Gold has been used as money for centuries. Prior to 1971 and America’s departure from the global gold standard, the fiat paper money system was backed by gold. World currencies may not be backed by government gold, but there is a paper market backed by gold or other physical goods. The Commodity Exchange Market (COMEX) sometimes processes thousands of paper applications for an ounce of physical gold that is listed on the exchange. The problem with not having enough gold to meet demand is that the markets will only crash if everyone who invests in paper gold decide to get their investment back in real gold. It is important that you get the actual physical all metal when buying gold, especially if you are buying gold as an investment against the collapse of the monetary system.
When buying gold, make sure you understand how the gold market works. There are two ways you can buy gold. You can buy gold shares or you can physically buy gold. If you are buying gold stocks or gold market products such as exchange traded funds (ETFs) or GLDs, you may find that the terms of sale do not say that you are physically buying gold. You may find later that you may not be asking for physical gold to be delivered; instead they may have a cash compensation clause, meaning that if you get into a difficult financial situation, the bank will pay you in cash instead of physical metals. If you believe in gold and want to buy the real thing, make sure it’s a real gold bar, coin or jewelry.
If you can’t hold the precious metal you’ve bought or actually see what it is you bought, then how do you know that you actually own gold? For the average person on the street who doesn’t have millions to invest in gold, buying gold and storing it close to where they live makes it easy to access when need.
If you are buying an Australian nugget from the Perth Mint, the price per ounce should be as close as possible to the current price of gold spot. The production fee is the amount the merchant has to pay to produce the coins, and then there is the brokerage fee you have to pay the merchant to deliver the gold to you. If you are buying gold coins such as an Australian gold nugget from a gold buyer in a brick and mortar store or online, make sure you don’t pay more than 6% over the market value. There are many reputable gold buyers in Melbourne and sellers in Australia. As Melbourne is the center of the Australian gold industry, there are a large number of gold buyers in the city itself.
Here are some common traits that are present among the top gold buyers in Melbourne:
- They offer competitive prices that are as close as possible to the spot price. The gold they buy and sell has been thoroughly tested and vetted through reliable sources.
- They will have all the certificates and author’s repair papers that prove the quality and value of the gold being bought or sold.
- They have been in business for a long time and have built a good name in the industry.
- They deal with everything related to physical gold in all its forms.
You must follow the law when selling or buying gold. If you are new to investing in gold, start small. Make a list of all the top gold buyers in in your area who deal in coins, bars or jewellery. Determine who offers the best deal when it comes to buying and selling gold as coins or bullion or even scrap gold.
Think about what you can achieve. However, if you can buy multiples, make sure you understand the law and how it will work for you. Don’t speculate. Be prepared to wait for a return on your gold investment. We are now in a bull market and there are some indications that the price of gold may still go up, but it may go down again. You need to wait at least five years to really see a good return. It was completely different at that time. Whether or not you need to be positive to make positive changes is something you are not sure about. The moral of the story is to confront the professionals who will give you the best service and best advice based on the analysis of the current economy, geopolitical crisis and more.
