$27.00 silver!

Discussion in 'Silver' started by Shaddam IV, Aug 28, 2019.

  1. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Next time I'm over in NZ, I'll rattle ya cage and see what you got apart from some beers in the fridge.;)
     
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  2. fishduck

    fishduck Member

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    Do you have the link to the story where the man got out of Venezuela with PMs?
     
  3. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Seconded, I have heard of US families sending silver to relatives. Proof of it working would be great
     
  4. Silverman99

    Silverman99 Well-Known Member Silver Stacker

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    Being a tea-totaller my fridge is stacked with silver !
     
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  5. Glenis

    Glenis Member

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    No, it was a comment on a YouTube video from a friend of the man (and family) who got out of Venezuela. I've seen a few anecdotal posts here and there but no actual "I escaped Venezuela with PM's" so far.
     
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  6. 66rounds

    66rounds Well-Known Member Silver Stacker

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    The idea that 40oz of silver could save a family from a life of poverty is very heartwarming and I hope it is true.
     
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  7. Pr176

    Pr176 Active Member

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    $$ cost averaging,still buying atm most of stack would average out at around $20 an oz
     
  8. AshestoAshes

    AshestoAshes New Member

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    Oh boy I need to snap this silver up quick, this is my first investment as well. It's hard to be waiting for account confirmation with the Perth Mint.
     
  9. Number 47

    Number 47 Well-Known Member

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    I was originally going to buy directly from The Perth Mint but quickly discovered that the cost of shipping that they use means that I was paying much less by going to a jeweller that deals in silver and gold.
    Most of my stack is Perth Mint bought from Adelaide Exchange Jewelry, the rest is from private sellers here.
     
  10. AshestoAshes

    AshestoAshes New Member

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    From the Perth Mint i'm just buying off the unallocated pile which has no fabrication and storage fees. Although It's at my discretion whether I would ever want it delivered I would pay those fabrication fees, probs best deal I can find imo. I'm going to see whether I can put in a $100/week into silver, definitely see this skyrocketing.
     
  11. Gonzo

    Gonzo Active Member

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    You're buying un-allocated? I would most humbly recommend against this strategy. The very small premium you pay to have the actual silver or gold in your hand / control is very much worth it even if you have to think about storage solutions. At the very least if the company you're buying from goes insolvent, what happens then to your stack... the contract needs to be checked very carefully and even then I think, physical in your hand beats unallocated in someone else many times over. I would reconsider very seriously.
     
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  12. SteelHand

    SteelHand Member Silver Stacker

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    It's the Perth Mint, backed by the WA Government so I think he's safe :)
     
  13. Gonzo

    Gonzo Active Member

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    Sounds much better then. And I've never looked at the contracts either (and think this next issue is something more for the gold / silver ETFs) but is there any right to not deliver if you pay the fabrication fee? I think the recommendation is away from ETFs for this reason i.e. that if there is a serious breakout in price, they can just cash in your silver and pay you some fiat... and I always wondered whether an unallocated storage provider could do that?
    Oh and the Government will always do right thing for you I'm sure. :)mad: end sarc for that last bit o_O)
     
  14. SteelHand

    SteelHand Member Silver Stacker

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    I doubt the WA Government would risk the mint's stirling worldwide reputation that the Perth Mint has by doing something like that as I think it would destroy the 120 year old institution
     
  15. SteelHand

    SteelHand Member Silver Stacker

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    What is the Gold Corporation Act 1987?

    We operate under a government guarantee, which is enshrined in Section 22 of the Gold Corporation Act 1987. Clause 22(1) of the Act explicitly states that "The payment of the cash equivalent of gold due, payable and deliverable by Gold Corporation, the Mint or GoldCorp under this Act and all moneys due and payable by Gold Corporation ... is guaranteed by the Treasurer, in the name and on behalf of the Crown in right of the State."

    Who is Gold Corporation and what is its relationship to The Perth Mint?
    In 1988 the Government of Western Australia decided to place the Western Australian Mint (the refiner and minter, successor to the Perth Branch of the Royal Mint) and GoldCorp Australia (its bullion marketing organisation) under a new entity called Gold Corporation to form Australia's leading precious metals refining, minting and value-adding group. Gold Corporation was formally created by the Gold Corporation Act 1987 on 30 June 1988 and it and all of its subsidiaries are wholly-owned by the Government of Western Australia.

    Gold Corporation trades under the name "The Perth Mint" and to reassure those dealing with the Mint, especially those with precious metal or money on deposit with the Mint, a government guarantee was included in the Gold Corporation Act 1987.

    The government guarantee only mentions gold; does that mean my silver and platinum deposits are not covered?
    No. Under Clause 3(2) of the Act it states that a "reference in this Act to gold shall be construed as including a reference to silver, other precious metals, precious stones and other minerals", so you can be reassured that the government guarantee covers all of your precious metal holdings in The Perth Mint's Depository facility.

    Does the phrase "cash equivalent" mean that I am not guaranteed to receive physical metal?
    No. A government's power to tax can only be in terms of money, therefore its obligations have to be expressed in monetary terms. Should the government guarantee need to be activated, we will immediately purchase on the open market the required amount of precious metal needed to meet our obligations and then request funds from the Government to pay for the purchase (in other word, request the "cash equivalent" of the precious metal due). In this way cash is converted into physical metal so that we can meet our legal delivery obligations.

    It is important to note that we buy precious metal when you buy from us and sell when you sell to us on a 1:1 basis - all holdings, whether they be allocated or unallocated, are therefore 100% backed. This issue is discussed in further detail in the Storage Options FAQ page.

    Note also that Clause 22(2) does not restrict the Guarantee, nor does it exclude repayment in gold. This clause refers to a gold coin-backed security that was under consideration when the Act was drafted in 1987. However, no such security was issued by us. It does not apply to the Perth Mint Depository facility, which was developed later during the 1990s.

    How strong are the finances of The Perth Mint?
    Whilst wholly-owned by the Government of Western Australia, The Perth Mint is a commercially focused business that is entirely self-funded while still paying the Government the equivalent corporate income tax plus 75% of its after tax profits as a dividend.

    At 30 June 2019, the Perth Mint Depository held approximately AUD 3.47 billion worth of precious metals on behalf of investors.

    For key financial figures please see our Annual Reports page.

    How strong is the Government, and its guarantee?
    Western Australia is one of Australia's wealthiest states, with an abundance of natural resources, and economically it is a net exporter. Economic summaries and financial statements for Western Australia can be obtained from the Treasury Department of Western Australia.

    Standard and Poor's currently rates Western Australia as AA+. Moody's Investor Services currently rates the State's domestic currency as Aa1, with a stable outlook.

    In addition, like any prudent individual, we insure our physical metals at our cost to minimise the risk to the government.
     
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  16. SteelHand

    SteelHand Member Silver Stacker

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    That should hopefully allay your fears
     
  17. Gonzo

    Gonzo Active Member

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    I like it and thanks for sharing it. I think it sounds fine but it is also a bit contradictory (but not of great concern to me). In one part it says "Should the government guarantee need to be activated, we will immediately purchase on the open market the required amount of precious metal needed to meet our obligations and then request funds from the Government to pay for the purchase (in other word, request the "cash equivalent" of the precious metal due). In this way cash is converted into physical metal". So here it's saying it might not actually have the PM you have bought and it can buy it later. Later on it says "It is important to note that we buy precious metal when you buy from us and sell when you sell to us on a 1:1 basis - all holdings, whether they be allocated or unallocated, are therefore 100% backed." Personally I think it's ok but also it's a personal choice and I have simply preferred physical. With all said and done, I'm in Sydney and apart from here I buy from ABC and as a private company I have significantly greater concerns with their unallocated than with Perth Mint.
    Happy stacking!! The more the merrier!!
     
  18. Jason1

    Jason1 Active Member

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    with a government in debt that guarantees banks, super and mints, you have to wonder if things went bad how much of that they can actually afford to holdup?
     
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  19. AshestoAshes

    AshestoAshes New Member

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    If we get to a point where the Perth Mint cannot pay back my tiny investment into the Perth Mint, I bet I best be stockpiling fuel and canned food. :)
     
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  20. SilverDJ

    SilverDJ Well-Known Member

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    That's what what the Allocated program is for, you have legal ownership a particular serial numbered bar, no need for them to buy anything, no need for concern about the government guarantee should the state go broke.
     

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