Jason Hommel vs Perth Mint

Jason Hommel from the silver stock report has been a vicious critic of the Perth Mint for several years now. It has been my view that the bulk of Jason's claims have been at best a misunderstanding of the facts and at worst unfounded sensationalist self promoting journalism.

The following interview is the postscript to a meeting held between Jason Hommel and the senior management of the Perth Mint. Whilst I consider Jason to be largely respectful of the Perth Mints efforts he clearly misunderstands the integrity, politics and operations of institutions such as the Perth Mint. Jason is a credible expert on silver but some of his comments are very naive in a business sense. For example Jason suggests the Perth Mint simply drop its contracts with the US mint and sell its bullion on bullionseeks new auction site. With full respect to bullionseek (who are doing an outstanding job) it is hardly realistic or prudent to divert long standing business arrangements with broad political implications to a start up online bullion exchange. Shareholder (WA government) expectations, organisational capability, existing contractual arrangements, political implications, long run forecast assumptions etc all need to be considered in business decisions not simply price and margin in one small channel in 2008.

Whilst I accept Jason needs more time to "run the numbers" before issuing his full response this interview again reinforces my view that he has the tendency to shoot first and think later (if at all). The Perth Mint have been extremely respectful to Jason. I hope that he shows a similar respect going forward. Unfortunately this latest interview indicates we may be in for more of the same - unfounded sensationalist self promoting journalism. Listen the interview and you be the judge. I guess time will tell.