Things to Keep in Mind If Buying Gold Bullion in Australia

Gold Bullion

Gold became the standard form of trading in 1871 after the end of the Franco-Prussian war. The California gold rush kickstarted in 1849 and a flood of new immigrants reached the Australian shores to seek fortune during the same period.

In the late 1890s, significant gold deposits were found in Western Australia. Until today Australia holds the largest gold mine reserves than any other country. If you’re seeking to buy gold coins or bars, click here.

Australia is indeed the best location to invest in gold bullion. But, there are a few aspects that influence the gold price. They include the value of the US dollar, investment demand, central bank reserves, wealth protection, consumer demand, jewellery & industrial demand, and geopolitical events. So, if you have plans to buy gold bullion, here are a few things that you should keep in mind.

Buy from a Recognized Bullion Dealer

Various websites help you to buy the physical gold coins and gold bars. But, your preference should be purchasing the bullion from a reputable dealer in the Australian market. Reliability is crucial in such valuable transactions.

Another critical aspect of dealing with recognized bullion dealers is that they have to adhere to the AUSTRAC standards. No bullion trader will ever deal with money laundering acts, but other online sellers do not adhere to any such trading standard.

Check the Level of Purity

In Australian wholesale investment precious metal markets, the physical gold is traded in bars of approximately 400oz with a purity of 99.5% or more. The price of gold is affected by the different levels of purity in gold.

For instance, 91.6% of gold contains 22 parts of gold and two parts of other metal, and hence it is 22-carat gold. It is crucial to check whether the quality you are buying is worth the money you are spending. To know more details about the purity and quality, click here.

Buy with Your Savings, Do Not Use Credit

Until March 2020, the gross Australian government debt was $573.1 billion. The current system relies on credit and debt, which is not a part of a healthy economy. It is better to save today to invest in gold because gold bullion is going to be the backbone of your future.

You can liquefy it if there is an emergency in any case. If you buy the gold on credit, you may have to repay it before the gold price rises. So, invest wisely and do not run into losses.

Storing Your Gold in the Banks

In certain circumstances like liquidation, the Australian banks can exercise their rights to the content of your safety deposit box. It is best to store your gold either at home or somewhere, where no one can have access to your gold.

Most of the bullion dealers offer the services of storing the gold for you. It is one of the cheapest alternatives when you have plans to buy gold in larger quantities. It simply means you buy the gold, and the dealer holds it for you. You need not take the delivery. The bullion dealer will offer you two options of storage- allocated and unallocated- you must decide which option to select.

Comply with the Laws

The Banking Act of 1959, allows the Governor of Australia to seize the gold of private holders to protect the currency in times of crisis. Most of the buyers prefer to buy coins because they can buy them privately. You do not have to disclose your details to make small gold purchases.

But when you buy the gold in larger denominations, you must declare the value, pay the relevant tax, and adhere to the laws.