Questions that a Kitco Pool Gold Account (or Monex (Atlas), or FideliTrade (Group Ownership Service) [or any other party soliciting unallocated "storage" deposits] depositor would do well to ask Kitco: Given that your Pool Gold description http://online.kitco.com/poolaccount.html does not require Kitco to hold any physical metal to offset its unallocated gold deposit liabilities, nor does it it specify a time limit for Kitco to deliver metal in the event that a depositor orders delivery... 1) How much Pool Gold do you owe your depositors? Are they unsecured creditors as generally described by http://www.pamp.ch/Gold/uu/unalloca.html ? 2) What assets do you specifically hold to offset your unallocated gold deposit liabilities? Do you hold (or have a target range of) a primary reserve of actual physical metal against these demand deposit liabilities? 3) Since you accept/create gold deposits and invest these borrowed assets so as to generate a financial return, do you publish financial statements that would enable a depositor to assess your gold-specific liquidity and solvency as it relates to your ability to repay these deposits? Do you maintain a cushion of equity capital sufficient that in the event some of the gold loans that you hold as assets (such as your unallocated deposits at deeper layer gold banks) fail to perform you could still pay off your depositors? [Banks are expected to hold 8% core capital against their risk adjusted assets.] _______________________________________ Questions submitted to the Perth Mint 13 Feb 2001 I think I understand the deposit insurance guarantee that the State Government of Western Australia provides on your unallocated gold deposits [if the Mint can't come up with the gold, the government is obliged to pay off in Australian dollars http://www.perthmint.com.au/depository/faq/guarantee.shtml ] , but precisely what risk(s) does Lloyd's insure the Mint against http://www.perthmint.com.au/depository/faq/insurance.shtml ? What are the liability limits of the Lloyd's policy? Could you fax me a copy of the pertinent provisions of the Lloyd's policy? Are they insuring the Mint's performance vis-a-vis unallocated deposits too? or are they insuring against losses of physical specie relating to physical security etc.? Would they pay in gold? As for that, does the State set aside a reserve to enable it to perform in the event it must cover the Mint's unallocated deposit liabilities? Does it publish financial statements detailing its exposure to the Mint's unallocated deposit liabilities? While on subject, what proportion of its unallocated deposit liabilities does the Mint typically reserve against with physical metal? Finally, how much gold liability is the Mint exposed to with its unallocated storage facility? --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
