Become a Patron

Subscribe on
iTunes    Android
YouTube    RSS

Bron Suchecki – The Perth Mint Really Does Have The Metal

from FinancialSurvivalNet

Bron Suchecki, director of strategy at the Perth Mint joined us today to clarify a number of rumors and misunderstandings about the Mint’s policies and accounting. Perth sells certificates that are backed up by the metal they have in inventory, awaiting fabrication. Buyers of the certificates are not charged for storage. This practice has led a number of reputable writers to question whether Perth really does have the metal and perhaps more importantly, what would happen if a shortage of metal prevented them from restocking their inventory. Bron explains that they never actually ran out of metal in 2008. They tapped other sources to keep the metal flowing, and if they were ever in a position where suddenly gold and silver became unobtainable, they would be forced to stop producing and keep the inventory in place. Additionally, Perth’s auditors have certified their financial statements, never qualifying them due to an inventory shortage. While there are no sure things in this world, especially where counterparty risk exists, Perth is probably as close as one can get to minimization of this risk.

Click Here to Listen to the Audio

Sign up (on the right side) for the instant free Financial Survival Toolkit and free weekly newsletter.

2 comments to Bron Suchecki – The Perth Mint Really Does Have The Metal

  • ozcopper

    Great interview!

  • weirdbeard

    Bottom line, in an unallocated account the account holder is trusting that the entity is operating in an ethical and honest manner and that the metal is there. The counter party risk is that they are operating fraudulently and unallocated means the account owner will be in an unsecured creditor position should there be default on the account obligations.

    An allocated account offers the same risks except that in default the account owner is a secured creditor so stands at the front of the line in a liquidation situation instead of at the end of the line.

    Holding bullion in your hand means there is no counter party risk, but other risks like the risk someone will knock you in the head and take the metal.

    So for a person to have metal at the Perth Mint they need to have confidence that the people in charge of the institution can deliver on their promises. Do I have that confidence? Yes I do. I have both gold and silver in certificate form at the Perth Mint. Do I have all my gold and silver or all my financial assets at the Perth Mint? Absolutely not. Only a portion. Although I have faith that the Perth Mint will deliver as promised, no one is ever absolutely certain that a counter party can deliver (after all, an asteroid could impact Australia and obliterate it from the Earth – hey there are no absolute guarantees in life) so diversification is always prudent.