Minyan Mailbag: Buying Gold Bars
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next column with that very intent.
I am planning on purchasing some gold in the Perth Mint program that is backed by the Government of Western Australia. Do you have any opinions (good or bad) about this program? I have been looking for ways to own gold outside of the USA and this along with another opinion in Switzerland appeal to me.
I believe that gold in one's own possession is the safest of all ways to store gold. Remember that a million bucks worth of gold would only be about the size of a shoebox. If that isn't an option then you need a custodian and the Perth Mint is as good as any that I know. Professor Reamer also had a good place in Switzerland.
As long as the gold is "allocated" and you have bar numbers and all that then I have no problem. It costs a few percent a year but you know that your bars are stored and not lent out or that anyone else has claim over the same. I have a problem if it is "unallocated" whereby you just have a paper claim over gold.
Note - I have no relationship whatsoever (apart from buying bars from them at commercial prices) with the Perth Mint and receive no compensation whatsoever for any endorsement or otherwise from them.
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