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