Perth Mint Doubles Gold Output on Haven Buying
October 10th, 2008Via: Bloomberg:
The Perth Mint, producer of 10 percent of the world’s bullion, doubled output in the past six months, joining a global push to boost production as investors seek protection from the credit crisis.
Perth Mint sold so-called Kangaroo and Nugget coins weighing a total of 62,630 ounces in the three months to Sept. 30, compared with 154,501 ounces for the 12 months to June 30, senior manager Bron Suchecki said in an interview from Perth, Australia yesterday, adding there’s been a surge in “moms and dads” buying over the counter in the past three months.
“It’s reflecting a real breakdown in trust in financial products,” Suchecki said at the mint. “People aren’t thinking `how do I grow my wealth’ but `how do I protect it.”’
Gold for immediate delivery has jumped 10 percent in the past week as investors pulled a record $52.1 billion from U.S.-managed stock and bond mutual funds. The U.S. Mint and Austria’s Muenze Oesterreich AG are among coin makers to increase production.
“People are rushing to buy gold purely as a safe haven,” Jonathan Barratt, managing director of Commodity Broking Services in Sydney, said in a phone interview today. “The premiums at the moment for physical gold are going through the roof. Physical sellers are slowly running dry. It’s pretty much the only bright spark among commodities.”
