(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.
(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.
(4) Provided only a few people at a time request delivery of classic cars, this illusion works. But then comes #ClassicCarSqueeze (#silversqueeze) and more people want their cars than Perth Mint actually has in the showroom. On paper, the mint's unallocated program is
(5) 'fully backed' by classic cars *at the mint*, but in reality the only thing on-premises is the lease agreement for the title (which eventually the lease ends). The classic cars themselves are still in someone else's private garage and will never leave that garage.
(6) Perth Mint now has to source (buy) classic cars on the open market to deliver into clients hands, but the #ClassicCarSqueeze (#silversqueeze) has bought out much of the supply, making it more difficult to obtain these classic cars. This leads to a default crisis, leading to
(7) a true run on the mint, leading to further defaults, thereby triggering the "government guarantee". Have you even READ section 22(1) of the Gold Corporation Act 1987? You should. (Hint: not what you think it is) legislation.wa.gov.au/legislation/pr…

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