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Of all the frauds
that I work to expose, one of the hardest for people to see is the Perth Mint
Fraud. The Perth Mint has issued $1.5 billion in gold and silver
certificates, for the express purpose of "working inventory," but
it is probably being used for "legacy debt," and so, I believe most
of it is totally unbacked, based on customer
complaints and reports of how they operate.
http://www.perthmint.com.au//documents/07-08AnnualReport.pdf
Some Perth
customers can't see it, because they claim to be able to get silver or gold
from Perth on a regular basis. Clearly, banks can continue to operate
on a 1% reserve requirement, and continue to pay out depositors, and stay in
business, despite not having reserves to back up 99% of depositors.
Other customers are clearly able to see the fraud, based on the delays, high
costs, and extra fees that the Perth Mint charges.
But a recent
press release exposes their fraud even more than I ever did.
Mint suspends
orders amid rush to buy bullion
http://www.theaustralian.news.com.au/business/story/0,28124,24687337-643,00.html
Reportedly, the
Perth Mint has suspended orders until January. But, despite having $1.5
billion to be used for working inventory so that they can fill orders, they
cannot fill orders.
That should be
enough to settle the matter. It shows that if you have any Perth
certificates, you should GET OUT.
But
there's more evidence:
Reportedly, "One European client
purchased 30,000 ounces for $33 million." The math is
critically important here to show the fraud. That purchase is for gold
at $1100/oz.! That's quite a bit above spot! That's $350/oz. above spot!
Either Perth Mint
is lying, or there is a very naive investor desperately trying to buy $33
million worth of Perth Mint overpriced gold. Let's assume Perth is
telling the truth about this purchase.
It actually costs
the SAME amount to mint gold, as silver. The only difference is that
you need more capital costs, more gold, to mint gold, because some gold is
always "in flux" in the minting process. But with the Perth
Mint having a reported $1.5 billion in silver and gold to be used for that,
at zero interest rate, thanks to the certificate holders, this is not a cost
for them.
So, if we assume
$1/oz. in costs, then Perth has earned, on that one reported gold deal, at
least $349 x 30,000, which is $10.4 million dollars. This is important
to note, because it's enough to fund the development of from 20 to 40 new
mints with all state of the art equipment. Therefore it's telling for
me to read that they are working "non stop"
to fill orders. Why can't they spend money to expand capacity 20 to 40
fold?
I think it's
because $10 million is not enough to pay back a $1.5 billion legacy debt.
What's more
revealing is what I exposed in my last report:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
I noted:
"If only 1/10th of the $880 million of gold and silver certificates is
in silver (and they don't reveal what percentage it is), then that would be
$88 million. Divide by $13 = 6.8 million ounces of silver. If
that much were minted monthly, that would come out
to 81 million one ounce rounds, which would be 4 times as many coins minted
by the U.S. Mint."
Since that
report, Perth revealed that their certificates are $1.5 billion, not the $880
million as of last year.
Again, let's run
some math. If we assume 1/4 of the $1.5 billion is in silver, that's
$375 million, at $10/oz, that's 37.5 million oz. If we assume a minting
turn around time of a full one month, that amount
of "working inventory" could be used to mint (37.5 x 12) 450
million ounces per year.
The ENTIRE SILVER
MARKET FOR INVESTORS IS ONLY 75 TO 100 MILLION OZ./YEAR!
The U.S. Mint
only makes 20 million oz. per year, since doubling capacity in 2008!
Clearly, the Perth Mint is practicing "standard fractional reserve
banking" type fraud, since they need to shut down because of too many
orders.
This shows that
probably 99% of Perth Mint issued certificates are fraudulent, and backed by
nothing more than a promise to repay.
Why is this
important? Because $1.5 billion worth of investment demand was siphoned
away from gold and silver and into Perth Mint gold and silver certifiate fraud instead. If $1.5 billion went into
silver, instead, the silver price would probably be more than $25/oz.
That, according to Ted Butler, could have added about $10 billion worth to
the existing stock of real silver, and another $10 billion in market cap to
the silver stocks. Fruad hurts more than just
the people defrauded, it hurts the entire industry. It also hurts the
entire world.
I'm surprised
that more people are not outraged by this fraud.
To see more of my
reports on the Perth fraud, see here:
Where's the Abundance of Perth Mint Rounds?! September 6, 2008
Nadler, Kitco,
Perth, Matthey; Sold Out! September 3, 2008
Perth Mint Crisis Watch 5 June 6, 2008
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
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
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