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This blog discusses The Perth Mint's bullion coins and bars, providing information about our latest designs, mintages, sales volumes and sell outs. On a broader front, we share relevant research and opinions for anyone interested in gold and silver bullion investing.

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Perth Mint Puts Gold And Silver At Investors’ Fingertips

Topics [ store bullion silver bullion gold bullion buy silver bullion online buy gold bullion online Buy and Store ]

BULLION STORAGE

The Perth Mint has made investing in precious metals even easier with a secure online trading platform that offers investors the ability to buy and store with the Mint.

Providing trusted storage facilities, which are guaranteed by the Government of Western Australia, and with complete account privacy, investors are able to confidently transact with live pricing day or night, 7 days-a-week. The platform facilitates immediate manual market orders or automatic price-sensitive trades when an investor’s preferred metal price is reached.


 

“Offering the only government guaranteed investment and storage program in the world, The Perth Mint has deep connections in the global market, and has been providing a range of precious metal coins and bars for investors for more than 100 years,” said Perth Mint Manager, Analysis and Strategy, Bron Suchecki.

“We currently store some $2.7 billion worth of precious metals for more than 21,000 clients located in 105 countries, and we anticipate that these numbers will increase dramatically with our new online system now in place,” he added.

Investors can open an online depository account via perthmint.com/storage/open-account.html and start trading with just $50 per transaction. For the savvy investor under the age of 18 years, regular investments can be made into an account established on their behalf by a parent or legal guardian.

“Should events cause an investor to want to take delivery of physical product, they are able to obtain a globally accepted range of coins and bars that are manufactured at our minting and refining facilities located in Perth,” Mr Suchecki continued.

Investors are able to choose from the range of bullion storage options at The Perth Mint on perthmint.com/storage/ or purchase a variety of Australian bullion coins, minted and cast bars for delivery at perthmintbullion.com

As an industry leader, The Perth Mint also operates one of the largest accredited refineries in the world, processing more than $15 billion worth of conflict-free gold and silver annually. Therefore, investors can be assured that the metals they buy are obtained from trustworthy ethical sources.

For further details contact Perth Mint Depository on Toll Free 1300 651 465 (Australia), +61 8 9421 7250 (International) or pmds@perthmint.com.au



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Don’t Mistake Perth Mint Certificates For Paper Gold

Topics [ unallocated depository allocated store bullion store gold ]

DEPOSITORY SERVICES

I have a friend I’ve known ever since I first started in the gold business in 1994. I’m quite fond of him and he is ever willing to tell me what he thinks about the gold market.

He does tend to be a bit opinionated at times, which is generally not a problem, except that he often gets his facts wrong and doesn’t like it when I correct him. He also has a penchant for conspiracy theories and can tend to be a bit irrational, but he is always entertaining. You may wonder why I bother associating with him.

Well, you may be surprised to know that you are friendly with him as well.

His name is Mister Internet.

Paper gold is one of Mr. Internet’s favourite topics. I made the mistake of asking him about it the other day:

“Oh you don’t want anything to do with paper gold. Don’t you know, all the bullion banks are leveraged 100:1 and the fractional backed system is going to default and crash any day, so you should only hold allocated. But wait, I did hear some stories of unnamed people who have had unnamed banks refuse or delay giving them their allocated, so maybe that is not safe either? I suppose they are right when they say ‘if you don’t hold it, you don’t own it’. But then you have to worry about it getting stolen, especially if you have more than just a few ounces. In that case …”

I had to cut Mr. Internet off there, as he starting rambling on about “midnight gardening”, and putting a metal pipe above your buried “stash” in your backyard to confuse metal detectors, and using decoy safes and so on.

It’s enough to make any Perth Mint Certificate holder question their decision to hold precious metal with the Perth Mint.

I understand where Mr. Internet is coming from. Banks appear to be involved in scandals on a regular basis and MF Global made people question the idea that client funds can’t be touched. It all resulted in a loss of trust.

And if you are not comfortable with the risks of personally storing gold and silver (and nothing is free of risk), then it very much comes down to a question of trusting the person holding your precious metal.

But there is a big difference between paper gold accounts with a bank and a Perth Mint Certificate, which just happens to be made out of paper.

Mr. Internet is right about banks operating fractional reserve precious metal accounts, even if his figures are wrong. Jeffery Christian of consultancy CPM Group confirms that bullion banks loan up to 10 times as much metal as they have on deposit (with AIG going as far as 40 times).

This should come as no surprise - they are banks after all - and lending out your deposit is what banks do. No one expects a normal bank to have a vault full of dollar bills backing their deposit liabilities one for one. Neither do bullion banks.

"The Perth Mint, however, is not a bank.
We do back our deposit liabilities one for one
with real gold and silver."

The Perth Mint, however, is not a bank. We do back our deposit liabilities one for one with real gold and silver. We don’t lend client metal, we don’t speculate on the price, and we don’t get involved in risky derivative transactions. We are a simple refinery and mint business, turning mined gold and silver into bars and coins for investors.

Even though the Perth Mint isn’t involved in banking activities, Mr. Internet has on occasion accused us of not backing our unallocated accounts, saying that we just take people’s money and don’t buy any gold. My appeals to our internal and external audits, plus oversight by the Auditor General of Western Australia and the Treasury department of Government (additional supervision no public company is subject to), often don’t assuage his fears.

In that case I ask Mr. Internet to think it through logically. To refine, mint and ship $13 billion of gold around the world each year we need a lot of metal in our refinery, factory and vaults. Without gold we can’t make anything – we don’t have a business. We don’t care for dollars, we need gold. So there is no incentive for us to keep investors’ money and not buy gold: the more gold we have the more coins we can make. The fact is we have every incentive to NOT hold dollars.

We are more than happy to sell our bars and coins to those who feel better holding it themselves, and that is our main line of business. But we created the Perth Mint Certificate Program for those who wanted the option of a safe offshore storage facility.

We take that responsibility quite seriously. Whether you hold unallocated, pool allocated, or allocated, you can be sure that while your Perth Mint Certificates may be made out of high quality security paper, they certainly aren’t “paper gold”.

P.S. – Mr. Internet is a plagiarism of Benjamin Graham’s (the father of value investing) Mr. Market – “a fellow who turns up every day at the stock holder's door offering to buy or sell his shares at a different price. Usually, the price quoted by Mr. Market seems plausible, but occasionally it is ridiculous.” (Apologies to Mr. Graham for my poor copy of his allegory).



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The Perth Mint Really Does Have The Metal

Topics [ unallocated depository services store silver allocated store bullion store gold ]

IN THE NEWS

Readers of Bron’s Response To Miles Franklin will definitely be interested in this illuminating new interview.

From FinancialSurvivalNetwork.com

Bron Suckecki“Bron Suchecki, director of strategy at the Perth Mint joined us today to clarify a number of rumors and misunderstandings about the Mint’s policies and accounting. Perth sells certificates that are backed up by the metal they have in inventory, awaiting fabrication. Buyers of the certificates are not charged for storage. This practice has led a number of reputable writers to question whether Perth really does have the metal and perhaps more importantly, what would happen if a shortage of metal prevented them from restocking their inventory. Bron explains that they never actually ran out of metal in 2008. They tapped other sources to keep the metal flowing, and if they were ever in a position where suddenly gold and silver became unobtainable, they would be forced to stop producing and keep the inventory in place. Additionally, Perth’s auditors have certified their financial statements, never qualifying them due to an inventory shortage. While there are no sure things in this world, especially where counterparty risk exists, Perth is probably as close as one can get to minimization of this risk.”

Click here to download the audio



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Perth Mint Certificates Are Not Classed As 'Paper Gold' - GoldCore

Topics [ depository services store silver store bullion certificates store gold ]

WHAT OTHERS ARE THINKING

Dublin-based GoldCore recently fielded questions from investors regarding the nature of "paper gold". Some readers sought clarification as to whether Perth Mint Certificates are paper gold.

The following explanation is reposted from GoldCore blog:

“By paper gold, we do not mean Perth Mint Certificates. Perth Mint Certificates are fully backed by physical gold, silver, and platinum bullion.

By paper gold we mean gold futures, gold futures options, some gold ETFs, certain forms of unallocated gold ownership, pool accounts, contracts for difference (CFDs), spread betting contracts, gold stocks and or gold options.

Perth Mint Certificates are unlike many ways of investing or speculating in gold which are not fully backed by physical metal.
 
Another distinction is that the gold and silver bullion backing Perth Mint Certificates is not held in the banking system. Rather the Perth Mint Certificate Programme is owned and operated by The Perth Mint of Western Australia which is a AAA rated government mint.
 
The Perth Mint is owned by the Government of Western Australia and is run within very strict and ethical guidelines. The Perth Mint does not and would not contravene the law and act in a manner which would embarrass its government owner. Indeed because it is government owned it has to be absolutely scrupulous in adhering to strict business procedures.
 
For every ounce of precious metal that is sold to a client, The Perth Mint must buy a corresponding ounce in the marketplace.
 
To ensure that this policy is maintained at all times, The Perth Mint is audited rigorously by the Auditor General of Western Australia as well as by external auditors Price Waterhouse Coopers.
 
The Perth Mint holds full inventory confirmations on a quarterly basis as well as the comprehensive audits. The Perth Mint Depository programs are not permitted to, and do not, run short positions under any circumstances The Perth Mint does not lease metal out to mining or exploration companies and does not undertake precious metal derivative transactions.
 
Conclusion
 
GoldCore shares concerns about pool and unallocated accounts where it cannot be established if the operator is backing its liabilities to investors. GoldCore would advise investors to research and question any program or facility they are investing in.
 
Via Mat and the Perth Mint Certificate Programme remain two of the world's safest and securest ways of owning gold and silver offshore.

Some bullion buyers prefer private storage, others public.
 
Some bullion buyers prefer storing bullion in Via Mat London or Zurich, others Perth in Australia.
 
Due to the significant geopolitical, macroeconomic, monetary and systemic risks of today, GoldCore also strongly advise that it should not be a question of either safe third party ownership or personal possession. Both are important and complementary and both should be considered by all prudent investors and savers.

If you are not fully confident and satisfied with any of your current forms of gold ownership, the ultimate holding is outright ownership.”


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The Land Down Under Could Be A Safe Place To Keep Your Gold - FSN

Topics [ unallocated depository services store silver allocated store bullion store gold ]

IN THE NEWS

Precious metal storage at The Perth Mint is designed for investors who want to buy our bullion coins and bars but don’t want the hassle of taking delivery and storing it themselves.

In this interview with the Financial Survival Network in the US, Manager Analysis and Strategy Bron Suchecki explains how the storage program developed in the 1980s and 1990s and clearly defines key concepts such as ‘allocated’, ‘pool allocated’ and ‘unallocated’.

Bron is upfront in answering one of the most common questions we hear from prospective unallocated storage clients: “What happens if everyone turns up to the Mint and wants to take their gold?”

Listen to his candid conversation with Kerry Lutz now.



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Opportunity To Quiz Bron Suchecki At Free Seminar

Topics [ depository store silver store bullion gold coins where to buy gold certificates silver coins store gold buy silver buy gold ]

EDUCATION

A reminder that Bron Suchecki, Manager, Analysis and Strategy is conducting a free seminar for first time investors in precious metals at the ANDA Coin, Note & Stamp Show in Perth on the weekend.

Bron will present ‘Options for Bullion Investment’ - an information session on the variety of ways you can buy gold and silver including coins and bars, certificate programs, storage options and even via the Australian Stock Exchange.

The seminar starts at 11.00am on Saturday 5 and Sunday 6 February at the ANDA Show, which takes place at Burswood Convention Centre. (General Admission: $10 - 1 day. Special 2 day passes available at just $15).

Bron is happy to take questions – time permitting – representing a fantastic opportunity for Western Australian bullion buyers to discuss important issues. If you don’t live this side of the
continent, don’t forget that you can watch highlights of previous presentations by Bron on The Perth Mint’s YouTube bullion channel.

Other contributors to the free seminar program include Andrew Crellin, MD, Sterling & Currency; Steele Waterman, ANDA President and MD of Waterman’s Coins & Banknotes; Rob Jackman, MD, The Rare Coin Company; and Belinda Downie, MD, Coin Works. More info.

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