I've been doing some research through Silver Stackers and elsewhere on buying gold and have a few questions that I haven't seen answered. I run a small company and have some spare cash in the company name with which to invest in, so I've looked at various online dealers including the Perth Mint, all of which have slightly different prices and stock available. One particular topic that I often see relates to the (unlikely) possibility of confiscation should there be a serious financial crisis. My question is, in the event of this happening, would they confiscate gold only stored in places like the Perth Mint or would they track you down based on the fact you chose to store it yourself (wherever that may be) through your purchase history? If the latter is likely, would it be wise to avoid purchasing from the Perth Mint and choose a third party dealer, or would it be just as easy to track you down? Perhaps it's best to simply walk into a dealer in person and pay them directly? (if so, any recommendations in Melbourne?) Finally, given the fact this purchase would be made through the company for investment purposes, would the required tax declarations basically make it obvious the company owns gold regardless of where it was bought from anyway? In which case, it's probably best buying and keeping it at the Perth Mint, and hoping the above scenario never comes. What would you do in this situation? Thanks in advance.
Welcome ARC.... Do plenty of research on this site.....If you are in Victoria use GoldStackers.com.au ......Qucik delivery.....If you don't hold it personally ...you DON'T own it....... Buy outside the business (ie with cash or personal accounts) so it cannot be seen on the business accounts/books .... You will need it to buy food and pretty much everything else you need to live.....Buy asap, and stack as much as possible of both without sending yourself or your business broke for the next six to twelve months...... Prices going up this week and beyond!
Try: http://goldchat.blogspot.com.au/2008/11/australian-gold-confiscation.html Good luck getting advice on the rest... consider what you're asking.
Thanks for the advice so far, very quick! I've seen that blog post which of course has me concerned. By the looks of things silver may be a better option to buy through the business as it's less likely to be confiscated? Maybe buy gold personally? The problem is there is spare cash in the company account and i'm looking for an investment, whereas the personal account is "invested" in a mortgage and I don't want to take anything out. Not sure of the tax implications for paying for gold in cash and declaring it as a generic investment for the company...
Thanks for the replies all. Another quick question, what are your thoughts on these silver stackable bars for someone new to the game? Are they appropriate or should I go with something a little more widely known like the Perth mint bars? http://www.goldstackers.com.au/store/silver-bars/silver-stackers-10oz-silver-bar.html I was thinking if combining the above with some kook coins.
Stackers are sexy, I have a few 10oz stackers and they are really good if you dont have alot of room. There is a slight premium over a poured bar as there is obvious machining costs involved, but IMO its a small price to pay for something that looks as good as a stacker. I will be getting more for sure.
I own a company myself and I reccommend you don't buy on a company. You will have to declare any profits and essentially the government wins. I would by small amounts ounce and half ounce with cash and trade gsr if you like. If gold is money and it gets taxed every time you sell at 30 percent profit. You will quickly feel the pinch. Nothing stops australia from inflating their dollar and taxing you on capital gains even though you haven't made a real gain. Your number one goal should be about protecting your wealth and minimsing greedy government tax officers. A company is one sure way to put a big x on yourself especially if it doesn't provide you passive income.
If you hold your assets for more then one year on your name you half your cgt at worsed you pay23cents per dollar tax. In company you pay full 30 cents irrelevant of how you hold it. Since it provideds you no income you can't offset it against your tax if you take a loan as well. Don't really see any benefit in holding gold in a company that you can't do do it privately. Now a house or income producing asset for asset protection. Now that's a different story.
Thanks ilovesilver, makes perfect sense. Just to confirm, lbma recognised products would be Perth mint, pamp, etc right?
Lbma there is a list. I don't know where. I just buy 1 kg bars perthmint 1.40 above spot per ounce from my local dealer. Don't buy high premium stuff cause when you try sell its so much harder getting your premium back. Think exit strategy. What's easier to sell. Most people don't buy 100 lunar dragons. But 1 kg bars go like hotcakes. Nothing wrong with pamps but offloading pamps is hard when you can get a perth mint bar closer to spot.
Aren't there also smaller bars also LBMA recognized? The minted Kangaroo bars are occasionally advertized as "Minted according to London Good Delivery Standard", and Umicore Silver bars (250-1000g) are described as "LBMA certified". Or does this simply mean something else than what is meant when talking about these 400Oz gold or 1000Oz silver blocks?
