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. 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 allocated, pool allocated, and unallocated (if available) storage options.
- Easy to trade - buy and sell over the telephone or, in regard to PM GOLD, via your stockbroker.
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.
Further information on the Perth Mint Certificate Program is available in the PMCP section of this website.
Perth Mint Depository Program (PMDP)
- 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.
Further information on Perth Mint Depository Services is available in the PMDP section of this website.
Perth Mint Gold Quoted Product (PMG)
- Trades on the Australian Stock Exchange under the code PMGOLD.
- 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.
Step 3 - How to Store?
Precious metals can be stored in the PMDP in the following ways:
Allocated – The Perth Mint acts as bailee, storing specific physical coins and/or bars in the Mint’s storage facilities. Clients pay the quoted precious metal value, fabrication fee and initial storage fee at the time of purchase. Ongoing storage fees are charged.
Pool Allocated – The Perth Mint acts as bailee, storing physical precious metals that the Client shall own as an undivided interest as an owner in common along with other clients participating in the same pool of Pool Allocated. Such metal shall not available for the Mint to use. Clients pay the quoted precious metal value and initial storage fee at the time of purchase. Ongoing storage fees are charged.
Unallocated – Clients own, as an owner in common with other Unallocated clients, an undivided interest in Gold Corporation’s pool of precious metal maintained in unsegregated storage on a fungible basis without specific identification of the Client’s Unallocated precious metal. The Perth Mint may use that metal in its operations, subject to the terms and conditions of PMDP. Clients pay only the quoted metal value at the time of purchase. No storage fees are payable on this option.
The availability of the three storage options for each precious metal is subject to change. Please see the Fee and Product Information Schedule for availability as well as Allocated and Pool Allocated storage fees.
Clients can convert between any one of the three storage methods at any time. In the case of Unallocated metal or Pool Allocated metal, clients wishing to take delivery must first request that their precious metal be converted to Allocated. In such cases fabrication costs are payable at the time of conversion and are based on precious metal market prices at the time of the conversion.
Storage charges (which include the cost of insurance) operate as follows:
Storage fees to be charged quarterly in advance.
Storage fees will be invoiced 6 monthly in arrears on 30 June and 31 December.
Based on London fix price at the beginning of each quarter.
When a client buys metal, storage will be charged from the value date to end of the quarter using the London fix price at the beginning of the quarter.
When a client sells metal, storage will be refunded from the value date of the trade to end of the quarter using the London fix price at the beginning of the quarter.
When a client buys or sells at the end of a quarter for value into the next quarter, the price used will be the deal price not the London fix price.
If a client is withdrawing all funds from an account which has no metal left in it, then amounts due from as yet unbilled storage fees or overdue storage fees or deals will be deducted from any payments due to the client.
All storage fees are inclusive of 10% Goods and Services Tax.
Step 4 – Coins or Bars?
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 PMDP 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 can be found in the Fee and Product Information Schedule, located under the program information.