If you are wondering what the Perth Mint Gold price is, then read on to find out more.
Different costs are involved when you buy allocated or unallocated certificates from the Perth Mint. So when you look at the Perth Mint bullion price you might wonder why it is not the same as the spot gold price. However the spot gold price makes up just one element of the Perth Mint gold price.
Perth Mint Certificate Unallocated Gold
There are three factors that make up the Perth Mint Gold Price for unallocated gold prices.
The price of unallocated Perth Mint Certificates are based on three factors:
- The Spot Gold Price - You can see the spot gold price at the top of this page. It is taken from the global gold market as stated by bullion banks. It is the same spot gold price you see quoted on the likes of Reuters and Bloomberg. It is the price of gold that will be available for delivery in two days.
- The Gold Spot Premium - This is the percentage charged on top of the spot gold price. The percentage charged depends on the amount of metal purchased.
- The Certificate Fee - The Certificate fee is added to each trade to cover the costs of printing and sending a signed Certificate of ownership to you, the client. This unique certificate is a record of ownership. They are individually numbered and detail your metal holding.
Perth Mint Certificate Allocated Gold
For those interested in purchasing a Perth Mint Certificate for allocated gold they should be aware that there is a fourth component in the Perth Mint Gold Price for these certificates:
- Fabrication fee: the fabrication fee varies depending on which product you decide to invest in. Fabrication fees are applied because when you buy an allocated gold certificate you have legal title to a specific cast bullion bar. The fee can range from 5% for a coin, which has a high quantum of production costs, to $35 for 1 oz bars. Kilo bars of gold are a $150 flat charge and Perth Mint 1,000 oz Silver Bars are a flat $200.
Fabrication fees are charged for allocated holdings because you will have ownership of a specific bar. This is in contract to unallocated holdings where the client has legal title to an amount of gold rather than a specific bar. Unallocated holdings are made up of the Perth Mint’s display and working inventory.
An initial storage fee is also charged at the point of sale and then on an ongoing basis for however long you hold the certificate for. This is because when you buy an allocated gold Perth Certificate you are buying specific gold bars for which the Perth Mint acts as bailee, storing your specific bars in their high security vaults
It is possible to convert your unallocated gold Perth Mint Certificate to an allocated gold Perth Mint Certificate, at a later date. However, this will incur a one-off fabrication fee (as mentioned above) as well as regular storage charges.
Perth Mint Gold Price and Storage Charges
Clients who choose to own allocated gold Perth Mint Certificates will also have to pay storage fees. This is because allocated gold with the Perth Mint is stored and segregated in the Mint’s secure vaults. An initial storage fee is charged at the point of sale and then charged on a regular basis for the time you choose to hold your investment.
This is in contrast to unallocated gold Perth Mint Certificates which do not incur storage charges. In the same vein as to why fabrication costs are not applied, storage fees are not charged because unallocated gold Perth Mint Certificates give the holder legal title to an amount of gold, rather than to specific bars.
The Perth Mint Certificate Program is the only government-guaranteed certificate program in the world. This makes it arguably one of the safest. It is not surprising therefore that the unallocated certificate option is even more attractive to clients (than the allocated option) as it is a more cost effective way to benefit from The Perth Mint Certificate Program without the additional costs of fabrication fees and storage charges.