Understanding The Perth Mint government guarantee
When you invest in gold and other precious metals, knowing your investment is secure is just as important as the metal itself. One thing that sets The Perth Mint apart from any other mint in the world is our government guarantee - an extra layer of protection that gives investors’ confidence and peace of mind.
Here is a simple explanation of what the guarantee is, how it works and why it matters.
What is the government guarantee?
The Perth Mint is owned by the Government of Western Australia, and our operations are supported by a guarantee written into law under the Gold Corporation Act 1987.
This means the Government of Western Australia guarantees the Mint’s liabilities, including the cash value of gold and other precious metals owed to customers.
Put simply, if you are owed metal or its cash value by The Perth Mint, the Government stands behind that obligation.
No other mint in the world offers this level of government-backed assurance.
What does the guarantee cover?
The guarantee applies to:
- Precious metals owed to investors, whether it is allocated or unallocated.
- The cash equivalent of gold, silver and other metals due to customers .
- Investment products backed by physical gold stored with The Perth Mint, including Perth Mint Gold Structured Product (ASX: PMGOLD).
The Act also makes it clear that the term “gold” includes silver and other precious metals, so the protection goes beyond just one metal.
Why does this matter for investors?
1. Extra security
Most gold providers rely on insurance and/or private backing to secure their metal. In addition to having commercial insurance, precious metals from The Perth Mint are backed by the government of Western Australian, not a private company, making us one of the lowest risk precious metals enterprises in the world.
2. Strength behind PMGOLD
Investors using Perth Mint Gold Structured Product (PMGOLD) on the ASX get both convenient market access and the reassurance that the product is supported by gold stored at The Perth Mint under the same government protection.
3. Backed by one of the most financially stable jurisdictions in the world
Western Australia’s triple-A credit ratings from both S&P and Moody’s highlights the state’s exceptional financial strength, reinforcing the security behind our government guaranteed gold.
Holding this rating further strengthens trust in Perth Mint gold as a dependable investment backed by a financially robust state, adding another layer of confidence for those seeking stability in their precious metal holdings.
Why does The Perth Mint have this guarantee?
The guarantee dates to the creation of Gold Corporation in 1987. The Government recognised that giving investors absolute confidence in the Mint would support Western Australia’s role as a global precious metals leader.
Today, the guarantee continues to be a key part of why investors around the world choose The Perth Mint.
To help investors understand the significance of this protection, our CEO Paul Graham explains: “The government guarantee is a cornerstone of the trust our customers place in us.
“It gives investors the confidence that their precious metal holdings are backed not just by our history and expertise, but by the strength of the Western Australian government itself. In a world where certainty matters, this guarantee sets The Perth Mint apart.”
Whether you are buying bullion, investing through PMGOLD, or storing metal with us, the government guarantee:
- adds a layer of protection not found anywhere else in the world
- supports trust in your investment
- gives you confidence that your holdings are backed by the strength of the Government of Western Australia.
It’s one of the reasons The Perth Mint remains a trusted global name in precious metals.
Disclaimer:
Any opinions expressed in this article are subject to change without notice.
The information in this article and the links provided are for general information only and do not contain all information that may be material to you making an investment decision. The article has been prepared in good faith by The Perth Mint, however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in this article.
The Perth Mint is not a financial adviser and nothing in this article constitutes financial, investment, legal, tax or other advice. Before making an investment decision you should consider whether it is suitable for you in light of your investment profile, objectives, financial circumstances and the merits and risks involved. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances.
All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but have not been independently verified by The Perth Mint and we do not guarantee their accuracy or completeness.
The Perth Mint does not accept any liability, including without limitation any liability due to any fault, negligence, default or lack of care on the part of The Perth Mint., for any loss arising from the use of, reliance on, or otherwise in connection with the information contained in this article.
