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Investing in Precious Metals
 

Comparing The Perth Mint's various precious metal investment products and deciding which one is best for you can be confusing, especially if you are investing in precious metals for the first time.  We have found that the following four step process simplifies the decision.  If you would like clarification on any of the issues raised below, please Contact Us.

The first decision is whether you want to store your precious metals yourself or store them with The Perth Mint.  Issues to consider in making this decision include:

Step 1 - Where to Store?

Self Storage

  • The metal is under your direct control - you do not have any exposure to a third party.  
  • Your investment is private - especially if you pick it up in person from the Mint or your local coin dealer.  
  • It is difficult to insure and is at risk of theft if you store it yourself.  
  • You have to transport it each time you buy and sell, which can be inconvenient and risky. 

Store with The Perth Mint

  • The Perth Mint's Depository facility is Government Guaranteed, in addition to being insured.  
  • The Perth Mint's two vaults meet international security standards and are monitored 24 hours a day.  
  • You do not incur shipment costs and the risk associated with transporting physical metal.  
  • Enables you to purchase unallocated (unsegregated) bullion, which can be cost effective.  
  • Easy to trade - buy and sell over the telephone or via your stockbroker. 

If you feel comfortable entrusting your precious metals with The Perth Mint, proceed to Step 2 - Which Program.  If you would prefer to take physical possession of your precious metal, go to Step 4 – Which Form. 

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Step 2 - Which Program?

The Perth Mint has three programs through which you can buy and store precious metals.

Perth Mint Certificate Program (PMCP)

  • A Certificate is issued to you confirming the amount of metal stored at the Mint on your behalf.  
  • Certificates are purchased through a reputable international Approved Dealer network.  
  • Certificates have no fixed size.  
  • Gold and silver is available in coins, bars and unallocated form.  Platinum is available in unallocated form only.  
  • Account opening minimum: USD 10,000 (AUD 5,000 for Australian/New Zealand residents).  
  • Minimum subsequent purchases or sales: USD 5,000 (AUD 5,000). 

Further information on the Perth Mint Certificate Program is available in the PMCP section of this website.

Perth Mint Depository Services (PMDS)

  • Operates like a private client bank account, except your balance is in troy ounces.  
  • Deal directly with The Perth Mint, via telephone, fax or email.  
  • Gold and silver is available in coins, bars and unallocated form.  Platinum is available in unallocated form only.  
  • Put and call options over gold, silver and platinum can be purchased.  
  • Account opening minimum: USD 50,000 (AUD 50,000 for Australian/New Zealand residents). 

Further information on Perth Mint Depository Services is available in the PMDS section of this website.

Perth Mint Gold Quoted Product (PMG)

  • Trades on the Australian Stock Exchange under the code ZAUWBA.  
  • Perth Mint Gold Quoted product is a gold product only.  
  • A market maker ensures its price tracks the underlying price of gold.  
  • No need to open a direct account with The Perth Mint - trade through your stockbroker with the same ease and convenience as investing in shares.  
  • Annual management fee of only 0.15%. 

If you are interested in the Perth Mint Gold Quoted product, further information is available in the PMG section of this website or from your stockbroker.  If you are interested in PMCP or PMDS, please proceed to Step 3 - How to Store.


Step 3 - How to Store?

The Perth Mint offers two storage methods in the PMCP and PMDS programs.  Allocated storage suits those who want the certainty of being able to collect their precious metals at short notice. Unallocated is more cost effective, making it highly suitable for speculators or longer term investors who want to take advantage of the protection afforded afforded by the Mint's Government Guarantee. 

Allocated / Segregated Storage

  • You have title to specific, segregated coins and/or bars, which are placed in a physical form in the Perth Mint Depository vault.  
  • Annual storage charges of 1.5% p.a.  for gold and 2.5% p.a.  for silver.  
  • Incurs fabrication charges, depending upon type of coin/bar chosen.  
  • Ready to collect at short notice. 

Unallocated / Unsegregated Storage

  • You own a defined unsegmented interest in a pool of precious metals held by The Perth Mint.  
  • No storage charges.  
  • No fabrication charges.  
  • You can convert to allocated holdings at any time by giving a minimum of two weeks notice of your fabrication requirements. 

Further information on these two storage methods is available in the Allocated vs Unallocated section of this website.  If you prefer the allocated storage option, proceed to Step 4 – Which Form.  If you want unallocated storage then you are ready to open a PMCP or PMDS account.

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Step 4 - Which Form?

The Perth Mint sells gold and silver in both coin and bar form.  If you are interested in investing in platinum you can only do so in unallocated form through the PMCP and PMDS programs (see Step 3 - How to Store above). 
Bullion Coins

  • Legal tender status means their precious metal content is guaranteed by the Commonwealth Government of Australia.  
  • Legal tender status means they can be treated as currency when exporting and importing.  
  • Smaller coins have limited mintages, giving the potential for numismatic premium.  
  • High quality finish with extensive frosting.  
  • Recognised internationally and widely distributed, making purchase and liquidation easier.

Bullion Bars

  • Fabrication premiums are generally lower than coins on a per ounce basis.  
  • 1kg gold, 400oz gold and 1,000oz silver bars are numbered.  
  • Numbered bars are London Good Delivery (LGD) and are recognised internationally, making liquidation easier.  
  • Smaller bars are not as widely distributed as the coins. 

Further information on bars and coins is available in the Bullion Bar & Coin section of this website, where a List of Distributors can also be found.  If you prefer allocated storage with The Perth Mint, then the PMCP or PMDS sections will have information on how you can store coins and bars with us.

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