I think Butler's right to raise concern over unallocated.
Unallocated buyers do not own any silver. They hold paper theoretically giving them the right to redeem that paper for silver.
However, they are simply unsecured creditors of the mint and will be significantly down the list of creditors who will be paid out in the event of trouble (such as fiat collapse with corresponding massive precious metal surge).
I realise the Mint has the backing of the W.A. Government .. but they will only make good the unallocated holder's claim by meeting it with cash i.e. more paper.
Butler raises several thoughts I'd not considered. If the mint is storing exact equivalent of silver to meet all claims by certificate holders (both allocated and unallocated), how does the Mint profit from the business? Allocated holders pay their storage charges. Unallocated do not... is the Mint itself meeting the costs involved for these?
If the mint isn't holding all of the silver for which unallocated certificates have been sold, they will be holding a reserve of silver sufficient to meet at least normal claims for delivery/conversion.
What happens in a run on the Mint?
You're much much betteoff paying the extra (but small) charge to hold allocated silver/gold imo.
You're even better off holding the physical yourself.
