Wednesday, February 9, 2011

Perth Mint Kilo Silver Coin Production

The Perth Mint Blog had a new article posted yesterday by Stephen Ward (blog editor), updating their figures for kilo coin production levels since September  2010 (introduction of the 2011 designs):
Worldwide demand for silver kilo coins from The Perth Mint continues at an unprecedented level as we prepare to ship the 100,000th coin since the introduction of 2011 designs last September!

100,000 kilo coins equates to 3,215,100oz of 99.9% pure silver.

Perth Mint Bullion Blog
In a  recent blog of mine (about whether Gold/Silver are entering the 3rd phase of the bull market) I spoke about their last publication of this figure.
Since the launch of the 2011 bullion coin program (in September 2010) 1.75m ounces worth of 1kg coins have been sold (up to mid December), that’s approximately 55,000 (1kg) coins. 

To put that in context, Australia was the world’s 5th largest Silver producer in 2009 with 57.8m ounces produced. Assuming that level of production is similar today and we see similar demand for the 1kg coins over the next 9 months (that we’ve seen over the last 3), then we will see approximately 5.9m ounces worth of 1 kg coins purchased from Perth Mint (Sept 2010 to Sept 2011) or almost 10% of this country’s entire Silver production. Does that raise an eyebrow?
Based on the updated figures they have provided us...
3,215,100oz / 147 days (since September 14th, release of new designs)
= 21,871 oz per day produced (only 1kg coins) x 365
= 7.98m oz will be sold in this form (over 12 months) if the pace continues

As I mention above,  Australian annual production is approximately 57.8m ounces, so these kilo coins could account for nearly 14% of Australian mined Silver.

In my opinion this really highlights the level of retail demand we are seeing at the moment and cements in my mind that we are entering the public awareness phase of the bull market. Hold onto your hats!


BB.

Disclosure: Positions held in Silver. Not investment advice. Do your own research.

2 comments:

  1. BB,
    if you read Turd Ferguson's blog maybe you could post comments like the above there. And tell his readers about your blog (to the extent that they are interested in AUssie news).

    Turd is a good read and the comments section stays G-rated and is often useful (unlike Zerohedge). His readers seem to be maybe half traders and half hoarders of gold and silver

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  2. Thanks Turdle GG, I will check it out. I have read the blog a couple of times, but have not ventured into the comments section before :)

    Cheers
    BB.

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