Silver Down 36% In 2013 Despite “Skyrocketing Demand” – Perth Mint Sales Surge 41%

gold & silver sold outGold fell 28% in 2013, while silver recorded a 36% decline. It was gold’s first annual drop since 2000 and gold and silver’s worst performance since 1981 and 1984 respectively.
The Perth Mint of Western Australia reported that they saw a very significant increase in sales in 2013 despite the falling prices. Gold sales from the Perth Mint, which refines most of the bullion from the world’s second-biggest producer Australia, climbed 41% last year.
Silver coin sales surged 33% to about 8.6 million ounces from 6.5 million ounces in 2012, according to the Perth Mint.

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Submitted by GoldCore:

Today’s AM fix was USD 1219.75, EUR 888.84 and GBP 737.05 per ounce.

Tuesday’s (12/31/13) AM fix was USD 1201.50, EUR 872.55 and GBP 726.99 per ounce.

Gold and silver prices surged higher today in the opening hours of trade in 2014. Gold rose 1.8% to $1,220/oz and silver surged over 3% to $20.02/oz.

Gold fell 28% in 2013, while silver recorded a 36% decline. It was gold’s first annual drop since 2000 and gold and silver’s worst performance since 1981 and 1984 respectively.

Gold in U.S. Dollars, 5 Days – (Bloomberg)

Gold fell as low as $1,182/oz briefly on the last day of trading (12/31) on Tuesday after another large sell order in illiquid COMEX trading pushed prices lower to test support at $1,180/oz. Gold bounced sharply from support at $1,180/oz to close the year above the psychologically important $1,200 level at $1,205.55/oz.

Overnight in Asia, physical buyers scooped up physical gold on this latest dip in prices to 6 month lows. Reuters reported bargain hunters stepping in to buy beaten down gold and silver, notably Chinese buyers. The Lunar New Year falls at the end of this month, and the Chinese holiday always sees strong store of wealth demand from Chinese buyers.

China is set to become the world’s largest buyer of gold in 2013 and the ramifications of China’s huge demand for physical gold, both from the Chinese people and the People’s Bank of China is yet to be realised and factored into prices.

Chinese buyers are of increasing importance but it is important to note that physical demand rose significantly throughout the world in 2013 despite falling prices. This is seen in the levels of demand experienced by leading bullion dealers, refiners and government mints. This is clearly seen in the data released by the Perth Mint and the U.S. Mint which both saw increased demand for physical gold coins and bars in 2013. Other mints have yet to report their numbers.

Gold in U.S. Dollars, 1 Year – (Bloomberg)

The Perth Mint of Western Australia reported that they saw a very significant increase in sales in 2013 despite the falling prices. Gold sales from the Perth Mint, which refines most of the bullion from the world’s second-biggest producer Australia, climbed 41% last year.

Sales of gold coins and minted bars totalled 754,635 ounces in 2013 from 533,333 ounces a year earlier, according to data from the mint.

Silver coin sales surged 33% to about 8.6 million ounces from 6.5 million ounces in 2012, according to the Perth Mint.

Gold bullion sales expanded 12% to 58,944 ounces in December from 52,700 in November and about 51,778 ounces in December 2012, according to data from the mint. Gold sales fell to as low as 30,430 ounces in August and peaked at about 112,575 in April, when gold was hammered 14% lower on the COMEX in just two days.

Silver coin sales were 845,941 ounces last month from 807,246 in November and 452,389 a year earlier, it said.

The U.S. Mint also saw an increase in physical gold sales and sold 14% more American Eagle gold coins last year and sales climbed 17% to 56,000 ounces in December from November, according to data on the mint’s website as reported by Bloomberg.

Jim Rickards, monetary expert and author of Currency Wars explained to Deirdre Bolton on Bloomberg Television’s “Money Moves” that gold has fallen in price in 2013 despite “skyrocketing demand.”

Rickards said that the price fell in 2013 due to “some technical reasons” and “probably manipulation as well”, meanwhile physical supply is disappearing and leaving the gold ETF the GLD and going straight to China – to the people,

Meanwhile, global demand for gold is skyrocketing as people lose faith in paper currencies. This will lead to a huge rally in gold to over $7,000/oz and “at some point you are going to want your gold and there is not going to be any around.” See video here.

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  1. That does bring up the question of when the GSR improves and you want to trade your silver for gold, will you find anyone willing to do so?  It may be a bigger concern than we think.

    • I think silver will come along for the ride and gold won’t be as scarce as many think… again, it’s  matter of price flushing out supply… but the volatility in both markets may, as Jim Sinclair observed, “Set your hair on fire.” A wild GSR ride might make for some interesting opportunities for arbitrage.

    • S.E.  My thoughts as well.  SilverStacker, if there is enough gold on Earth to provide 1oz for each person on the planet, yet only 1 oz of silver for every 14 people on the planet, whats the hurry?  When a supply crunch comes, the silver will dissapear as fast, if not faster than the gold!  With silver having medical and technological properties that make it highly desirable you might be surprised at the results!
      Anyways, Gold, Silver, Plat, Copper … who cares, as long as it doesn’t become worthless.

  2. Demand up 30-40%, prices down 30-40%, what’s the prob?  This is the new normal. When something is rare and heavily sought after, it gets cheaper every day.  Right?

    • Work out the Dollar side the of equation. Nothing going on there.
      Stackers and Collection buy respectably all they can, and what they fancy having. Infinitely price elastic, and perfectly inelastic respectively, if I remember the text book correctly.

  3. What….wait….WAIT A SECOND!
    zman told me there was “no physical demand” for gold and silver? WTF? Hahahaha….

    • BOP, lets try to be intellectually honest, coin sales are a very small part of the PM market, and really don’t determine much of the physcial market. Western investment demand for gold (GLD) was down hard.
      Jewellery demand makes up 2/3′s of the physical gold market, that is key.  (Think India)
      Industrial consumption is 2/3′s of the physical silver market, that is key.  (Think weak global economy)
      A small drop off in jewellery and industrial demand  can create a excess of supply for the investment world. If investment demand picks up, then price will most likely move higher.
      So yes, we can have an increase in coin sales and a drop in gold and silver prices, and it can make perfect sense.

    • It isn’t western demand driving sales of physical, it is eastern demand. Can’t leave them out of a world marketplace

    • @Bay of Pigs : Now BOP you done it! You summoned the daemon by mentioning it’s name! :P   Haven’t you learned anything from “Lord of the Rings”?  YOU DON’T SAY THE NAME OF THE DARK LORD LEST YOU WISH TO SUMMON HIM INTO EXISTENCE. (lol)
      Similarly in the middle ages”
      * Mephistopheles
      * Belial
      * Zman
      Merely speaking the name of any of the ancient Devils above was thought to summon them into existence, then they would likely torment you….. NONE OF US ARE SAFE NOW!!!!

    • Shamus, he can’t even spell “jewelry” correctly, so I don’t think his inaccurate, false and misleading misconceptions on the physical gold and silver markets are worth discussing.  :)
      Cheers, and best wishes in 2014.

    • What is factually inaccurate about the statement that coinage demand is but a small percentage of total demand?  A ten percent increase in coinage and medals is but a 1.2 percent increase to total fabrication demand.  
      Here’s another inconvenient fact, ten years ago photography demand was 1.5 to 2x what coinage demand is going to equate to this year. By comparison, this years photography demand will be 1/3 to 1/2 the total coinage demand. As my two year old has just grown fond of saying… “how about dem apples?”

      Does this mean i think you should sell a stack of silver? Everyones situation is different but I am not selling any. Should you buy more? Again, everyone is different, today ended a good week of trading but did not break trends on the weekly chart. I need further confirmation for me to get excited as I feel good about the insurance i currently have.

  4. silver stacker   I dont like the GSR at 60 but 65 to 70 works and I would trade gold for silver
    If there is a big enough spread going back to silver from gold.  If it was 30 to 1 and worked for me.  But others, who knows.
    There always seems to be reasons for one person’s desire to trade with someone else.  Maybe a bullion dealer would create a trade that was mutually workable

    • I actually enjoy looking at a “Prince Nottingham” stack of silver vs. a petty fist full of gold. (they’re smaller coins as well!) :)

  5. shamus001  A funny thought cross my mind.  Ther’s an old joke that poses the question  “what hurts more?  For a woman, givng birth to a child?  Or for a man, getting kicked in the nads?  A woman will happily have another child despite the pain. You’ll never hear a man asking for another kick in the nads.
    How does this relate to trolls?  A normal person would not want to have their name added to a list that includes the devil.  A troll seems to relish it and ask for more.   Maybe it’s just me but no amount of money would be worth that pain.   Just sayin’ but it does seem that certain people have very thick hides.
    Over on SGT reports there is a disclosure that B of A, the banking equivalent of Dante’s 7th level, this bank has 20 people under contract to work the troll-ways. What is the going pay rate for a troll?  Do they take silver for payment

    PS Ebay is considering taking BTC for payments. If that does put the fork in BTC, since Ebay is required to report transactions when they reach a certain level, I do not know a better signal that the BTC fix is in

    • Other than zmans comments regarding the mechanics of GLD (which i have heard very few commenters here actually get right) i have not read anything that is factually inaccurate, case in point above.  
      If people are betting their financial livelihood on a silver hedge or investment I would think they would ENCOURAGE critical thinking of that position. It seems ludicrous to me that someone would be all in and only wants to read things that make them happy with their position. When I make a bet I am constantly looking for reasons why it is wrong. If I find no credible reason, i continue with my position. That has served me well.

      Also, let’s be very honest, people here seem very divided over which it is they are actually doing… hedging their current buying power or making an investment. I hear some people say I am protecting buying power and then later say they believe they will buy a nice house in the suburbs with a monster box of silver. Those are two competing conclusions and strategies (unless you are finding the same houses that MaryB is finding, I’ve not seen any go for auction anywhere close to where she has… 30-50k, but not 5-10k). Either is fine but if your bet is investment, I would think you would be ESPECIALLY welcome of critical thinking.

      If you think he is a troll, argue with his facts, not typos. Not only is that boring, it certainly says something about ones ability to disprove it factually or logically. I think back to the old usenet days, fastest way to disappear a troll was to have all the regulars agree to throw no food over the bridge, no matter how tempting it may be. I am as guilty as the rest of you as I routinely reply to Bay of Pigs’ posts!

    • I have argued facts with him many times mikey, and so have many others here. Do you have a bad memory or what?
      And I don’t understand your infatuation with zman. Even when he is dead wrong, you jump in to defend him. Why?

  6. How is he dead wrong on this one?  And to be clear, the argument i refer to is that bullion demand is a small piece of overall silver demand.

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