Where to buy digital Gold with A$100
With interest rate in Australia and global is going towards to negative rate, we need to plan alternative options to store our hard earned money. Gold is an option that is getting attention on the market lately. China and Russia have been buying gold in an enormous amount in the past 12 months.
Today, I am researching options for beginner investors to invest in Gold. As beginner, it is better to use Dollar Cost Averaging strategy and buy gold in small amount regularly.
Here are a few options in Australia market (price in AUD as at 9/11/2019)
Gold spot bid price A$2,126.04 (goldprice.org as at 9/11/2019).
A. PerthMint Gold Pass
https://www.perthmint.com/goldpass.aspx
Where to buy: Gold Pass app
Buy price: $21.53 / 0.01oz
Sell price: $21.00 / 0.01oz
Spread: $0.53 ~ 2.46 %
Fee: included in price
For $100, we can buy 0.046oz
Liquidation value: $96.60 (0.046 * $21/0.01oz)
B. PMGOLD ASX
https://www.perthmint.com/storage/perth-mint-gold-asx.html
Where to buy: Stockbroker
Buy price: $21.39 / 0.01oz
Sell price: no data
Spread: no data
Fee: $9.50 brokerage via self wealth
For $100, we can buy 0.04oz (4 x 21.39 + 9.50 = 95.06)
Liquidation value: $76.06 (4 x 21.39 - 9.50)
C. GOLD ASX
https://www.etfsecurities.com.au/product/gold
Where to buy: Stockbroker
Buy price: $201.49 / 0.094205127oz ~ $21.38 / 0.01oz
Sell price: $200.10 / 0.094205127oz
Spread: $1.39 ~ 0.69%
Fee: $9.50 brokerage via self wealth
For $100, we can buy 0oz, as minimum price is $201.49 + $9.50
Liquidation value: n/a
D. AUS Gold Standard ERC20
https://goldsilverstandard.com/gold-standard
Where to buy: Coinspot.com.au
Buy price: $70.03 / 1gram ~ $21.78 / 0.01ozt
Sell price: $66.28 / 1gram ~ $20.61 / 0.01ozt
Spread: $3.75 ~ 5.35%
Exchange fee: included in price
Transfer to wallet fee: 0.03 AUS ~ $2.1 for transfer fee
For $100, we can buy 1.42795944 AUS ~ 0.046oz
On wallet, we receive 1.39795944 AUS ~ 0.045oz
Liquidation value: $90.66 (1.39795944 - 0.03 * 66.28)
For beginner investor, the main consideration is how we can sell Gold back to AUD easily and not losing money due to spread. The winner is PerthMint GoldPass.
Please leave comment for feedback or if there’s any other interesting option to explore.
Note 1: Precious metal oz is not a regular ounce, but it is a troy ounce (ozt) https://goldprice.com/troy-ounce-vs-ounce/
Note 2: PerthMint minted gold bar for non digital option
http://www.perthmintbullion.com/au/Buy-Gold-Bars/1g--Minted.aspx
Where to buy: PerthMint
Buy price: $81.90 / 1gram ~ $23.22 / 0.01oz
Sell price: $66.74 / 1gram ~ $18.92 / 0.01oz
Spread: $15.16 ~ 18.51%
Delivery fee: $17.50
For $100, we can buy 1gram ~ 0.035274oz (81.90 + 17.50 = 99.40)
Liquidation value: $49.24 (66.74–17.50)
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
