Hi guys, My grandparents (65) want to invest ~10k. They want to buy gold. I'm not totally against it however cautious giving advice as they are retired and while they own their home, don't have much cash to play with preferring to save in gold instead of cash. Thinking of their options, if I were to give them advice i would probably advise them to buy unallocated from Perth mint. I figure this would allow them to buy little bits and pieces as they go without the risk of postage / storage (they live rurally). The other option (if physical is the preference) would be to buy 1oz blobs. The other option would be to wait/invest elsewhere... I would love to hear from the forum any ideas for their situation. Cheers,
How Liquid do you want your investment to be? How linked to spot price do you want your investment to be? I personally ended up buying nothing larger than a half ounce coin and nothing smaller than a 5gm certicard once I'd figured out my feelings. If you want pure exposure to the metal price and dont care how long it takes to sell you can just buy a 5oz lump and bury it :/
I thought about 5oz lumps and decided against this for liquidity (in case they need access to a part of their investment) The final exit strategy will likely involve liquidating the whole position at some point in the next 10-15 years however in case they need some cash and don't want to sell it all I think denominated gold would be best. I would feel 1oz would be best for this scenario. I would love to hear anyone's thoughts on the unallocated Perth mint offering.
I've had an "offline" Perth Mint Depository account for many years. This was before they started the Depository Online service, so is limited to phone orders (during office hours). * Minimum transaction is $5k * Transaction fees are 2% buy, 1% sell * No transaction fees if acct balance over $50k * No storage fees on unallocated * 10% deposit required on orders But if I was opening an account today, I'd choose the Depository Online. This has a lower transaction limit, and cheaper fees for small trades. I believe with either account you can convert from unallocated to Pool Allocated or Allocated for a fabrication fee.
go to a dealer, buy 6 x 1oz and bury it. In every other scenario someone clips the ticket several times.
Yes, you can convert at any time. Only issue I have with the Perth Mint depository is that it doesn't show much you bought stuff for and whether your portfolio is positive or negative. It's frustrating.
cash is still king, especially if they need access to it very quickly. If the 10k is meant to be put aside and not an immediate go to fund, then I would say Au or even Ag. I almost hold an equal amount of cash and PM's. I say cash in the sense of on hand and in my savings account, not stocks.
