WHERE TO START?
You are considering a diversified precious metal portfolio – but where do you start?
Physical precious metals are considered the only truly safe collateral in times of crisis, for centuries gold has been an insurance policy and a wealth preservation vehicle.
The Gold Standard was a system under which nearly all countries fixed the value of their currencies in terms of a specified amount of gold, or linked their currency to that of a country which did so.
You value all metals and products against the barometer of gold and so it is the starting point.
Download this free eBook “Why Buy Gold” for more information to support your investment decisionCLICK HERE to download "Why Buy Gold - eBook"
WHAT COMES AFTER INVESTING IN GOLD?Metal Portfolios Weightings report
All precious metals perform differently at different times, so a diversified precious metals portfolio is important even for the most conservative investor.
Comparing historical ratios of “Platinum v Gold” or “Gold v Silver”, we have given an equal weighting of platinum, silver and gold but then weighted them on implied volatility.
The risk of holding platinum and silver versus gold has rarely been this attractive.David Mitchell of Baird & Co Asia and IPM Group talks about his metal portfolio weightings and how he has built these precious metals portfolios to perform based on current circumstances and historical data
CLICK ON THE IMAGE TO VIEW THE VIDEO
Download David’s report METAL PORTFOLIO WEIGHTINGS
WHAT TYPE OF PRODUCT DO I INVEST IN?
The type of product you choose will depend on a number of things including how much you want to invest, whether you want to store your investment, the degree of liquidity you prefer and whether you prefer minted products, coins or simply cast bars.
Your options are:
Pool allocated – by investing in the pool of products you secure a liquid asset with 100% backing by physical metal which is securely vaulted and fully insured for replacement value.
You may be interested in Pool Allocated products if you are seeking:
- Secure storage at no cost
- No shipment costs or risks
- High liquidity, the fastest way to buy and sell
- Regular reporting showing the current value of holdings and transaction history
- A suitable option for SMSF with regular auditing, reporting, insurance and compliant, offsite storage
- 100% backed by physical metal
- Fully insured for replacement value (by Lloyds of London)
If you wish to take possession of your metal, there will be a barring fee applied. Please ask the GBA team for details.
Cast bars – are traditionally the most popular form of physical precious metal for investors as they represent great value in terms of manufacturing costs. You can choose from a wide range of sizes and brands, our cast range begins with the 1/2oz size and we carry Perth Mint, Baird & Co of London, PAMP as well as our own GBA brand manufactured in Australia from an LBMA accredited refinery.
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 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%.
WHEN IS THE RIGHT TIME TO INVEST?
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, 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.