Discussion in 'General Precious Metals Discussion' started by Aurora et luna, Sep 9, 2020.
Long time member and much respected... what I'm about to say has no reflection on you at all. After all, it wasn't your video (I hope).
I actually wasted the necessary 35mins of my life to watch this.
What a fkn load of bunk!
This is a perfect example of scare mongering by those with a vested interest - a bullion dealer who can hardly read, wants to portray the Perth Mint as a dodgy unbacked set up.
A bullion dealer ragging on everything but physical delivery by their own warehouse.
They even falsely suggest rehypothecation by the PM! Get fkd!
Gold leasing has been around for ever and a day to fill gaps in the ledger.
For the BS artist bullion dealer scenario to come true, both the PM and the Reserve has to run out of physical. Yeah right!
The PMGOLD is good enough to be guaranteed by both the WAGovt and the Reserve Bank, but not good enough for can't-read-ShitForBrains-dodgy-bullion-dealer!??
I call total BS.
Hey that's "OK" wrcmad.
I just read 5 minutes of your rant when you can't even get your facts right.
He is not a Bullion Dealer.
Maybe, do a bit of research first.
Well he works for one... patato, potato.
I like John. He's a character and is shining a Iight on the gold space and trying to bring transparency. We chat from time to time, but often don't see eye to eye.
This is why I told him I don't see the 11 tonnes of gold being leased as a big deal: I don't feel like Perth Mint is in a particularly risky position having exposure to some leased gold which may not be available for immediate physical delivery. They have ~11 tonnes on loan from the RBA, which is around 5 days of capacity at their refinery.
And a reason it could make sense for them to 'own' gold in London: Gold Corporation has activities that extend beyond the retailing of bullion. In a paper tabled in the WA Parliament (link), they confirm interest in expanding their depository business including to institutional accounts. It's not hard to imagine that some of these institutional accounts have requirements around where the gold is stored and London is the international hub for a lot of gold trade, so it stands to reason they may need to 'own' some gold there.
I highly doubt there will ever be problems caused by this lease.
I suggest you do a bit of research first:
As Good As Gold Australia
And then learn to read faster. There is no way that took you 5 mins.
You are right about the rant though - was a bit.
Wrcmad and others, if you have time, break this down into baby steps so that I and the other 99% of members here can understand why the Perth Mint need to lease gold to balance their ledgers.
I think John is doing a good job in niggling the Perth Mint!
He may be barking up the wrong tree however if the effect of this clip results in a bit more transparency in the gold industry; its going to benefit us.
I have followed many of John's workings, including outside of the Gold business.
He was the first one to break the news of Bail-in and has worked with others including Martin North and Robbie Barwick to try to have this law stopped.
It took me five minutes to read yours, as I had to work out what the expletives meant
When you say "Oh I will give my accountant a call", or "Oh I will call my plumber to fix a leaky pipe", does not mean they work exclusively for me.
Same goes for John Adams.
It's one of his roles.
He is a consultant.
There was a much better interview that "ozcopper" put up here on SS which shines a lot more clarity on the whole subject.
What John is trying to bring to everyone's attention is the ever increasing global financial bubble, whereby Governments are corrupt through and through. Regulatory bodies, including RBA, APPRA, Banking Systems and a host of others are not transparent and do have agendas which are not in the interest of the people. The entire central banking system is corrupt and global governments are prepared to throw us under the bus to save the financial system.
That is why it's important to hear both sides of the story.
Also why many investors buy Gold and Silver.
John is one of the good guys.
From the document I linked:
I can only speculate, but it's probably cheaper, easier or safer (perhaps some combination of these) to lease the metal for this purpose.
Not sure this is how they think about it, but AeL if you personally needed exposure to gold in London...
Would you prefer to lease some gold from the Reserve Bank of Australia, with the gold stored at the Bank of England?
Would you prefer to buy some gold from the bullion banks which is then stored in one of their vaults? i.e. Some of the same banks who were on the brink of bankruptcy 12 years ago and who've been caught and fined for manipulating the precious metals markets.
The ideal situation would be your own gold in your own vault, but I doubt that is commercially viable for such a small quantity.
Sure, he does a number of things, but he is a direct conduit in the sales funnel for a bullion dealer (not just "a consultant" IMO).
So I think someone viewing this as a 'conflict of interest', when he talks about the importance of physical custody, is reasonable.
That said, I do think he is a "good guy" and probably his role at AGAGA just allows him to spread beliefs that he personally holds (i.e. it's not just a sales spiel).
From one of Bron's blogs, it is evident that PM will not lend client metal:
But Perth Mint advertises the following services:
So one reason could be to on-lease metal at a margin.
This is even suggested in their annual report:
This would be a perfectly legitimate and innocent business transaction.
Not the sort of sinister "synthetic Gold" conspiracy that this clown is trying to conjure up.
Would be good if @bron.suchecki could chime in.
Separate names with a comma.