Mid-Term U.S. Elections Will Drive Physical Gold, Silver Market - Perth Mint
BOSTON - (Kitco News)- The Nov. 6 mid-term elections could have a direct impacton the physical bullion market, according to the head of Perth Mint.
 |
| Richard Hayes, CEO of Perth Mint |
Richard Hayes, CEO of the Australian mint, told Kitco News on thesidelines of the London Bullion Market Association’s 2018 precious metalsconference that if Democrats regain control of Congress next week he wouldexpect to see an increase in coin sales.
Hayes added that with President Donald Trump in office, a DemocratCongress would create a new environment of political uncertainty and gridlockin the U.S. He explained that if Democrats gain power in the House and Senate,it will be much more difficult for Trump to pass more business-friendlypolicies, which have driven economic growth this past year.
“If Trump doesn’t do well during the mid-term electionsit will bring people back to the bullion market,” he said. “For many bullionconsumers, Trump is their guy and with him in office and Republican’scontrolling congress they haven’t had the need to buy gold and silver as aninsurance policy.”
Along with geopolitical uncertainty, growing economicuncertainty will also continue to support the gold and silver market. Hayne’scomments come as equity markets continue to struggle to find momentum as they seetheir worst month since the financial crisis.
“A lot of investors aren’t looking at gold because theyhave been focused on equities,” he said. “If this correction continues then Iwould expect people to start talking about gold again.”
While the Perth Mint is one of the world’s biggest mintswith its bullion coins circulated around the world, it has had to adjust how itpromotes physical bullion, said Hayes. In an effort to reach out to younger,more tech savvy investors, the mint launched Goldpass, last month, a digitalgold token that provides retail investors the ability to buy, sell and store gold viadigital certificates. The digital gold is backed by physical metal stored atthe mint.
The move into the digital market comes after the summer when themint launched a gold-backed exchange traded product that can be exchanged forphysical gold.
“We are very pleased with the demand that we have seen for thesenew products,” he said. “Demand for physical gold remains healthy but we justneed to repackage gold to attract new consumers.”
By Neils ChristensenFor Kitco News
Follow neils_C
nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |