Metals – What to Buy?
Owning an amount of physical gold is one of the best ways
of protecting wealth. The gold price can go down, but never
to zero! Cash, shares and all other financial instruments
CAN go to zero!
And if your gold does go down it means that your cash and
other investments are worth something. Therefore Gold is
an ideal hedge against losing all your wealth.
~ Get Physical: Gold shares or Exchange-traded
funds (ETFs) are not equivalent to physical gold, they are
speculative. Only physical gold that you can hold in your
hand will protect you from derivative meltdown, naked short-selling,
banking failure, stock market collapse, state sponsored
inflation and the other goodies that 2008/2009 has in store
~ Protection not Speculation: Physical
gold is something to buy to protect what you have in turbulent
times, not to speculate in or make you rich. If economic
turbulence subsides or deflation hits, the value of gold
will decline sharply.
~ Cash has risk: Bank deposits take
on the individual company risk of the bank. You are also
taking on government risk, as all cash is a promise from
and a belief in the government.
Coins are ideal to barter with. Gold coins can be too valuable
for bartering normal every day items, and represent a security
threat when going out to purchase things.
reports that above ground stockpiles of silver have dwindled
to almost nothing and warehouse inventories are down to
around 100 million ounces, of which two thirds are already
o Silver is absolutely essential for industry, being used
in many things from keyboards to phones, refrigerators and
thousands of other manufactured goods. This demand, coupled
with limited supply, should ensure its long term value remains
How to Buy Gold and Silver
There are many ways to buy Gold and silver, but the best
way is to buy bullion.
We believe the best way is to buy direct from mints or dealers.
You can buy Gold or Silver Bullion in either coin or bar.
Coin and bars both have a premium associated, to cover the
manufacturing costs. The smaller the bar or coin in weight,
the higher the premium, therefore it makes sense to purchase
Our favourite mint is the Perth mint of Western Australia
(www.theperthmint.com.au). To purchase either Gold or Silver
bullion, simply call the mint shop on +61 8 9221 9804 and
they will email you a price list. You can complete the sales
contract over the phone and they email you the contract
to sign and fax or email back to them. You transfer the
cost of the bullion, plus courier and insurance charges,
and after. The bullion is insured until you sign the delivery.
Silver junk coins can be useful for bartering. Junk silver
coins are old coinage from the time that coins contained
silver (when money was always going to be worth something!).
The coins have no real value to collectors, but have value
due to the silver content.
In the USA, Junk silver refers mainly to those coins minted
pre 1964 or 65. Pre 1965 the amount of silver in silver
coins was around 90%, after that date the amount of silver
in each coin was reduced. These coins can be easily purchased
from coin dealers or on ebay.
In Australia, the 1966 50 cent “Silver Round”
is a very popular junk silver coin, having 80% silver content.
They can be currently purchased from coin dealers or on
ebay for around AUD $7.50 each. These coins are ideal for
If you want to buy gold that is kept in a vault, by far
the best place is www.goldmoney.com
they offer gold and silver which they store in a vault in
Zurich and which is insured by Loyds of London(which if
all banks go bust will be one of the last ones to go). they
also have one of the lowest fees available, they only charge
for buying and not selling.
Otherwise if you want to buy gold or silver coins we recommened