http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=16641 Thought people might enjoy.
Interesting story, makes you wonder about the new Middle East precious metal strategy, so now they are going to focus on physical PM's instead of wasting billions building hotels no one can afford to stay in. I guess they won't be playing in our arena for a while? If they stay focused on heavy bullion we shouldn't see a down-flow shortage effect until the mints find it difficult to purchase bullion themselves. I was thinking, that puts Perth Mint in a strong position as it has direct suppliers and some geographical distance from the larger global PM trading areas.
"That buyers in the Far East are having such a difficult time acquiring physical gold and silver that they are now buying paper contracts and paying with U.S. dollars?" Hmm, well we aren't seeing any desperation buying of our refinery output, so I think this is BS. Asia is our main market for bulk gold (ie deals for 1tonne of kilo gold bars) so big demand there should not affect our coin production capacity.
I think the smartest move anyone can make is cash in the chips on the rigged western market casino and opt out until it collapses under the weight of it's rotten core. There's some very smart cookies out there and regularly they are not the sort of people most 'educated' westerners would credit to really understanding the fundamentals. Westerners in general are ignorant and arrogant thinking they're the world leaders on all things with a financial education rarely stemming beyond credit cards, leveraged debt investments and IPs. But there are some more 'simple' people out there in the world who would embarrass most westerners on the fundamentals. Classic example... [youtube]http://www.youtube.com/watch?v=Wkb_ykilflU[/youtube] The awakening of the western world is being deliberately delayed by many forces for a specific reason after all... This is a very alarming point of note I believe, especially for those considering in which phase of the bull market we're currently in on PMs. I've said it before and will say it again, when this is all over, even the most hardened pro PM commentator will be saying 'I didn't think it would go THAT far'. We're in for one hell of a wild ride long term I think.
Yeah, but the Perth Mint's Depository Service offers probably the only paper in the market that's worth having, so the need to convert to physical wouldn't be as strong. Are you guys seeing an increase in PMDS buying (particularly buying in USD or where the source was obviously USD originally)?
and that is why I appreciate your perspectiives Bron. I tonne. And what was that about China covertly buying!
Okay, but if those "ordinary" people are smart enough to want to buy gold and silver, why aren't they smart enough to figure out that the dinars and dirhams aren't really being made? I think a lot of people aren't making a deliberate, informed decision to buy into precious metals. I think they're just buying them because somebody else tells them they should, e.g. the because the dinar and dirham marketing exercise is successful even though the product isn't.
I posted the clip based on the discussion presented in it. Watch it again mate. Focus on what's being discussed - it's 100% accurate. The talk of the Dinar/Dirham is secondary. I'm talking about their understanding of the fundamentals here on protecting your wealth in PMs. Even 'educated' people in the west on understanding the fundamentals of Gold/Silver are getting suckered on HGE and German 100mills Silver on fleabay, but that doesn't mean they don't understand the value or reason for buying gold and silver. Two separate arguements which I am (unsuccessfully it seems) trying to impress in this discussion. If some bloke sitting on a floor in a 3rd world country eating noodles can draw the connection between loss of purchase power in fiat vs metals... it says a lot for the so called 'educated' west who still follow debt at all costs. I think my point is being lost in the noise of the merits of the Dinar/Dirham coinage which hasn't materialised - but the value of the ideology the people in the clip hold has 100% relevence.
Perth Mint Depository is mostly overseas clients, I think around 85%. We have seen increase, but Depository is pimple on gold market's bum. Reported AUD value of metal in Depository in 2009 annual report was $1900 million, in 2010 it was $2500 million, so net increase (ie buying) of PMs by Depository clients between 1/7/9 and 30/6/10 = $600 million. Just compare to 09/10 gold mine production of 2608 tonnes @ average 09/10 AUD price of $1250 = $104809 million. So Depository buying = 0.57% of total amount of new gold that someone has bought, and % would be less when including silver production.
