Protecting Your Wealth Gold and Silver Bullion in Australia
Mar 31, 2015
Protecting Your WealthGold 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
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
US Debt Limit
US Debt
Gold Price
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…
Gold Price
US Monetary Base
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
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
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
Chinese Gold Production
Gold Imports through Hong Kong
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.
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?
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
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
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
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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