Your Gold Questions Answered

Your Gold Questions Answered

Nobody grows up wanting to be a gold analyst,’ said a friend to me at the start of the year.

And that’s the truth. I most certainty did not.

I had a whole host of careers in mind that I turned out to be not suited for.

Not only that, I didn’t even know a gold analyst was a real job when I was a kid.

Back in high school I discovered gold was money, all through early morning chats with my old man over badly made Nescafé coffee.

Less than 10 years on from those chats, I was working for a derivatives trading firm, watching the gold price skyrocket as the financial crisis unravelled.

As the markets tumbled and the crash had a devastating financial effect on mainly our mates in the Northern Hemisphere, I became a big advocate for owning real money.

How could I not?

Successive central banks inflicted wealth-destroying policies onto ordinary people.

Come 2009, I was writing weekly about the benefits of using gold to protect your wealth.

And a decade later, I’ve been able to combine my knowledge of gold and teach people how to understand it themselves.

Where do I start?

Today, I want to share with you a snippet of a question a reader sent me.

Over the past two weeks, you’ve probably noticed that I’ve spent a lot of time talking about my new service…

….and that’s because I’m excited. It’s 12 months of behind the scenes work, that is really two decades of research coming together.

And today, is a perfect example of why this new product is needed.

Just because I know lots about gold, doesn’t mean everyone else does…

Recently Daily Reckoning Australia reader, Richard, emailed me a question, he wrote:

One silly question for you (other readers may also be wondering the same):

Where and how does one buy gold? It???s not available at supermarkets, Bunnings, jewellery shops etc?

Also, one of my friends asserts that government places limits on the amount of gold an individual can possess or buy at a time, is this true?

His argument is that if everyone was to buy gold, it would drain the cash from the economy and cause a downturn or even recession?

If gold can be purchased in a number of different ways, maybe you could list them all and include a breakdown of costs / benefits for each of these ways, without showing bias or favour for any particular supplier, as might be expected from a neutral financial adviser.

Looking forward to your reply.

First off, Richard, there is no silly question here at the Daily Reckoning Australia. Chances are if you’re thinking it, someone else is too. If anyone ever has a question, click here to send it through.

While I can’t answer every question personally, I do read them all.

And second, Richard your question validates exactly what I set out to achieve with Rock Stock Insider.

It was around this time last year, my boss threw out a question to me as I was leaving the office late one night…

He asked me:

If there was anything you could do to change how people see the markets right now, what would it be?

Simple,’ I answered. ‘I’d change how they look at gold. Gold isn’t an alternative investment — it’s money. And it’s been that way for thousands of years.

Believe it or not, Richard, you are the sort of person I had in mind when it comes to talking about gold.

Why we need it, how to buy it, and to eliminate the myths around it.

Much of what you have asked, are really common misconceptions around the yellow metal.

So let’s start working through them…

The buying basics

Sometimes knowing where to start is the hardest part. And that’s where I come in…

Now, obviously bullion dealers aren’t as obvious as your local Bunnings, but there are many around Australia.

In fact, most states have several bullion dealers to choose from, including:

  • ABC Bullion — Sydney
  • Ainslie Bullion — Brisbane
  • As Good As Gold — Adelaide
  • Australian Bullion Company — Melbourne
  • Gold De Royal — Brisbane
  • Gold Stackers Australia — Melbourne
  • Perth Mint — Perth

Please note we are not affiliated with any of these dealers.

These are just the largest bullion dealers in Australia.

The best way to get started is to visit your local bullion dealer, either in person or through their website. You don’t have to buy from a bullion dealer in your state.

Most of them will ship to any address, as long as you can sign for the delivery in person.

So you can buy from a bullion dealer in Brisbane even if you live in Melbourne.

Bullion dealers offer gold from various mints around the world, so shop around to see what you can find.

Be warned, though: All bullion dealers must adhere to the same anti-money laundering as banks. Which means that if you are buying online for pick-up in person OR courier delivery, your identity will need to be confirmed by a bullion dealer. Generally, a passport or driver’s licence is sufficient.

Knowing what to buy

But what type of gold should you buy?

Again, this can feel overwhelming. How should you buy? Big, small? All at once, or slowly over time?

Well, that amount depends on you. Think of every bullion purchase as ‘cash’ locked up for 10 years.

Furthermore, try not to get too caught up with the daily price movements. You don’t want to be obsessing about the daily value of your metal.

I know plenty of people that have bought a large amount of gold in one purchase, and then stopped there.

On the other hand, I am growing my gold and silver stash slowly. Converting my cash over into bullion at different times throughout the year.

There’s actually much more to buying gold than that though, which is exactly why I wrote a FREE report to answer everyone’s questions on how to get their hands on gold, called ‘The Best Way for Australians to Buy, Sell and Store Gold’.

As you’ll see when you go through that report, I have no favourite bullion dealer.

I’ve bought gold and silver from almost all the bullion dealers throughout Australia.

When it comes to picking a bullion dealer, know this: gold prices are tight.

Gold isn’t a high-margin product for a bullion dealer.

Sure, you can shop around for ‘the best’ price. But it’s kind of like spending dollars to save pennies.

When it comes to buying your bullion, my best suggestion is pick the company that gives you the best service, and one you trust. That’s especially important if you are looking to slowly increase your bullion stash over the years ahead.

Having a bullion dealer ‘on call’ or an online account set up ready to go, can make it easier to take advantages of falls in the gold price.

But what about the second part of Richard’s questions? The caps on gold ownership and how bullion purchases suck money out of the economy?

Well, I’ll tackle those later in the week.

Stay tuned.

Until next time,

Shae Russell Signature

Shae Russell,
Editor, The Daily Reckoning Australia