Hi there, I'm considering opening a PMDS account and wanting to hear from those that have one opened. I'm looking into an unallocated account. What are the Perth Mint Buy/Sell prices like? Going from their website there is a significant difference in the prices, to the point that you would be selling in today's market at approximately $31.30 back to the mint. Are these the same prices used for PMDS transactions? Buy/Sell prices of 1kh Silver Bar: http://www.perthmintbullion.com/au/Buy-Silver-Bars/1kg.aspx?size=27
No, those are physical spreads. Look at the top of the page - PMDS spreads are roughly based on the bid/ask spot prices (as a guide) plus transaction fees etc depending on the trade size.
The perth mint will inevitably at some point have to stop offering "free" storage of unallocated silver. By Bron's own admission the PMDS and PMCP demands have long exceeded the mint's "working inventory" needs. Somewhere out there, there are vaults filled with bulk 400oz and 1000oz silver bars owned by PMDS account holders. Metal for which the mint has no operational use, but is incurring shipping, storage and insurance costs. As long as the average client holds their metal for less than 3 years or so, this can likely be adequately offset by the surcharge for unallocated silver. But the surcharge (25c per ounce, last time I inquired) probably won't cover costs for much longer than this. At some point, I strongly suspect the mint will introduce an annual fee.
