Bullion 101

About buying and owning gold and silver

What's the best form of bullion to own ? In Australia, we like the gold nugget/kangaroo and silver kookaburra/koala from the Perth Mint. These are far and away the most popular bullion coin, and have the best resale value of any bullion coin traded in Austalia. They are recognised and purchased globally. In the long run, it probably doesn't matter which form of tradeable gold or silver you buy, but we give the edge to the Kangaroo and Kookaburra coins.

How should I decide which bullion is the best for me ?

Basically, this website presents the pros and cons of gold vs silver and coins vs bars, and we have tried to go into some detail about each one. Different buyers are attracted to different forms of bullion, and your decision will be based on what appeals to you. We would also recommend a portfolio approach with a mix different types of bullion coins and bars- there's no need to put all your eggs in one basket! However, if you have no strong preference, we recommend the kangaroo and kookaburra coins. They are beautiful coins with wide acceptance and a strong buy-back price.

Is one certain size better to own than others?

The most frequently traded size is the one or two ounce. Bullionmark strongly recommends the 1oz silver kookaburra and 2oz gold kangaroo. These coins are the same dimensions (gold is twice the weight) and are great for shipping registered post. Bullionmark also buys these coins in bulk so can offer you great prices especially for bulk orders over 1000 Kookaburras and 10 Kangaroos.

Can I buy gold and silver at spot ?

No, the spot price is an interbank price and is not available to the public. The price you will pay will derive from spot but have a series of additional charges from the refiner and then the Perth Mint such as margin over spot, mintage fees, dealer margin, transport and insurance. In times of great demand and or short supply some of these components may rise dramatically, after all gold and silver are scarce and the laws of supply and demand apply.

How should I store gold and silver coins ?

No special care is needed with gold or silver- they will not tarnish or corrode no matter how you store it. We do recommend keeping the coins in their original mint tubes or packaging just as you receive them from us. Gold and silver are soft, and your Mint-fresh coins can be scratched or marred by rough handling. This won't effect their gold value, of course, but bullion coins can lose some of their resale value if not kept in perfect Mint condition.

Where do other people store gold and silver coins ?

Traditionally, gold owners have used their bank safe deposit boxes for secure storage of gold. Although bank vaults offer virtually absolute protection, you can also buy insurance on their contents as a rider on your homeowners policy at a surprisingly low cost. Some people prefer to keep at least some of their gold closer to home, often protected in a floor safe, or kept well concealed. This is a matter of personal preference, and where you store your gold is a private decision. ONE WARNING: We feel strongly that ordinary, aboveground home safes are a big mistake. They advertise the presence of valuables, and the ones weighing a few hundred pounds can be taken out of your home as easily as your refrigerator was brought in.

Who buys gold, anyway ?

Investors, central banks, jewelry manufacturers and speculators are the largest buyers. But also individuals who just like gold in its different forms, and those who hold gold as an insurance policy. People with substantial assets to protect, and/or family obligations to consider, often own gold and silver as they are the ultimate form of protection for your wealth and family - under any circumstance, in any culture, at any time through thousands of years history gold and silver have been the ultimate money. The same cannot be said for paper money, which on average becomes worthless in 40 years due to government debasement and resultant inflation.

Does gold tarnish?

No, gold does not tarnish or corrode. Your gold coins will retain their color and brightness, literally forever.

Can I clean gold coins ?

It's not necessary, as gold doesn't tarnish, and cleaning or polishing them will take away their original Mint finish and hurt their resale value.

Is gold and silver easy to sell ?

Yes. Gold and silver are easy to sell anywhere in the world, at any time. The volume of world bullion trading runs into the Billions of dollars every day, in a 24-hour circle from London to New York to Chicago to Australia to Japan to India to Turkey to Paris and back to London.
If the price of gold rises substantially, where can I sell it ? Almost anywhere. Of course, we are in the business of buying and selling gold, and hope that you will allow us a chance to bid, should you or yours ever decide to sell some of your gold. But in fact, there are dozens of dealers in the Australia, and thousands in the world, who buy gold every day.

Why is there a face value on the coins ?

Most bullion coins have a nominal face value, which makes them legal tender in the country that they are struck. This status as legal tender, rather than mere bullion, makes them easier to carry across national borders with incurring tariffs and taxes. The face value on the coin is a 'nominal' face value, and the various mints do not issue them at that price, nor do they ever trade at that value. But that value does confer an important legal tender status to the coins.

Why are gold and silver precious?

Simply take a look at the following videos and you will realise how hard it is to extract gold from the earth and how much processing goes into getting to the final coin form. Silver as a bi product of lead, zinc and copper is even more difficult to extract from the ground. All the gold ever mined in the history of the world takes up only a cube smaller than a standard tennis court. Whats more we are running out of gold and silver in the ground. Peak gold and silver is likely with us right now. Versus the infinite supply of paper currency, gold and silver are finite and scarce.