The Perth Mint sold nearly double the amount of gold in November compared to October as gold prices experienced a rollercoaster ride throughout the month.
The Perth Mint sold 115,872 troy ounces of gold and 1,530,598 troy ounces of silver in minted product form, representing a 94 per cent increase and 13 per cent increase month-on-month respectively.
Highlighting the significance of November’s gold sales, trade marked a 139 per cent increase on the long-term average, something which The Perth Mint believes is a positive sign for the gold market.
“Two factors underscored rising gold coin sales. A general pick-up in the appetite for physical gold coincided with the release of The Perth Mint’s 2022-dated Australian Kangaroo series,” The Perth Mint general manager of minted products Neil Vance said.
“The response from our global distribution network was outstanding with demand particularly strong for one-ounce (oz), half-ounce, quarter-ounce and 1/10oz denominations. It was another great month for silver with our factory producing as much as possible to meet demand.”
As gold sales soared at The Perth Mint, prices fluctuated throughout November. Gold prices rose towards $US1900 ($2696) per ounce early in the month and sustained those levels until November 19.
Then prices dropped, slumping to as low as $US1782 per ounce on November 24 – which mirrors the kind of price performance gold has experienced for extended parts of 2021.
The Perth Mint manager of listed products and investment research Jordan Eliseo said the price plummet could be due to some questionable political decisions in the United States.
“While gold surged more than $US100 per ounce in the first half of November, and at one point looked like it might push beyond $US1900 per ounce, the market did a complete 180 after US President Joe Biden decided to reappoint Jerome Powell for another term as the Chair of the US Federal Reserve (the Fed),” Eliseo said.
“Between November 19 and November 23, the precious metal gave up nearly all of the gains it had recorded earlier in the month, dropping back below $US1800 per ounce. The Powell reappointment was seen by the market as an indicator that the Fed will push forward with its QE (quantitative easing) tapering programme.”