There’s Gold In The Hills…….District

There’s GOLD in NW Sydney

It is the stuff of legend and has been part of human culture for thousands of years, Phoenicians, Egyptians, Indians, Hittites, Chinese and of course, many of the Mediterranean cultures warred and built empires on the back of gold.

Investing in Gold may seem a little daunting to the uninitiated, though really, it is a safe and simple way to diversify your asset portfolio.

The owners and operators of AVI Vaults and AVI Bullion in Bella Vista, have been helping people purchase and store precious metals for many years, offering a one stop location for the purchasing and storage of these valuable commodities.

When considering investing in any asset class, one should always seek advice prior. Some points to consider with precious metals.

Physical or paper gold ?  Gold Bullion

Paper gold is a form of a contract, at the value of gold, which can be easily traded on commodities markets and impacts the price of the physical metal as it is traded internationally.

The physical metal is what AVI Bullion sells and AVI Vaults stores in its vaults. This strategy means you physically hold the asset rather than a paper contract.

Of note, some quoted ratios of physical gold vs the paper contracts that are written against them are, for gold 233:1 and silver a whopping 520:1. This means, for example, that for one physical gold ounce, there are over 200 paper contracts.

The reality is, with only a finite amount of physical metal available above the ground, how long can the manipulation be sustained until a supply and demand ratio dictates the price.

Time will tell.

Market trends 

Throughout history, gold has been a symbol of wealth and power, symbolised still today in its physical form within the vaults of many families and Central Banks around the world.

Golds price can be affected by interest rates, supply & demand, stock market trends, oil prices and even wedding season can be a factor, so it can be a volatile ride in the short term.

Arguably the “printing” of money by countries around the world, to promote growth, will lead to an inflationary environment.

Others will say, that due to economies not being at capacity, quantitative easing is important to ward off recession.

We are in uncharted territory, with enormous global debt and plenty of underperforming economies.

Where to store your gold or silver

Once your purchase is complete, there is the decision about storage, for safe keeping.

The temptation to keep your shiny metals at home to show and tell friends and family may be strong, though this really is the last place you would want to store your assets, even if you do have a safe.

AVI Bullion and AVI Vaults, offers clients the ability to purchase and store gold in one secure environment, with many hallmarks such as The Perth Mint, PAMP and ABC on display in the showroom. This makes for a much safer and more secure experience when purchasing your gold and silver bullion.

AVI Bullion staff are happy to discuss your requirements in a safe and discreet environment, in the Heart of The Hills district, Bella Vista.

Andrew Dalton

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