Shiner, TX (PRWEB) July 15, 2014
Texas Precious Metals (TPM) suffered the effects of weaker demand in the precious metals market in the first two quarters of 2014, posting sales of $74.9M for 1H14, down from $85M in 2H13. The company sold 36,738 ounces of gold (up from 32,855 in 2H13), and 1.16M ounces of silver (down from 1.48M in 2H13). Sales of the company’s 1 oz “Texas Silver Round” remained strong at 283,063 ounces.
Despite the downturn in the market, the company’s market share continued to rise. Worldwide market share of US Mint silver eagle coins increased from 1.6% to 1.7%, while market share of US Mint gold eagle coins rose from 2.2% to 3.8%.
Texas Precious Metals continues to be a major growth vehicle for Australia’s Perth Mint. TPM was responsible for 7.9% of Perth Mint’s worldwide gold sales, and 27% of domestic gold kangaroo coin sales in the first half of 2014.
The company’s annualized 2014 run rate of $149.8M is 17% less than 2013 sales of $180.1M. The revenue decrease is the result of lower precious metals prices and weaker demand in the first two quarters. Historically, the fall and winter seasons tend to be the strongest for precious metals sales, although forecasting remains difficult due to the unpredictability of the market.
In 3Q14, Texas Precious Metals will introduce a half-ounce silver “Sister Cities” coin custom minted by the Perth Mint. These coins will have a legal tender face value of $0.50 (AUD) and will be distributed exclusively by Texas Precious Metals. The Sister Cities concept originated with the founding of the Houston-Perth Sister City Association (HSPCA) in 1983. Under then mayor Kathy Whitmire, the HPSCA formed a partnership based in large part on historical naval ties and the strong synergies between the two cities’ energy sectors. The new silver coin will release in August 2014.