Gold - Get Physical

[miawilson]

Am I missing anything here, about the ETF issued by Perth Mint PMGOLD (which I own). Especially point 2 about being Physically Redeemable:

ASX: PMGOLD

Perth Mint Gold (ASX CODE: PMGOLD) is a right to gold created by The Perth Mint, which gives investors the ability to purchase Government-backed gold via the Australian Securities Exchange (ASX).

PMGOLD suits investors who prefer to manage their gold investment within their stockbroking account along with their ASX-listed equities and other holdings.

About Perth Mint Gold
The ASX price of PMGOLD is intended to track the international spot price of gold in Australian dollars. PMGOLD has a number of features that make it attractive to investors, including:

• Government guaranteed. PMGOLD is issued by Gold Corporation (trading as The Perth Mint), a statutory authority of the Government of Western Australia. The liabilities of Gold Corporation, including its obligations to PMGOLD investors, are guaranteed under section 22 of the Gold Corporation Act 1987, an Act of the Western Australian Parliament.
• Physically redeemable. Unlike many gold exchange traded products, PMGOLD can be physically redeemed for any of The Perth Mint’s bullion coins and bars.
• Fully backed. Holdings secured on behalf of investors in PMGOLD are fully underpinned by government-backed gold, which is safeguarded in The Perth Mint’s central bank grade vaults.
• Low management fee. PMGOLD’s management fee is just 0.15%, one of the lowest fees worldwide for a gold exchange traded product.
• Highly liquid. The Perth Mint, via its market making agents for Our Fiscal Security, ensures PMGOLD tracks the international spot price of gold by maintaining bid and offer prices and volume on the ASX at all times, in accordance with ASX rules.
• Convenient. PMGOLD can be purchased and sold through your stockbroker or share trading account with the same ease and convenience as investing in shares.

I'm helping a friend with her retirement planning/investing. Today she asked me about investing in/buying gold. What are the pros/cons and differences in buying physical gold vs a gold ETF? And if she wanted to buy physical gold, where is a legitimate place to buy it?

Personally I don't invest in gold but she likes the safety and security of gold. I'm not going to steer her away from gold, but I'll suggest it be a smaller part of her portfolio, perhaps replacing bonds. For example instead of 80% equities and 20% bonds, she could do 80% equities, 10% bonds and 10% gold.

 

[Value Collector]

I'm helping a friend with her retirement planning/investing. Today she asked me about investing in/buying gold. What are the pros/cons and differences in buying physical gold vs a gold ETF? And if she wanted to buy physical gold, where is a legitimate place to buy it?

Personally I don't invest in gold but she likes the safety and security of gold. I'm not going to steer her away from gold, but I'll suggest it be a smaller part of her portfolio, perhaps replacing bonds. For example instead of 80% equities and 20% bonds, she could do 80% equities, 10% bonds and 10% gold.

The biggest problem with gold is that it will only really hold its value over time with inflation, its doesn’t generate additional investment returns.

so if your friend plans to live say 30 years in retirement, but only has $300K gold will protect that $300k from inflation but it won’t grow it, so she will only have about $10k of spending power per year.

however if she puts it in some real investments, the capital might fluctuate with the stock market or property market, but over time she will get the same inflation protection, but also get an investment income/earnings that she can life off.

—————-

If she has all the money she will every need, gold is ok, but if she needs it to actually grow, put it in a range of assets in a tax advantage structure like super.

 

[divs4ever]

Australia’s Economy: Trade Surplus Hits A$11.03 Billion in January on Gold Export Surge​

Australia's Economy: Trade Surplus Hits A$11.03 Billion in January on Gold Export Surge

Australia's economy started the year on a strong note. trade figures for January 2024 indicated a bounce in the trade surplus.

thebull.com.au

' non-monetary gold shipments ' ?

but isn't everything else credit ?

 

[mullokintyre]

@Sean K , is this one of your kangaroos???
Mick

 

[greggles]

It is time to buy Gold bar.

It is the traditional asset when political leadership fails and markets fall precipitously.

Give your ETF's to your dawg.

Miners may be another option but only those with secure operations, even then currency failures may affect them.

My advice is to get physical.

gg

Firstly, good call.

Secondly, I was shocked to discover today that Australia's gold reserves are stored in the UK at the Bank of England.

2. Where is the Reserve Bank's gold stored?

Almost the entirety of the RBA’s physical gold holdings (99.9 per cent) is stored in the United Kingdom at the Bank of England (BoE). The BoE holds the RBA’s gold as bailee; legal and beneficial title to the gold remains with the RBA. A very small amount of gold is stored at the Reserve Bank’s head office in Sydney.

About Our Gold Holdings | Questions & Answers

Frequently asked questions about the RBA Website

www.rba.gov.au

I beg your pardon? Why do the Poms have their grubby fingers on our gold? If the SHTF how are we going to get our gold back to Australia? Book it economy seats on a Qantas flight? This is a damned outrage. I can just imagine those Poms fondling our gold ingots while the wankers at the RBA are playing heads and tails with a few 1oz coins. I expect that is probably the "very small amount" of which they speak.

@Garpal Gumnut, do you have any contacts that can do something about this? We are one bad geopolitical move away from a global catastrophe and our gold is being admired and caressed by some rotten tooth toffs at the BoE on the other side of the world. Given what is going on in the world right now with war and civil unrest in a number of hot spots I think we need to get our gold back home.

 

[Sean K]

Firstly, good call.

Secondly, I was shocked to discover today that Australia's gold reserves are stored in the UK at the Bank of England.

About Our Gold Holdings | Questions & Answers

Frequently asked questions about the RBA Website

www.rba.gov.au

I beg your pardon? Why do the Poms have their grubby fingers on our gold? If the SHTF how are we going to get our gold back to Australia? Book it economy seats on a Qantas flight? This is a damned outrage. I can just imagine those Poms fondling our gold ingots while the wankers at the RBA are playing heads and tails with a few 1oz coins. I expect that is probably the "very small amount" of which they speak.

@Garpal Gumnut, do you have any contacts that can do something about this? We are one bad geopolitical move away from a global catastrophe and our gold is being admired and caressed by some rotten tooth toffs at the BoE on the other side of the world. Given what is going on in the world right now with war and civil unrest in a number of hot spots I think we need to get our gold back home.

I seem to recall that we sent an audit team over there a few years ago to put our fingers on the nuggets and there was a discrepancy. I'm sure if I bothered to Google it I would have a definitive response to that assertion. But I thought I'd write an extra two sentences here instead. I'm not sure why the Perth Mint couldn't be expanded to be our Fort Knox. Or, use my second car space which only has bikes in it at the moment.

 

[greggles]

I seem to recall that we sent an audit team over there a few years ago to put our fingers on the nuggets and there was a discrepancy. I'm sure if I bothered to Google it I would have a definitive response to that assertion. But I thought I'd write an extra two sentences here instead. I'm not sure why the Perth Mint couldn't be expanded to be our Fort Knox. Or, use my second car space which only has bikes in it at the moment.

Aussie fingers should be on our nuggets, not British ones. And yes, there's no reason why we can't have our own special purpose vault. I bet the BoE are charging a pretty penny to watch it for us. We're big boys now, we can take care of our own gold.

But the real issue for me, as I articulated above, is that if the SHTF how do we bring 80 tonnes of gold back to Australia in a hurry? London is a primary nuclear target. If Putin nukes London, our gold is FUBAR. I just think it's a bad move to have it located over there. There's a saying in the precious metals game, "if you don't hold it, you don't own it". In my view, if Australia's gold is located in a vault in London surrounded by sticky fingerered Poms, 17,000 kms away from Canberra , then we don't really own it.

 

[frugal.rock]

Maybe we could store it next door to our strategic oil reserves?.
Oh wait, that's no good either, cause that's in the US of A where it's going to be really helpful for who when we need it in a hurry

 

[Value Collector]

Firstly, good call.

Secondly, I was shocked to discover today that Australia's gold reserves are stored in the UK at the Bank of England.

About Our Gold Holdings | Questions & Answers

Frequently asked questions about the RBA Website

www.rba.gov.au

I beg your pardon? Why do the Poms have their grubby fingers on our gold? If the SHTF how are we going to get our gold back to Australia? Book it economy seats on a Qantas flight? This is a damned outrage. I can just imagine those Poms fondling our gold ingots while the wankers at the RBA are playing heads and tails with a few 1oz coins. I expect that is probably the "very small amount" of which they speak.

@Garpal Gumnut, do you have any contacts that can do something about this? We are one bad geopolitical move away from a global catastrophe and our gold is being admired and caressed by some rotten tooth toffs at the BoE on the other side of the world. Given what is going on in the world right now with war and civil unrest in a number of hot spots I think we need to get our gold back home.

Well we are just a self governing dominion of the British empire… oops I mean commonwealth.

Go join the Army and see who you pledge allegiance too, I will give you a hint, it’s not the people of Australia.

in 1999 we voted to rejected Moves to become more independent.

 

[mullokintyre]

Aussie fingers should be on our nuggets, not British ones. And yes, there's no reason why we can't have our own special purpose vault. I bet the BoE are charging a pretty penny to watch it for us. We're big boys now, we can take care of our own gold.

But the real issue for me, as I articulated above, is that if the SHTF how do we bring 80 tonnes of gold back to Australia in a hurry? London is a primary nuclear target. If Putin nukes London, our gold is FUBAR. I just think it's a bad move to have it located over there. There's a saying in the precious metals game, "if you don't hold it, you don't own it". In my view, if Australia's gold is located in a vault in London surrounded by sticky fingerered Poms, 17,000 kms away from Canberra , then we don't really own it.

At around $80 million a Tonne, our gold reserves would be worth around $6.4 billion.
The UK is the second largest holder of Oz agricultural land.
It also holds other investments in water rights (around 8% equal with China ), and investments in LICS, Commercial real estate, ASX listed entities and few other things.
The combined value of these would far outstrip the 6.4 billion in gold value, so we could just say thansk, keep the gold, we will strip you of all investments.
Mick

 

[Garpal Gumnut]

Firstly, good call.

@Garpal Gumnut, do you have any contacts that can do something about this? We are one bad geopolitical move away from a global catastrophe and our gold is being admired and caressed by some rotten tooth toffs at the BoE on the other side of the world. Given what is going on in the world right now with war and civil unrest in a number of hot spots I think we need to get our gold back home.

There is room in the cellar for Australia's Horde. South Townsville was bombed by the Japanese during WW2 so we are used to conflict.

gg

 

[divs4ever]

View attachment 174341

There is room in the cellar for Australia's Horde. South Townsville was bombed by the Japanese during WW2 so we are used to conflict.

gg

and 20 rowdy drinkers as security ?