The Perth Mint reported a decline in gold sales for the month of October, while silver sales slipped to their lowest in four months, the refiner said on Wednesday.
Why it is important
Perth Mint, owned by the government of Western Australia, is the world’s largest producer of newly mined gold. It is also the biggest refiner by volume in Australasia, according to the company’s website.
Its intake each year equates to almost 75% of newly mined gold in Australia, one of the world’s biggest gold producers.
By the numbers
Sales of gold coins and minted bars dropped around 44% in October from the previous month to 29,935 ounces, representing an almost 29% decrease year-on-year.
Silver product sales also fell about 44% month-on-month to 539,898 ounces, marking its lowest level since June. It posted a nearly 50% fall from last year.
The gold-silver ratio stood above 84 after falling to below 79 during the month, reflecting the volatile trading nature of October.
Key quotes
“Challenging market conditions were persisting and the high gold price continued to impact on sales of minted products,” said Neil Vance, Perth Mint’s general manager of minted products.
Context
Spot gold prices gained about 4.2% last month and scaled a record high of $2,790.15 per ounce on Oct. 31, boosted by the likelihood of further interest rate cuts by the US Federal Reserve, uncertainties around the US election and tensions in the Middle East.
Meanwhile, silver prices gained nearly 8% in September, and touched their highest level since October 2012 at $34.87 per ounce last month.
(By Anmol Choubey; Editing by Alison Williams)
