Investing in Gold

You’ve decided it’s time to invest in gold.

Before you commit any money to gold and silver, remember this: Whatever cash you place in bullion, it’s a store of wealth.

You don’t buy bullion only to cash out quickly. A bullion purchase — without significant market stress of course — is for a minimum of 10 years.

When it comes to buying bullion, the first decision you need to make is where you are going to keep it.

Do you want the bullion dealer to store it for you? Do you want to keep it in a safety deposit box? Or would you like to keep it at home?

Physical gold can’t be insured for private investors — at least in Australia — so I don’t recommend keeping it at home.

If you really want to keep that shiny metal at home, you really should install a well-hidden, top-quality safe.

You don’t want just any old safe from a retail outlet. YouTube is full of videos on how to crack a safe. Begin your research with these videos, and you’ll quickly realise how useless chain-store safes really are.

And do not tell anyone that you have physical gold stored at home.

Where else can you keep your gold investment?

Arranging storage through your bullion dealer is a popular option. Especially if you are buying large quantities.

Places like the Perth Mint offer both allocated and unallocated storage.

That is, if you don’t take physical delivery of your gold, you can keep it stored with them, either with your name on it or not.

If you have allocated storage, it means the bullion dealer writes down the serial numbers of the bullion bars next to your name. Those bullion bars are now allocated to you only.

Unallocated storage is where the amount of bullion you purchased is stored in a pooled vault. So you don’t have any serial numbers allocated to you; rather, it’s just an amount of gold set aside for you.

Finally, you can take physical delivery of the bullion bars and pay to have them stored in a safety deposit box you have access to at your leisure.

Which storage method you choose is up to you. However, there are different fees charged for each method. It’s about choosing the one that makes you feel most comfortable with your investment.

Not sure how to buy gold? Read our guide “How to Buy Gold and Silver

Why Gold’s Not Worth the Paper It’s Written On

The gold us ordinary people are mostly allowed to access is ‘fake gold’. Like our paper system of money, it’s built on a system of trust. With central powers lying at the heart of it all. This ‘fake’ gold market is worth $7 trillion.

Why Trump Could Be Good for Gold

Yesterday I discussed the gold price and provided some reasons as to why the yellow metal could move higher in the months ahead. Let me emphasise the word could.

This Sector Is an AVOID!

There is a good chance that the long term impact of this royal commission will be a complete dismantling of bank business models. As I pointed out yesterday, banks are already starting to put their funds management businesses up for sale. Next, the rest of the wealth management arms (including the financial planning networks) will probably go too.

Who Wants Gold with Their Trade War?

US markets bounced back overnight. There was no reason in particular. Probably just that, on consideration, the previous day’s falls might have been a little excessive. Still, the market feels a little bit like the proverbial cat on a hot tin roof. That is, edgy, nervous, and ready to jump if need be. In my view, the risk of a trade war is higher than many people think.

Gold Breakout and Bear Market in Stocks

If you want to get into an asset in a bull market instead, take a look at gold. Since bottoming in late 2015, gold has been in a bull market. It’s just that most people haven’t noticed. Early bull markets are tough to identify, in the same way that early bear markets are tough to identify.

Why the Gold Bull Market Is Set to Continue

Aussie gold stocks have outperformed strongly during the market’s recent convulsions. They are a great hedge in times of increasing economic uncertainty like we’re in now. The bull market conditions are set to continue for gold. The Aussie dollar gold price is approaching $1,750 an ounce, the highest price since mid-2016 and enough to fatten most well run gold miners’ margins.
Money Morning Australia