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Perth Mint accused of putting clients at risk, CEO Richard Hayes refutes allegations

Kitco News

The Perth Mint has been subject to allegations from market observers and retail investors online that the institution does not have enough physical metals to cover their allocated, unallocated, and pool accounts.

Richard Hayes, CEO of The Perth Mint, denies claims that there is insufficient metals inventory to meet these account backings and that the Mint is running a “fractional reserve” system.

“None of our products are synthetic. We don’t deal in futures, we don’t deal in hedges, we only deal in physical product. So, there is no paper silver per se, we don’t sell an ounce of silver unless that ounce of silver is in the system so there is no synthetic nature about any of our programs. They are all 100% physically backed,” Hayes said.

He further added that these allegations are “ad hominem” attacks.

“It does make me wonder as to where people are obtaining their information from, what’s being fed to them, by perhaps those that are looking to gain some market advantage over Perth Mint by besmirching the name of Perth Mint,” he said.

The Perth Mint is "an integrated precious metals refiner, fabricator and secure depository suppling precious metal related products and services" and is one of the largest precious metals Mints in the world.

For a detailed breakdown on The Perth Mint’s operations, accounting, and inventory, watch the video above. Follow David Lin on Twitter @davidlin_TV (https://twitter.com/davidlin_TV).

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.