Investment
Users country: Australia

Depository FAQs

Who is The Perth Mint?

The Perth Mint is the trading name of Gold Corporation, which is wholly owned by the Government of Western Australia. Originally opened in 1899, The Perth Mint was established to turn the gold from the Western Australian gold rush into sovereigns for the British Empire. Through its legal tender Bullion Coins and Depository facility, The Perth Mint has established a formidable reputation as a leader in international precious metal investment.

Why should I trust the Mint or the Government?

The first question we ask in our Product Comparison section is where do you want to store your precious metals. Storing it yourself is not without its own risks, particularly theft. However, as soon as the metal is not under your direct control you have an exposure to a third party. It is a question of which you feel is safer.

A question we often pose to potential clients is: In a post-Eron world, who do you trust more - a private company or a Government owned corporation whose primary function is to "to promote and develop markets for gold in Australia and elsewhere" (Clause10(1)(a) of the Gold Corporation Act 1987)?

Of course some answer: Neither! That's fine, and its why we make a wide range of bars and coins for you to take delivery of and store yourself.

However, for those who don't feel safe holding their precious metals themselves, we believe that after reading the Government Guarantee and Allocated vs Unallocated webpages that you will feel more comfortable trusting The Perth Mint with your precious metals.

Why should I store my precious metals in Perth?

Perth is geographically isolated on an island continent. It is the capital city of one of Australia's wealthiest states, Western Australia. Australia is a politically and economically stable country and it's legal, commercial and political structures are derived from systems developed in the United Kingdom.

Western Australia's goldfields are a major world source of gold. The Perth Mint, through its interest in AGR Matthey, refines the majority of this mine output. For example, in 2004 AGR Matthey refined over 400 tonnes of gold.

The Mint itself is also a large user of gold in its bullion and numismatic programs and in its blank manufacturing operations, where it supplies many of the world's Mints with precious metal blanks for their own coin programs. Unlike other depositories, which are merely warehouses, Perth Mint Depository is therefore intimately involved in and in close proximity to the physical gold market.

Perth Mint Depository stores precious metal in a high security environment approved by international insurers. That environment includes physical security (such as vaults and security staff), electronic security (such as surveillance and alarms), and an impressive level of procedural security for receiving, releasing and accounting for precious metal deposits.

As a result, The Perth Mint offers one of the world's most secure locations for hard asset storage.

How confidential are my Depository transactions?

Under Section 74 of the Gold Corporation Act 1987 employees of the Mint face imprisonment of 1 year if they divulge any information concerning clients' transactions and 2 years imprisonment if they destroy or falsify the Mint's records.

Naturally the Mint will comply with any valid request for information from Australian authorities or Governmental agencies. Requests for information from Governmental agencies of other countries are forwarded to the Chief Executive Officer of The Perth Mint for review and to the Western Australian Government if there is any question on the validity of the request or need to comply.

Are there any taxes associated with holding precious metals or with taking delivery of precious metals in Australia?

There are no Australian taxes or duties on the import, export or domestic purchase and sale of high purity precious metal bars or bullion coins. No Australian tax is generally payable by an international client on his/her deposit. You should consult your taxation advisor for specific taxation advice in your jurisdiction.

May I audit my deposit?

Allocated precious metal holders may inspect or collect their deposits at The Perth Mint subject to satisfactory personal identification and account (for PMDS) or Certificate (for PMCP) verification.

Alternatively, a third party nominated by you will be permitted to audit your deposit on presentation of an acceptable instruction from you to the Client Relations Executive of the Perth Mint Depository.

The unsegregated nature of unallocated deposits, which are backed by the working inventory of the Mint, means it is not possible for an individual to audit them. Unallocated investors will need to rely on the Mint's audited Annual Reports, which are signed off by the State Auditor General to ensure compliance with the Financial Administration & Audit Act 1985 and the Gold Corporation Act 1987.

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