NZ Mint sets up bullion exchange

Monday 24th August 2009

NZ Mint, New Zealand’s only precious metal mint, has opened the nation’s first bullion trading floor, betting investors will be lured to the precious metal which has soared 29% from its lows in November.

The Auckland-based company hopes to take advantage of declining gold production amid growing demand out of China and India with its Bullion Exchange. The new bourse will offer investors the opportunity to trade in gold and silver.

Gold has soared to US$952.60 per ounce from its low in November of US$736.55 an ounce. Silver surged nearly 60% to US$14.29 per ounce from its November low.

“Really it’s a trader’s dream because demand is increasing and supply is diminishing,” said bullion trader Mike O’Kane in a statement. “While most people think of gold as a medium or long term investment, there are also seasonal fluctuations investors can take advantage of.”

Dubai and China each opened bullion exchanges in the past four years and have collectively traded 400 metric tons per year, amid an annual world supply of 2,500 metric tons.

NZ Mint trades in bullion and issues legal tender gold and silver coins including its one ounce gold sovereign and 1 ounce gold kiwi dollar.

O’Kane said gold offers investors a hedge against inflation and helps diversify investment portfolios.

Businesswire.co.nz

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