While Australia ranked as the third-largest gold producer in 2019, reaching 330 MT, it stepped up by one position last year. The recent gold exploration activities in the Pilbara region of Western Australia have contributed to this consistent increase in Oz’s gold output.
When you wish to invest in this yellow metal, it is best to consult a top bullion dealer. Reputable consultants like Gold Bullion Australia are experts at trading and vaulting high-quality gold, considering the historical and current gold prices. Here are a few common pitfalls of investing in this precious metal that these professionals will advise you to avoid.
Not Having a Clear Goal
There are over 1 million SMSF members in Australia, and the total estimated asset value is more than $730 billion. And many Aussies prefer investing in gold using their SMSF to protect the physical asset for peaceful retirement life.
While you may perceive gold as wealth insurance, you might also get motivated by its profit prospects.
Top retailers first ask you about your goals in owning the physical metal and then guide you to the best suitable form and storage options.
What you need is to be clear why you wish to buy gold.; it will help you meet your investment goals better.
Having Misconception About ETFs and Precious Metal
The top gold ETFs in Australia are with FUM in the range of $2000 million, $500 million and $350 million. They rank high based on their whopping size, costs, liquidity and track record.
However, top bullion consultants feature branded gold bars and coins in their purest form, in various weights and price ranges.
While you can own gold through ETFs, it is always good to have direct ownership for the safest form of gold investments.
Engaging a Wrong Dealer
A couple of years ago, ATO and other government agencies executed search warrants on the premises of companies managing gold bullion and other precious metals. They were involved in mislabelling pure gold bars to claim a fake GST tax credit.
On the other hand, experienced dealers, such as Gold Bullion Australia, handle investment-grade bullion with a gold purity of 99.99%. Each bar that you buy from them has details stamped, including its brand logo.
Check the dealer’s credibility and see if trusted sources recommend them. Compare the top consultants with decades of experience and avoid high-pressure professionals.
Falling for Scams
Recently, many Australians lost thousands of dollars in a gold scam. They got duped by a bogus investment company, Strauss-Mann Trading Solutions, that scammed the locals through a fake website.
Every industry has scammers; rather than providing high-quality products and services, they focus on cheating you.
When you engage trusted consultants, you are sure to receive genuine services, from vaulting, delivery, SMSF, selling back to the buying process. Ensure you don’t fall for any phoney gold schemes, which may appear alluring, but are in fact, scams that can make you lose your hard-earned money.
Final Thoughts
The commencement of over 80 projects is expected to support a potential gold production growth in Australia, to more than 13,000koz in the next four years. Enrol an experienced bullion dealer and avoid committing potential mistakes while investing in gold. You can then utilise the excellent prospects this precious metal presents and make the best out of gold investments in Oz.