Record demand at ABC Bullion as gold hits new all-time high!

In this week's market update:

• Gold prices continued to rally this week, with rising by 4% in USD terms, with the precious metal at one point trading above AUD $3,000 per troy ounce (oz).

• Silver was also strong, up 5% in USD terms, while in AUD, it is now trading above $34oz, as the bullish momentum in the precious metal market continues to gather pace.

• Demand for safe haven assets like gold has surged, with concerns about the stability of financial market building in the aftermath of the UBS takeover of fallen giant Credit Suisse.

• The surge in demand for gold is being seen globally, including in Australia, where ABC Bullion is experiencing record turnover levels.

Record demand for gold at ABC Bullion

The emergence of COVID-19, combined with the fiscal and monetary response to the pandemic, ushered in a new era of precious metal demand. Since then, bar and coin buying in most Western markets, including Australia, has surged.

ABC Bullion at the forefront of this demand, given our more than 50 years of trading history, our showrooms in four capital cities (Sydney, Melbourne, Brisbane, Perth) and our 24/7 online trading portal.

The collapse of Silicon Valley Bank on March 10 of this year, and the dominos that have fallen in the banking sector since, has seen the demand surge of the last three years go to a whole new level in the last fortnight.

Evidence of this from ABC Bullion’s engagement with our client base includes:

• Thousands of account openings since the start of the month

• A 400% increase in sales volumes over the last two weeks

• Buybacks, or clients selling metal back to ABC Bullion, rising by 200% relative to what we’ve seen over the last year

• The highest level of engagement we’ve ever seen with our ABC Bullion Gold Saver product, with latest figures showing a 25% increase in demand relative to last year.

• Record transaction numbers across all our channels, from online, to in-store sales, and deliveries of precious metals, which have increased by more than 150%

Few assets offer both refuge and opportunity in times of uncertainty.

Precious metals are on such asset that offer exactly those attributes, with the above figures clearly demonstrating the growing recognition amongst Australian investors of their timeless appeal.

More upside to come?

With markets likely to remain volatile for some time, there is considerable potential for a sustained surge in precious metal prices.

While many may look at USD $2,000oz and AUD $3,000oz prices for gold as being at or near their records, those are of course nominal prices, with the USD price essentially in line with where it sat back in 2011.

The situation is very different in 2023.

A decade ago, gold was overbought, and therefore at risk of a large correction, which eventuated between 2012 and 2015.

Sentiment toward the precious metal is far more moderate today.

This can be seen in the chart below produced by Sentiment Trader (sourced here), which shows the gold price (black line), as well a measurement of sentiment toward gold (blue line).

If sentiment toward gold was to increase toward levels seen just over a decade ago, or indeed to levels seen in late 2020 during the height of the COVID pandemic, then this price rally likely has a lot further to run.

ABC Bullion Global Flagship now open!

As alluded to above, the last two weeks have been amongst the busiest that ABC Bullion has ever witnessed in its now more than 50 years of trading.
This surge in gold demand has coincided with our move into our brand new Global Flagship store, located at 38 Martin Place.

We’ve been delighted to welcome thousands of clients through the door in our first week of trade, with a surge in new investors, as well as others liquidating part of their precious metal portfolio given the recent price strength.
 The ABC Bullion Flagship offers the full suite of precious metal services including purchases, buybacks, payment and collection through to storage facilitation at sister company Custodian Vaults – all backed by the latest in precious metal trading technology and market-leading customer service.

We look forward to welcoming you there at the earliest opportunity!

Warm Regards,

Jordan Eliseo
General Manager, ABC Bullion

Disclaimer: This document has been prepared by Australian Bullion Company (NSW) Pty Limited (ABN 82 002 858 602) (ABC). The information contained in this document or internet related link (collectively, Document) is of a general nature and is provided for information purposes only. It is not intended to constitute advice, nor to influence any person in making a decision in relation to any precious metal or related product. To the extent that any advice is provided in this Document, it is general advice only and has been prepared without taking into account your objectives, financial situation or needs (your Personal Circumstances). Before acting on any such general advice, we recommend that you obtain professional advice and consider the appropriateness of the advice having regard to your Personal Circumstances. If the advice relates to the acquisition, or possible acquisition of any precious metal or related product, you should obtain independent professional advice before making any decision about whether to acquire it. Although the information and opinions contained in this document are based on sources we believe to be reliable, to the extent permitted by law, ABC and its associated entities do not warrant, represent or guarantee, expressly or impliedly, that the information contained in this document is accurate, complete, reliable or current. The information is subject to change without notice and we are under no obligation to update it. Past performance is not a reliable indicator of future performance. If you intend to rely on the information, you should independently verify and assess the accuracy and completeness and obtain professional advice regarding its suitability for your Personal Circumstances. To the extent possible, ABC, its associated entities, and any of its or their officers, employees and agents accepts no liability for any loss or damage relating to any use or reliance on the information in this document. It is intended for the use of ABC clients and may not be distributed or reproduced without consent. © Australian Bullion Company (NSW) Pty Limited 2020.