BULLION BARS AND COINS
The gold price suffered a dramatic breakdown last Sunday. Against a
backdrop of already weak sentiment towards the precious metal and a
strengthening US dollar, the 'smash' was blamed on a massive bear raid which
dumped 5 tonnes of bullion on the market.
Read our analysis:
Dissection of a gold price smash
What's the spin on the gold smash
Buyers reacted to unusually low prices by piling into physical gold this
week. In Asia they prompted a swift rise in demand from jewellery retailers,
while Mints around the world reported surging interest in coin and bars.
Here at The Perth Mint we've seen a sharp rise in demand for gold coins.
In June, sales were up 37% on the same month last year with buyers clearing
21,962 ounces.
Sales in July have already matched that level and appear to be gaining
momentum.
Reported in The Australia today, Sales & Marketing Director
Ron Currie confirmed the week's events had brought out value hunters. "Absolutely
there's been some bargain hunting," he said. "I think
sentiment has now changed. Gold had been running between two very straight
train tracks, and breaking out of that band has made people think about
purchasing."
Further
reading:
Gold Smash Leads to Surge in Demand For Coins, Bars Around
World - GoldCore
