Tuesday, May 14, 2013

Record High Gold Bullion Sales at the Perth Mint

May 14, 2013 By Michael Zielinski
The Perth Mint of Australia achieved record breaking sales for gold bullion products in April, as lower precious metals prices spurred a huge leap in demand. Silver bullion sales also jumped to the highest level in six months.

The Perth Mint began publicly reporting its monthly gold and silver bullion sales in March 2012, providing a window of insight into demand for physical precious metals. Sales spikes have occurred in September 2012 to coincide with the release of the new designs and last month to coincide with the decline in metals prices.    LINK...
Lower paper prices in gold will create a higher demand for the physical bullion. It sounds strange to supply/demand economics, but the difference lies in the definition of "paper gold." Lower prices usually suggest a healthy supply, which is true if you consider paper gold, because "paper gold" has virtually an endless supply. However, when you consider the "physical bullion" it's obvious that demand is high which would suggest a shortage in supply and higher prices. This in fact is the case and the evolution of this will be "Freegold." A disconnect between the "paper" price and the "bullion," which is exactly what our friend Jeff Dunphy was telling us two weeks ago on Gold Radio Cafe, when he said there is a difference between the "price" of gold and the "gold" price.   BK