Perth Mint gets access to Shanghai Gold Exchange

The Perth Mint has been admitted as an international member of the Shanghai Gold Exchange, according to reports The West Australian. This gives the mint direct access to the Chinese gold market and it is no longer dependent on other parties to offer its gold in China. Richard Hayes, director of the Perth Mint, told the Australian newspaper the following.

"Traditionally, gold sold to China is traded through international gold banks and a number of Chinese banks that have been allowed to trade in China. Gold bars from international suppliers. Through gold contracts on the Shanghai Gold Exchange, we now have the opportunity to supply Australian gold to a much wider group of financial institutions.

Our membership of the Shanghai Gold Exchange will certainly contribute to the awareness of the Perth Mint and our position as the largest supplier of gold in this important market."

Perth Mint gets access to Chinese gold market

The Australian Mint is a major supplier of gold to the Chinese market. Gold mines in Australia supply the precious metal to the Perth Mint, where it is purified and smelted for export overseas. A large part of that gold ends up in South-East Asia and China. In 2014, the mint was the first foreign smelter to be classified as a 'good delivery' smelter by the Shanghai Gold Exchange. Since then, the smelter has delivered more than 800 tonnes of gold to China.

For the past two years, Australia's mint has been the main third-party supplier to China's gold market. Australia is one of the largest gold producing countries, but has a limited domestic market. As a result, a lot of gold from Australian mines ends up in China. In recent years, China has become the largest producer, consumer and importer of the precious metal. Foreign gold enters China through the Shanghai Gold Exchange, where it is resold to gold banks and traders.