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Australia’s Surging Gold Exports Surprise In 2017

Kitco News

Australia’s Surging Gold Exports Surprise In 2017

(Kitco News) - Australia is having a very positive year for gold exports, with the latest monthly figures revealing a double-digit rise.

The Australian Bureau of Statistics (ABS) said that non-monetary gold exports were up by 17% from August to September, representing an increase of $217 million to $1.5 billion.

Overall, metal ores and mineral exports were up by 8% or by $584 million during the month. Metal sales, excluding ore, were also up by 5% or $4 million, reaching a total of $936 million.

Australian gold products have been growing in popularity around the world.

For example, the products of The Perth Mint are among the top of Australian exports to Germany, the Australian Financial Review (AFR) reported.

During the 2016-2017 fiscal year, Germany bought nearly $487 million worth of gold and silver coins, which translated to about 158 tonnes of gold and silver or around four million special edition coins produced by The Perth Mint.

These numbers are staggering, but they do not seem so surprising to Germany’s ambassador to Australia, Anna Prinz, who visited The Perth Mint on Friday.

Prinz said that Germans view these precious coins as store of value.

“In Europe, with our experience of war, in particular, the older generation still look at it as something stable, as a kind of safety,” AFR quoted her as saying.

Also, China is one of the top consumers of Australian gold. It bought about 230 tonnes of gold from Australia last year, which exceeded $11 billion on the Shanghai Gold Exchange, according to the data released by The Perth Mint in August.

Australia is the second largest gold producing nation in the world, with a focus on exports.

Many buyers trust the quality of Australian gold, according to David Woodford, Chief Operating Officer at The Perth Mint.

“In 2014, The Perth Mint became the first foreign refinery accredited on the Shanghai Gold Exchange and we have worked steadily to establish this new market,” said Woodford. “Today we are on track to achieve our goal of becoming the biggest source of imported gold in the Chinese market and that is great news for Australian gold producers and Australian mine workers.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.