Centre Capital Securities deal in precious metals including Gold, Silver and Platinum.
The procedure on how to buy these precious metals is as follows:
- Centre Capital quotes you a price to purchase.
- Client gives go ahead to buy, and cleared funds are lodged in Centre Capital account.
- Centre Capital goes into the market to secure bullion.
- Receipt is issued to client and price is locked in.
- Bullion arrives and pick up arranged.
The procedure on how to sell these precious metals is as follows:
- Centre Capital quotes price we will buy at.
- Client deposits metal with Centre Capital, receipt issued to client confirming receipt of metal.
- Metal assayed and if all correct, funds are deposited to clients nominated account within days.
Brendan Scorer has experience in dealing precious metals and is contactable on 1300 132 214.
Investing In Bullion
Centre Capital are getting more and more enquiries from clients and the general public about investing in Gold and Silver. The purpose of this article is to try and explain why owning a proportion of your portfolio in these metals could make a lot of sense, especially in uncertain times.
Why is Gold and Silver so keenly sought?
Gold and Silver have both been a monetary metal since recorded civilisation began. In the middle ages, besides being valued for ornaments, magical powers were attributed to them. The alchemists spent their lives attempting to turn base metals into Gold.
History is studded with examples of Governments debasing the coin of the realm. Initially by tampering with the weight and assay of Gold coin and in more modern times, particularly the last forty years or so, by the printing of paper money without regard to any Gold backing. History similarly records the protection provided by Gold and Silver in periods of inflation and hyper-inflation; how Gold was the only saviour of real worth in the French Revolution of 1789 and the following years of printing press madness (does this remind you of a situation at the moment?); how the same painful lessons were repeated during the American Civil War of 1861 and the great German inflation of post World War 1. In modern times the capital and liquidity of the world has expanded enormously, not by the mining of increased quantities of Gold, but by the issue of Government paper money, which in turn has been the basis of huge expansion of credit. The results have been well documented.
With government spending everywhere at an excessive level, paper currency may continue to loss its real value as Gold and Silver continue their time honoured role. Gold and Silver provide a comfortable feeling in times of economic upheaval, and eventually may well become a breathtaking legacy for yourself, children or grandchildren.
The price of Gold and Silver
The price of Gold and Silver is quoted daily in $US per troy ounce. It is a base price at which one rarely is able to buy or sell without charges being added or subtracted. Freight, smelting, insurance and brokerage charges all add to the cost of buying Gold and Silver bars, and it is with this in mind, the purchase of these precious metals should be viewed as a medium to long term proposition.
Buying Gold and Silver
Gold and Silver jewellery have a large content of craftsman costs and government taxes added into its price structure. Centre Capital Securities would not recommend buying jewellery as a means of owning Gold or Silver. Commercially produced medallions also carry a high premium on their Gold and Silver value. Centre Capital Securities would recommend Bar or Coin form, so you are paying for the metal not any workmanship or taxes (contact us to discuss what might be right for you).
What proportion of your capital should be invested in bullion?
This will differ from person to person (again, discuss with one of our advisers).
During times when the economy is running smoothly, you can expect good appreciation from the larger proportion of your capital invested along traditional lines. While in an ailing economy, when traditional investments perform poorly or fail, your bullion should increase in value. Your gain on bullion should help offset the losses on other investments. Whichever way the economy goes you are protected by a well thought out investment plan. This is because those very conditions that weaken traditional investments tend to strengthen bullion.