Are you looking to invest in bullion in Australia? Diversifying your portfolio and securing long-term wealth is key, and investing in bullion is an excellent way to do just that! But before you buy, there are certain steps you need to take to ensure that your purchase is a success. Below is a guide explaining How to buy bullion in Australia:
Investment in bullion
Throughout history, gold has been used for trade and accumulation of wealth. In the past, paper currencies were backed by gold and represented a specific amount of the metal stored in a vault, although this exchange was not commonly utilized.
The use of paper money tied to gold continued for a considerable part of the 20th century, but modern currencies are mainly fiat currencies, which means the connection between gold and paper money has been severed. Nonetheless, gold remains popular among individuals.
A safe haven
Buying bullion has become one of the most popular investment options in Australia, especially since the global economic crisis occurred, and of course, the recent banking collapses in the United States.
Bullion is considered a safe haven asset and can be purchased in various forms — coins, bars, taels and all different shapes and sizes. Investing in bullion can be a great way to diversify your financial portfolio. If you’re looking to purchase bullion in Australia, here are some quick tips.
Choose Your Dealer Wisely
When investing in precious metals such as gold or silver or platinum, make sure you do your research and choose an established dealer. It pays to find out what other customers have experienced when dealing with the company as well as their terms and conditions for purchasing gold.
Look for customer reviews and search for any warnings about potential issues with that business before making any purchases. A reliable dealer like Gold Bullion Australia is exactly what you are after.
Know What You Are Buying
Successful gold investing requires understanding the product. Bullion is weighed in troy ounces, grams, or kilos, while bars vary in weight. Only purchase from reputable businesses with physical locations, as online purchases can be questionable. Educate yourself before investing, and consult reliable sources for information.
Here are some great places to start:
Find A Secure Place To Store Your Bullion
Bullion buyers need to consider where they want to store their investments securely offsite – this is by far the safest option to protect your new investment. Private vaulting services offered in Redcliffe, offer a wide range of cost effective options. Bullion storage via private vaults offers investors security benefits that should not be overlooked if buying large quantities at one time or storing over time.
Shop Around For The Best Price
There are plenty of purchases that do not require too much investigation but buying precious metals definitely does! Prices for coins & cast bars can vary drastically between dealers. Shopping around is essential if you wish to get the best bang for your buck whether it’s buying gold eagles, silver maple leaves, kangaroo coins or the simple cast bar.
The secret to scoring a sweet deal on bullion is all in the ‘spot’ price – the heartbeat of the industry. Trustworthy bullion merchants will dance around this price, giving you the ultimate bang for your buck while keeping their business afloat with staff paid & lights shining!
Types of Bullion Available in Australia
Before buying gold or silver bullion in Australia, you should first understand the types of bullion available and where they can be purchased. Most commonly known is gold and silver coins & cast bars, which are minted by governments and independent refineries for collections and investment purposes.
There is also platinum, the little known of the big 3 bullion group here in Australia and well worth looking into – especially for long term investment. For more information on platinum, CLICK HERE.
Where to Buy Bullion in Australia
There are a number of ways to buy bullion in Australia including buying online from accredited dealers or directly from government mints. Many dealers give access to wholesale prices for bulk purchases of large volumes making them a great choice for those looking to buy larger amounts at lower premiums than retail stores have to offer on small quantities.
Another important aspect to consider is if your bullion dealer can buy your goods back from you when it comes time to sell! Gold Bullion Australia (GBA), as Queensland’s largest bullion dealer, is in a perfect position to do this for you. With offices in Melbourne, Sydney, Gold Coast & Brisbane, GBA is also a worldwide bullion merchant out of Singapore.
They will always be in position to not only sell to you, but buy back from you when the time is right!
Private Vaulting & Custodial Services
For those looking to store their precious metals securely without worrying about theft, damage, or insurance claims then private vaults may be ideal solution. Private vaults provide highly secure facilities with sophisticated security measures.
As well as significant insurance coverage against loss/theft and 24/7 monitoring with access restricted only to clients and authorized personnel – also providing non-bank storage solutions away from third party organizations.
An example includes Private Vaults Australia, who have based their headquarters near the Sunshine Coast, in Redcliffe, north of Brisbane – allowing customers complete privacy while safely storing their precious metals.
Simple rules for bullion buying
- Up to 5K is treated as a Cash Sale regardless of how you choose to pay.
- Between 5 and up to 10K we require ID and will place your name and details on the invoice. No reporting is required but this information is held on file.
- Above 10K is automatically tracked through the banking system and any transaction over $10K in Cash only is reported immediately to Austrac.
The 3 biggest questions
How much to buy?
- Since 2008, a commonly recommended investment strategy has been to allocate 25% to property, 25% to equities, 25% to cash, and 25% to bullion (gold, silver, and platinum), due to increased volatility in financial markets. That said does it mean you have to put 25% of your net worth into Bullion? No. The decision is up to you.
What to buy?
Investors have the option to invest in one metal or spread their risk across all precious metals, including Gold, Silver, and Platinum. Each metal offers different outcomes. Gold is considered the safer monetary metal and is generally considered to be more stable than Silver and Platinum.
Currently, the ratio of Silver to Gold is 80:1, meaning it takes 80 ounces of Silver to buy 1 ounce of Gold. However, when the ratio of Silver to Gold in the ground is 8:1, it shows that Silver is undervalued and can be a great investment opportunity.
Currently, it takes 2 ounces of platinum to buy one ounce of gold. Platinum is a rare metal, with approximately 75% of the world’s supply coming from South Africa.
Age can be a factor in deciding to invest in gold versus platinum and silver, but ultimately it is up to individual research and preference.
Common preference is to have 32 ounces of gold instead of 1 kilo, as it provides more exit points. For example, with a 1 kilo position, there is only one exit point.
Please note that the buyback price for any metal, whether it be in the form of a coin, minted bar, or cast bar, will be based solely on the weight of the metal and not any premium that may have been paid at the time of purchase.
For more information on any of the topics covered in this blog, visit privatevaults.com.au.
To know more about PVA, watch some of these Safe Deposit Box videos HERE
To learn about Gold Bullion Australia & some of the basics in bullion and investing, watch these videos HERE
Call PVA on 1300 888 782 or email email@example.com to make an appointment.
My background involves the ownership of many businesses including owning and running multiple Chiropractic offices but mainly focused in Nerang on the Gold Coast for 30 Years.
I have a passion for accumulating and holding Bullion and have done so for many years. My extensive Business skills and Bullion knowledge makes it easy to assist others buying, selling and storing their Bullion.
Peter and Cassie work together to assist anyone from the experienced Bullion Investors to the complete novice. They are here to answer any questions to help you.