Discover how the recent corrections in precious metal prices has sparked a new Gold Rush, which has even led to the US and Perth Mints suspending sales.
In April this year we began to see a correction in gold and silver prices as confidence in economies increased and indicators suggested that interest rates would start to rise across the globe. Further corrections have followed and as I write, gold is the most affordable it has been for almost 3 years.
The result has been a surge in demand for Gold and Silver coins, which has seen both the US and Perth Mints take the unprecedented steps of suspending sales of a number of issues so they could cope with the spike in demand.
Demand results in unprecedented action
The US Mint suspended 1/10 ounce gold Eagle in April, to allow them to replenish supply, stating that demand for the these coins was “up over 118% compared to the same period last year”. The Perth Mint has had to take even more drastic action with its silver range, suspending production of eight separate silver coins in order to allow them to focus on the supply of their one ounce and one kilo coins which have seen intense demand.
Most significantly Perth Mint has now announced the sell out of the Kookaburra One Ounce Silver Bullion Coin. Struck in an edition of 500,000 – that is the equivalent of one in 40 Australians owning one.
With the Royal Canadian Mint and Royal Mint have also reported surges in demand for their bullion range, the clear message is that thousands of investors and collectors are viewing lower gold and silver prices as the perfect time to enhance their portfolios with new releases.
More than simply owning precious metal
Of course coins continue to offer real benefits as a way of owning precious metal. Many gold pieces exempt from VAT and, in the case of Gold Sovereigns, CGT too. But they also provide numismatic value and interest over and above their intrinsic value, ensuring that they often become valuable heirlooms handed down from generation to generation.
To view our current selection of Gold Coins, click here
Numismatic pieces should be owned primarily for collector interest. Coin Portfolio Management offers no guarantees in terms of future value.