What is the best way to buy gold for investment?

Hunter80 on 21/02/2014 - 16:19

Hi,
What is the cheapest way to buy the gold for investment? on Stock exchange or from a shop front?

Financial

Comments

  • cloudy on 21/02/2014 - 16:29

    If ur gonna buy it, u may as well enjoy it too. So physical coins or something like that.

    But if u want pure investment, I believe there are gold eft that trades very very closely to gold movements, GLD is the ticker from memory.

  • fatboyslim on 21/02/2014 - 16:35

    get a piece of real gold and hide it under ur bed

  • altomic on 21/02/2014 - 16:43

    this might be helpful.

  • Hunter80 on 21/02/2014 - 16:45

    Thanks for your suggestions, What are my options though? Where to buy? Which shop front? Which EFT?

    • Baysew on 22/02/2014 - 09:51

      EFT's available -
      BetaShares Gold Bullion ETF (Code:QAU)
      ETFS Metal Securities: Gold Bullion (Code:GOLD)
      Perth Mint (Code:PMGOLD)

      QAU is hedged against movements of the AU$ and US$.
      The other two unhedged.

      • rong818 on 05/03/2014 - 13:30

        For PMGOLD, you need to read the fine print because a management fee will be deducted annually from your holding unit. The good thing is you can convert your holding into real physical gold at Perth Mint (not true/sure for other ETF and paper gold).

        For physical gold, you have to research into "premium over spot price". For example, gold spot price is $1200, gold bullion and coin could be 3% to 15% ($1495) more expensive than the spot price. In this case, the $295 is premium you paid for the mintage/fabrication of the coin/bullion + fee/commission for the shop.

        This also means you will have to wait for the gold price to go up 3% to 15% before you break even, as the shop only pay spot price when you sell back to them.

        I buy Perth Mint lunar series (animal), Koala and Kookaburra (bird) 1oz silver coin every year, put them in a drawer and take them out to admire when I feel like.

  • matt3 on 21/02/2014 - 17:40

    They say in a gold rush it's the people who sell the shovels that make all the money. You could buy shares in Codan (CDA), who sell the world's best gold and metal detectors. Having said that, their share price has dropped a fair bit recently because they haven't been able to sell as many detectors in Africa as previously.

  • ilostnemo on 21/02/2014 - 18:50

    they say physical gold is the way to go.

    There is a gold price app called gold price which has a big yellow g to identify it.

    He is very bullish with gold and writes up daily about the movements.

    Try a pawnbroker, make sure you know what the price of gold is before haggling and also know the purity.

  • p1 ama on 21/02/2014 - 19:12

    Trade on the futures market!

  • jzx100 on 21/02/2014 - 19:47
    +2

    Do what this guy did and yes this is real!:

    http://i.dailymail.co.uk/i/pix/2013/01/04/article-2257209-16…

  • mskeggs on 21/02/2014 - 21:12
    +1

    Why do you want gold? If you just think it will rise in value, then an ETF or one of the bullion storage places is fine. I think Perth mint will hold it for you too, if you want local.
    If you are buying it in case there is an economic melt down, you must have the metal in your hands, no other option.
    In that circumstance I would probably buy sovereign/half sovereign coins from ebay.

    • iseenya on 21/02/2014 - 23:51

      I can vouch for the merit of the suggestion to buy sovereigns on eBay. Not all sellers (or buyers) understand how to determine the actual gold content of a sovereign and if you follow the auctions closely, occasionally you can find an opportunity to buy at less than gold price. I built myself a small stash in this way, back when non-numismatic sovereigns selling at the then current gold price were just under $140; most cost me between $125-135, but on one occasion I paid only $117!

      Incidentally, non-numismatic sovereigns are sometimes available from coin dealers for the current gold price without any premium - check out any coin fairs that are held in your area and see what's on offer.

  • horsome on 21/02/2014 - 21:36

    Another option would be to buy gold mining stocks. The price tends to trend with the price of gold and could have even bigger return on investment if gold price spikes being a gold producer.

  • raffy on 22/02/2014 - 08:33
    +1

    How about Australian Bullion Co.
    http://www.abcbullion.com.au/

    At least you know that it's legit and the gold IS gold. Prices are the internationally published ones . You can also sell back to them. They do get a small cut, but they deserve it. None of this "we buy gold" stalls at supermarkets, and they give you 70% of value.
    These guys get about 3% to 5%

  • bsk on 22/02/2014 - 10:59

    Can you invest in gold for a small amount say $1000 to keep for the kids or grand kids?

  • mini2 on 23/02/2014 - 10:35

    Buy physical gold and often those larger dealers offer some sort of storage facilities.

  • CI on 23/02/2014 - 23:40

    You need to buy greater than 99.995% fineness. You should be buying physical gold, from 1oz, 2oz to 1kg bullion bars.
    Right now is not that great a time to buy.

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