Which precious metal to buy? Gold or Silver?
First ask yourself “Why are you buying, and for what period of time?”
Silver is generally more appropriate for trading over the short term, as the pricing tends to be more volatile. Our Sales Executive, Sarah Hogwood, says “Silver is not as rare as gold, it has more industrial use and the price of silver will rise and fall more dramatically over a short period of time. It is therefore a popular choice for investors looking for a short term gain.”
Sarah also says “If you are investing for the longer term; say at least 10 years; gold is generally more suitable.”
There are also other precious metals available such as platinum and palladium, just ask the GBA sales team for more information.
What are the ways to buy?
There are a number of ways you can buy bullion from Gold Bullion Australia (GBA).
Visit our showroom: 1 Avalon Parade, Cnr of Paradise Ave, Miami QLD 4220
For customers who like to deal face to face, you are welcome during trading hours at our Public Trading Office on the Gold Coast. Trading hours for the store are Monday to Friday 9.00am until 5.00pm excluding Public Holidays. Collections from and deposits into our vaulting facility will also take place at that location. Appointments for those services are required.
How to choose a brand?
GBA only sells investment grade bullion with a gold purity of 99.99%, and silver purity of 99.9%. Each bar is stamped with its weight, purity and the brand’s logo. The difference between GBA bars, Metalor, NTR, or PAMP is the brand name only. Serial numbers on these bars assist with SMSF audit requirements.
How to choose a type of precious metal product?
The type of product you choose will depend on a number of things including how much you want invest, whether you want to store your investment, the degree of liquidity you prefer minted p and whether you prefer minted products, coins or simply cast bars.
Depending on your needs the options are:
Pooled allocated – Is a flexible option when choosing to invest, it is the most cost effective way to buy, store and trade. Held at the GBA custom-built vaulting facility and insured under the custodial arrangement at no cost, you can buy and sell quickly and easily, making it one of the most tradable types of investments. Your precious metal investment is fully backed by GBA and can be converted to physical product at any time.
If you wish to take possession of your gold, there will be a barring fee applied.
Cast bars – are the next most cost effective product and are traditionally the most popular forms of precious metal purchases made by investors as they represent great value in terms of manufacturing costs, and our cast range begins with the 1/2oz size.
Coins – one of the oldest forms of money; coins were introduced as a currency almost from the very beginning of recorded history. One of the principle reasons that coins proved so popular was for the rich they were able to provide a convenient store of value. This was particularly the case with gold coins as the coins were made from almost pure gold and the purity was exactly specified, in later years as refining techniques improved this was usually between 99.5% up to 99.99%. Gold is an extremely stable element and as such remains a material that very conveniently stores wealth.
What is the right time and how much?
The right time and how much to invest will depend on your circumstances. Investing in precious metals should be considered with a long term view; so whether you buy today or tomorrow is less relevant. Over the past 10 years, the price of gold has risen more than 10%.
Gold and silver prices do fluctuate constantly based on a number of factors including demand, exchanges rates and the economic environment.
To stay on top of pricing, you can subscribe to our daily price update or visit our interactive pricing charts on our website.Check prices >
Who invests in precious metals?
The various types of clients who invest with us range from small individual investors to companies, trusts and self-managed superannuation funds. Unfortunately, we are unable to advise you in relation to your own investment decision as we do not hold a financial adviser’s licence. If you’re a first time investor you may want to consult with your accountant or a financial planner. With the rising uncertainty in the world, history has proved time and again that owning gold and silver is an excellent way to preserve an individual’s wealth. It’s important for both experienced and new investors to keep up to date with market news, and we recommend the World Gold Council’s website, invest.gold.org, as a good place to start.
What are the benefits of including physical gold and silver in your investment portfolio
Physical gold and silver are an asset class, just the same as shares, bonds or property. The golden rule of a balanced portfolio is to spread your assets over a number of classes, thus maximizing potential returns and reducing risk. Gold and silver do not correlate directly with other asset classes, which means they can afford your portfolio a natural “shield” from the same effects that the market has on assets that are strongly correlated.
For centuries, gold and silver have been seen as a safe haven from currency deflation, and as an unrivaled preservation of wealth – an attitude which persists today.
This explains why in the current economic climate, more and more people are investing in these metals. Please explore the graphs in our website to review historical metal prices.