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00:00MINT CEO JOINS US. WE HAVE SEEN CHINA ADDING STEADILY TO ITS RESERVES. I BELIEVE 100 TONS SINCE IT STARTED BUYING AGAIN LAST DECEMBER. HOW SIGNIFICANT IS THIS IN DRIVING THE PRICE HIGHER? > > I THINK CERTAINLY IT HAS A LOT TO DO WITH PRICE RISING, BUT CHINA, RUSSIA, AND POLAND AS WELL AS THE BIGGEST CENTRAL BANK BUYERS ON THE PLANET AT THE MOMENT. PAUL: HOW ABOUT CONSUMER DEMAND? HOW HAS DEMAND FROM INDIA BEEN? > > IT IS ALWAYS VERY STRONG AROUND THIS TIME OF YEAR. NOT A LOT OF OTHER PRODUCT GOING INTO INDIA THROUGH OFFICIAL CHANNELS AT THE MOMENT, BUT CERTAINLY GLOBAL DEMAND IS HOLDING UP REALLY WELL, ESPECIALLY ON THE COIN SIDE OF THINGS AT THE MOMENT. SHERY: I BELIEVE YOUR NUMBERS CLIMBED TO A 10-MONTH HIGH. WHAT WOULD YOU SAY WITH THE BIGGEST DRIVERS? > > THE BIGGEST DRIVERS FOR THAT DEMAND REALLY ARE TWOFOLD. FIRSTLY, THE INTRODUCTION OF THE AUSTRALIAN BULLION COIN PROGRAM ' S 2020 SERIES . MOST OF OUR 2019 RELEASES PAR ALREADY SOLD OUT. SHERY: WE HAVE SEEN GOLD PRICES RALLY THIS YEAR, BUT THEN NOW THEY ARE KIND OF SORT OF HOLDING IN A RANGE. WHERE DO YOU SEE THEM GOING FOR THE REST OF THE YEAR? > > I THINK A LOT IS GOING TO HAVE TO DO WITH WHAT HAPPENS IN THE UNITED STATES WITH DONALD TRUMP. TRUMP ' S VERY FRIENDLY BUSINESS POLICIES AND TAX CUTS HAVE TAKEN THE EDGE OFF ANY STRONG IMPETUS TO PUSH GOLD SIGNIFICANTLY HIGHER THAN WHERE IT IS AT THE MOMENT. IF THE IMPEACHMENT PROCEEDINGS GO WHERE TRUMP SAYS THEY WILL NOT GO, THAT WILL CERTAINLY HAVE AN EFFECT, BUT THERE ' S NO DOUBT THAT THE PRESIDENT IS GOING TO DO EVERYTHING HE CAN TO KEEP THE AMERICAN ECONOMY AS STRONG AND BULLION AS HE CAN IN THE RUN-UP TO THE ELECTION NEXT YEAR. PAUL: ARE THERE ANY OTHER MAIN DRIVERS YOU SEE HEADING INTO 2020? FOR EXAMPLE, WILL THEY -- WHAT A RESOLUTION OF THE TRADE WAR HAVE AN IMPACT ON THE GOLD PRICE? > > CERTAINLY IT WILL. I THINK OF TRADE WARS ARE RESOLVED TO SOME DEGREE, YOU WILL START TO SEE GREATER FLOWS INTO CHINA. NOT THE PBOC NECESSARILY, BUT TO COMMERCIAL BANKS. THE CHINESE GOVERNMENT HAVE RESTRICTED IMPORT QUOTAS QUITE SIGNIFICANTLY OVER THE LAST 12 MONTHS IN AN ATTEMPT TO CONTROL THE BALANCE OF PAYMENT FLOWS AND IF THE TRADE WAR SEES A DECENT RESOLUTION, I THINK YOU WILL SEE THAT BEING TAKEN OFF. PAUL: I WANT TO GET YOUR THOUGHTS ON ONE CURIOSITY OF THIS GOLD RALLY. NORMALLY WHEN GOLD RALLIES, SILVER GOES ALONG FOR THE RIDE, BUT THAT DOES NOT SEEM TO BE THE CASE. WHY IS THAT GOLD/SILVER RATIO STILL SO WIDE? QUICKSILVER IS MUCH MORE OF AN INDUSTRIAL METAL, BUT THAT DOES NOT MEAN THAT PRECIOUS METAL COLLECTORS AND INVESTORS IGNORE SILVER -- THEY DON ' T -- BUT THE UNDERLYING FUNDAMENTALS OF BOTH METALS ARE QUITE DIFFERENT. IN MY VIEW CERTAINLY BECAUSE SILVER IS MUCH MORE OF AN INDUSTRIAL COMMODITY THAN GOLD. SHERY: WHERE DO YOU SEE PRICES OF SILVER GOING? > > MY OWN VIEW, AND WE ARE CERTAINLY NOT IN THE BUSINESS OF SPECULATING WHERE PRICE IS GOING, BUT MY VIEW IS SILVER WILL CONTINUE ITS RANGE TRADE. THERE IS A LOT OF SILVER IN THE MARKET, AND I DON ' T SEE ENORMOUS UPSIDE WITH SILVER PRICES FOR THE FORESEEABLE FUTURE. IF GOLD RISES SIGNIFICANTLY, IT WILL UNDOUBTEDLY DRAG SILVER WITH IT, BUT CERTAINLY YOU ' RE NOT GOING TO GO BACK TO THE GOLD/SILVER RATIO PRICE RATIOS THAT WE HAVE SEEN IN THE PAST. LET ' S TALK A LITTLE BIT ABOUT THE FUTURE OF GOLD TRADING. WE HAVE SEEN GOLD SUFFER BECAUSE OF HIGH STORAGE COSTS AS WELL AS TRANSACTION COSTS. HOW WILL JUDAS ASIAN CHANGE THE GAME? > > I THINK DIGITIZATION OF GOLD MAKES IT AVAILABLE AND MAKES IT MORE ATTRACTIVE TO A NEW DEMOGRAPHIC OF INVESTOR. THE TRADITIONAL OLD-STYLE INVESTOR, TYPICALLY PEOPLE IN THEIR 40 ' S AND 50 ' S, ARE LOOKING FOR PRODUCT THAT IS PHYSICALLY STORED IN A VAULT THEY CAN GO AND TOUCH AND SO ONE AND SO FORTH. THE NEW DIGITIZED GOLD OFFERINGS IN THE MARKET REALLY OFFER THE SAME GOLD , BUT IT IS A NEW WAY OF MAKING IT MORE ACCESSIBLE AND MORE ATTRACTIVE TO THAT DEMOGRAPHIC OF BUYER. I THINK THE DEBATE CERTAINLY IS HAVING A SIGNIFICANT EFFECT AND YOU HAVE SEEN THE RISING AND FALLING OF BITCOIN , AND IF GOLD-BACKED CRYPTO ' S CAN PRESENT A VIABLE ALTERNATIVE TO STABLE COINS, I THINK THAT IS ONLY GOOD FOR THE GOLD INDUSTRY. PAUL: THAT DIGITAL GOLD TOKEN P.M. GT -- YOU LAUNCHED THAT THIS MONTH. HOW HAS THAT GONE VIS-A-VIS YOUR EXPECTATIONS? > > INTEREST HAS BEEN VERY SIGNIFICANT FROM AROUND THE WORLD, AND WE ' VE GOT A NUMBER OF INSTITUTIONS TALKING TO US ABOUT IT AS WELL AS THEY SEEK TO BROADEN THEIR PORTFOLIOS. PAUL: THANKS VERY MUCH FOR

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Gold Coins, Bars Demand Holding Up Really Well: The Perth Mint

Richard Hayes, chief executive officer of The Perth Mint, Australia’s largest precious metals enterprise that provides gold, silver and platinum products, talks about demand and prices. He speaks with Paul Allen and Shery Ahn on "Bloomberg Daybreak: Australia." (Source: Bloomberg)

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