Perth Bullion Liquidation
- Thread starter nighttrader
- Start date
I made a purchase of $1,139.81 on the 2nd of July via a transfer from my bank account to theirs.
The purchase was taking a lot longer to ship than usual so I tried calling them but the phone kept ringing out.
So I came to these boards to discover the bad news...
I just got off the phone from my bank, basically they can't do anything in this situation and it looks like I may be out of pocket!
I'm really stressed and have no idea what to do next!!!
Any advice would be appreciated!
Thanks in advance...
The purchase was taking a lot longer to ship than usual so I tried calling them but the phone kept ringing out.
So I came to these boards to discover the bad news...
I just got off the phone from my bank, basically they can't do anything in this situation and it looks like I may be out of pocket!
I'm really stressed and have no idea what to do next!!!
Any advice would be appreciated!
Thanks in advance...
I read the ATO guidelines I do not see anything about 10%. How do we know that ATO claims GST on bullion sold 10% over spot?. And how do they deal with bullion sold with a fixed premium?
What happens to the Safe Deposit Boxes as I will be watching this closely?
https://www.rsm.global/australia/FAQ/Perthbullion
https://www.rsm.global/australia/FAQ/Perthbullion
Niknakniko
New Member
Hi, I’m fairly new to the site and stacking in general.
Unfortunately, having never heard of Perth Bullion until a couple of weeks ago, on 9th July I bought online some silver coins, transferred the money ($1616) the same day, only to now find out they are in liquidation. Couldn’t Have time do it better.
How can they have traded after 2nd July...???. Not very fair at all.
Not a very good start for my stacking career.
Hopefully I will get something back, but am slightly pissed.
Unfortunately, having never heard of Perth Bullion until a couple of weeks ago, on 9th July I bought online some silver coins, transferred the money ($1616) the same day, only to now find out they are in liquidation. Couldn’t Have time do it better.
How can they have traded after 2nd July...???. Not very fair at all.
Not a very good start for my stacking career.
Hopefully I will get something back, but am slightly pissed.
madaw1
Well-Known Member
This is very, very weird indeed.
Niknakniko-hoping you will get money back. Be positive!!!
Me too, they have/had the best collection.
True dat!
If this is really the case, then expect a price hike (in the name of GST) at other bullion dealers as well. . . . .I suppose!Yep and wouldn't surprise me to see the Perth Mint being the only bullion dealer left in Australia...that way they will be able to track who is buying and selling...yes a monopoly.
Also, with the Perth Mint being government backed, cant really see the ATO doing a GST audit on them, as their GST bill would be in the millions based on current ATO rulings and legislation.
Basically to simplify what is happening.....if bullion is sold for more that 10% over spot ...then GST is payable. Now bullion is supposed to be GST free but the way the legislation reads it allows the ATO to interpret the legislation anyway they see fit.
So as we all know , so if spot was $20.....and a dealer sells bullion for 10% over spot = $22.
Now look at the Perth Mint....spot is $21....I think their cheapest coin is about $24 (I could be wrong) so under the new legislation GST is applicable, but the ATO aren't going after the Perth Mint...as I stated before I can see a monopoly on its way.
But then you have Perth Bullion who say buy a bullion coin from Perth Mint for say $22 with their price break, now Perth Bullion need to make money so they sell the coin for $24.....now keeping in mind that spot is $20.....Perth Bullion should be charging GST, as the ATO have manipulated the legislation so they can use the spot price as a bench mark, knowing dam well that no bullion dealer can sell silver for 10% over spot....
before you comment on what I have said..read the legislation (excuse any spelling mistakes or poor grammer)
Firstly i hope the boys are ok and come out of this somehow. Meet them at a meet up once and have bought off them a few times over the last 5 years. i felt a top notch company. I hope nobody loses a livelyhood out of this.
It is very frustrating as i'd saved up for a while to make a purchase as they had a coin I wanted and couldn't find anywhere else. Went to pull the trigger and no coins had to view this thread to realise they were in trouble.
I wonder what WA will be left with in terms of bullion dealers now.
It is very frustrating as i'd saved up for a while to make a purchase as they had a coin I wanted and couldn't find anywhere else. Went to pull the trigger and no coins had to view this thread to realise they were in trouble.
I wonder what WA will be left with in terms of bullion dealers now.
mrsilverservice
Well-Known Member
It seems that the squeeze is on from the top to the bottom,that suggests to me that prices are going higher
Supply and demand
The Book of Proverbs Chapter 22 verse 9
He who has a generous eye will be blessed,for he gives of his bread to the poor
Supply and demand
The Book of Proverbs Chapter 22 verse 9
He who has a generous eye will be blessed,for he gives of his bread to the poor
Sorry to hear you are going through this. It has been a while since I have looked into this in Australia but going back to basics, if a liquidator is appointed then the Company is already deemed insolvent. It can't trade and it can't take on new creditors. That is not to say that the relevant insolvency legislation can't empower a liquidator to continue doing business if to do so would, in the opinion of the liquidator, ultimately increase the return to the unsecured creditors. But if the liquidator chooses to do this any new creditors taken on by the liquidators rank above the unsecured creditors, which means they are protected. So the liquidator can choose to send you the coins (which would amount to running the business) or return the money. As Oddjob (who is often full of good advice) and others said the most important thing is that you contact the liquidator. Make sure it is in writing. They will be working the mess out and I am sure you will be fine. So your timing definitely COULD have been worse... you could have made the transaction the day before the appointment. Good luck, I think it is just a waiting game.
bron.suchecki
Well-Known Member
Question: if you have a safety deposit box or allocated, if you say you want to be noted as a creditor can that be taken as you agreeing that you are part of the creditor pool and do not have valid ownership of the metal. For example, if the business was leasing a car, or renting a building, would the car leasing company who clearly owns the car, or the landlord, ask a liquidator to be noted as a creditor?
I certainly think anyone should submit documents proving that they have paid for and own any metal stored, but should they ask to be noted as a creditor if the liquidator hasn't acknowledged their ownership ASAP - they may just be overloaded?
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That is a good point. If you have a safety deposit box or allocated gold it's not a good idea to say you are a secured creditor in respect of this. But I wouldn't worry if you have already said this, the liquidator will know what you mean. You can't accidently convert yourself into a Creditor if, in law, you are something else. The relationship between the liquidator and those with safety deposits and allocated gold is still contractual. The insolvency process in Australia does not result in the automatic termination of contracts. The contract in place with respect to the safety deposit box will be important, because most well drafted contracts, contain provisions as to what happens if an insolvency event occurs. I have never read one of these contracts specifically, but I would expect it to say that upon an insolvency event the contract terminates and the subject matter is returned to its owner. I don't understand the exact contractural arrangement for allocated gold, but this will also be determined by the contracts, and in particular, whether ownership of the gold was effectively transferred at the outset of the arrangement. Hopefully the allocation contracts can't be construed as some form of credit or security arrangement. I would be interested to see them if anyone has them.
harry_mr
Active Member
Today I doubt many businesses enjoy the consistent luxury of 30% and it depends on volume of sales but I do agree its a starting point. Unfortunately we have an over supply of nearly everything manufactured and there is always someone willing to do it cheaper.
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Not very happy, Perth Bullion was my number one dealer. It will be very interesting to see how all of this will play out. And would be nice to know the exact reason why they went under.
Dynoman
Active Member
Thanks, I copied the details of my last purchase and sent them through to RSM. Interestingly, a friend got through to Perth Bullion yesterday by phone & they told him that they're processing undelivered orders & basically not to worry. I told him to worry much & follow the liquidators rec. process.