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ABC Bullion

The cheapest way to buy gold

08 September 2021

Tuesday 7 September 2021

•  How to store physical precious metals
•  Pool allocated — storage made simple

Dear Investor,

What is the cheapest way to own gold…or any bullion for that matter?

 
Shae Russell

Shae Russell,
Group Communications Manager

If you answered cast bars, well done! You were paying attention last week. Because I did say that physical cast bullion offered the most bang for buck…

…but I didn’t say they were the cheapest way to buy bullion.

Let me show you how to get ‘more bounce for your ounce’.

 
 

How to store physical precious metals

 

 

I’ve been buying bullion for over 15 years now. In that time, I’ve introduced thousands, — nay, tens of thousands — of people to the benefits of owning precious metals.

My tenure in this space, means I’ve heard all the questions. And anyone new to bullion will always first ask ‘what kind of precious metals do I buy?’…which is quickly followed with ‘but where do I keep them?’.

Once people have precious metals in their hot little hands, storage for these hunks of rare metals stump them. What on earth is a person meant to do them?

When it comes to storage, you have several options…but first a cautionary tale.  

You may be tempted to keep bullion at home. In fact, there’s a large range of web pages that come up with ideas on how to hide gold. I understand the desire to keep your precious metals close. But storing it at home is highly risky. Simply put, you can’t insure gold stored at home.

You see, bullion is like cash. If you store your bullion at home and it’s lost or stolen, you’ll never be able to recoup it. Remember, gold is money. You need to treat your gold exactly as you would cash.

If this story doesn’t deter from keeping your bullion at home, hear me on this. You absolutely must install a top quality safe. I’m not talking about the sort of safe you can find at Bunnings, either.

There are countless videos on the internet to show you how to crack open one of these with only a little bit of force. I’ve personally done this. With the help of a YouTube video, and some whacks in the right place, I was able to crack open my own personal off-the-rack Bunnings safe once or twice before.

Knowing this, safety deposit boxes are popular and, obviously the profoundly more secure option. Privately owned vaulting services such as Custodian Vaults, offer secure and discreet storage options for people who take physical possession of there precious metals. If you are interested in a vaulting service, look for one that is privately owned, one that offers contents insurance (which will likely attract a fee).

In saying that, there are people who buy precious metals and never take them home. And that’s just the way they like it…

 
 

Pool allocated — storage made simple

 

 

What if I told you, you could own precious metals and never have to pay a dime for storage? Plus, it comes with the option to redeem your physical precious metals at any time…

…I’ve got your attention now, haven’t I?

There’s a simple solution for people who want exposure to precious metal prices, but they are unsure if they want the responsibility of storing said metals themselves.

This is where ‘pooled’ bullion products come in.

Pool allocated storage means you can buy gold for example, but don’t take physical delivery of it.

Rather than buying a specific physical bar, investors buy a ‘share’ in a pool of gold (or silver and platinum!). This is a great alternative to buying physical precious metals, as you can start small and build your position in slowly.

Say you want five ounces of gold, if you select pool allocated storage, you will have a claim to five ounces of bullion. You don’t ‘own’ any particular bar, rather you have a claim to a total weight of gold.

Alternatively, you set a limit — say $15,000 — and you buy the dollar value weight equivalent of pool allocated gold.

1oz ABC Bullion Minted Tablet Gold

With a pool allocated product, you can invest either based on weight or dollar value. You have the power to choose what suits your investing profile.

Pool allocated gold is popular with people who plan on buying large quantities of gold or are looking to benefit from short term price movements in the price. Pool allocated storage is often the cheapest way to buy bullion as you don’t pay any storage fees.

Importantly, all pool allocated products at ABC Bullion are 100% backed the precious metal as well as being independently audited by a third party each year.

Should you choose to redeem your precious metals from pool allocated, all you need to do is pay a barring premium and then organise delivery or collection. Simple.

Whichever bullion option you choose, make sure it’s right for you.

Until next time,

Shae Russell
Group Communications Manager,
For ABC Bullion