Below is a doc with actual (approximate) sizes of the Perth Mint's coins and bars. Consider that these coins and bars, which fit on an A3 page, are worth over $200,000. A great example of the "value density" of gold.
IN your opinion how would you rank the cost-effectiveness of purchases of these different coin types from the Perth Mint, both in terms of fabrication costs and in terms of resale value either to the Mint or to some outside party?
Purely on cost effectiveness, you go for the largest bar you can afford. If you look at the prices at http://www.perthmint.com.au/metalPrices.aspx you'll see the buy/sell spread is lowest on the large bars.
Only bars which are numbered are the 400oz and kilg gold and 1000oz silver.
Numbering is good if you are storing it with someone as they can't swap/fractionalise and also good for tracing in case of theft. However some people don't like the traceability from a privacy point of view.
Thank goodness the 1kg silver bars have been redesigned but what's with the razor (literally) sharp edges of the 100oz silver bars? Is there any chance of a new design for all the silver bars given the Mint now sports a modernised logo? Please please check that the edges don't cut too.
I think you have to take more seriously the possibility that the mint would pay the cash equivalent, rather than buy the necessary and give to the certificate holders. The effect of such an event would be such a rush for physical gold that the price would very quickly be well above what they paid as cash equivalent - not to mention that many gold investors do not wish to hold fiat money. For the mint to have the power to effectively redeem its gold from the certificate holders for cash is not acceptable if you want to be absolutely sure that you're holding the real thing.
I think you'd lose a few of those little gold coins down the back of the couch!
ReplyDeleteIN your opinion how would you rank the cost-effectiveness of purchases of these different coin types from the Perth Mint, both in terms of fabrication costs and in terms of resale value either to the Mint or to some outside party?
ReplyDeletePurely on cost effectiveness, you go for the largest bar you can afford. If you look at the prices at http://www.perthmint.com.au/metalPrices.aspx you'll see the buy/sell spread is lowest on the large bars.
ReplyDeleteGiday Bron, could you please inform me which of the bullion bars (Au and Ag) produced at the Perth Mint have serial numbers?
ReplyDeleteTa
Only bars which are numbered are the 400oz and kilg gold and 1000oz silver.
ReplyDeleteNumbering is good if you are storing it with someone as they can't swap/fractionalise and also good for tracing in case of theft. However some people don't like the traceability from a privacy point of view.
Thank goodness the 1kg silver bars have been redesigned but what's with the razor (literally) sharp edges of the 100oz silver bars? Is there any chance of a new design for all the silver bars given the Mint now sports a modernised logo? Please please check that the edges don't cut too.
ReplyDeleteI think you have to take more seriously the possibility that the mint would pay the cash equivalent, rather than buy the necessary and give to the certificate holders. The effect of such an event would be such a rush for physical gold that the price would very quickly be well above what they paid as cash equivalent - not to mention that many gold investors do not wish to hold fiat money. For the mint to have the power to effectively redeem its gold from the certificate holders for cash is not acceptable if you want to be absolutely sure that you're holding the real thing.
ReplyDelete