FAQ

 

FAQ

If any of your questions are not found here, please feel free to contact us for information.

1. How is Bullion Priced?
2. Is it guaranteed that the price of Gold will always rise?
3. What are the options for storing gold?
4. What proportion of my investment portfolio should be represented by gold?
5. What is bullion?
6. Is GST (goods and services tax) payable on bullion purchases?
7. Is GST (goods and services tax) payable on gold and silver coins?
8. Why should I buy gold or silver bullion?
9. Who can by gold and silver bars from us?
10. Why is my identification required before we will sell you over $ 5000 worth of gold?
11. What is a troy ounce?
12. How many grams are there in one troy ounce?
13. How can I improve my knowledge about gold investing?
14. How do I get started as a gold bullion investor?
1. How is Bullion Priced?

All Gold and Silver is priced using the current USD gold or silver price (spot price) as a starting point. This is then converted to AUD local currency at the current exchange rate. Lastly a small fee is added to cover costs and make a reasonable return. The current premium is 3.5% for gold and 9 % for silver.

2. Is it guaranteed that the price of Gold will always rise?

Unfortunately, there are no guarantees. The price of gold could rise, as it has over the last 10 years. However, all investment classes carry an element of risk. The price of gold could fall, also as it has done recently or just stay the same.We strongly recommend that you talk to your financial advisor about your intention to invest in gold bullion. Gold should always only be part of an investor’s balanced portfolio.

3. What are the  options for storing gold?

By far the safest place to store gold is in a hidden fireproof safe at home. The reason for this is that it eliminates all counter-party risks (the risk of a third party storing the gold for you). We suggest that you do not disclose the fact that you store your gold at home to anyone. One should also be sensible when transferring gold to or from your home.

Alternatively, you can store your gold in a private deposit box at a bank or in third party high security vaults. The disadvantage of these two options are that you are faced with counter-party risks. You may have difficulty in retrieving your gold should the bank or vault company go under.

If you store gold at home, you should insure it for the replacement value, not the cost.

4. What proportion of my investment portfolio should be represented by gold?

Please consult with your financial advisor for personal advice on this question. The World Gold Council suggests a holding of 2.5% for  a low risk portfolio, 4% for a medium risk portfolio and 10% for a high risk portfolio. These allocations can well be higher, depending on the advice that you receive form your financial advisor. Many Individuals own way in excess of 10% of their portfolios in precious metals.

5. What is bullion?

Precious metals such as gold, silver, palladium and platinum are called bullion.

6. Is GST (goods and services tax) payable on bullion purchases?

Bullion in gold, silver and platinum are exempt from GST. Palladium investments are not exempt from GST, as Palladium is not a precious metal as defined in the GST Act.

7. Is GST (goods and services tax) payable on gold and silver coins?

All Australian gold. silver or platinum coins such as the Kangaroo, Kookaburra or Koala coins are exempt from GST. GST is however, payable on all imported gold, silver and platinum coins. Well know imported coins are Kruger Rands, American Eagle and the Canadian Maple.

8. Why should I buy gold or silver bullion?

Gold and silver have been two of the outstanding investments over the last decade, if not the best investments. Due to the uncertainties in the worlds financial banking systems, and continued weakness in the USD, gold and silver investment as an asset class is gaining increased prominence. It is well documented that both gold and silver have been used as a form of money for 5000 years. Surely, if something has been in existence for so long, one can expect that it would continue for a very long time to come. In the last 10 years the price of gold has gone from USD 250 to close to USD 1900 which is an increase of 660%. Silver has gone from $ 9 to $ 32 in the last 5 years, an increase of 255%. The price of Gold has ended each year for the past eleven years up from the previous year. We are not aware of any other asset class that has equaled this performance.

9. Who can by gold and silver bars from us?

Anyone. We sell to individuals, companies, Self Managed Super Funds (SMSF ‘s), Discretionary Trusts and bullion dealers.

10. Why is my identification required before we will sell you over $ 5000 worth of gold?

It is required by law

11. What is a troy ounce?

It is the measurement system for measuring the weight of precious metals.

12. How many grams are there in one troy ounce?

One troy ounce contains 31.1035 grams.

13. How can I improve my knowledge about gold investing?

The INTERNET has a vast amount of information that you can access. We also have information on our website.

14. How do I get started as a gold bullion investor?

You should discuss this with your financial planner. Learn all you can yourself. As in any field, this is a life long process. Read all you can, follow the financial news, discuss the topic with your trusted professionals such as your accountant. Try to understand the fundamentals of the gold and silver market and the forces that determine the demand and supply of gold and silver. The fundamentals of gold and silver are different and should be studied with this in mind.

 

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