Gold

[Kenster]

In my research to learn about the market, many economists warn of the collapse of US dollars and suggest the use of gold to store value.

How many ways are there to buy and keep gold?

What is the ease to convert gold back to paper money for every day use?

Is the ease of use still there in case of severe global downturn?

The AUD value is relatively ok at the moment due to its high yield. Would it still be ok to store value if the USD sinks hard?

Thanks

 

[Aaron Sice]

buy a slab or four from the perth mint.

 

[GreatPig]

There are a number of ways to buy gold, but if you're concerned about total global meltdown, then you more importantly need to consider the number of safe ways to hold it.

The easiest is probably to just buy shares/warrants on the ASX. They can be traded online just like any other share. I gather there are also ETFs.

Then there are Perth Mint certificates, depository accounts for allocated and unallocated storage, and of course buying the physical product and storing it at your local bank or burying it in the backyard.

The riskiest is the paper stuff, effectively just IOU's dependent on the supplier not hitting the wall. Unallocated storage is more risky than allocated, as there has been some question regarding whether or not the Perth Mint actually has enough physical to cover all the unallocated deposits and certificates they've issued. Allocated is the safest, in that you then have physical blocks in your name sitting in their vault and can pick them up at any time (although with total global meltdown, you might be trampled in the rush, and may even have difficulty getting there to get it). Storing it yourself within easy reach is in theory the safest of the lot, but then physical security becomes an issue (ie. someone else stealing it). I do like the idea of a buried treasure map though, where 'x' marks the spot and all the clues are cryptic and measured in number of paces.

I think though if the meltdown is that severe, access to gold will be the least of your concerns.

GP

 

[pendo]

http://www.ausbullion.com.au/bullion.html