Listen to this article Perth Mint Caught Selling Diluted Gold To China And Attempting To Conceal The Act
Introduction
The Perth Mint, a government-owned institution with over a century-long history, may face a recall of $9 billion worth of gold bars sold to China’s largest gold exchange, the Shanghai Gold Exchange (SGE), after a leaked internal report revealed that the Mint had sold diluted or “doped” bullion to the SGE and covered it up. Moreover, the gold bars were potentially non-compliant with Shanghai’s strict purity standards for silver content, with up to 100 tonnes of gold sent to SGE failing to meet these standards. As a result, the Mint’s decision to “dope” its gold in 2018, as a cost-saving measure, has raised serious concerns about the quality and authenticity of the gold bars.
Additionally, the Mint’s failure to share information about the non-compliant gold with SGE has sparked accusations of a “cover-up,” further adding to the controvesy surrounding the situation.The controversy has raised questions about the integrity of the Perth Mint’s refining processes and its relationship with its largest client.
The Gold Doping Scandal
According to the leaked internal report, the Perth Mint began “doping” its gold in 2018 as a cost-saving measure. The doping process involves adding other metals, such as silver or copper, to gold to increase its weight and lower its purity, thus saving on refining costs. While not illegal, gold doping is high-risk for refiners, as it lowers the quality of bullion.
The report estimated that up to 100 tonnes of gold sent to the SGE potentially did not comply with Shanghai’s strict purity standards for silver content. While the gold was above broader industry standards, it was not up to par with the SGE’s requirements. The Perth Mint did not share information about the non-compliant gold with SGE and stands accused of engaging in a “cover-up.”
The Implications
The recall of $9 billion worth of gold bars sold to the SGE could have significant implications for the Perth Mint, as it could face a loss of reputation, legal action, and financial penalties. The Mint’s relationship with the SGE, its largest client, could also be severely damaged, affecting its future business prospects.
The Perth Mint’s Response
The Perth Mint has since ceased its gold doping program and confirmed that its refining methods have been enhanced since late 2021. The Mint has also stated that it will cooperate with any investigation and has apologized to its customers for any concerns caused by the controversy.
Conclusion
The Perth Mint’s gold doping scandal has raised questions about the integrity of the institution’s refining processes and its relationship with its largest client. While the Mint has taken steps to address the issue, the recall of $9 billion worth of gold bars sold to the SGE could have significant implications for its reputation, finances, and future business prospects. The scandal serves as a reminder of the importance of transparency and ethical practices in the gold refining industry, which plays a crucial role in the global economy.
