Silver and Gold Supply Update During Covid-19

Discussion in 'YouTube Digest' started by ozcopper, Apr 9, 2020.

  1. ozcopper

    ozcopper Well-Known Member Silver Stacker

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  2. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Interesting comment at 13m 30 seconds mark that Perth Mint is stopping silver refining to focus on gold.

    Would be interesting to see Perth Mint / ABC Bullion do a similar type of interview.
     
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  3. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Perhaps they can't get enough silver dore at anywhere close spot to refine?
     
  4. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    From memory (and @bron.suchecki can confirm), Perth Mint PM product was 70/30 gold / silver and the opposite for ABC.

    Now does this mean Perth Mint won't be producing their silver coin range for the enforceable future???
     
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  5. bron.suchecki

    bron.suchecki Well-Known Member

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    At the retail level ABC skews more gold at around 90% as I discussed here https://www.abcbullion.com.au/investor-centre/pdf/worst-crash-since-1987 and Perth Mint was quoted here https://www.afr.com/wealth/investin...lion-shine-to-solid-gold-bars-20200310-p548ls saying they "holding almost 50 tonnes of fine gold and 1,020 tonnes of fine silver" which on $ value basis is 85%/15%.

    All I'll say is to note that "ABC Refinery now refines around 70% of the available [silver] metal in the country" https://www.linkedin.com/pulse/abc-refinery-new-emerging-force-australian-precious-metal-alexander/
     
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  6. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Bron, how much metal is supplied from China?
    From memory ABC Bullion and Palloys Group of companies merged under a new holding company called Pallion.
    Would some of the metal come from mainland China and that's perhaps why there's a lag in delivery?
     
  7. bron.suchecki

    bron.suchecki Well-Known Member

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    China doesn't allow export of gold, so we nor anyone else refine gold from China (plus they have plenty of refineries themselves). Normally China is an importer but demand there is now down due to corona and the market is actually at a discount to London (while NY is at a premium) because they can't export gold.

    The lag in delivery is nothing to do with the supply of raw gold or silver, the two bottlenecks in production are bar making and dispatch.
     
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  8. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    China only bars exporting its mined gold "losely", industries can export gold they import as products or bullion.

    One of the simplest way of taking money out of China for the very wealthy is to buy foreign gold bullion in Yuan than flying it out and selling it for USD.
     
    Last edited: Apr 12, 2020
  9. alor

    alor Well-Known Member Silver Stacker

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    its a one way street, they can not TT USD back to China, from certain conditions
     
  10. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Why would they TT it back lol.

    There are much easier ways of converting Yuan to few million USD then flying out hundreds of kilos of gold overseas to get USD back into China.
     
    Last edited: Apr 12, 2020

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