Q: How can I buy a gold bullion bar?
A: Physical gold can be purchased from the Perth Mint and from a number of bullion companies in the market. Investment-grade gold bullion can be purchased GST free. However, coins usually attract GST.
Gold bullion can usually be purchased in weights from 2.5g and up to 1kg in ingots or bars. Unlike gold jewellery, investment-grade gold should be 99.99 pure and stamped accordingly on the ingot.
Personal identification must be provided for trades of gold bullion worth $5000 or more. All cash trades greater than $10,000 must be reported to Austrac.
When buying gold from a bullion company, ensure the gold is sourced from a reputable supplier whose ingots are accepted in the market for re-sale. Hallmark stamped fees charged to buy or sell gold will vary, so shop around. If you wish the bullion company to store your gold, ensure you understand the storage costs. Will the bullion company repurchase gold from you? What will be the costs per trade?
If you wish to take physical custody of the gold bullion, where will you store the gold? Remember you need to take security precautions; if the gold is lost, or stolen, it’s gone! Importantly make sure you insure your gold for replacement value, not purchase price.