Investing in Gold The Old Fashioned Way

sandman87 on 06/06/2018 - 09:42
Last edited 06/06/2018 - 09:43

Every so often, I come across different ways to invest my money and ponder 'is this for me?'.

I discovered a website selling gold and silver bars and coins based in Australia and pondered what it would take to begin a long term investment (20+ year) in gold to supplement other investments I have (shares, term deposits, etc).

Does anyone have any experience with investing in gold? I'm thinking of whether buying a good quality safe (not one from bunnings) and slowly starting to purchase gold to store myself is a worthwhile. The gold price seems to have grown by over 250% over the last 18 years, and I'm thinking that investing in a commodity which steadily increases in value and doesn't seem to be prone to the same volatility as the stock market might be a wise move

Interested to hear your tips on how to buy and sell gold and whether you have ever physically purchased gold as an investment

Financial Gold Investment Retirement Planning

Comments

  • railspider on 06/06/2018 - 10:00
    +2

    Why not just buy a Gold price index like PMG? Probably cheaper than worrying about security for your collection of gold bars.

  • mskeggs on 06/06/2018 - 10:18
    +2

    Do you buy all your investments when they have gone up 250%? Or when they are cheap?

    Regardless, if you want exposure to gold, I suggest shares in a dividend paying gold producer. The share price goes up with the gold price, and they pay dividends even if the gold price stays the same.

  • MathNerd on 06/06/2018 - 12:20

    Bullion Baron would be great to ask, but hasn't logged in for about 3 weeks. PM him and see how you can be helped.

  • EightImmortals on 06/06/2018 - 13:39
    +1

    Make sure you buy from a reputable company as there are a lot of fakes out there. Buy in orders under $5000, over $5000 and they have to report you to the government (pretty sure it's $5000). Why worry about the government?

    There is a confiscation law already in place from 1959, I'm 'fairly' sure it has been suspended but not cancelled so if they was to do a U.S. style confiscation it wouldn't be too hard for them. More reading here:
    https://goldchat.blogspot.com/2008/11/australian-gold-confis…

    Of course if they don't know you have it then can't come and pinch it.

    If you do get a stash built up then don;t tell anyone you have it. Loose lips sink ships. Just let trusted close family know where it is and how to access in case you have an emergency..or die. :)

  • Sofie519 on 07/06/2018 - 09:06
    +2

    Gold has no counter party risk but also does not earn income for the duration of your holding. Its a capital gain/loss thing, and a store of value. When US confiscated gold at $20 (forced people to sell to govt at $20), the Govt subsequently repriced gold at $35. So it is unlikely that any confiscation act would ever be trusted/abide by.

    You can walk into a pawn shop or gold shop and buy ABC bullion bars or nuggets to avoid 'paperwork'~ There's also no tax when you just pass it to your loved ones or sell it if transacted in cash … wink

    Arguably Silver has higher upside potential with lower downside risk. However as the market is manipulated, the Gold & Silver prices are determined and controlled by the bank cartels~ It is a stable long term diversification play and a store of wealth, but I wouldnt go into it looking to trade margins in this environment

  • maiuspala on 07/07/2018 - 17:39

    Does anyone know if there are any restrictions when bringing gold to australia?
    I think it is up to 10k cash i can bring, but what is the limit (grams/value) for gold?

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