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Protecting Your Wealth Gold and Silver Bullion in Australia
18

Protecting Your Wealth Gold and Silver Bullion in Australia.

Mar 31, 2015

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Kylan Ferrar
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Page 1: Protecting Your Wealth Gold and Silver Bullion in Australia.

Protecting Your WealthGold and Silver Bullion

in Australia

Page 2: Protecting Your Wealth Gold and Silver Bullion in Australia.

Protecting Your Wealth Gold & Silver in Australia

4 Key Reasons for Buying Gold & Silver Bullion

Physical Bullion versus Futures and ETF’s

Purchasing Bullion in Australia

Storing Bullion in Australia

Page 3: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver Bullion

1. Hedge against Global Economic Uncertainty

Unsustainable Government Debt

o US $17 trillion Excludes unfunded liabilities

o Japan $10 trillion 230% of GDP

o Eurozone $12 trillion PIGS average 126% of GDP

Page 4: Protecting Your Wealth Gold and Silver Bullion in Australia.

US Debt Limit

US Debt

Gold Price

Page 5: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver Bullion

1. Hedge against Global Economic Uncertainty…continued..

Rampant Monetisation & Easy Moneyo US Quantitative Easing (QE)

$85 billion / montho Japan “Abenomics”

$75 billion / montho Near zero interest rate policies

Unwinding of Derivativeso Potentially $1 quadrillion globallyo Bond run could trigger

Gold & Silver are REAL money – not paper Fiat currencyo Have been for thousands of years…

Page 6: Protecting Your Wealth Gold and Silver Bullion in Australia.

Gold Price

US Monetary Base

Page 7: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver Bullion

2. Fundamental Shift – “Weak” to “Strong” Hands

Most Speculators flushed out

o Big price corrections in April and Juneo Speculators scared and stop-loss orders triggeredo Large outflows from ETF’s

Net Futures Positions of big Bullion Banks now Long

o Same banks were Short and covered at lower priceso 25% of COMEX positions held by 1 Bullion Bank

Biggest concentrated long position in COMEX history

Page 8: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver Bullion

2. Fundamental Shift – “Weak” to “Strong” Hands… continued..

Strong shift from “paper” (ETFs and Futures) to physical bullion

o China and India (more generally the East) very big buyers 50% of all gold bars and coins 2Q13

o Eastern Central Banks big purchasers China officially only 2% of reserves

o Record sales of US Mint coins

o Rising premiums for physical bullion Disconnect from paper price

Page 9: Protecting Your Wealth Gold and Silver Bullion in Australia.
Page 10: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver

3. Supply & Demand

Price and industrial disputes affect supply

o Current low prices below many mine’s costo Low prices also reduce scrap availability

Gold - Strong demand for investment & jewellery

o Both private and central bank

Silver - Very strong demand

o Investment - Ratio @ 60:1, India, US Minto Industrial - Solar panels, medical, electronics - all growing

Page 11: Protecting Your Wealth Gold and Silver Bullion in Australia.

Chinese Gold Production

Gold Imports through Hong Kong

Page 12: Protecting Your Wealth Gold and Silver Bullion in Australia.

4 Key Reasons for Buying Gold & Silver Bullion

4. Diversifying your Investment Portfolio

Shares, property, and bonds all exposed o Another financial crisis would bring down shares and propertyo Bonds will suffer with any tapering of QE

In Australia both Gold and Silver have outperformed shares and property over last 10 years

Introduces a hard asset

Can be located in different country. International pricing.

Page 13: Protecting Your Wealth Gold and Silver Bullion in Australia.
Page 14: Protecting Your Wealth Gold and Silver Bullion in Australia.

Physical Bullion versus Futures and ETF’s

Paper trading is widely viewed as manipulatedo Largely controlled by Big 4 Bullion Bankso April/May price plunge highly suspect

Disconnect between paper and physical priceso Plunging paper price but rampant physical sales in Mayo Increased premiums on physical to reflect reality

ETF’s – Physical holdings may not match shareso Testimony before CFTC Hearing of 100:1o Recent examples of large funds stating cash settlement not metal

Paper is only EVER a promise to payo Why risk trusting the promise if you can own the

real thing easily?

Page 15: Protecting Your Wealth Gold and Silver Bullion in Australia.

Purchasing Bullion in Australia

One of the world’s largest producers

Strong and globally competitive bullion supply

Currency Hedgeo AUD expected to fall (Reserve Bank objective plus China trade)o Buying USD spot lead commodity in AUD potential benefit

Ainslie Bullion www.ainsliebullion.com.auo One of the largest in Australia. Largest in Brisbane, closest State

city to Chinao Privately owned and nearly 40 years oldo Purchases by internet, phone or in persono Can supply Perth Mint Chinese Lunar Year coins at same priceo Free insured delivery to Reserve Vault in Brisbane

Page 16: Protecting Your Wealth Gold and Silver Bullion in Australia.

Storing Bullion in Australia

Sound diversification strategyo Provides product mix AND geographical mix

Australia geopolitically stable Non Government storage options

o Addresses concerns of confiscation Non Bank or Financial Institution options

o Alleviates concerns of global trend to Cyprus style ‘bail ins’.

. www.reservevault.com.auo Independently owned – non Government, non Bank / Financial Insto Largest in Australiao World Class Secure Storageo Specialising in Bullion with a range of optionso Custodial Storage available – allows secure remote accesso Insurance underwritten by Lloyds of London

Page 17: Protecting Your Wealth Gold and Silver Bullion in Australia.

Still very much a world in Economic turmoilo Too much debto Too much easy moneyo Toxic Derivatives still in the system

Gold and Silver Bullion are real moneyo Can’t be ‘printed’ or extinguished like papero Money for thousands of years

Diversify your portfolio both by investment type and location

Store your wealth outside of Bank and Government influence

Both buying and secure storage is easy with Ainslie Bullion

Page 18: Protecting Your Wealth Gold and Silver Bullion in Australia.

Thank you.

Please see me after the talk if you have any queriesPaul Engeman

Disclaimer:This information and that expressed by the presenter is provided for general information purposes only. You should seek independent professional advice. The content, views and opinions may be sourced from a third party. Ainslie Bullion and/or the Reserve Vault do not guarantee the accuracy of this information and accept no liability for any loss incurred as a result of this information.

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