About Perth Mint Bullion Blog

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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Depository savings plan makes accumulating gold and silver easy

Topics [ buy gold online depository services buy silver online depository online ]

The Perth Mint’s Depository Online (PMDO) digital trading platform now features a convenient saving plan option for investors wishing to acquire gold and/or silver on a monthly basis.

PMDO is one of the Mint’s suite of ‘buy and store’ investment programs managing more than AUD 3.1 billion worth of precious metal on behalf of 30,000 clients worldwide. Offering 24/7 trading with live metal pricing, PMDO is easy to operate, completely secure, and comes with the unique backing of a government guarantee.

Perth Mint Depository Manager John Durham said the new savings plan was designed for investors who wanted a hassle-free method for accumulating precious metal over time. He explained:

Serious gold bugs, mum and dad investors, even grandparents acquiring a pot of gold or silver for their grandkids, can take advantage of the one-time setup and relax knowing their objective will be met through automated monthly transactions of the PMDO savings plan.”

 

Cost savings

The savings plan allows customers to meet their specific budget with a minimum transaction requirement of just AUD 50.00 per month up to AUD 5,000.00. An exclusive benefit for those buying precious metal through the savings plan is a discounted rate of 50% of the applicable transaction fee.

Precious metal purchased within the savings plan is stored in The Perth Mint’s high-security vaults on an unallocated basis – which means that there are no ongoing storage fees. Unallocated metal can be sold at any time; alternatively, clients can pay a fabrication fee to convert their metal into finished bullion products for collection.

Set and forget

Savings plan transactions are actioned on the first working day of each month and funded from cash transferred by the client to their PMDO account. To ‘set and forget’ the savings plan, clients need to establish a regular electronic transfer of funds from their personal bank account.

A savings plan can be terminated by the client at any time, or will cease when they have insufficient cash available in their PMDO account.

More information about Depository Online.

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Perth Mint reintroduces unallocated silver across its portfolio of investment products

Topics [ unallocated depository services depository online Buy and Store ]

The Perth Mint Depository is delighted to inform investors that it has reintroduced the popular option to buy and store silver on an ‘unallocated’ basis.

Part of Australia’s largest vertically integrated precious metals enterprise, The Perth Mint Depository specialises in precious metal investment solutions for those who do not wish to take physical delivery of bullion. Uniquely, it is the only government guaranteed investment and storage program in the world.

Depository clients can store their precious metal in a choice of allocated, pool allocated or unallocated format, each offering a range of specific benefits. Unallocated silver was withdrawn in 2011, however, over the past five years the Mint has invested considerably in new and improved world-class storage facilities which have enabled it to offer this popular product once again.


 

Perth Mint Depository Manager John Durham said, “Unallocated metal has always been popular among our clients. With considerable investment in new and improved world-class storage facilities, we’re now able to re-offer silver alongside gold and platinum to those looking for a totally secure unallocated storage option.”

Clients choosing unallocated buy into the Mint’s pool of working metal, used to facilitate day-to-day operations inside one of the world’s major refining and minting enterprises. Investors can rest assured that every client account is 100% backed by physical metal at all times.

The major attraction of unallocated metal is that clients pay no storage fees, and unlike allocated there are no product fabrication fees. The Western Australian government guarantee on all Perth Mint precious metals applies to unallocated, providing customers with the strongest and most effective reassurance available.

Clients are entitled to convert their holding to bars and coins for continued storage as allocated or collection, at any time.

Unallocated silver is now available to Perth Mint Depository Program (PMDP) account holders, and the fast growing number of Perth Mint Depository Online (PMDO) clients. Additionally, it is available through our global network of approved distributors via the Perth Mint Certificate Program (PMCP).

Testament to the long-standing confidence in The Perth Mint Depository, we manage more than $3 billion worth of investors’ metal on behalf of around 30,000 clients from over 100 countries.

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Understanding the benefits of Allocated, Pool Allocated and Unallocated precious metals storage

Topics [ depository services depository depository online ]

A global leader in precious metals, The Perth Mint offers the highest quality gold, silver and platinum products for investors.

A popular way of acquiring these precious metals is through our depository service which enables investors to easily buy bullion and have it safely stored in the Mint's high-security vaults in Australia, all covered by a guarantee from the Government of Western Australia.

Depository accounts include the established Depository Program (PMDP), and the increasingly popular Depository Online (PMDO), a secure online trading platform particularly suitable for investors who want to be able to react quickly 24 hours a day to the dynamic precious metals markets.

Bullion purchased through either of these account types can be stored in a choice of Allocated, Pool Allocated or Unallocated format. Each type has specific benefits, which are important to understand before proceeding with your first order.

Allocated

Applicable to gold and silver, Allocated means you purchase our physical bullion products which we segregate in our high-security vaulting facilities under your name.

As the outright owner of an Allocated holding, you pay for the precious metal and also fabrication costs for making it into the finished product of your choice. Currently, we offer PMDO clients the option of seven gold bars ranging from 1oz to 400oz, as well as 1 kilo, 100oz and 1,000oz silver bars.

 

As the custodian of Allocated metal, we charge a fee for keeping it safe and secure in our vault. However, the advantage of this type of storage is your metal is readily available for inspection, pick-up or delivery - an important consideration for some clients.

Pool Allocated

For Pool Allocated storage (silver only) we set aside numbered 1,000oz silver bars into a segregated pool which backs the amount of silver we owe to customers choosing this option.

Clients each own a share of this pool of bars, rather than specific bars as with Allocated. (A list of numbered bars providing physical backing for Pool Allocated is available here.)

One of the chief benefits of pooling silver bars is that customers pay reduced fabrication and storage fees. If required, however, they may pay the balance of the fabrication charge to convert their holdings into finished bullion products for collection or for storage at the Mint as Allocated.

Unallocated

Currently available for both gold and platinum, Unallocated is the most popular option among our depository clients because there are no ongoing storage fees. Unfortunately, the unique way in which we operate this option is sometimes misunderstood.

You can think of Unallocated metal as the Mint’s working inventory. Clients choosing the Unallocated option are therefore buying into the pool of working metal which we use to facilitate our day-to-day operations.

The ounces held in each client’s account are completely unaffected if we use the actual metal backing Unallocated. That’s because the metal is used on a ‘fungible’ basis – meaning it is immediately replaced in the inventory by exactly the same amount as we take out. Accordingly, every Unallocated ounce is 100% backed by physical metal.

This arrangement provides benefits to both parties. The huge upside for clients is that there are no storage or fabrication fees. Another benefit is that you can sell as many ounces as you require, rather than a whole bar as with Allocated.

Once again, you can convert your Unallocated holding to Allocated products for collection or segregated storage in our vaults whenever you require.

Trusted worldwide

The Perth Mint has operated its depository service since the 1990s. We now manage more than $3 billion worth of investors’ metal on behalf of around 30,000 clients from over 100 countries.

We are subject to rigorous corporate governance and control, including an annual audit of our operations which is undertaken by a major accounting firm on behalf of the State Auditor General (see Annual Reports).

In terms of reassurances, however, nothing provides greater peace of mind to our clients than the fact that we operate the only government guaranteed precious metal storage program in the world. So when it comes to keeping your precious metal assets safe and secure, there is no better choice of services than those offered by the world-renowned Perth Mint.Save


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Getting Paid In Fiat Rather Than Actual Gold

Topics [ unallocated depository services store silver allocated store gold ]

DEPOSITORY SERVICES

Following on from my previous post Don’t Mistake Perth Mint Certificates For Paper Gold I had the following question from a reader:

"If there is an event (why I would be buying precious metals as insurance for) that sky rockets the price of the metals what is the chance that I will be "paid" in fiat currencies rather than in the actual metals? Especially when the currencies are plummeting and the PMs are skyrocketing. If gold will be paid in paper isn't it paper gold?"

My response to his question is that unallocated with a bank who lends your metal out certainly has a risk in the scenario you raise. If the person they have lent the metal to defaults (most possible in a depreciating currency situation), then the bank is likely to only be paid a cash amount and not get any physical back. Such cash payments would be based on prices as at the date of default and thus would not result in the full amount of ounces being recovered in a situation of skyrocketing prices.

Even if the bank does not have any problems recalling their metal loans, they still have the problem of converting their paper gold into physical and then finding a refinery or mint to transform those 400oz wholesale gold bars into smaller bars and coins suitable for you.

Contrast that with The Perth Mint, who does not lend client metal. If the price of gold rises or falls it does not impact on our profitability as everything is one-to-one backed. Also, we are a business that deals in physical precious metals. If our clients want physical delivery it presents no problem to us because we operate a factory that produces $13 billion worth of coin and bars annually (compared to $2.3 billion worth of unallocated held with us) so we have the capability to transform metal into products.

It is likely that in the scenario of plummeting currencies there may not be many people willing to sell their precious metals for paper dollars. To maintain a one-to-one backing, The Perth Mint only sells bars and coins if it can immediately use the cash from that sale to buy replacement raw metal (usually from a mine). If we face a situation where we cannot obtain replacement metal, we will not sell. We will sit on our physical metal that backs your unallocated account until the market returns to normal. It is possible that precious metal transactions will be possible in another currency but not in others and we would only deal in those where a two-way buy and sell market for metal exists.

In the situation where clients want physical delivery, but we cannot find people willing to supply replacement precious metals, we would simply convert all the semi-finished metal into coins and bars and supply them to clients. Yes, we would be left with an empty factory, but without the ability to source replacement metal on an ongoing basis we do not have a business anyway.

The above issues do not apply to allocated, as the metal behind that has been manufactured and set aside. However, a scenario which does impact both unallocated and allocated is theft. If you look behind the insurance policies covering bank as well as non-bank storage providers, you will find three issues:

1. Insurance policies have a number of exclusions such as war, riots etc.

2. They rarely fully insure. Wholesale insurers will generally only cover around $1 billion per vault. If there is a loss greater than that, then you are relying on the company to make up the difference, and many do not have the balance sheet to cover significant losses.

3. If there is a loss which is below the insured limit, many companies would still not have the balance sheet/cash reserves to immediately buy metal to cover the loss and then wait until the insurer pays out – or take the risk that they will not pay out (eg due to employee fraud or collaboration). Even if the policy is paid out it is usually done at the value at time of loss and if metal prices are skyrocketing then the cash will not be sufficient to replace all the ounces.

In the case of The Perth Mint, clients have ultimate claim on the Government of Western Australia under section 22 of the Gold Corporation Act. This government guarantee has no exclusions or dollar limits. Secondly, The Perth Mint, via the Government, has the financial capability to immediate buy the replacement metal and then collect cash from its insurers later, so there is no exposure to skyrocketing prices. Thirdly, while The Perth Mint insures its precious metal inventories as a way of mitigating the risk to the Government, clients are not reliant on this as if the insurers do not pay out then government guarantee kicks in and the Government makes good on the loss (The Perth Mint having bought the replacement metal at time of the loss in any case).

In summary, the fact that The Perth Mint is a non-bank physical producer of precious metals with the additional protection from its Government ownership means that clients are unlikely to find another custodian with a lower risk profile.



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Vault Business Expands in Asia

Topics [ depository services Perth Mint Depository gold bars ]

IN THE NEWS

Strong demand for physical metal has again put the spotlight on where investors can store their precious metal.

Discussing this topic back in 2010, Bron Suchecki Manager, Analysis and Strategy, pointed out that there were few options available to Australian investors outside The Perth Mint’s Depository facility. [see blog post Where To Store Your Gold]

A problem throughout Asia, the situation has now been jumped on by ANZ Bank, which this month will officially open its first gold vault in Singapore, the Australian reports.

Providing the news outlet with background on the development, Bron said that more vaults were being built in the region as investor demand outstripped gold for jewellery and because of greater interest from retail investors.

"The ETFs are popular, but specific metal in the name of the client is also getting popular and that's reflecting investor uncertainty," he said.

The Australian reported that the ANZ is a major player in gold, handling about 15 per cent of the globe's production through an exclusive distribution agreement with The Perth Mint.

Read this news article online at The Australian - subscription required.



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Thinking About Buying Precious Metal For Your SMSF?

Topics [ depository services buy silver online Australian Kangaroo Perth Mint Gold allocated buy gold online Australian Lunar certificates Australian Koala bullion coins Australian Kookaburra bullion bars ]

BULLION BARS AND COINS

The Perth Mint has a large and growing number of clients who purchase precious metals for their Self-Managed Super Fund. If you’ve been wondering whether it is possible to diversify your super investments through the addition of bullion, The Perth Mint is a trusted source of investment-grade gold and silver with plenty of experience in helping SMSF trustees.

Buy and Store Yourself

You can purchase a full range of official Australian bullion coins and an extensive choice of small investor bars via www.perthmintbullion.com, the Mint’s specialist bullion sales site featuring ‘live’ pricing.

Made from 99.99% pure gold and 99.9% pure silver, Australia’s bullion coin line-up includes the world-renowned Australian Kangaroo gold coin series, the Australian Kookaburra silver coin series, and Australian Koala silver coin series. An extremely popular alternative, the Australian Lunar coin series is offered in both pure gold and silver.

All web clients buying physical bullion are required to register before buying, so when signing up on behalf of your SMSF, make sure you choose the ‘Trust/Super Fund’ option in the simple registration process.

Gold and silver purchased via the website (or the Mint’s Bullion Telephone Desk - 1300 201 112) will be securely delivered to a customer’s nominated address. If the precious metals are to be stored at home, trustees should ensure that they will not fall foul of the rule against use of art/collectables/personal assets.

Store at The Perth Mint

The Perth Mint Depository, which holds metal worth A$3.5 billion on behalf of clients worldwide, is a convenient alternative for SMSF investors who do not want the inconvenience and risk of storing their precious metals themselves.

The Depository offers bank account-style facilities for which each client’s balance is measured in Troy ounces of gold and/or silver bullion.

Client metal is stored in high security premises on an ‘allocated’ or ‘pool allocated’ basis, which attract ongoing storage fees, or an ‘unallocated’ basis, on which no storage fees apply.

Allocated means your bars and coins are fully segregated for other investors’ metal in the vault. Clients may sell or take delivery of their metal at any time. Unallocated means your bullion is held in the Mint’s pool of precious metal, which is maintained in unsegregated storage on a fungible basis. You may sell your metal at any time, or request physical delivery as allocated coins or bars (fabrication fees apply).

Perth Mint Gold, which is traded on the Australian Stock Exchange (code: PMGOLD), presents a different method for SMSF trustees to invest in bullion. Traded through a stockbroker with the same ease and convenience as investing in shares, Perth Mint Gold tracks the underlying price of gold and attracts an annual management fee of just 0.15%.



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