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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 Mint’s 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
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
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