Gold is an economic/inflation hedge and always a sound investment.
In Australia, with its such gold mining heritage and financially solid foundation there, purchasing gold is quite simple providing you know where and what.
New investor or portfolio builder, in Australia, you shall be able to invest wisely and sagely in gold.
This guide covers all there is to know about how to buy gold in Australia, gold investments available, where to buy them from, how to store them, and the regulatory and tax environment.
Why Invest in Gold?
Before knowing how to buy gold in Australia, let’s find out why people invest in gold:
- Hedge Against Inflation: Gold maintains purchasing power as fiat money devalues.
- Safe-Haven Asset: Gold is a great investment during economic downturn or geopolitical instability.
- Portfolio Diversification: It’s another diversification, hence reducing overall investment risk.
- Tangible Asset: Gold is a tangible asset compared to stocks or intangible assets.
Australian Gold Investment Types
Here are the different ways how to buy gold in Australia.
A. Physical Gold
1. Gold Bullion Bars
Gold bars are the most affordable way to physically own gold. Available in a range of weights (1g to 1kg or more) and usually 99.99% pure.
2. Gold Coins
Extremely popular with investors and collectors. Perth Mint offers coins such as the Australian Kangaroo, Lunar Series, and Koala coins, which are legal tender.
3. Jewelry
Although not the most lucrative investment in terms of higher markups and lower resale, gold jewelry is still a tangible wealth.
B. Paper and Electronic Gold
1. Gold Exchange-Traded Funds (ETFs)
These ETFs such as ETFS Physical Gold (ASX: GOLD) or Perth Mint Gold (ASX: PMGOLD) follow the gold price without taking up space.
2. Gold Mining Stocks
Invest in stocks of gold mines and gold production such as Newcrest Mining, Northern Star Resources, and Evolution Mining.
3. Gold Futures and Options
Sophisticated products utilized by channels of trade. They are risky and carry high potential gains.
4. Perth Mint Depository Online (PMDO)
Private alternative in Australia where one can buy, hold, and sell gold through the agency of an institution with government backing.
Where to Buy Gold in Australia?
There are different ways from where you can buy gold and silver online in Australia, here are the possible ways for that.
A. Bullion Dealers
Buying through reputable bullion dealers ensures authenticity, fair prices, and expert guidance. The following are reputable suppliers:
- ABC Bullion (Sydney)
- Perth Mint (Perth)
- Ainslie Bullion (Brisbane and Melbourne)
- Gold Stackers (Melbourne)
- Guardian Gold (Online and branches)
B. Banks
Not so much anymore, some Australian banks will buy or sell certificates, but fewer still will trade actual gold.
C. Online Platforms
Internet sites enable one to easily buy and keep gold reserves. Some decent internet retailers are:
- Perth Mint Online Store
- Gold DeSilver
- Ainslie Bullion Online
- Bullion Now
See that the site has good secure payment facilities, insured postal delivery, and a good reputation.
How To Buy Gold In Australia
The following is a step-by-step guide to buying physical gold coins or bullion:
Step 1: Set Your Budget And Reasons
Choose how much you want to spend and in paper or actual gold. Short-term profit or long-term preservation of wealth?
Step 2: Choose A Dealer
You need a good, licensed bullion dealer. Read customer reviews, price comparison, and that they have secure storage and delivery facilities.
Step 3: Choose The Product
Buy coins or bars depending upon liquidity, premiums, and investment objectives. Coins are more liquid; bars are lower in premiums.
Step 4: Purchase
Buy in person or online. Payment terms tend to shift from bank transfers to credit/debit cards to even cryptocurrency occasionally.
Step 5: Storage
Choose where to keep your gold:
- Home Safe: Provides control but can be stolen.
- Bank Safety Deposit Box: Safe, but uninsured for market value.
- Third-party Vault Storage: Perth Mint and private vault storage offer insured and safe storage.
How To Buy Gold In Australia With Legal And Tax Adherence?
Follow these steps to buy gold in Australia with legal and tax adherence.
A. Is It Legal to Hold Gold in Australia?
Yes. Individual ownership of gold for investment or personal use is not against the law in Australia.
B. Goods and Services Tax (GST)
- Specified purity level gold coins and gold bars are GST exempt.
- Gold coins and jewelry are GST liable.
C. Capital Gains Tax (CGT)
You are liable for CGT if you dispose of your gold and make a profit. Unless:
- Owners hold them for more than 12 months and are able to claim a 50% CGT discount.
- CGT is not applicable if the gold is an **asset of private use** and is less than AUD 10,000.
While there is nothing to report on gold ownership, repeat purchases or purchases in large quantities would raise ATO suspicion.
How To Buy Gold In Australia: First-Time Gold Buyers Guidelines
- Purity Assured: Make sure the product is 99.99% pure and assured as such.
- Be Conscious of Premiums: Always make sure the premium charged by the dealer on the gold spot price.
- Intelligent Buying: Don’t buy due to fear and panic. Prepare and research.
- Monitor the Market: Monitor the price of gold and international economic indices.
- Retire Your Money: Safely store your gold and place it in a secure, reliable place.
Risks And Challenges In Buying Gold In Australia
Even though gold is a safe investment, it is not entirely risk-free:
- Price Volatility: In general, stable, but temporary price volatility can be possible.
- Liquidity Squeezes: Off-season seasons, selling physical gold may not be in real-time.
- Storage and Insurance Fees: Finally, you must think about the logistics, delivery and storage options that are associated with buying precious metals online, while this logistical convenience allows you to manage your holdings flexibly.
- Scams and Counterfeits: Always sell through genuine sources to avoid counterfeit products.
Selling Gold In Australia
When it’s time to sell your gold:
- Sell Back to Bullion Dealers: Most reputable dealers offer buy-back services.
- Utilize Online Platforms: Make sure to abide by their verification and delivery processes.
- Private Sale: It can fetch a superior price but involves more risk.
Have receipts and certificates of authenticity handy, since they are worth something and assist resale.
How To Buy Gold In Australia! Summing Up
It is easy and secure to know how to buy gold in Australia, there is a well-developed network of dealers, government-backed organizations like the Perth Mint, and an efficient regulatory framework.
If you are the type who prefers to keep your coins and bars under your hand, or invest in intangible forms like ETFs and mine shares, there is a vehicle for gold investment that caters to every class of investor.
By finding out what you are investing in, choosing the appropriate products and suppliers, and keeping current with market trends and tax laws, you can go ahead in confidence to include gold in your portfolio as an ultimate hedge.
READ MORE:
