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New Zealand Mint Opens Precious Metals Bullion Exchange

New Zealand has its first precious metal Bullion Exchange.

New Zealand Mint Gold Kiwi and .9999 Fiji Pacific Sovereign Auckland-based NZ Mint has opened the country’s first gold and silver trading floor in its new headquarters in the city’s CBD.

NZ Mint has been a key driver of interest in gold and bullion and silver investment in New Zealand and the market for gold and silver has grown tremendously over recent years.

The investment market is increasingly more sophisticated and investors today are much more knowledgeable about the role of precious metals in a diversified portfolio says NZ Mint bullion trader Mike O’Kane.

“Obviously gold and bullion play a big role in our business so we wanted to ensure we could look after those investors and traders who are focused on precious metals,” O’Kane says.

“We decided the best way to address these needs was to set up a dedicated Bullion Exchange, purpose-built for bullion trading at our new premises at 48 Greys Ave.”

The aim is to make it easier and more convenient for investors in bullion and precious metals and to create a professional environment where they are dealing with experts in the field, he says.

O’Kane says the Bullion Exchange has a team of full-time traders, including himself, Isreal Hartley, Delin Peng and Jo Walton.

“There’s really nothing else like it in New Zealand. We are installing a demonstration area for people interested in the manufacturing process for bullion coins for example. People will be able to see how bullion is turned in to a physical and tradable form as opposed to pure ingots.”

There will also be a seminar area to educate interested parties.

O’Kane says gold has really never been more popular than right now.

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

“An example is the Indian wedding season when demand on the sub-continent sky-rockets as around 900 tonnes of gold is gifted as dowry.”

However, most investors know of gold as a longer term investment with demand continuing to grow, especially in uncertain times O’Kane says.

Dubai and China have both opened Bullion Exchanges – in 2005 and 2002 respectively and together they are going through 400 tonnes a year – and the world supply is only 2,500 tonnes a year. Demand is also increasing because there’s a growing awareness that gold is an ideal way to diversify investment portfolios and is a good hedge.

“Here at NZ Mint we believe a diversified investment portfolio should have at least five or 10 per cent of its value in gold,” O’Kane says.

There are three top reasons why investors turn to gold.

It’s a hedge against inflation and a declining dollar and gold is a safe investment haven in times of political and financial instability when it outperforms other investments.

Gold production is declining and demand is growing especially in China and India and gold is a store of value, maintaining its intrinsic value. It’s also a portfolio diversifier.

“The most effective way to diversify an investment portfolio and protect its wealth is to invest in assets that are negatively correlated to the financial markets,” O’Kane says.

About New Zealand Mint: New Zealand Mint is New Zealand’s sole precious metal mint and has been minting legal tender commemorative coins, gold and silver bullion for more than four decades. New Zealand Mint is among the first mints world-wide to adopt the 9999 gold purity standard. Its world famous Gold Kiwi and Silver Fern bullion are highly sought by investors. Visit the mint at www.newzealandmint.co.nz

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