I was considering starting an account with Perth Mint on behalf of my father for a large purchase of gold and silver bullion, as I read their emailed product information statement, fee schedule and reference guide I was dismayed to see that ontop of the 3-4% premium over spot prices listed on their website they apparently charge for bullion (not to mention the margins they pocket by buying raw materials under spot by the tonnage) they charge:
-2% transaction fees
-2% fabrication fees
-likely large postage bills for the 90% of Australia who can't drive to Perth for pickup.
They also demand significant downpayments on purchases thus transferring all the risk for intraday price fluctuations onto the purchaser and finally if you ever wish to sell your product back you are offered prices well under spot and do not receive a refune on the fabrication fee. These huge fees are for gold, their fees for silver are even worse.
So all up someone who lives in Sydney can end up paying 7-10% above spot price for their gold once it's delivered, even if we allow it to be stay in Perth in a group allocated pool we pay a solid price. That might have been fine when gold crashed at the beginning of the GFC, that might have been fine when the AUD was once relatively stable in comparison with USD but in 2011 with all the uncertainty it takes a extremely bullish and ballsy view on gold to make a profit out of gold from these guys, we'd have to have gold at AUD $1900 to even break even on a purchase from Perth Mint, this is assuming you can convince them to buy back from you at a level close to spot.
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I've made on by own behalf a purchase from member Aurora et luna which should be on the way at the moment, he has good prices and conditions but seemingly a limited range.
For large purchases I've seen ABC Bullion recommended on this site, their prices are steeper than et luna but they seem to offer a large range and over the counter sales. Is there any other options for over the counter sales in Sydney for someone looking to pick up $50-150k in metals where we won't be totally gouged?
-2% transaction fees
-2% fabrication fees
-likely large postage bills for the 90% of Australia who can't drive to Perth for pickup.
They also demand significant downpayments on purchases thus transferring all the risk for intraday price fluctuations onto the purchaser and finally if you ever wish to sell your product back you are offered prices well under spot and do not receive a refune on the fabrication fee. These huge fees are for gold, their fees for silver are even worse.
So all up someone who lives in Sydney can end up paying 7-10% above spot price for their gold once it's delivered, even if we allow it to be stay in Perth in a group allocated pool we pay a solid price. That might have been fine when gold crashed at the beginning of the GFC, that might have been fine when the AUD was once relatively stable in comparison with USD but in 2011 with all the uncertainty it takes a extremely bullish and ballsy view on gold to make a profit out of gold from these guys, we'd have to have gold at AUD $1900 to even break even on a purchase from Perth Mint, this is assuming you can convince them to buy back from you at a level close to spot.
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I've made on by own behalf a purchase from member Aurora et luna which should be on the way at the moment, he has good prices and conditions but seemingly a limited range.
For large purchases I've seen ABC Bullion recommended on this site, their prices are steeper than et luna but they seem to offer a large range and over the counter sales. Is there any other options for over the counter sales in Sydney for someone looking to pick up $50-150k in metals where we won't be totally gouged?
Steve's a nice guy and I enjoy doing business with him.
, such a shame.