The Perth Mint: Innovative investment solutions for SMSFs

Precious metals as an asset class for diversified portfolios

November 2018

As Australia’s leading enterprise in precious metals, The Perth Mint is constantly developing new ways to combine the enduring appeal of this asset class for diversified portfolios with the convenience of modern investment vehicles.

Processing more than 90% of Australia’s and almost 10% of global gold production, The Perth Mint distributes precious metal products and services worth about $18 billion annually throughout 130 countries.

By catering to a wide array of investor preferences, The Perth Mint is trusted by clients including central banks, sovereign wealth funds and individuals to safeguard on their behalf precious metals worth billions of dollars.

Investors who choose from The Perth Mint’s suite of products do so with the knowledge that:

  • The historic institution is fully owned by the Government of Western Australia and operates under the exclusive guarantee contained within the Gold Corporation Act 1987. This legislation guarantees the security and purity of every ounce of precious metal underlying all investors’ holdings.
  • The physical gold, silver and platinum is safeguarded in The Perth Mint’s network of central bank grade vaults which are the largest in the southern hemisphere.
  • All investors can opt to take physical delivery of the metal at any time.

For investors considering precious metals, other decisions arise from the question: ‘What is the most convenient way for me to access this asset class?’

Outlined below are options offered by The Perth Mint:

Mobile app

GoldPass

GoldPass™ is a full-service investment app that allows users to buy, store and sell physical gold by accessing the live gold spot price via a 24/7 trading platform on their mobile phones.

The physical gold backing each investor’s GoldPass™ holdings is represented in the form of digital certificates within the app.

The certificates can be viewed and traded at the touch of a screen, similar to how balances are seen on online banking systems, and represent legal title over the corresponding amount of gold secured in The Perth Mint’s vaults.

Compatible with other leading-edge online technology platforms, including blockchain, GoldPass™ digital tokens are a credible alternative to cryptocurrency investments.

The app, launched in October 2018, also allows the instantaneous transfer of gold to other GoldPass™ users.

GoldPass™ is now available for free download on Google Play and the iTunes App Store or find out more at www.perthmint.com/GoldPass.

 

Share trading account 

Perth Mint Gold (PMG)

Trading on the Australian Securities Exchange (ASX) under the code PMGOLD, PMG is structured as a fully paid call option to 1/100th of a troy ounce of physical gold.

The price of PMG is intended to track closely the international spot price of gold in Australian dollars and is based on the market value of the gold backing a PMG at the time of purchase.

Find out more at www.perthmint.com/storage/perth-mint-gold-asx.

Perth Mint Physical Gold Exchange Traded Fund (AAAU ETF)

AAAU is the first gold ETF to have the gold held on behalf of investors guaranteed by a sovereign entity and allows shareholders to trade the precious metal with a competitive management fee of 0.18% per annum.

The shares track the international price of gold and, due to the structure of the fund, do so with minimal tracking error.

Each AAAU share represents ownership of 1/100th of an ounce of gold, which is underpinned by physical bullion with a purity of at least 99.5%.

Launched in August 2018, AAAU shares are available on the New York Stock Exchange.

Australian investors can access AAAU through their usual stockbroker with an international share trading account that can hold shares listed on the NYSE.

Find out more at www.aaauetf.com.

 

Online Trading Portal

Depository Online Account

Perth Mint Depository provides a 24/7 online trading portal with live pricing for investors to buy and sell precious metals.

This product has been adopted by clients across Australia, as well as North America and Europe, who enjoy the convenience and flexibility it offers.

Storage options include unallocated metal (gold, silver and platinum), pool allocated (silver) and allocated (gold and silver). Find out more about the features of these storage alternatives at www.perthmint.com/storage/help/faq-storage-options

Additionally, Depository Online offers an automatic monthly savings plan for accumulating precious metals over time with a minimum contribution of only $50 per month.

Find out more at: www.perthmint.com/storage/depository-online.

 

Phone/email

Depository Account

Modelled on a traditional telephone brokerage service, the Depository Program is tailored to investors who wish to operate their account by telephone or email. By choosing this method investors communicate directly with The Perth Mint’s bullion dealers who provide live pricing and confirm trades by email or mail.

Storage options are the same as those offered by Depository Online, outlined above.

Find out more at www.perthmint.com/storage/depository-program.

 

Via local distributors

Certificate Program

Through the Certificate Program investors receive a record of their precious metal holding safeguarded at The Perth Mint in the form of a security watermarked certificate featuring a unique serial number.

Certificate program investors manage their precious metal holdings exclusively through one of The Perth Mint’s network of authorised distributors.

For more information go to: www.perthmint.com/storage/certificate-program.

 

Buy and store independently

Bullion bars and coins

For investors who wish to store physical precious metals themselves, The Perth Mint’s bullion range comprises:

  • Gold, silver and platinum bullion coins
  • Gold and silver minted bars
  • Gold and silver cast bars

Bullion products can also be ordered online or by phone for secure delivery to an approved location of the investor’s choice. Alternatively, they can be purchased over the counter in The Perth Mint’s bullion trading room.

For more information go to www.perthmintbullion.com.

In addition to the government guarantee on the weight and purity of precious metals offered by The Perth Mint, the state-owned enterprise offers:

  • Secure administrative and trading procedures
  • Complete customer confidentiality

 

Disclaimer

Past performance does not guarantee future results.
The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint.

The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances.

The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.

 

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For more information please visit The Perth Mint website.