One of the biggest and most reputable Mints in the world the Perth Mint is Being accused of diluting their gold Bars that they sent to China this is a Crazy accusation I want to go over this Talk about the accusation I want to give My theory on what I think is going down And then I will talk about Perth mint's Response to all of this so let's do it A lot of people are talking about this And rightly so because the Perth Mint is So big you would think how could they Possibly be faking gold bars I mean this Accusation here from ABC News in Australia the headline reads Perth Mint Sold diluted gold to China got caught And tried to cover it up now this story Broke a few days ago but if we dig in Here it's not exactly what it seems You'd think that they're basically Putting tungsten and gold bars or Filling them with copper or silver or Something and that's not the case at all The start of the article reads the Historic Perth Mint is facing a Potential nine billion dollar recall of Gold bars after selling diluted or doped Bullion to China and then covering it up According to a leaked internal report Down here it says one Perth Mint Insider Who asked not to be named as they could Face five years jail if their identity Is revealed says it is a scandal of the Highest level I don't know if I've ever
Seen one this big they say so they're Blowing this up they're trying to make It seem like it's a really big deal when In fact what was going on is kind of Ridiculous and I have a theory about What was actually going on but let's Read about gold doping because this is What they're being accused of gold Doping is a somewhat accepted practice In the industry and is not illegal but Is high risk for refiners as it lowers The quality of bullion by adding Impurities like silver or copper Trace Amounts of these metals are permitted But Perth mints plan to keep just within Industry standard of 99.99 Purity only Left a minuscule margin of error the Mint began doping its gold as a Cost-saving measure in 2018 expecting to Save up to 620 000 a year a tiny fraction of its annual Sales so this is the Perth Mint right Here and if you don't know they are Really good at refining gold they have The world record look at this six nines Fine the purest gold ever produced Refined by the Perth Mint in 1957 and I'm sure they've improved their Techniques so they could probably still Get six nines fine maybe close to seven Nines fine gold today so basically What's going on is that they're gold That they're refining down is too fine It's probably five or six nines fine but
The gold bars that they're selling only Need to be four nines fine and so what They're doing is they're adding little Bits of silver and copper into the bars On purpose because as the gold was too Pure now the customer is still getting One kilo of four nines fine gold but There's a little bit of silver or a Little bit of copper in there we're Talking you know the 0.01 percent so We're not talking about a lot uh but the People I guess are complaining that the 0.01 was not exactly what they thought It was supposed to be I don't exactly Know why they're complaining if there's Too much silver because silver is worth More than copper so you'd think if They're gonna dope the bars you want Them to dope them with silver right I Mean you're not buying a five nines fine Gold bar you're buying a four nines fine Gold bar and that's exactly what you're Getting if we read right here it says When Perth Mint went back and checked The two gold bars at the center of the Customer complaint it found one had been Red flagged by its Refinery the bars Purity test no known as an assay had Failed to meet sge's strict standards For silver but was still above the Crucial 99.99 Purity if we skip to the damage Control part of this article it says the Doping program began to unravel in
September 2021 Shanghai Gold Exchange Alleged two bars contained too much Silver and were non-compliant with its Specifications so that's the complaint Right here they're saying the bars have Too much silver in them although they Still are four nines fine gold so it's The 0.01 they're complaining about which I don't think you should be able to Complain about that because that's not Stamped anywhere on the bar it doesn't Say four nines fine gold and 0.01 copper Or whatever I mean you should be Rejoicing that there's too much silver In the bar because you still have all The gold so this is free silver you're Getting uh but here is my theory on why They were complaining when they did so Look at the timing their complaint is in September of 2021 so they must have Bought these gold bars prior to September 2021 and let's look at a chart For gold over the last five years now I Do want to point out this chart is in U.S dollars but if we look at around September 2021 we can see the price for Gold is much lower than it was at the Peak back in August of 2020 which is When I'm assuming they probably bought These gold bars if we switch over to Another currency uh let's go ahead and Do Australian dollars because it is the Perth Mint look at this price in September 2021 probably around here much
Lower than the peak back in 2020 we can Even switch over to Chinese Yuan uh Let's see there it is and it's basically The same thing so I'm thinking they Probably bought the gold bars at the Peak now they're trying to return them That's literally what they're trying to Do they're complaining about the little Bit of other metal in these bars and Trying to return them in the future when The price of gold is lower than when They bought the bars I'm not a hundred Percent sure this is what's going on but It's my theory before I read Perth Mint's response to all of this I want to Invite you to put your own theories Down Below in the comment section I could be Completely off but I feel like people Are usually motivated by money so if They were losing lots of money let's say Ten thousand dollars on each of these Gold bars and they had a chance to Return them they would probably try and Take advantage of that so I could be Completely wrong but I don't know I just Feel like it makes sense uh anyway so Let's talk about what perthman has said About all of this uh let's see perthman Emphasizes that there's no question About the gold purity and value of the Gold bars the Perth Mint has sold to Customers in China at all times the one Kilogram bars the Perth Mint produced And sold contained at least four nines
Fine gold as per their specifications This has never been in dispute the Perth Mints one kilogram four nines fine gold Bars contain up to 0.1 percent of Non-gold materials including silver and Copper these Purity specifications meet Industry standards and align with those Set by the international market Authority the lbma in September 2021 the Perth Mint was made aware that some of Its one kilogram bars did not meet the Non-gold specifications of the Shanghai Gold exchange or the sge the sge Specifications demand that the non-gold Component that is 0.1 percent of the bar Or 100 parts per million contains no More than 50 parts per million of silver So basically the bars that they were Making they were totally fine to sell to Anyone in the world except the Chinese Because the Shanghai Gold Exchange has These crazy rules I feel like they're Trying to micromanage here it seems like They're so specific oh it can't be more Than 50 parts per million silver why why Can it not be more than 50 parts per Million silver would you rather have More copper I feel like this is absolute Nonsense literally the bars that they're Getting are worth more if you were Finding out that silver than if it had Been copper so the complaint to me seems Absolutely ridiculous I don't know why China has these different different
Roles than the rest of the world but Either way I will say this once they Figured out that this was going on Perth Mint they completely redid their uh Alloying or doping program so uh check This out as part of the Perth mints Review of refining practices new Processes were implemented to ensure That one kilogram bars would have an Average minimum gold purity of 99.996 percent compared with the Industry standard of approximately 99.992 percent as a result of this new Practice which came into effect December 2021 the maximum non-gold component in a One kilogram bar is 0.004 percent which adheres to the sges Non-gold specification standards so There you go once they figured out there Was a problem they immediately changed It although it was only a problem for China it was not a problem for the rest Of the world I actually don't like their Solution to this problem I suppose their Bars were 99.992 percent gold in the past so it Was a point zero zero eight percent of Silver that they put in or something Like that which obviously is going to be Over the 50 parts per million and They're fixed for this was to just raise The gold purity to 99.996 percent so it's only going to Have a maximum of 40 parts per million
Silver I would not have done this if it Was me in charge I would have said okay You can't have 50 parts per million Silver now you get no silver and instead Of 99.992 percent guess what we're doing 99.991 gold and 0.009 copper so take that that's what I Would have done but I'm not in charge I Guess they're too nice they're basically Like oh too much silver we'll just add Enough gold so that you know you're not Going to get over that 50 parts per Million so maybe that is what Shanghai Gold Exchange wanted maybe they wanted That little bit of extra gold in there Because they're like hey Perth men is Saving 640 000 a year let's get every penny out of Them that we can and complain about this So I suppose that is another theory out There they just wanted them to raise the Gold percentage but uh I don't know I Mean I feel like both theories are still Very good if I was handling this I would Not have done it the way they did but That just goes to show the Perth Mint They're very very reputable I buy from Them all the time I have a lot of Perth Mint stuff so that's kind of why I Wanted to put out this video just to Show that they're definitely legitimate You know these accusations oh they're Diluting the gold they're dope being the
Gold it's kind of a bunch of nonsense And it really only applies to China so All right well I'm gonna end the video There I do want to say a big thank you For watching and I will see you all in My next one silver dragons out
