The Coleman family has been melting down precious metals for more than 40 years. This is the first time they've shared inside their multi-million dollar gold and silver operation.
A more than 40-year-old family business is facilitating increased demand for gold and silver bars and coins, including singular purchases of up to $60 million.
“We do have a number of multimillion-dollar customers,” New Zealand Gold Merchants managing director and majority shareholder Tony Coleman told Markets with Madison.
He and his brother Richard’s business recently spent more than $5m restoring the historic Onehunga Woollen Mill into its headquarters, which also operated as a high-security storefront for sellers of gold and silver to trade it in for cash.
The day before the NZ Herald visited, they transacted more than $1m worth of precious metals.
Stacks of silver in a vault owned by NZ Gold Merchants at an undisclosed location.
NZ Gold Merchants earned a 2% margin on the cost of refining the precious metal, which consisted of melting it down and separating its gold or silver content from copper and other metals.
Their father, Bruce, a metallurgist, started the business in 1975.
Although, Tony said, the business looked different then and mostly dealt in silver.
“We’ve sold 1000 tonnes of silver into New Zealand over the last 30-40 years.
“I don’t know where it all is, but, eventually, when the price goes up, I’m pretty sure it’s coming back.”
NZ Gold Merchants managing director Tony Coleman shows Markets with Madison around its gold and silver refinery.
Tony and Richard decided to get into gold in 2006 - its spot price peaked around US$650 an ounce that year.
Now gold was worth around US$3200 an ounce, after a more than 5% increase in the month of April this year.
“Gold reacts to global uncertainty, geopolitical pressure.”
Go inside the Coleman’s multimillion dollar-gold and silver operation for the first time, in today’s episode of Markets with Madison above.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Malone (nee Reidy) is host and executive producer of the NZ Herald‘s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
