The Perth Mint’s gold, silver and platinum holdings value has topped $5 billion for the first time, triggered by a global upheaval due to the coronavirus (COVID-19) outbreak.
This milestone has been achieved as investors flock to “safe” commodities such as gold, which reached a seven-year high of $2548.23 an ounce on Monday.
This $5 billion-plus worth of client assets includes nearly 50 tonnes of fine gold and 1020 tonnes of fine silver.
Perth Mint chief executive officer Richard Hayes said due to the organisation’s global reputation for being trustworthy, reliable and secure, it has seen high levels of investment.
“The markets are highly volatile, so investors are looking to gold as a safe haven asset to protect their wealth,” Hayes said.
“Among other geopolitical events, COVID-19 is causing significant concern for many.
“During this time of crisis, the Perth Mint can be relied upon to offer unparalleled trusted and secure solutions to safeguard the wealth of individuals and institutions.”
The Perth Mint expects COVID-19’s impact on the world economy to support high gold prices “into the foreseeable future.”
“The increased demand for precious metal we are experiencing is welcome news for a vital sector of Australia’s economy, the gold mining industry, whose output we refine into internationally sought-after products,” Hayes said.
“From the metal we refine, our inventory is used to manufacture a suite of investment products and solutions, ranging from physical bars and coins to exchange traded and digital products fully backed by gold.”
The Perth Mint has been the link between mines and the market for more than 120 years, refining more than 90 per cent of gold mined in Australia.
It is Australia’s third largest exporter by value, at $16.3 billion, behind iron ore giants Rio Tinto ($30.7 billion) and BHP ($29.6 billion).