Gold Bullion Securities

[Doogee]

Hi there,

In the near future, I'm looking to invest a small amount ($5000 approx) in something. Gold has always been an interesting idea to me, particularly lately. My question is are gold bullion securities just as good as buying a block of gold? And is it a worthwhile idea, or would a bank account be a better idea at this stage?

I figured this post probably belongs here rather than in the commodities section, seeing as my question more relates to the securities themselves.

Any suggestions (not advice, of course) would be greatly appreciated.

Thanks,
-Dan

 

[radar23]

HI,

I have resently made conservative investment in the ASX listed Gold Bullion Securities Limited (GOLD). It seems to me a easily accessable method of putting some level of investment in gold without having to hold the assist physically.

The listed price is a roughly based on a one tenth of one fine troy ounce of physical gold held at the London Vaults of HSBC Bank USA.

I hope this is some use to yout question.

 

[GreatPig]

My question is are gold bullion securities just as good as buying a block of gold?

Define "good".

It really depends on what you think is going to happen. It's easier and more convenient than buying physical gold, but in the event of total meltdown, not as secure (since you only have an IOU, not a blob of the actual shiny stuff).

You can also buy call warrants from Goldcorp, backed by the WA government (it's Perth mint gold). They're stock code ZAUWBA on the ASX, and are long-dated warrants with no gearing. They do have an ongoing holding cost though (as do the GOLD shares).

GP