investing in precious metals has decreased, especially in the United States. According to the Perth Mint, this market is starting to revive after a quiet period, because the price is now at such a level that more investors dare to get in or buy more. "We are seeing growth in sales of our Australian Kangaroo gold and silver coins, while the launch of our 2019 Lunar series in September has led to a significant increase in demand globally," The company writes in a statement.

The chart below shows that the demand for precious metals at the Perth Mint has been on the rise for several months. A similar trend can be seen in the sale of Silver Coins at the American mint, because it has also increased sharply. In September, the U.S. Mint sold nearly 2.9 million troy ounces of Silver Eagles, the highest level since January. The next quarterly report of the World Gold Council will show whether the price drop has also caused an increase in the demand for investment gold at other mints.

Perth Mint sees demand for gold and silver increase again (Source: Perth Mint Blog)

This contribution was made from Geotrendlines