The investors who prefer holding tangible assets over intangible assets invest in gold bullions. People dealing with precious metals often have the upper hand when trading in ETFs (exchanges traded funds) or other intangible assets.
An article on Capital.com reports that gold prices did not fluctuate due to the pandemic, but they were impacted. And gold outperformed most of the other major asset classes in the first half of 2020.
Experts at Gold Bullion Australia believe that Australian investors should hedge against falling markets in the first quarter of 2019. This can result in an increased gold price and bring other precious metals in the spotlight.
Now, let’s understand how and where to get the gold bullion for investment in the Australian market.
Buy Gold in Smaller Sizes
Gold coins, ingots, or bars come in different quantities and sizes. The majority of the investors in Australia prefer buying coins as they can be held and sold quickly. Gold bullion is the best liquidating asset. Hence, it helps to buy gold bars or coins in workable sizes for easy buying and selling.
For instance, if an investor has $15,000 and if gold is selling at $1,500 per ounce, it will be easier for the investor to sell the gold if they have ten one-ounce bars. In case of emergency, getting a buyer for a one-ounce bar will be much easier than finding a buyer for a 10-ounce bar.
Buying Gold Bullion Online is Simple
According to the Council of Financial Regulators, identification is necessary by bullion dealers for trades more than 5000 AUD. Also, cash transactions, more than 10,000 AUD, must be reported. In January 2020, there was a notable rise in Australian Kangaroo silver bullion sales. Many people also prefer buying other precious metals like silver, platinum, and palladium.
You may purchase gold bars and coins from an online dealer. But before buying through online sources, browse about the reputable dealers beforehand. Online retailers like Gold Bullion Australia give discounts to customers buying in larger quantities. Many dealers also provide storage services once you buy, and you get the option to make the dealer hold it for you, instead of delivering to your place.
Focus on Purity
Popular mints that produce gold bullion include Perth Mint, Royal Canadian Mint, and South African Mint (Krugerrand Silver coins). A Trading Economics report states gold reserves in Australia increased to 79 tonnes in 2020 from 68.74 tonnes in 2019. Gold is the most precious metal in the world and has many trade benefits.
Hence, follow this guide when you decide to invest in gold, and make sure you check the purity. It has to be 99.99% pure gold. Usually, silver or copper is used as an alloy in gold bullion production. Alloys make smelting possible. The gold bar or coins must feature the manufacturer’s name, weight, and purity.
Track the Gold Price
Today, the gold spot price in AUD is $2,724, and the spot price in USD is 1,937. Various factors in the commodity market may influence gold pricing. Due to volatility in the demand and supply, the gold prices also change. The other major factor that influences the gold prices is a change in USD.
The gold is priced in USD, so when the rate of AUD falls, the gold investors in Australia get additional returns on their gold investment. The best situation for the Australian investors is when the gold prices rise, and the AUD rate falls against the USD at the same time.
That is when gold investors can benefit from both the falling exchange rate and the higher gold price. Hence, you must keep track of the exchange rates to earn profits in gold trading.
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