Our expose continues on the Perth Mint, and their fractional reserve gold system. This time, CFA Daniel Vigario joins me on the program as we slow walk down the 2020 Perth Mint financials and show just where the risk lies.
Essentially, the mint has brought on a consultant with a banking background, who also designed the current ETF complex in commodities. At least, that consultant has taken credit for this on his LinkedIn profile. We examine the GLD ETF prospectus, for example, to show exactly why that fund takes absolutely NO responsibility with their gold deposits, nor their obligations to share holders.
Now we see that the Perth Mint has jumped into the ETF game. And according to the financials, the Perth Mint has funded the ETF using the unallocated gold accounts their customers hold there. Furthermore, the financials strongly intimate that the “consignment stock” the Perth mint has on their balance sheet is anything but. This revelation has led Daniel and myself to question exactly who this mysterious third party to the gold at Perth mint really is.
Daniel uses his experience as a CFA to analyze the financial statements to provide a trial balance worksheet. His stunning discovery includes the potential recording of interest income for lending out customer metals that the Perth mint has repeatedly said in public forums is being held in physical inventories.
Through the use of tricky word changes, the Perth Mint has also cleverly sought to cover up their shenanigans with customer metals to assure the public they have the metal in their inventory for safekeeping. However, as Daniel points out, one look at the financials tells the TRUE story. We continue to examine the issues the Perth Mint has with their metals storage, and provide that information right here to you. Stay tuned to Gold Silver Pros for more on this topic as developments occur.