Tried out the new service, not bad spreads: 0.2% for gold 0.7% for silver and platinum And I like the easy to use order page: Being able to set a limit is nice.
Meh. Backed by the WA government is good enough for me. And you can flip it instantly. Heck, you could even make a profit day trading big swings if you were lucky.
A bankrupt government (https://au.news.yahoo.com/thewest/wa/a/29939018/wa-credit-rating-could-fall-again/) backing a paper metal scheme what could possibly go wrong ? Yes I know its all covered by working inventory but tell me where is the inventory of 10oz, 2oz and 1kg Monkeys, 10oz Kooks and 1kg kooks. Very scarce animals at the Perth Mint. Even bars are hard to find .... but all is good in the land of make believe bucks
It never fails aye??? A currency crisis and a world gone mad and folk don't want to own their physical.
When demand goes crazy we drop the smaller selling lines so we can focus production on the 1oz bullions. And I've had people telling me since 1998 when I moved to Perth that if you don't hold it you don't own it yet we are still here and will be for another 100 years.
Yep, the likelihood of the stacker wet dream SHTF scenario when an Oz government backed entity goes under and can't fulfil financial guarantees is so borderline zero it rounds up to practically nothing. There is an order of magnitude more liklihood that a private safe deposit box company will get rolled or make off with your stash.
Government Guarantee The Perth Mint operates 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." https://www.perthmint.com/storage/help/faq-government-guarantee.html
Bron, 100 years is a very, very long time and unfortunately none of us will be here to verify that. I have bought coins from the PM since the early 2000 and this is the first time that 2oz lunars, 10oz lunars 1kg lunars, 10oz kooks and 1kg kooks were not out by November, never mind December. By November, we in the past were waiting for the koalas. Today as December approaches, we have no big coins of any type and koalas of any size are not on the radar screen. You tell me this is all a production problem and has nothing to do with silver supply. I cant see how 1kg bars or 100oz bars which are also in short supply are related to production. Its funny how the Perth Mint, US mint and Royal Canadian Mint all have production problems and none of them related to supply. This situation smells very much like 2008 where supply dried up and there were no coins that followed. I recall that the propaganda from the Perth Mint then in 2008 was also a production issue, unrelated to silver supply....really. Bron for us older stackers who have seen events of institutional collapse and forfeiture of client assets I am afraid there is little perception how quickly a leveraged paper system evaporates. I lived through the South African Gold Coin Exchange debacle of late 1980's where an artificial paper market was created with government backing which had a spectacular collapse and destroyed thousands of investors while the executives got away clear. Yes the company thrives today with no mention of these past deeds. When you move from selling real things to promises and leverage your assets for greater profit, you run the risk of getting unhinged. Silly people who lack years of experience believe this is the modern trend and lose sight that this has happened before with disastrous outcomes. It is hard to find details of this Ponzzi Scheme of the South African Gold Coin Exchange. Its just mentioned as a collapse but living in South Africa at the time I remember the police raiding the exchange and finding all the vaults empty. All that was left were paper promises and the gold was gone. Sound familiar? The Chairman and the directors got away without any charges and it was business as usual. Their customers got M'F ed. These are some references to this Ponzzi scheme of paper certificates for proof Krugerrands. I would be really interested if other stackers had details of this event. http://www.southafricanmedals.com/i...&category_id=1&option=com_virtuemart&Itemid=1 http://www.miningmx.com/news/gold_and_silver/954009.htm So yes I am skeptical of all paper promises and while you think you are buying gold silver and platinum you are in reality getting electrons on a screen. When leverage goes to 300:1 or 1000:1 or 1,000,000;1 you enter the world I call the world of make believe bucks.
There is no leverage, go audit them yourself: https://www.perthmint.com/storage/help/faq.html#can-i-audit-my-precious-metal And as for Pool metal, track it yourself: https://www.perthmint.com/storage/bulletins-notifications.html http://www.perthmint.com.au//documents/PABarlist.pdf
The problem with leverage is that you don't know how big it is until it collapses. If there was so much metal to back these contracts where is it ? Where are the new coins where are the bars? Yes I know it's a production problem. Unfortunately people never learn that this time it's no different, until it's too late.
Yes and if you keep on reading and not selectively quoting, I wrote that: 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. Everyone's concerns about unallocated is generally true when it is offered by a bank, but when it is backed by a business involved in physical metal it is completely different. Whatever the Government's issues, gold isn't going to stop flowing out of WA mines.
I wrote this post just for these sorts of questions/claims http://research.perthmint.com.au/2015/11/14/interpreting-the-perth-mints-financial-results/ as not many people know how to read a balance sheet. When the auditors come around and supervise our stocktake, it is impossible to play pretend with our gold and silver - it is either there or not and it is not like other companies where it is opinion as to what to value the company's assets at. And working out the total Depository liabilities is not hard either. There is just no comparison between some two-bit SA business from the 1980s when corporate governance was not as tough as it is today, to a Government owned entity operating under a much tougher auditing and supervision than private companies do (we don't appoint our auditors, the Auditor General does and supervises their work, plus we have the Under Treasurer on our Board, plus all our internal financials and management report go to boffins in WA Treasury Department for review).
I think what you mean to talk about is fractional reserve ratios and not leverage. Leverage = Assets/Equity; Fractional Reserve = On Call Liabilities/Physical on Hand. A business can have 10:1 leverage with 1:1 (ie zero) fractional reserve, the two are not related and they also don't have anything to do with turnover, which is what the 92:1 figure you see bandied about on the internet is actually referring to. That was part of my presentation at the Sydney conference and it seems I need to do a post/youtube on it.
Awesome Bron...I took a vow of immortality, so we'll see if the Perth Mint is still around in a 100 years. Hopefully they will have solved their milk spot issue by then.
You jest ? That is a list - see no gold or silver. We know over 90% of inventory is part of unallocated metal. Selling paper is the only way to survive.
Yep, when the singularity arrives I'll just upload myself to a computer and set up an automatic subroutine to argue these points. But then Ronnie 666 will do the same and this forum will melt down HFT style as our two argument algorithms go crazy creating post after post after post
