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(More horror stories!)
I'm happy to report a rumor
that I heard a few days ago that the Perth Mint had a few hundred 100 oz. bars now for
investors who want to take delivery. Fantastic. Get them while
you can. I hear the bars are available for about $1.80 over spot. Let's
do the math on that, shall we?
200 bars x 100 oz.
x ($17.30 + $1.80) = $382,000
Remember, Perth Mint has a total of an $880 million in bullion liability
to certificate holders.
So, they may have had $382,000/$880,000,000 or $1 worth of 100 oz.
bars for every $2303 on deposit. If true, that's much less than a 1%
backing, actually 0.04% backing! Wow! No shortage there!
Get the bars while, or if, you can.
=============
Peter Schiff slandered me in his radio program yesterday. Don't worry Peter, I won't sue, as I don't expect justice from the
system anymore, which is why I buy silver.
June 4th, start listening at 31:00 and Peter discusses me and Perth Mint at
31:40.
http://www.europac.net/radioshow_archives.asp
http://www.europac.net/media/PeterSchiff_06-04-2008.mp3
You can hear it half way through.
Peter has a dual bias. Peter sells the Perth Mint certificates. And
he is woefully uninformed.
Peter starts out saying that the Perth Mint certificate program is good in
case of government confiscation by the U.S. government. But he
seems to ignore the possiblity of current or past
confiscation by the Australian government! Irony of ironies!
Peter thinks I've gotten a "couple emails" about delivery delays
from customers of the Perth Mint. No Peter, it's about 30-50
complaints. Are they all lying? What a conspiracy!? And I'm
not the customer service rep for the Perth Mint, so why are so many
people complaining to me? See past reports, with complaints, here:
Perth Mint Crisis Watch May 23, 2008
Perth Mint Crisis: Solutions and
Ramifications May 23, 2008
To the largest newspapers in
Australia May 22, 2008
To the government of Western
Australia May 21, 2008
Poor Prospects for
Kitco/Perth/Matthey May 19, 2008
Kitco / Perth Mint / AGR Matthey /
Bullion Bank Connections May 17, 2008
Will Kitco Sue me?! May 16,
2008
Silver Shortage Drives Men Nuts March 31, 2008
Perth Mint and Kitco Scheme Exposed March 26, 2008
I find it rather humorous how Peter really stammers and stumbles when he
tries to explain that the Perth Mint has all their silver in the form of 1000 ounce bars, and,
and, and, and, and, if people want 1 ounce rounds or "little bars"
then the mint has to fabricate them, and it takes time depending on how busy
they are.
But the whole reason for even offering the certificate program,
is ostensibly, to be able to provide silver for operations so that they will
have those final silver products available for
their customers. It's ridiculous for them to ever run out, since
the entire reason for the certificate program in the first place is to
provide the silver to make sure that they have the silver for operations so
that they never run out! Therefore, if they run out, it's evidence of a
serious problem!
And hey, if "running out" is no indication of any problem, then
what, pray tell me, would be an indication of a problem? What other
evidence would indicate a problem if not that? Do you expect to see
Perth Mint employees leaving the building with hands painted red? Come
on!
Peter slanders me, saying I've made "bogus accusations", but I've
not made any accusations, many Perth Mint customers have.
While Peter is incensed at the possibility that the Perth Mint might not have
a full backing for their precious metals, Peter asks, "Why would the
government do that?" I've answered that already.
Excerpt from:
http://www.silverstockreport.com/2008/perth3.html
I don't think the Perth Mint is engaged in any conspiracy to
defraud people. More likely, they're simply "doing their
jobs." I believe that the trouble was low silver prices. For
years, silver remained at $5/oz., and minting costs, I assume, were about
$2.00 per ounce, at the bare minimum in the private sector. Like most
government agencies, the Perth
Mint was probably not too concerned about costs.
During silver's bear market, a lot of silver was
coming to market by investors as "recycled siver",
who were dumping their silver, thus depressing prices of all silver products,
below market prices, which, as all student of free markets know, creates a
challenging environment for all producers, who usually find it hard to
compete under such circumstances.
What would you do if you worked at the mint? You
might not even know if minting costs were as high as $3-5.00/oz on top of the
silver price, because things might be done the typical inefficient way of all
governments, and your job may well have depended on continuing to mint
coinage, whether at a profit, or loss.
The Perth
Mint appears to me to have been funded for years, by precious metals loans
from banks, which is similar to how all government
operations on the planet are funded, by loans. Are there any governments
not in debt? The difference is that these are precious metals
loans. The other difference is that these precious metals loans were transfered to the public via the selling of the Perth Mint certificate
program.
The Perth
Mint says in their annual report that these are "non interest bearing
loans" and technically, that is correct. However, with precious
metals prices rising at about 25% per year, these loans are quite expensive,
and will grow much more expensive as precious metals prices continue to rise.
So, I have left several questions on Peter's answering machine. I
asked him:
Do you know how many complaints I've gotten about the Perth Mint? It's
about 30-50, not "a couple".
Why would so many complain to me, given that I'm not
a perth
Mint customer service rep?
Do you know the size of the Perth Mint's
liabilities of their certificate program? (It's
$880 million Australian dollars (which are worth about the same as a U.S.
dollar.)
Do you know the estimated annual silver demand in
ounces and dollars? (It's about 60 million ounces, or about $1 billion
at $16.66/oz.
THE PERTH
MINT'S LIABILITY IS WORTH ABOUT AN ENTIRE YEAR'S WORTH OF SILVER INVESTMENT
DEMAND!
Do you know the Perth Mint's production capacity of making 100 oz. silver bars?
I don't. But the Perth Mint ought to know their own production
capacity, and so should their certificate resellers, such as Peter
Schiff.
Peter, let me warn you. If you don't figure this out, some of your
customers might start calling you Peter Shifty or Peter Shiftless, or
worse. It's your reputation on the line here, not mine.
Because I'm not selling any paper silver, and I'm not making any
accusations. Just reporting.
By the way, the Perth Mint's lawyers covered themselves, and let the real
truth slip out:
http://www.perthmint.biz/downloads/Investment/PMG%20Tax%20Issues.pdf
See Page 3, two paragraphs from the bottom of the page, where it says:
"Gold Corporation continues to be the owner of
the gold bullion backing the PMG [ie, certificate].
However,
even though Gold Corporation holds gold
bullion in order to back the PMGs, it is not
required
to do so and does not hold gold bullion for the benefit of the
Holder."
Peter, have you ever heard that if you are sitting at a poker table, and if
you cannot figure out who the mark is, then you are
the mark? Figure it out.
Peter also wonders what my "agenda" is. Peter, I'm extremely transparant. I'm trying to help people acquire
physical silver.
Peter, we know your agenda, to line your own pockets as you are a Perth Mint
certificate reseller. Tell us, what are your commissions on that
program? And if they can affford to pay you a
cut and commission as they surely must be doing, how can they afford to buy
silver in the open market for their customers?
=============
If the Perth Mint cannot handle the situation today, how will they handle the
increased volumes as silver prices rise as they certainly will?
Here's a rather shocking complaint posted at goldismoney.info.
The author is saying that the Mint is badmouthing their customers,
and inventing extra charges at whim to take delivery of
physical bullion now, saying that people will be assigned a 6 month storage
fee if they try to get delivery of physical silver bullion bars.
http://goldismoney.info/forums/showthread.php?p=1131037#post1131037
Here's another Perth Mint hell-story:
I was dealing over the last 2 years with the Perth Mint buying
and selling over $200,000 worth of gold and silver via the Dublin agents
- each transaction was one cock up after another, long delays,
Dublin/Perth not executing at the right buy/sell fixes I wanted,
certificates getting lost because they were not sent to me by registered
mail (to save money...) ... it all became too much and I'm now all in
physical and can sleep soundly at night...
When things go ballistic Perth will not be able to cope, they can barely
cope now, not answering phones etc etc etc
It is a disaster waiting to happen. And BTW I do believe parts of the
Perth operation/govt of western Oz is insured by Lloyds (I may be
wrong), but if several major banks implode, which is still a
possibility, the derivatives crisis in waiting could easily take Lloyds
down too.
All best!
Andy
==========
The
good news is that people are growing concerned enough about the Perth Mint to
start taking actions, such as closing out their unallocated accounts with the
Perth Mint. These actions are also showing up as questions to the
other "experts", like Peter Schiff. This is a very
encouraging sign, as it means more and more people are waking up to the
real situation, which will bring the real situation out into the open, and
the truth is coming out.
A coming default of the Perth Mint could well be the exact kind of major
catalyst that drives the silver price upwards beyond what we are already seeing.
By the way, regarding the U.S. Mint's illegal rationing of American
Silver Eagles. No, I don't intend to sue or to organize any
"class action" lawsuit because no, I don't expect justice from any
judges in the land.
The only "class action" that people need to take, is to buy
and bid up the prices of real physical silver. When judges ignore
the law, the law will still prevail. It's the law of supply and demand,
and it will not be denied!
=====
Copyright notice: Please feel free to copy, translate, improve,
re-write, re-post, any and all of my works to
promote your own services. (It generally works best for you if you
give credit, such as a web link, or reference to my name, otherwise, other
people may assume you are not being intellectually honest.)
Sincerely,
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