I have a question for people and would appreciate your opinion and thinking process. I was asked this the other day although more heads the better. If one was to have One million dollars Australian and had the idea to convert that amount into Gold or Pm's, what amounts in what quantities would you buy. The person was only interested in exiting the banking system to avoid total loss due to a financial end time.
Liquidity is king. I would have the majority in what ever is most liquid to a wider market. At that moment thats 1oz bars, if that changes then adjust what you have accordingly.
That's a lot of storage space you'll need! Truth is, any good dealer will pay you spot for your metals making it instantly liquid. Sure for the kg bars, you might have to go see larger dealers. I would get an assortment of various sizes (not under an oz tho) as close to spot as possible, and would probably grab most in 5oz bars - this size will still be accepted by most dealers at spot - and complete with kg bars.
1. One ounce ingots of gold are generally not numbered. This may be a plus or minus depending on your mindset. 2. All in all, ingots have the lowest spread between buy and sell costs at dealers. Many dealers will only buy at spot, sometimes worse than spot, even with decent coins, such as those from the Perth Mint, or PAMP certicards, which carry a fabrication premium well above that of ingots. However, if you are planning to hold your gold overseas or sell internationally, then you will need to consider that some local ingots are not well recognised overseas, unlike the Perth Mint and PAMP. 2. There are 31.95 one troy ounce bars/ingots to the kilo. You therefore have more control over the fraction of your stack you wish to liquidate at any one time. 3. Additionally, you can offload your smaller units to a greater market, such as private buyers, even at current prices, let alone a double, triple or higher POG. You will have only a select number of private buyers with kilo bars. You will therefore be at the mercy of the prevailing rules at the time and given what has happened in countries with failing fiat systems, you can expect the rules of the game to change by TPTB.
Kilo bars are harder to avoid the radar, if that's you motivation. For me I'd Be happy to have the means to get 1oz, which is my goal at the moment
True, but don't be fooled in thinking you can acquire 1m worth of metals "under the radar" in the first place!
I think it's possible, might take some time, plus I'd probably use some trustworthy family members doing multiple buys from multiple places. It really comes down to what your goals are, personally of I had money to invest it definately wouldnt be 100% in gold, it'd probably be more like 10% across gold/silver but lets not get side tracked. If it were for a legit investment I'd buy in bulk from the cheapest reputable dealer. I'd probably spread it over multiple sized bars and store it in safety deposit boxes in atleast 2 or more locations
Would actually be quite easy if you don't mind a bit of work. Just buy right under the reporting /ID requirements of each dealer every day until you have your million. Could put it under other peoples names too in order to speed up the process I think for now his money is safe in the banking system. He'd be missing out on about $35k of interest a year by taking it out so I'd recommend splitting the million between five or six banks and then buy PM's with the interest. Putting $1m into a depreciating asset with no income stream is slightly nuts... Unless it's spare cash and he has other investments.
The possibility of the attempt to lower the Australian dollar would be tempting for a gold buyer also, but wouldn't it be just as beneficial buying international shares or into an international share fund? What about semi numis gold bullion such as pandas/lunars? I know it's appealing for Ag but what about Au?
