Perth Mint, the official bullion mint of Australia, is currently facing a $9 billion recall from China for allegedly selling “doped” bullion and trying to cover it up, as ABC News reported in Australia. The practice of gold doping involves adding impure ore like silver to the mix to reduce costs and lower the quality of the gold. According to reports, Perth Mint began diluting the gold it issues in 2018. The report covered by ABC says some refinery staff identified more impure minerals being added than allowed by the Shanghai Gold Exchange (EMS).
Allegations of gold dilution and cover-up at Perth Mint
Perth Mint is in the spotlight this week due to a report by ABC News Australian correspondents Angus Grigg, Ali Russell, Stephanie Zillman and Meghna Bali, accusing the Australian Mint of diluting or “doping” gold.
Journalists uncovered a leaked internal report, and according to the report, the Mint is facing a $9 billion recall from China over gold doping allegations. The process keeps the gold just at 99.99% purity, but it looks like different minerals like copper and silver were added in 2018.
Government-owned Perth Mint sells diluted gold to China. The Royal Mint began boosting its gold in 2018 as a “cost-cutting measure”. #bitcoin cannot be diluted. pic.twitter.com/nbbWMlK66f
— Cole 🇿🇦 (@ColeAreTee) March 7, 2023
According to the internal report, when 100 tons of gold bars were delivered to SGE, the bars did not meet Shanghai standards and higher levels of silver were identified. A Perth Mint insider, speaking with ABC on condition of anonymity, described the issue as a “top-level scandal”.
The doping was reportedly done to save $620,000 a year, but refinery insiders noted that despite trying to stay within the 99.99% purity standard, some ore levels exceeded what the EMS would allow. The ABC report says the scandal began to erupt in 2021 when SGE alleged that two gold bars fell short.
“Based on an average understanding of volumes…it was possible that up to 100 tonnes of stock would be recalled from the Shanghai Gold Exchange for replacement,” says the internal report discovered by ABC.
Additionally, the SGE exchange client reportedly remained silent on the doping issue, and Perth Mint’s internal report stated that if the client disclosed the issue publicly, “the impact of negative public statements on the company could be very important”.
ABC reports that Perth Mint has confirmed a customer complaint about a small number of gold bars and said it has improved its refining methods and is now committed to high purity requirements. higher.
The Perth Mint also issues a gold-backed token known as Perth Mint Gold Token (PMGT)and each coin is backed by a 1 ounce Goldpass certificate which entitles you to 1 ounce of physical gold in the Perth Mint reserve.
There is a circulating supply of 1,207 PMGT today, and 253 unique Ethereum-based addresses hold PMGT. Interestingly, PMGT is selling at lower values on March 7, 2023, down 0.8%, while competing gold tokens such as XAUT and PAXG are selling at higher values Tuesday.
What do you think of the Perth Mint gold doping scandal and the impact it could have on the bullion issuer? Share your opinions in the comments section below.
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