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Over the past twenty plus years, their strong performance, combined with an economic backdrop that today includes the return of high inflation, the after-effects of the COVID-19 pandemic, bank failures, and rising geopolitical concerns, has seen interest in precious metals as an asset class skyrocket. Indeed, many australians are now looking to include precious metals in their portfolio for the first time. Gold prices have risen from less than AUD $500 to almost AUD $3,700 per troy ounce since the turn of the century, as highlighted in the chart. That’s a return of more than 500% in total, or more than 8.5% per annum, with an AUD $20,000 investment made in 1999 growing in value to more than $140,000 by the end of 2023. The gold price has outperformed all other mainstream assets over this time period, including Australian shares and property.
These assets are subject to capital gains tax when sold for a profit, with the tax rate typically depending on factors such as the duration the asset was held and any applicable exemptions or concessions. It’s essential to be aware of the specific tax regulations governing each type of asset and to consult with a tax professional for personalized advice.
Capital Gains Tax (CGT) when selling Gold Bullion in Australia.
When selling gold bullion in Australia, you’ll encounter Capital Gains Tax (CGT), which is paid on the profit made during the sale. If your gold bullion has a higher value during the sale than when you acquired it originally, you must pay CGT, which has a rate of 28%. However, you only pay 50% of the profit tax if you held the investment for over a year. To calculate your capital gain, subtract the purchase cost from the sale price.
When purchasing investment-grade gold and silver bullion in Australia, there is no Goods and Services Tax (GST) levied. However, it’s important to note that the definitions of ‘investment-grade gold bullion’ are very specific. According to Australian standards, investment gold must be 99.5% pure or greater to qualify. When it comes to declaring gold to the Australian Taxation Office (ATO), it depends on the type of gold you hold and how you obtained it. If you hold gold bullion as an investment, you must calculate a capital gain or loss and declare it on your tax return. However, if you receive gold as a gift or earn it as a hobby, you may not need to declare it. Selling jewelry for a profit is also subject to tax.
Where to buy Gold in Australia.
y. For individuals embarking on their first gold acquisition, it is advisable to avoid eBay and opt for established bullion dealers.
Perth Mint is a solid option for purchasing gold and silver, offering various choices like allocated and unallocated metals. You can also have the metals sent to you if you prefer to hold them physically. Interestingly, Perth Mint products can often be acquired at a lower cost through other sellers who pass on volume discounts. While the maker of physical gold is generally not a significant concern, as most are reputable, Perth Mint stands out as a globally recognized and trusted brand.
With Perth Mint’s Gold Pass, you can also buy fractional amounts of gold and silver in the form of certificates backed by real gold. While it is possible to cash out in physical gold, some users may choose not to do so. Overall, Perth Mint remains a reliable and well-known option for both purchasing and investing in precious metals.
Across Australia, numerous dealers are available, such as ABC Bullion in Sydney, and KJC Bullion in Sydney, with Jaggards on Pitt Street being a personal favorite of mine. My preference often leans towards 1 oz. Gold Kangaroos due to their modest premium compared to the spot price and commendable international reputation. Additionally, opting for minted or cast bars can further reduce the premium. Transactions below $5,000 typically go unrecorded unless specified, while those exceeding this amount necessitate documentation.
Many gold dealers he Sydney central business district (CBD).
If you’re in Sydney, there are several reputable local dealers to choose from. I’ve personally used both Perth Mint and Jaggards in Sydney, with KJC also being a solid option. These dealers offer a variety of sizes in silver, gold, and other metals, and you can even choose between mints, such as Perth Mint or other established international brands. Many dealers are located in the CBD, particularly around Collins Street, with several in the 227 Collins Street building. I’ve also dealt with Ainslie and Bullion Now, both of which are reliable choices.
- Australian Bullion Company — Sydney https://www.abcbullion.com.au/ ABC Bullion is based in Sydney if you don’t want to wait deliveries from Perth. t’s about $35 for postage. ABC Bullion is notorious to be a little more expensive but do have an excellent reputation
- Bullion Now, Ainslie Bullion, Jaggards.
Jaggards, located on Pitt Street in the CBD, tends to offer slightly cheaper prices than ABC. Bullion Now generally has better prices, but their selection can be limited with frequent stock shortages. Ainslie, on the other hand, offers a broader selection and a better purchasing experience, though their prices tend to be higher. Other notable dealers include Ainslie, Swan Bullion, and Perth Mint.
When deciding what to buy, it ultimately depends on your goals. If you’re looking to invest in gold and plan to sell back to a dealer, it’s best to opt for the lowest premium, as dealers typically pay spot price minus a percentage, regardless of the type of gold. However, if you’re seeking something with a “wow” factor or potential collectibility, there are plenty of intricate and unique designs from mints worldwide, though these often come at a higher premium.
Best Deals at the Swanston and Collins Corner: Melbourne’s Hub for gold bullions.
There are several reputable bullion dealers across Australia, including Gold Stackers Australia, Bullion Now, and Gold Stackers in the Melbourne CBD. Other notable dealers can be found in Brisbane, Adelaide, and Perth, with the Perth Mint offering the innovative Gold Pass, which allows fractional purchases backed by real gold. It’s important to remember that all bullion dealers are bound by the same anti-money laundering regulations as banks, so identity verification—typically via passport or driver’s license—is required for online purchases, whether for in-person pickup or courier delivery.
Most major bullion dealers will offer around spot price for precious metals, but be wary of less reputable shops that may try to offer as low as 70% of spot for gold. In Melbourne, Collins Street is a prime location for bullion purchases, with dealers like Bullion Now, ABC, and the Melbourne Gold Company offering competitive premiums. Many of these dealers are located in the building on the corner of Collins and Flinders Streets, where you can often find the lowest premiums.
For non-collectors simply looking to invest, it’s best to focus on buying the cheapest ounces available with the lowest premium. However, collectors might be interested in series like Perth Mint’s Lunar Series or Royal Mint’s Tudor Series, which come with unique designs but at a higher premium. Ainslie Bullion, which has a shopfront in Melbourne, offers low spreads and a variety of mints.
When purchasing, it’s advisable to consult with your accountant or financial advisor. While dealers aren’t required to report transactions under $10,000, they will still take your details. For cash purchases under $5,000, they generally should not require your name, but this can vary depending on the dealer and the specific circumstances.
- – Gold Stackers Australia — Melbourne BullionNow and Goldstackers are 2 options in Melbourne CBD. –
- – Gold de Royal — Brisbane
- – Ainslie Bullion — Brisbane
- – As Good As Gold — Adelaide
- Perth Mint — With Perth Perth Mint Gold Pass, you can buy fractional amounts of gold and silver that are in the form of certificates that are back by real gold. You can choose to cash out in real gold but I’ve never done that.
Can I buy in Australia any amount of gold with cash?
In Australia, it is legal to sell any amount of gold as long as it follows the government’s guidelines for the sale of precious metals. The weight or value of the precious metal is not restricted. However, all Australian gold dealers must adhere to laws regarding the buying and selling of gold.
Be warned, though: All bullion dealers must adhere to the same anti-money laundering as banks. Which means that if you are buying online for pick up in person OR courier delivery, your identity will need to be confirmed by a bullion dealer. Generally, a passport or driver’s license is sufficient. In addition, the AUSTRAC Anti-Money Laundering and CounterTerrorism Financing Act 2006 applies to transactions over $10,000 (including equivalent foreign currency amounts). Which means that you should be prepared. If you walk in with wads of cash over $10,000, the bullion dealer will have to report the transaction to AUSTRAC. Several factors can limit the amount of cash you receive for selling gold, such as the purity of the precious metals, the presence of gemstones or other non-metal elements, and the maximum cash payment limit. Gold brokers generally use an XRF analyzer to test items and determine their exact purity. If the jewelry has stones of any kind, the cost of removing them will be deducted from the total value paid for the precious metals. Many gold brokers have a maximum value of $10,000 AUD per transaction for cash payment, which can limit the amount of gold you can sell.
If you don’t want The Aust government requires the ID not Costco. You can always go to Ainslies, GoldStackers, Bullionnow etc to buy under 5k without breaching anti-money laundering laws. None with Costco requiring 3 forms of photo ID including my passport – citing AUSTRAC reporting despite many of those pieces being under the $10k reporting threshold the government to know about the transaction, keep the cash transaction below this amount. Perth Mint unallocated vs Abcbullion
What is your reason for investing in gold? My personal point of view.
For me, investing in gold goes beyond financial strategy; it’s deeply personal. It’s about safeguarding my hard-earned wealth, ensuring it retains its value even in tumultuous times. Reflecting on the ’90s, when gold was priced at $250/oz, I remember the significance it held, not just as an investment, but as a symbol of stability and security.
Gold is real money, everything else is credit
JP Morgan
My reason for investing in gold would be to diversify my investment portfolio, protect against inflation, benefit from its stability during economic and geopolitical turmoil, and have a tangible asset that can be easily liquidated when needed. Gold has historically maintained its value, acted as a hedge against inflation, and shown a negative correlation with other asset classes, making it a valuable addition to an investment portfolio
I view gold not just as a means of making money, but as a form of insurance against the erosion of fiat currencies. It represents tangible wealth, something I can rely on when the value of traditional currencies fluctuates. Unlike investments tied to the performance of markets, gold stands as a steadfast asset, unaffected by the uncertainties of economic cycles.
ve got me here what are you going to do with me ?
Although that saying did not relate to gold coins, (It was a bit naughty) the same saying is true of gold coins and bullion. (no – bouillion is a French soup and it does not keep well after two days !) Seriously though once you have purchased gold coins or bars you have a fairly immediate problem. That is How and where are you going to store coins.
Storing Gold coins is the main problem for most collectors…
The answer is not simple – a few gold coins can be kept in a 10 coin sovereign case which is padded and protects your coins well.
These are available here on ebay. Or at Amazon. These fit easily into any drawer or bureau.
Smaller Collections, 1 to 20 gold coins.
Single gold coins usually come in protective covers tren in tube then in a small box and are easily hidden either in your home or office (under the floorboards or under the loft insulation in a box or plastic bag seems to be a favorite for many people.
I have heard of some people who prefer hiding a few coins under a carpet – just use your imagination to find somewhere in your own home that is easily overlooked but not somewhere that can be found by treading on it accidentally.
Larger collection, 20 to 100 gold coins.
The main problem seems to be when an investor has a quantity of Gold Sovereigns or Gold Eagles to store safely.
Home insurance is usually limited to a collection of around $1500 to $2000 but check with your insurer to see how much you are covered for on your household policy.
If you understate the amount, you have then the insurance company will usually not pay out at all. Or at a lower rate.
Single valuable coins should be listed separately on your insurance policy.
If you have a safe at home then please use it (and don’t leave the combination lying around for a burglar to find!)
Store at home with Safe Box for gold.
Home safes vary in quality and more expensive ones may be a wise investment. Do not bother with safes disguised as food containers – burglars know all about these.
Wall mounted safes hidden behind pictures are good as these are built into the actual fabric of the building.
Underfloor safes work well if you have easy access. In Australia many stores have larger safes built into their floor with an easy access to contents on a time lock basis.
Best way to bury gold.
The next step up is to bury your gold. – this is not a joke!
Burying gold has long been the favorite storage method of most politicians and despots since time immemorial.
The Nazis for instance hid huge amounts of gold in caves in Austria (a bit extreme admittedly but certainly a safe place!)
War causes huge problems with security for your gold coins.
Plan for easy access for you and helpful people at the storage facility.
It is a fact that for thousands of years merchants and collectors have buried gold coins for two reasons.
- gold is difficult to damage because it is a noble metal (only very strong acids or mercury will damage gold).
- Burial is a fairly secure way to keep that little nest-egg secure (although it is unlikely that you would store gold in proximity to such substances).
There are three disadvantages though one is that you forget where you buried your gold, the second is that something might happen to you an accident or a bolt of lightning or another unexpected and unfortunate happening. The third possibility is that your life partner may dig it up and move away with your coins. (it has been known to happen)
Anyway, I strongly suggest that you write out the whereabouts of your hoard and keep it either with your will or another safe place for your wife/husband/partner to find later preferably after your death. Just this week for instance, a pot containing 10,000 coins was discovered by a treasure hunter in Shrewsbury England.
I expect the original owner in Roman times was seriously expecting to retrieve them later.
Banks And Secure Storage.
A larger amount of gold is frankly more secure in the vaults of a Bank, Safety Deposit or Bullion Dealer. The amounts these institutions charge varies from $25 a year upwards depending on the conditions of the company. You must insure your coins against theft – criminals DO target these institutions.
(Butch Cassidy said it all when asked why do you rob banks he replied –it’s where they keep the money!)
Sadly banks, safe deposits and bullion dealers do sometime go bust. It is ESSENTIAL that if you place a large quantity of gold coins or bullion you must have an ALLOCATED storage area.
Allocated storage areas differ from other storage areas in the premises where if the bank/deposit etc goes bust the gold is not then treated as an asset of the bank/deposit.
This is called a non-fungible allocated area.
You should investigate the finances of any Bank or safe deposit before trusting them with your gold. It has been known for fake safe deposit companies to set up and decamp with the contents!
Even very large Banks have recently gone out of business.
If you visit the vaults of any major bullion dealer/mint you will see shelves and shelves of deposits from private individuals, companies and even countries with notices in front of each box stating the ownership of these allocated areas.
Private or Government Mints also offer allocated gold coin storage as do precious metal trading centres worldwide. ALWAYS take out insurance as well to get a bet and braces form of security for your wealth. Although local banks may also offer similar storage facilities, banks in Lichtenstein and Switzerland have higher security and greater privacy laws.
The problem of storing your gold in these and offshore banks is ease of access.
The Perth Mint in Australia is one of the few safe storage areas specifically for gold coins
Gold is surprisingly heavy.
Do not store gold in a box weighing more than you can physically carry. If you need access in a hurry, you should at least be able to carry it!
As a rough guide an area the size of a brick would house 2,500 gold sovereigns. This would hold around 2.4 million dollars (at today’s rate which will undoubtedly have changed by the time you read this article.)
UPDATED _ 22 / 10 / 2024
FAQs
Is There a Tax when i sell Gold in Australia?
In Australia, when you sell or dispose of a precious metal such as gold bullion, you may be subject to Capital Gains Tax (CGT). This tax is based on the profit you make from the sale, and the rate is typically lower than your income tax rate.