From Gold Banking Corporation to Gold Corporation to the R&I Gold Bank

We recently bought a 5-coin set of Kangaroo Nugget gold coins dated 1990 through our office. Although that was the first year the Kangaroo design was introduced to Australia’s gold bullion coins, the coins themselves are not rare at all - the half ounce bullion coin that year had a declared mintage of 64,471 and the one ounce coin sold out at a mintage of 300,000. What was interesting about the coins was they were housed in a green leatherette case with a logo for the R&I Gold Bank.

While the R&I bank has been trading in various forms since 1895, until I saw this case I had never seen any reference to The Gold Bank outside of the Hansard records of WA Parliament. Determining why and when this case was is an ongoing process, but has been made easier with some investigation into the regulatory background to the Perth Mint; Gold Corporation and the R&I Bank. You might be wondering why the hell it's necessary to investigate regulatory records to determine when a box was made, which is a fair question. My initial questions about the origin of a box labelled "Gold Bank" were stymied when I realised the first name the WA Government had drafted for the parent authority for the Perth Mint was "Gold Bank" and not "Gold Corporation". While the R&I Bank name was clearly printed on the box, I wondered whether it may have been issued by the original  Gold Bank.

The Perth Mint Amendment Act of 1986

The Perth Mint Amendment Act (39 of 1986) was passed by Western Australian Parliament on October 1^st 1986. This regulatory amendment was a significant step in the transition of the Perth Mint from a branch of the Royal Mint to a state-owned entity known as Gold Corporation.

The first advertisements for the 1986 Proof Gold Nugget coins appeared in Australian print media on 25th October 1986. The coins were manufactured by the Perth Mint, operating as a statutory authority under the Government of Western Australia.

The Australian Nugget Gold Bullion Coin Series was launched by Prime Minister Bob Hawke in a ceremony held in Sydney on April 23^rd 1987. 

The Gold Banking Corporation Act of 1987

The Gold Banking Corporation Act 1987 (99 of 1987) was passed by WA Parliament on December 18^th 1987. The Gold Banking Corporation (Gold Bank) was the original name of the “Parent” statutory authority that the Perth Mint was a subsidiary of. Here are a few key provisions of this Act:

• The Gold Bank could conduct gold-related banking, financial services, and issue gold notes;

• Empowered Gold Bank with significant powers in gold marketing, trading, refining, storage, and the establishment of Perth as an international bullion centre.

• Introduced authority for gold-backed notes (Australian Gold Notes), which were payable in gold coins and required physical gold reserves.

• Provided for banking business activities and a wide range of commercial capabilities.

Part 10.1.B of this Act specifically stated that one of the “General Functions of Gold Bank” was to “to carry on the business of banking and provide international banking and other financial services in gold and money”.

The Gold Banking Corporation Amendment Act of 1988

On June 29^th 1988, the Gold Banking Corporation Amendment Act 1988 (5 of 1988) was passed. The following points were the main features of this Act:

• It introduced a transitional period where the parent corporate name was to be amended to “Gold Corporation“ rather than ”Gold Bank”.

• During the transitional period, the use of the words “bank” or “banking” was restricted from being part of any trading name.

• After the transitional period, there was scope for the banking division to operate under the brand or trading name of Gold Bank of Australia (if desired) but not with that specific corporate name.

The Gold Banking Corporation Amendment Act of 1990

On July 31^st 1990,  the Gold Banking Corporation Act of 1987 was amended yet again (10 of 1990). Point 4 of Part 1 stated the following:

“The long title to the principal Act is amended by deleting "Banking" in both places where the word occurs.”

Point 6 went on to state:

“The principal Act is amended, in the provisions set out in the Table to this section, by deleting "Gold Bank" wherever the words occur in those provisions and substituting "Gold Corporation”.”

This act of legislation was the final stage in the transition of the name of the Perth Mint’s parent entity from being the Gold Banking Corporation to Gold Corporation.

While these regulatory Acts might have completely removed the term “banking” from the name of the Perth Mint’s parent corporate entity, in no way did it mean banking was being excluded from operational consideration.

Gold Bank - The Name May Have Died, The Activity Did Not

On June 1st 1989, the Rural and Industries Bank of Western Australia (R&I Bank) established the Gold Bank of Australia. Media reports from the day indicate the banking assets formerly held by Gold Corporation were transferred to the R&I Bank for a sum of $30 million.

The WA State Records Office shows that policy meetings covering the Gold Bank were held each month between July 1989 and October 1990. The R&I Gold Bank was established with a clear mandate to “deal with all issues relating to the promotion of gold as a commodity”.

The Gold Bank was intended to enhance WA's position in global gold markets, create financial services employment, support industry transactions during peak expansion, and contribute to economic diversification. The initiative represented a coherent policy approach that coordinated with the Gold Corporation Act 1987 and the Perth Mint's successful Australian Nugget coin program launch.

As of 4 December 1989, the Gold Bank leased all four floors of 101 St George's Terrace in Perth. At that time, it was the tallest building in Perth. WA State Records show that the “Gold Bank of Australia Business Plan & Budget” was prepared in July of 1989.

The R&I Bank was incorporated on December 20th 1990.

In 1994, the Rural & Industries Bank of Western Australia (R&I) rebranded as the Bank of Western Australia and adopted the trading name Bankwest. 

In December 1995, the Bank of Scotland acquired Bankwest. As part of the sale agreement, 49 per cent of the shares in Bankwest were offered to the Australian public.

The Privatization of the R&I Bank in 1995 Coincides With Silence on the Gold Bank

WA State Records show no more documents related to The Gold Bank dated later than 1995. This apparent halt in activity occurs at exactly the same time the R&I Bank was privatized, indicating the organisation’s conclusion was the result of corporate restructuring rather than through any obvious operational failure.

As the R&I Bank prepared for privatization, a government-backed gold promotion subsidiary would have been completely incompatible with a private ownership structure. 

The question then becomes, just when and why was this boxed set prepared and distributed? The Gold Bank was established as a subsidiary of the R&I Bank in June 1989 and the coins included in it are dated 1990, which establishes our window of opportunity as being between June of 1989 and December of 1990.None of the research I've been able to conduct so far (which includes speaking with several people senior in WA Government and the Perth Mint) has indicated that the Gold Bank communicated with the general public at all, let alone distributed any gold coins.

At this stage I believe the case was a prototype prepared for the Gold Bank's intended activity that didn't eventuate. Either that, or it was a corporate gift related to the establishment of the Gold Bank.

The next phase of my research is going to include heading into the State Records Office of WA to view and hopefully obtain a copy of the Business Plan for the R&I Gold Bank. I hope more specific details of the Gold Bank’s plans to distribute gold coins are included