Posted 03/06/2012 06:22 am
There just seems to be a degree of ambiguity, and a lack of specifics...
From the Perth Mint:
"All Australian legal tender coins are minted in terms of an agreement with Australian Treasury, which receives a royalty or seignorage on each coin sold."
From the Assistant Treasurer:
"The Commonwealth has received annual royalties from the Perth Mint as a percentage of gross sales revenue over the past 20 years and these payments will continue under the new contract."
Technically when the Perth Mint at State level is releasing "legal tender" it is issuing Federal debt, which it covers in full or part by way of royalty, seignorage or some other abstract figure (ie percentage of gross sales revenue on unspecified products).
Now lets take a hypothetical situation where the Perth Mint instigates a programme similar to the Canadian $20 swap, releasing a combined bullion/base metal coin that delivers positive seignorage, and then provides a bulk discount to boost sales ie 2.5% discount and free delivery if you buy a box of 100 pieces.
If it was me, I'd put one box immediately on credit card, then order another 10+ on bank transfer, cash in the extra at face, then buy more - who wouldn't?
In effect there would seem to be no apparent restriction on issuing Federal indebtedness (promise to pay), and that the company could conceivably have the potential to profit at the Federations expense.
From the Perth Mint:
"All Australian legal tender coins are minted in terms of an agreement with Australian Treasury, which receives a royalty or seignorage on each coin sold."
From the Assistant Treasurer:
"The Commonwealth has received annual royalties from the Perth Mint as a percentage of gross sales revenue over the past 20 years and these payments will continue under the new contract."
Technically when the Perth Mint at State level is releasing "legal tender" it is issuing Federal debt, which it covers in full or part by way of royalty, seignorage or some other abstract figure (ie percentage of gross sales revenue on unspecified products).
Now lets take a hypothetical situation where the Perth Mint instigates a programme similar to the Canadian $20 swap, releasing a combined bullion/base metal coin that delivers positive seignorage, and then provides a bulk discount to boost sales ie 2.5% discount and free delivery if you buy a box of 100 pieces.
If it was me, I'd put one box immediately on credit card, then order another 10+ on bank transfer, cash in the extra at face, then buy more - who wouldn't?
In effect there would seem to be no apparent restriction on issuing Federal indebtedness (promise to pay), and that the company could conceivably have the potential to profit at the Federations expense.
