Perth Mint (ASX:PMGOLD) CEO, Richard Hayes, discusses the ease of owning gold, new ways to acquire gold and its enduring appeal as a store of value. David Chau: Hello. I'm David Chau for the Finance News Network, and right now we're in Western Australia - specifically, at the Perth Mint. And, today, we have with us Richard Hayes, who is the CEO of the Gold Corporation of Western Australia.
Richard, thanks for joining us.
Richard Hayes: Good morning, David. Great to be with you.
David Chau: Well, firstly, Richard, could you start with an introduction to the Perth Mint?
Richard Hayes: Well, the Perth Mint has been here for 117 years. It's a world-class business, adding value to Australian precious metals, and creating markets overseas, in the 133 countries that we operate [in]. Our business spans: refining -- we refined over 33 million ounces of gold and silver last year; minting, where we manufactured more than 16 million precious metal coins, which we sold worldwide; and our Perth Mint depository business, which has more than $3 billion worth of customers' precious metal that we manage for them.
David Chau: Thanks, Richard. So, what sets the Perth Mint apart from other mints and bullion depositories?
Richard Hayes: Perth Mint is the only government-guaranteed vertically-integrated precious metals business of its type in the world today, and it is set apart from others really by the strength given by its 117-year history and the vertically-integrated nature of its operations, providing a one-stop shop for our customers, who currently span more than 130 countries worldwide.
David Chau: So, Richard, what's the investment case for gold, and is there still a place for it in a modern-day portfolio?
Richard Hayes: Well, David, you've only got to look around at financial markets these days, which are increasingly volatile. Geopolitical tensions are on the rise. There's no denying that fact. And gold continues to provide that safe-haven asset status that many investors are looking for as they manage their wealth portfolios. Precious metals have risen, really, from around $250 an ounce in the early 2000s, all the way through $1,800 an ounce. And whilst, in US dollars, the price has come off slightly, in Australian-dollar terms it's still right up at those all-time highs because of the slight depreciation in the Australian dollar.
David Chau: So, how can people invest in gold from the Perth Mint?
Richard Hayes: The Perth Mint is fortunate in that it provides a wide variety of products for investors, from bullion coins through numismatical collector coins, bullion bars, and then both allocated and unallocated storage options. It's very, very easy for Perth Mint customers to transact with us, either face-to-face or online. And the beauty of it is that our clients can choose, when they purchase precious metals from us, whether they want to take delivery themselves or whether they'd like us to store those products for them in our world-class vaulting facilities, which are the largest in the Southern Hemisphere.
David Chau: One more question, Richard. What else has the Perth Mint got planned over the next six months?
Richard Hayes: A great question, David. We've been working very, very closely with the Australian Stock Exchange, and jointly we are looking to launch a precious metals futures contract. The beauty with this futures contract is that, because Perth Mint are involved, investors will be able to take physical delivery, which really sets it apart from other products or other similar products worldwide.
David Chau: Well, Richard Hayes, thanks for the update.
Richard Hayes: You're very welcome, David. Great to be with you.
David Chau: And if you'd like more information, please visit the Perth Mint website at www.perthmint.com.au.
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