Perth Mint, one of the largest gold mints in the world, is facing an international crisis after a report that the company had been diluting gold bars with cheaper metals to increase profits sparked outrage among investors and governments around the world.
The news was first reported in an investigative report by the Australian news program “Four Corners.”
The report claimed that Perth Mint had been using a gold-diluting ruse for years, in which the company would mix cheaper metals into its gold bars to increase their weight and value.
The company would then sell the bars at a higher price, without disclosing their true composition.
The report also alleged that the company had covered up the scandal and tried to silence whistleblowers. According to the report, the diluted gold may have included “up to 100 tonnes of gold sent to Shanghai Gold Exchange” in China.
On Tuesday, the Perth Mint denied the report, affirming that the gold bars sold to customers in China possessed the stated value and purity, according to CNA.
The company had earlier promised to investigate the allegations and take appropriate action, and has pledged to cooperate fully with any government inquiries or investigations.
Nonetheless, an unnamed insider told “Four Corners” the situation amounted to a “scandal of the highest level.”
The Perth Mint is owned by the Western Australian government, and the scandal has led to calls for a government inquiry into the company’s practices. The Australian government has also expressed concern about the impact of the scandal on the country’s reputation as a reliable supplier of gold.
The scandal has also further raised concerns about the international gold market overall, and whether other companies could be engaging in similar practices.
Doubts about the purity of gold supplies, as a highly prized and valuable commodity, could have serious consequences for investors and financial markets.
Investors and governments around the world are closely monitoring the situation, and some have already taken action.
The Chinese government, for example, has reportedly suspended imports of gold bars from the Perth Mint, pending the outcome of the investigation.
The scandal has also led to calls for greater transparency and accountability in the global gold market.
Some experts have called for a more robust regulatory framework to prevent similar scandals from happening in the future.
The Perth Mint has been a major player in the global gold market for over a century, with a reputation for producing high-quality gold bars. These claims have potentially undermined that reputation.
The scandal is likely to have far-reaching consequences for the Perth Mint and the wider gold market. In the meantime, the company and the industry as a whole are likely to face increased scrutiny.
This article appeared originally on The Western Journal.