Re: Perth Mint
Posted: Fri Nov 11, 2011 12:37 am
I believe that the Perth Mint has a $50,000 minimum for non-Australians for their Depository program?
Opening a safe deposit box is quite easy in Australia so I believe that retrieving physical gold from the Perth Mint and leaving it in a box somewhere in a Perth safe deposit box is the way to go. If you really think about it, gold is the only portion of the PP that can be held physically in the long term with no fundamental drawback (i.e., cash under the mattress suffers inflation, and stock/bond certificates can become worthless); the only drawbak is the transaction costs if rebalancing is required.
The other important thing to remember is that Australia is an awesome country, so if the S*it Hits The Fan in the USA and you have to escape, believe me, Australia is the place you want to stay in. So having part of your wealth over there is not just an 'acceptable' option but THE option - I'd rank it over Switzerland. Australia is an isolated island country with low population.
As to whether the Perth Mint is trustworthy, the issue that is backed up by the government of Western Australia gives just a notch higher safety than holding GLD or CEF or IAU, or any derivative. However, governments in general are not to be trusted. On the other hand, Australia is the second largest gold producer, and mining and commodities are right in the DNA of Australians - they will not stuff around with anything that comes from a quarry. It'd be the same as saying that USA would ban apple pie.
I could conceive worldwide financial Armageddon but I could not conceive the Perth Mint (or the Australian government) expropiating gold as a request by a foreign government, or on its own accord.