Gold fever grips Australia as investors flee volatile markets

Discussion in 'Gold' started by rbaggio, Aug 4, 2011.

  1. rbaggio

    rbaggio Active Member Silver Stacker

    Joined:
    Aug 5, 2010
    Messages:
    4,300
    Likes Received:
    6
    Trophy Points:
    38
    Location:
    Australia
    It's on the front page of news.com.au

    GOLD fever is again gripping the nation - at least according to retailers.

    One hundred and sixty years after Australia first found itself in the throes of a gold rush, the yellow metal is firmly back in vogue as investors take cover from volatile global markets.

    But the 21st century rush is to shopping centres, jewellers and gold trading parties, and - for the serious investor - into exchange-traded products.

    Retailers say some retirees are using parts of their superannuation payouts to buy a "solid gold investment'' they can stow away.

    With the price of gold continuing its relentless record-breaking march, the internet is emerging as a key trading engine.

    Richmond-based Cash For Gold boasts that its trade has quadrupled since it started internet sales in 2009 and then took its business into suburban homes with "gold parties''.

    "It's where a group of ladies get together, like with a tupperware or a lingerie party, and one of our consultants can go and value their older jewellery or whatever they wish to sell on the spot,'' said director Michael Salib.

    The company also sells ingots and bullion at parties.

    Another group, Gold Buyers Australia, has grown from one Sydney outlet in June 2009 to more than 150 nationally and makes on-the-spot valuations at booths in shopping centres.

    The Perth Mint now buys second-hand jewellery, although its main business continues to be refining and selling gold, along with "depository products'' that enable consumers to invest in precious metals without keeping the physical product.

    The mint states that every week it has dozens of self-managed superannuation investors pouring up to $10 million into both gold and silver, which has also enjoyed phenomenal price growth.

    Rikki McAndrew, a director at Melbourne jewellers and valuers W.Davis and Son, says he has retirees walk in and invest up to $100,000 in gold as the metal hits astonishing values.

    Src: http://www.news.com.au/money/supera...volatile-markets/story-e6frfmdi-1226108090079
     
  2. Captain Kookaburra

    Captain Kookaburra Well-Known Member Silver Stacker

    Joined:
    Apr 15, 2010
    Messages:
    5,009
    Likes Received:
    719
    Trophy Points:
    113
    Location:
    Melbourne
    Way to go Rick!
     
  3. Guest

    Guest Guest

    With all the profit i have made in gold,i can now go out to Yum Chaonce

    :D

    REDBACK
     
  4. Ilikemetals

    Ilikemetals Member

    Joined:
    Apr 9, 2011
    Messages:
    266
    Likes Received:
    11
    Trophy Points:
    18
    Location:
    Sydney
    Woo, go GOLD! lol
     
  5. Blockhead

    Blockhead Active Member

    Joined:
    Aug 3, 2010
    Messages:
    1,738
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    BrisBanal
    i'm confused, the article talks about investors fleeing volatile markets but it's mostly talking about how demand for people to SELL their gold has massively increased. makes no sense.
     
  6. Michela11

    Michela11 Member

    Joined:
    Jun 14, 2011
    Messages:
    65
    Likes Received:
    0
    Trophy Points:
    6
    Location:
    Sydney

    Because it was written from a media release I'd say was sent out by Cash For Gold. An educated guess.

    A breakdown of the story - the safe haven "hook" to suck you in (You think you're going to read something meaningful), general made-up blurb about retirees for "context", three paragraphs on Cash For Gold and how it works, one on Gold Buyers (phone call or email ), Perth Mint (phone call or email), W Davis and Son (phone call or email).

    The paragraph on superannuation follows an agenda set out in the media release - "self-managed superannuation investors pouring up to $10 million into both gold and silver" - Mr and Ms Average say "Oh no, I don't have the sort of money! It's too complicated. I'll leave it in the bank. But I wouldn't mind going to one of those parties. I've got grandpas old fob watch that just sitting there doing nothing".

    And "retirees walk in and invest up to $100,000 in gold as the metal hits astonishing values." - again - a discouragement for an average person to invest - but a "gold party" is possible.

    Prices on well-made vintage and antique jewellery are still very healthy business. And they're a great way of buying gold from people who have no idea of what a piece is truly worth, or worth at spot.

    I believe this article's not about save haven at all - it's about Cash For Gold's parties to buy jewellery from you - under-priced - and maybe sling you some bullion at ridiculous prices.

    Just my two cent's worth.
     
  7. kkkrazy

    kkkrazy New Member

    Joined:
    Jul 26, 2011
    Messages:
    38
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    melb
    theres no gold fever until there are as many coin shops as "cash for gold" shops
     
  8. Midnight Man

    Midnight Man Member Silver Stacker

    Joined:
    Jul 16, 2011
    Messages:
    832
    Likes Received:
    0
    Trophy Points:
    16
    I found the "Cash for Gold" website, and had a quick read through.

    Without wanting to pass judgement, I did read this on their testimonial page:

    I guess it's moments like that one realises that our knowledge and understanding of what is going on in the world around us is precious, and how under appreciated or under informed many people are. Consider - here is a person who used to hold some gold, one of the premium protections against a SHTF moment, and they sold it.

    Not for food to store in case SHTF. Not for other good stores of value. Instead, likely, for frivolous items that sure, may have generated a few smiles and laughs (and sure, there's a need for that too), but these are all fleeting moments, likely forgotten about after a few days. And now, all that person has in case SHTF is... cash at best. And, they're going to share this "good news" with family and friends. :rolleyes:

    :(
     
  9. Michela11

    Michela11 Member

    Joined:
    Jun 14, 2011
    Messages:
    65
    Likes Received:
    0
    Trophy Points:
    6
    Location:
    Sydney
    I went and had a look at their site too ..... and you're right, it's sad that people who have been holding gold are selling it at this time just because it's "kicking around". How could you not want gold jewellery, unless you're selling it for, as you say Midnight Man, another store of value, or because you really need the fiat now? Not falling prey to marketing?

    Found this on another gold buyer website (those kiosks in shopping centres) - "Because the economy has been in shambles lately, there's an increasing number of people who want to sell their old jewellery." :(
     
  10. Ag-ness

    Ag-ness Member

    Joined:
    Apr 9, 2011
    Messages:
    603
    Likes Received:
    23
    Trophy Points:
    18
    Location:
    Brisbane
    Did the people going around buying up gold jewellery, from poor people in the Great Depression, get rich? There must have been some, framing it as helping the poor get money, by graciously buying their useless baubles, even though, yes, Mrs McGillicuddy, you can't eat it! Nice fellers. Magnanimous.
     

Share This Page