Perth Mint has Bullion Available?

Sometimes

Silver Stock Report

by Jason Hommel, November 25th, 2008

Yesterday, I made an error in one of my arguments about the Perth Mint. 

But that does not mean Perth is not engaged in one of the greatest gold and silver swindles in the world.  My main concern and argument stands: which is that Perth has a $1.5 billion gold and silver liability, (mostly from their certificate program), which is to be used for "working inventory" so that they can fill orders, and the fact remains that they have had difficulty in filling orders, which calls into question their integrity and the reliability of their bullion certificates.

Not being able to fill orders should be shocking, given that no other mint on earth has such a large working inventory of metals.

Here's a quote from their annual report:

http://www.perthmint.com.au//documents/07-08AnnualReport.pdf

See bottom of p. 38 (p. 79 in the pdf reader)

"The $1,388 million of precious metals deposited by Perth Mint Depository clients (note 180 was used in operatios by Gold Corporation as inventory ($752million - Note 8b) with the balance in the refining operations of AGR Matthey (Note 8a).

(The $1.5 billion figure came from a Perth press release a few months back.  The financial statements do not break down the liability into the exact number of gold and silver ounces.)

Most other mints have a working inventory in the size of about $1 million more or less, not 1500 times greater, like $1.5 billion.  All other mints that I talk to about the size of Perth's working inventory similarly conclude that it must be fraud, especially if Perth can't fill orders in a timely way.

So, given the overall picture there, my mistake seems rather unimportant.  I quoted an Australian newspaper article that headlined that Perth suspended orders.

http://www.theaustralian.news.com.au/business/story/0,28124,24687337-643,00.html

However, Nigel Moffet, Treasurer and Manager of the Perth Mint Depository, emailed me to clarify, and he said Perth is continuing to fill bullion orders.

Nigel wrote:

Ron Currie is the Sales and Marketing Director responsible for coin and medallion products, and it is only these products that he was referring to in the statement quoted in The Australian newspaper.  The Perth Mint holds bullion bars which are available through the Perth Mint Depository and the Perth Mintís retail operation.

For years, I have encouraged people to buy bullion from the Perth Mint, (and never to store anything with them) because if anyone should be capable of filling bullion orders, it should be them, given the large size of their "working inventory" of $1.5 billion.

My error in yesterday's article was in thinking Perth made $10 million on a single reported gold sale of 30,000 oz. for $33 million, or $1100/oz.  As was pointed out by many readers, that was an Australian newspaper, so the amount quoted must have been Australian dollars, not US dollars, as I mistakenly calculated. 

But that really has nothing to do with the shockingly large inventory that Perth "supposedly" has.

I made my mistake though, wrongly assuming Perth sold gold at $1100/oz. US, because it is not unusual for Perth Mint to charge so much over spot, for coins.

Various gold coins sell at Perth ranging in price from about $1300 US to $1500 US per ounce!

http://www.perthmint.com.au/catalogue/discover-australia-fauna-gold-coins.aspx

And many of those are sold out now.

However, bullion prices at Perth are much lower, and bullion is available now:

http://www.perthmint.com.au/metalPrices.aspx

One ounce gold bars today are quoted at $1,302.34 Australian dollars, with spot gold at $1,277.34 Australian dollars and $825.80 USD.  That's a great price in today's market, where bullion is so often hard to find.

In conclusion, my goal is to help people find and purchase gold and silver bullion, and get it in hand, under their own control.  The Perth Mint should be able to fulfill this task better than any other group on earth, because no other group on earth has such a large "working inventory" of precious metals to be used for the express purpose of running a mint.

It is unfortunate that the Perth Mint has often "run out" of bullion items.  That such an organization has run out, should be concerning to the discerning buyer.

==============

Next, APMEX is increasingly resorting to selling silver with long lead times.  One reader complains;

I ordered 60 ounces of silver buffalo rounds from APMEX on 21 Nov 2008 and they say they won't ship till Jan 9, 2009. That's a month and a half wait for just a measly 60 ounces.

Ordered 1 gold coin and 40 ounces of buffalo rounds on 22 Oct and shipped 19 Nov from Apmex
Ordered 140 silver buffalo rounds on 13 Oct and shipped 10 Nov from Apmex

Prior to this all of my orders were under $2,500 and took less than 20 days from order to ship. I suspect APMEX is honest and doing well enough in this down market but they are becoming slower at filling orders.

Therefore, be careful, and pay attention, when ordering silver from APMEX.  Some is "in stock now", and other silver has long lead times.

==============

A reader of mine, who recently bought silver at one of my auctions, was very happy with speedy delivery:

Dear Jason,

I bought the silver bars Wed evening. Paid Thurs midday. Shipped Thurs afternoon. Friday travel day. Arrive PO box 10 Sat AM. In my safe Sat evening behind the fences, alarms, dogs and guns. Much less than 72 hours total turn around.

Not bad at all.
 
Thanks again

see the ongoing silver auctions (not all mine) at www.seekbullion.com

==============

24gold is now tracking the price premiums being paid at auction at ebay:

http://www.24hgold.com/english/buy_sell_silver_coins.aspx?co_id=0

Silver is being sold at between 30-67% over spot.

==============

People have asking me about how to get into the silver melting and refining business.  One came up for sale!

Precious Metal Recovery Business for sale. Sale includes Real estate and operating Business.The State License allows for a larger spectrum of business (GOLD, PLATINUM...ETC). New Jersey location. Building alone apppraises for better than a Million. Asking Price is $1.5 Million The current gross is $800,000 The net is $400,000  Must sign Confidentiality Agreement for Details.  Contact:
 
                     LDDRT LLc.         
                       Louis Tapia,
     Commercial Business Consultant
                 Cell (201) 538-1792
               lou_tapia@yahoo.com

==============

SILVER EVENT!  SPEAKERS INCLUDE:

    * Jay Taylor
    * Peter Grandich
    * Murray Sabrin
    * David Corsi
    * Charlie Nedoss
    * Noel Jameson

KEYNOTE SPEAKER:  DAVID MORGAN OF WWW.SILVER-INVESTOR.COM

FINANCIAL VORTEX 

SATURDAY, DECEMBER 6TH IN NEW JERSEY

http://www.financialvortex2008.eventbrite.com/






Sincerely,

    Jason Hommel

    In case you miss an email, check the archives:
    http://silverstockreport.com/ssrarchive.htm
    www.bibleprophesy.org 

    You can buy silver in lots of 100-500 oz. at my auctions at www.seekbullion.com
    Auctions end M-Th, Sat, At 7PM Pacific, but you can place bids anytime, 24/7.  Wires only.  USA Shipping only. 

    You can also buy silver at www.momsilvershop.com
    Mom will ship overseas, and also in lots of more or less than 100 ounces.

    See us also at:
    Rocklin Coin Shop
    4870 Granite Drive, Rocklin, CA 95677
    http://rocklincoinshop.com/