Perth Mint gold coins top world investment market

The Perth Mint has grabbed the number one spot in the world's intensely competitive gold bullion investment coin market.

World Gold Council figures reveal that in less than five years in world markets, Australia's Kangaroo Nugget gold bullion coin - produced by the Perth Mint - toppled Canada's Maple Leaf from the number one spot in 1991.

Legal tender bullion coins are one of the principle mediums for precious metal investment in Europe, Asia and the Americas.

According to the Council, the Australian Nugget's share of the world market jumped from 15 per cent in 1990 to 35 per cent in 1991.

This follows the launch in March last year of Australia's ground-breaking large legal tender bullion coins containing two ounces, 10 ounces and a massive one kilogram of pure gold.

Announcing the Mint's success, Premier Carmen Lawrence said the achievement made Australia a dominant force in precious metal investment markets. 

Dr Lawrence said the nugget's companion coin, the Australian Koala, held world market leadership of the platinum bullion coin market since its launch in September 1988.  The Mint had also produced a one ounce silver bullion coin, the Australian Kookaburra, since 1990.

"The Kangaroo Nugget, the Koala and the Kookaburra are produced by the Perth Mint by formal agreement with the Australian Government and are legal tender under Australia's Currency Act," the Premier said.

"The legal tender status is the key to the international demand for them because it means that, unlike other precious metal investment products, they are backed by what amounts to an official guarantee of weight and purity of the metal they contain.

"The Maple Leaf has enjoyed market leadership since the mid-1980s when most nations banned the importation of the previously dominant coin, the Krugerrand, as part of economic sanctions against South Africa."

Apart from Australia, the other current major players in the international gold bullion coin market are Canada (the Maple Leaf), the USA (the Eagle), Austria (the Philharmonica) and the UK (the Britannia).

Dr Lawrence congratulated the Mint and its staff, saying that although the coin program was conducted on behalf of Australia, it had been conceived and implemented in Western Australia.

"The Australian Nugget has become one of the few Australian product names well known outside Australia.

"It is a fine example of what can be achieved in adding value to the State's mineral resources before export."

Don Mackay-Coghill, chief executive officer of Gold Corporation, the operator of the Mint, said when the value of the Mint's overseas sales of platinum and silver coins were added, its export income was well in excess of $1 billion.

He said it was a significant achievement to have attained world market leadership in less than five years.