How to Buy Gold Safely in Australia
Gold has always been a great investment and could yield a significant return on investment for Australians. But, you’ll need to be as informed as possible when you’re going down this path. That means knowing how to buy gold in Australia and make a profit on it.
Let’s look at how new precious metals investors can do that.
Choose Trusted Sources
Before buying gold in Australia, you’ll need to pick a trusted source. It’s always worth looking for verification, checking out reviews, and similar areas. At Bullion Hub, we’re one of the best places to buy gold in the country.
Picking the Format
Gold comes in various forms, and these are worth knowing about. They are:
These each offer their pros and cons, but there’s no right or wrong answer for which one you should buy.
Understand Pricing
Gold prices are usually based on the global spot price, although they can vary somewhat from country to country. Usually, this is based on the U.S. dollar, but they’re converted into Australian dollars for Australian investors.
When you’re buying gold in Australia, compare the price to the local spot price. There’ll always be a premium, but make sure this isn’t excessive.
Verify Authenticity
There’s plenty of gold out on the market. But, not all of it is real. You’ll need to make sure it is before you buy it. That’s means looking for:
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Serial Numbers
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Assay Cards
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Tests
You can also request verification documents to make sure everything’s as legitimate as possible.
Check Dealer Credentials
There are plenty of places to buy gold in Australia. But, not all of these are legitimate. To make sure they are, check their credentials. There are several of these to focus on:
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Australian Business Number
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AUSTRAC Enrolment
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Extensive Customer Reviews
If a dealer doesn’t have these, they mightn’t be legitimate. You could be safer going with an alternative.
Payment and Settlement
Once you’ve settled on investing, you’ll need to pay up and settle the investment. With the best places to buy gold in Australia, you should be able to pay by bank transfer, BPay, and similar payment options. Avoid paying in cash.
It’s also worth making sure you get receipts and proof of purchase when you’re doing this. You could need this for taxes and similar areas later on.
Delivery and Storage
When you buy physical gold, you’ll usually need somewhere to store them. Your own home could be an option, but it’s always worth considering somewhere more secure. Regardless, keep a few things in mind:
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Get your delivery insured for the same worth as your investment.
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Make sure the storage facility you pick has extensive security features.
Buyback and Liquidity
When deciding on where to buy gold in Australia, it’s worth looking into buyback and liquidity options. This could help you offload it when you need to. Usually, this will be somewhere near or at a spot price. You mightn’t make a profit, but you should get most of your investment back.
Tax Basics
Investing in gold comes with tax implications. Make sure you’re aware of these from the start. The most notable of these are:
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Capital Gains Tax - Profits on any gold you sell may be eligible for taxes.
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GST-Free - Investment gold bullion may be exempt from GST.
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SMSF Rules - Self-Managed Super Funds can hold bullion, but need to meet ATO requirements.
If you’re unsure about this, it’s worth consulting with a tax professional.
Scams and Red Flags
Unfortunately, scams can be a major risk when you want to buy gold. That’s why it’s vital to know where to buy gold in Australia to avoid them. It’s also worth staying on the lookout for red flags. These include:
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Dealers offering prices far below market value.
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Pressure sales tactics.
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Unverified sellers, especially on online marketplaces.
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Lack of proper documentation.
The more of these you see, the more likely it’s a scam.
Pre-Purchase Checklist
It’s always worth following a process when you want to buy gold. It makes sure you’ve thought about everything. Your checklist should include:
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Pick a trusted dealer.
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Decide between coins, weights, and bars.
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Compare premiums and spot prices.
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Verify authenticity.
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Check ABN and similar essentials.
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Understand payment terms.
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Decide on secure storage.
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Confirm buyback options.
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Keep records for tax and compliance.
Summing it Up: Buy Gold Safely in Australia
When you want to buy gold, you’ll want to stay safe. This means picking the right dealer. At Bullion Hub, we keep it simple, straightforward, and transparent for you. It’s the best way to buy gold in Australia.