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 ETF’s • Purchasing Bullion in Australia • Storing Bullion in Australia
4 Key Reasons for Buying Gold & Silver Bullion • Hedge against Global Economic Uncertainty • Unsustainable Government Debt • US $17 trillion • Excludes unfunded liabilities • Japan $10 trillion • 230% of GDP • Eurozone $12 trillion • PIGS average 126% of GDP
US Debt Limit US Debt Gold Price
4 Key Reasons for Buying Gold & Silver Bullion • Hedge against Global Economic Uncertainty…continued.. • Rampant Monetisation & Easy Money • US Quantitative Easing (QE) • $85 billion / month • Japan “Abenomics” • $75 billion / month • Near zero interest rate policies • Unwinding of Derivatives • Potentially $1quadrillion globally • Bond run could trigger • Gold & Silver are REAL money – not paper Fiat currency • Have been for thousands of years…
US Monetary Base Gold Price
4 Key Reasons for Buying Gold & Silver Bullion • Fundamental Shift – “Weak” to “Strong” Hands • Most Speculators flushed out • Big price corrections in April and June • Speculators scared and stop-loss orders triggered • Large outflows from ETF’s • Net Futures Positions of big Bullion Banks now Long • Same banks were Short and covered at lower prices • 25% of COMEX positions held by 1 Bullion Bank • Biggest concentrated long position in COMEX history
4 Key Reasons for Buying Gold & Silver Bullion • Fundamental Shift – “Weak” to “Strong” Hands… continued.. • Strong shift from “paper” (ETFs and Futures) to physical bullion • China and India (more generally the East) very big buyers • 50% of all gold bars and coins 2Q13 • Eastern Central Banks big purchasers • China officially only 2% of reserves • Record sales of US Mint coins • Rising premiums for physical bullion • Disconnect from paper price
4 Key Reasons for Buying Gold & Silver • Supply & Demand • Price and industrial disputes affect supply • Current low prices below many mine’s cost • Low prices also reduce scrap availability • Gold - Strong demand for investment & jewellery • Both private and central bank • Silver - Very strong demand • Investment - Ratio @ 60:1, India, US Mint • Industrial - Solar panels, medical, electronics - all growing
Gold Imports through Hong Kong Chinese Gold Production
4 Key Reasons for Buying Gold & Silver Bullion • Diversifying your Investment Portfolio • Shares, property, and bonds all exposed • Another financial crisis would bring down shares and property • 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 ETF’s • Paper trading is widely viewed as manipulated • Largely controlled by Big 4 Bullion Banks • April/May price plunge highly suspect • Disconnect between paper and physical prices • Plunging paper price but rampant physical sales in May • Increased premiums on physical to reflect reality • ETF’s – Physical holdings may not match shares • Testimony before CFTC Hearing of 100:1 • Recent examples of large funds stating cash settlement not metal • Paper is only EVER a promise to pay • Why risk trusting the promise if you can own the real thing easily?
Purchasing Bullion in Australia • One of the world’s largest producers • Strong and globally competitive bullion supply • Currency Hedge • AUD expected to fall (Reserve Bank objective plus China trade) • Buying USD spot lead commodity in AUD potential benefit • Ainslie Bullion www.ainsliebullion.com.au • One of the largest in Australia. Largest in Brisbane, closest State city to China • Privately owned and nearly 40 years old • Purchases by internet, phone or in person • Can supply Perth Mint Chinese Lunar Year coins at same price • Free insured delivery to Reserve Vault in Brisbane
Storing Bullion in Australia • Sound diversification strategy • Provides product mix AND geographical mix • Australia geopolitically stable • Non Government storage options • Addresses concerns of confiscation • Non Bank or Financial Institution options • Alleviates concerns of global trend to Cyprus style ‘bail ins’. • . www.reservevault.com.au • Independently owned – non Government, non Bank / Financial Inst • Largest in Australia • World Class Secure Storage • Specialising in Bullion with a range of options • Custodial Storage available – allows secure remote access • Insurance underwritten by Lloyds of London
Still very much a world in Economic turmoil • Too much debt • Too much easy money • Toxic Derivatives still in the system • Gold and Silver Bullion are real money • Can’t be ‘printed’ or extinguished like paper • 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