Saturday, November 22, 2008
With each and every week that goes by where financial market turmoil continues and the credit crisis remains unresolved, it becomes more and more clear to an increasing number of individuals and organizations that there is something fundamentally wrong in the global financial system.
With each and every week that goes by where the demand for physical gold and silver bullion outstrips the ability of governments and other organizations to supply it to a clamoring public, this belief is reinforced.
Such was the case this week as equity markets around the world made another leg down and credit markets had something of a setback, these developments being quickly followed by an announcement from the Perth Mint that they have stopped taking orders for gold.
The timing could not have been better if the intent was to perpetuate the growing belief that nature's money is far superior to man's.
This report from the Australian provides the details.
With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.You can scream deflation all you want, but there are much more important forces now at play in the world than the faulty price signals coming out of government inflation statistics.
As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.
Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.
He said Europe was leading the demand, with Russia, Ukraine, Middle East and US all buying -- making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.
"We have never seen this before and are working right at capacity. And we are seeing it from clients in the shop buying one ounce, right up to 30,000 ounces from overseas clients," Mr Currie said.