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15.01.202313:59 Forex Analysis & Reviews: US Mint and Perth Mint saw completely opposite bullion sales in 2022

Exchange Rates 15.01.2023 analysis

US Mint and Perth Mint saw different scenarios in 2022. The former faced disappointing demand for gold and silver bullion, while the latter saw record sales. Nevertheless, it is obvious that interest in precious metal bullion decreased in the US last year, when the Federal Reserve raised interest rates by 425 basis points.

But even though investor interest in gold and silver was sluggish, the US Mint was unable to meet demand, having suffered from production and supply problems during the year. This is why silver coin prices soared to record levels, exceeding 100% of the coin's value.

Exchange Rates 15.01.2023 analysis

Analysts speaking at the London Bullion Market Association's conference in October warned investors that premiums for gold and silver bullion products would remain elevated as global demand continues to rise amid an unprecedented flow of precious metal from the West to the East.

Exchange Rates 15.01.2023 analysis

Although US investors were not interested in silver last year, a record amount of the precious metal flowed into India. It is estimated that India imported more than 8,000 tons of silver last year.

Exchange Rates 15.01.2023 analysis

According to some analysts, Perth Mint sales were the best indicator of global bullion demand as it recorded high sales of both gold and silver. This is the second year it reported record bullion sales.

Neil Vance, general manager of the minting division, commented that he was expecting a strong year for physical gold and silver. After all, revised data from the Perth Mint indicated that the year started with silver sales already hitting a record high of more than 2 million ounces. The mint also said back in September that its silver coin output had risen to its highest level in seven years.

In total, the Perth Mint sold 1.14 million ounces of gold last year, up 8.45% on 2021. As for silver, it sold more than 23 million ounces, 21% higher than the record of the previous year

Perth Mint saw strong demand for its bullion from Europe as consumers hedge against inflation, which has reached a 40-year high.

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Irina Yanina,
Analytical expert of InstaSpot
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