sounds like the story of the early gold smith.. as long as nobody wants their metal.. then no problem..
This has been done to death. It is no secret that unallocated is used as working inventory - it even says so in the PIS. If you don't like it, don't use it. I have heard this statement by many stackers who then take their phys and store it in a safety deposit box in a bank. :lol: What do you do when you're stack becomes a serious pile of metal? When your stack is uncomfortably large to store privately, PMDP is not a bad option IMHO.
The guy is a fool. He seems to think that because he's put his whole net worth into the Miles Franklin storage program, we should trust him when he says it's all safe and good http://blog.milesfranklin.com/perth-to-montreal/comment-page-1#comment-5388 Very disappointing - the Schectman's seem good but this guy has turned me off the whole company. I guess I'll have to go somewhere else :-|
Hi Bullion Baron I understand what you are saying but if 80% + is working inventory ($3Bill) that is almost all the PM they have on deposit. The only reason that people would draw out their gold/silver on mass is if things went really pear shaped. What are the chances that the PM or anyone else in that situation would be able to access any new supplies especially that quantity. This is the same logic as the banks, they only hold 1% of the cash on deposit, the rest is working inventory. I thought people got into PM to get away from this process of financial 3 card Monty.
They do, that's why you should only ever get fully allocated PM. Hoffman is right in that segregated is better, but the Perth Mint doesn't offer this option.
500 M is segregated and we all understand that is the safe option. It is the 85% of unallocated PM that Hoffman is talking about.
They are a major refinery. As long as new gold is being mined they can procure more. As long as they are feeding the pipe there's no issue ...unless they sell more water than is in the pipeline (bron should be able to correct me on this).
I need to go the the banks and take all the cash out, to be sure I have the cash, then walk in to PM and buy some gold coins. after payment I want to bring back the coins to my boat, then will tell the story here after that
Hoffman claims that Bron said: This was my understanding as well. You can hold coins with them, but only Perth Mint coins, so you might have 5 coins of type XYZ, but they could keep them in bags of 100, mixed up with 95 other XYZ's belonging to other people.
Wonder why Bron came on here Sunday but decided it wasn't important enough to put a post up about the thread
Won't speak for the guy other than to say he was travelling at the time and was directing efforts to responding directly to Andrew Hoffman (which led to the follow up).
Yep, on the road and busy with meetings and not good access to internet, so have been frustrated not being able to follow and respond like I'd normally do. ronnie666, we do not operate in any way like a bank, as we aren't one. I don't know where you get this idea we are running a fractional business from. "working inventory" means "inventory", not "loans" - the $3b of pool allocated and unallocated liabilities on our balance sheet is backed by $3b of precious metal in our business, period. There is no lending to third parties. If all those clients turned up then we gather all the metal up and turn it into coins and shut the business down.
I dont understand why you would shut the business down . Why would you shut a perfectly good profitable business down ? Im sure you could acquire funding from somewhere once you put the numbers on the table to continue .
Hi Bron Thanks for that info. So if you have roughly (excluding Pt) 1million oz of gold and 50 million oz of AG (total 3B) in working inventory why do you state that the unallocated deposits are guaranteed by the WA government and should the guarantee be called on, the cash paid by the WA government will be used to buy in new metal to pay out customers. If you have all the metal on board why is that guarantee required ? It does leave us a little apprehensive. I never suggested that the PM is involved in fractional lending. But clearly with large volume of customer deposits in inventory we who have been dealing with the PM for many years, recall times when metals were not available especially silver bars. Now I realize that the metal will be replaced by new purchases. However, in a metal run, this may suddenly deplete supplies as people rush to buy and replacing inventory will be difficult if not impossible - short term. I can visualize customers waiting some time for their metal ? Is that not a risk of unallocated storage? I would appreciate your comments. We are all learning here. Thank you
One more question bron If the mint uses everyone elses metals .whos metal was the 1 tonne gold coin made from . The allocated or unallocated?
