Presentation on theme: "Protecting Your Wealth Gold and Silver Bullion in Australia."— Presentation transcript:
Protecting Your Wealth Gold and Silver Bullion in Australia
Protecting Your Wealth Gold & Silver in Australia 4 Key Reasons for Buying Gold & Silver Bullion Physical Bullion versus Futures and ETFs Purchasing Bullion in Australia Storing Bullion in Australia
4 Key Reasons for Buying Gold & Silver Bullion 1.Hedge against Global Economic Uncertainty Unsustainable Government Debt o US $17 trillion Excludes unfunded liabilities o Japan $10 trillion 230% of GDP o Eurozone $12 trillion PIGS average 126% of GDP
4 Key Reasons for Buying Gold & Silver Bullion 1.Hedge against Global Economic Uncertainty…continued.. Rampant Monetisation & Easy Money o US Quantitative Easing (QE) $85 billion / month o Japan Abenomics $75 billion / month o Near zero interest rate policies Unwinding of Derivatives o Potentially $1 quadrillion globally o Bond run could trigger Gold & Silver are REAL money – not paper Fiat currency o Have been for thousands of years…
4 Key Reasons for Buying Gold & Silver Bullion 2.Fundamental Shift – Weak to Strong Hands Most Speculators flushed out o Big price corrections in April and June o Speculators scared and stop-loss orders triggered o Large outflows from ETFs Net Futures Positions of big Bullion Banks now Long o Same banks were Short and covered at lower prices o 25% of COMEX positions held by 1 Bullion Bank Biggest concentrated long position in COMEX history
4 Key Reasons for Buying Gold & Silver Bullion 2.Fundamental Shift – Weak to Strong Hands… continued.. Strong shift from paper (ETFs and Futures) to physical bullion o China and India (more generally the East) very big buyers 50% of all gold bars and coins 2Q13 o Eastern Central Banks big purchasers China officially only 2% of reserves o Record sales of US Mint coins o Rising premiums for physical bullion Disconnect from paper price
4 Key Reasons for Buying Gold & Silver 3.Supply & Demand Price and industrial disputes affect supply o Current low prices below many mines cost o Low prices also reduce scrap availability Gold - Strong demand for investment & jewellery o Both private and central bank Silver - Very strong demand o Investment - Ratio @ 60:1, India, US Mint o Industrial - Solar panels, medical, electronics - all growing
Chinese Gold Production Gold Imports through Hong Kong
4 Key Reasons for Buying Gold & Silver Bullion 4.Diversifying your Investment Portfolio Shares, property, and bonds all exposed o Another financial crisis would bring down shares and property o Bonds will suffer with any tapering of QE In Australia both Gold and Silver have outperformed shares and property over last 10 years Introduces a hard asset Can be located in different country. International pricing.
Physical Bullion versus Futures and ETFs Paper trading is widely viewed as manipulated o Largely controlled by Big 4 Bullion Banks o April/May price plunge highly suspect Disconnect between paper and physical prices o Plunging paper price but rampant physical sales in May o Increased premiums on physical to reflect reality ETFs – Physical holdings may not match shares o Testimony before CFTC Hearing of 100:1 o Recent examples of large funds stating cash settlement not metal Paper is only EVER a promise to pay o Why risk trusting the promise if you can own the real thing easily?
Purchasing Bullion in Australia One of the worlds largest producers Strong and globally competitive bullion supply Currency Hedge o AUD expected to fall (Reserve Bank objective plus China trade) o Buying USD spot lead commodity in AUD potential benefit Ainslie Bullion www.ainsliebullion.com.au o One of the largest in Australia. Largest in Brisbane, closest State city to China o Privately owned and nearly 40 years old o Purchases by internet, phone or in person o Can supply Perth Mint Chinese Lunar Year coins at same price o Free insured delivery to Reserve Vault in Brisbane
Storing Bullion in Australia Sound diversification strategy o Provides product mix AND geographical mix Australia geopolitically stable Non Government storage options o Addresses concerns of confiscation Non Bank or Financial Institution options o Alleviates concerns of global trend to Cyprus style bail ins.. www.reservevault.com.au o Independently owned – non Government, non Bank / Financial Inst o Largest in Australia o World Class Secure Storage o Specialising in Bullion with a range of options o Custodial Storage available – allows secure remote access o Insurance underwritten by Lloyds of London
Still very much a world in Economic turmoil o Too much debt o Too much easy money o Toxic Derivatives still in the system Gold and Silver Bullion are real money o Cant be printed or extinguished like paper o Money for thousands of years Diversify your portfolio both by investment type and location Store your wealth outside of Bank and Government influence Both buying and secure storage is easy with Ainslie Bullion
Thank you. Please see me after the talk if you have any queries Paul Engeman Disclaimer: This information and that expressed by the presenter is provided for general information purposes only. You should seek independent professional advice. The content, views and opinions may be sourced from a third party. Ainslie Bullion and/or the Reserve Vault do not guarantee the accuracy of this information and accept no liability for any loss incurred as a result of this information. Ainslie Bullion Recommends