Discover and read the best of Twitter Threads about #classiccarsqueeze
Most recents (1)
(1) Think of the @PerthMint unallocated #silversqueeze crisis like this:
Perth Mint leases (borrows) the titles of classic cars stored in other people's private, secured garages. The mint has no access to the cars themselves, only borrowing the titles.
Perth Mint leases (borrows) the titles of classic cars stored in other people's private, secured garages. The mint has no access to the cars themselves, only borrowing the titles.
(2) Perth Mint then gets unsecured loans from plebeians for those leased titles, telling clients they are investing in a pool of classic cars, & those loans are "backed" by classic cars stored at the mint's garages. Clients can even be repaid by taking delivery on a classic car.
(3) As part of their normal operating business, Perth Mint even has a few classic cars in THEIR garage, ones they have purchased outright. This is the "showroom" to convince everyone how all that unallocated is backed by real classic cars and that delivery is indeed possible.
