A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2019 Earnings Conference Call Transcript

Sep 12, 2019 • 04:30 pm ET

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A-Mark Precious Metals, Inc. (NASDAQ:AMRK) Q4 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Yes. At this time, we'll be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Chris Sakai with Singular Research. Please proceed with your question.

Analyst
Chris Sakai

Hi. I just had a question on your inventory level. Can you give a breakdown as far as the percentage -- how much is gold and how much is silver? And as compared to previous inventory levels, I mean, how has the -- those -- the level of gold and silver increased or decreased?

Executive
Gregory N. Roberts

We don't generally break that down, although we do have some reports internally that we do see the mix. I would say that the inventory currently is significantly weighted heavier to gold right now, which has a little bit to do with what is being transpired in the marketplace between June, July and the beginning of August. The current move in gold prices which has been significant and we welcome them, and we -- that's the business we're in, has resulted in mostly institutional buying and most of the movement in gold has been driven by purchases and inflow into the ETFs, particularly GLD which you can see in their reports. It has resulted though in more physical selling of gold, where a number of retail clients have taken some chips off the table and they have sold gold into the market and have been more sellers and then the newer buyers have not yet performed on new gold coin. So what that means is A-Mark has been a fairly significant buyer of older, backdated gold coins which has increased our mix in our inventory, and we have been selling fewer new gold coins. And you can see that particularly in the US Mint numbers which we always point people to. But the sale of new mint products up until about six weeks ago, had been fairly stagnant at the US Mint and the Canadian Mint and other sovereign mints. In the last six weeks, we have seen a pickup in gold sales to the retail public and we have taken advantage of that. Fortunately, we have had an inventory of those coins which built up in July and June. In the last four weeks to six weeks, we've been able to take advantage of that. So, I don't have any exact numbers for you on this call, but for the most part our gold has -- gold inventory has been a little higher in the last few months.

Analyst
Chris Sakai

Okay. All right. Thanks. And then as far as Goldline business goes on -- do you -- how is that been going? Is it returned to profitability or is it closed?

Executive
Gregory N. Roberts

We're still not profitable there. We're still working on it. Again, what we've seen in the last -- in June and July, in particular at the end of last quarter, and the first month of this quarter, as we've found more precious metals, historic precious metals, retail buyers have been selling back as opposed to buying new