Perth Mint rations gold as rush erupts over financial crisis
Arizona Coin Collector
http://www.news.com.au/perthnow/story/0,21498,24894861-951,00.html?from=public_rss
Perth Mint rations gold as rush erupts over financial crisis
Nick Gardner
January 10, 2009 12:00pm
PERTH Mint, Australia's biggest wholesaler of gold coins
and bars, has rationed its sales with the global
financial crisis sparking a new gold rush.
Worried investors are seeking a safe home for their
money and ploughing billions of dollars into the
precious metal in a bid to preserve their wealth.
Demand has now reached such unprecedented levels that
the Perth Mint has been forced to ration its sales.
Perth Mint's bullion sales rose 194 per cent in the
December quarter compared with the corresponding period
in 2007, while silver bullion sales were up 140 per cent.
The mint has suspended sales of all gold bars and all
bullion coins - except its 1oz "Kangaroo" gold
bullion coin.
On Monday, after a three-month suspension, it will
expand its range of bullion coins for sale but the
restrictions remain in place for minted gold bullion
bars so the mint can sell some gold to as many
customers as possible.
"We are working three shifts a day, six days a week,
and still can't keep up with demand," Perth Mint CEO
Ed Harbuz said. "I've never known anything like this
in the precious metals market.
"We would be working Sundays too but we are having
difficulty getting enough staff."
Non-minted gold in the form of cast bars produced
by Perth Mint's local refinery can still be bought,
although customers who want the bigger bars often
have to wait several weeks.
One customer recently bought $500,000 worth of
bullion and wanted it delivered so he could hold
it personally.
"For very big orders we normally keep the gold
in our depository for security reasons," Mr
Harbuz said.
"Orders of $10 million or more are not unusual.
Often the orders are much larger if we are dealing
with pension funds or institutional investors."
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