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Gold Knowledge & Tips by Pierre A Pienaar


A Gold Buyer's Checklist




A nine-point checklist for secure gold investment...
Dear Reader,



LOOKING TO buy gold today? Here's a nine-point check-list for secure gold investment
presented by Investor's Chronicle Gold Conference, hosted at the London Stock
Exchange...

#1. Don't take it home, except maybe a few coins


History is littered with sad stories of people who bought gold (rightly) because they
feared severe economic contraction in their home country, and then made the mistake of
holding their gold at home. When they needed it they could not release its value because
it had become contraband.

Think of Zimbabwe (now), Argentina (2001), Yugoslavia (1990s), Vietnam & Cambodia
(1970s), Nazi Germany (1930s), the USA (1933), Russia (1917). Gold secures your
wealth when it is held in a reliable country. This is unlikely to be your own country if you
are wise to be buying gold.

2. Buy 'Good Delivery' fine bullion to save 6-10% over coins & small bars
The world's best gold (assayed at 99.5% or better, and traded 100% 'fine' โ€“ i.e. gross
bar weight x assayed purity) has a rock-solid perpetual guarantee of its quality and is,
surprisingly, also the cheapest. Good Delivery gold also sells for the highest prices.
That's because Good Delivery bullion is the spot market standard and is massively more
liquid than coin markets.

3. Use allocated storage at a commercial vault โ€“ not a bank


Persuading you to hold your gold 'unallocated' lets banks finance their own liquidity
reserve with your gold. It is so attractive to banks that they significantly overcharge for
the safer 'allocated' storage option. So don't use banks to store gold. Instead, use fully
allocated and insured commercial vaults; they don't have a liquidity reserve requirement,
and therefore have no motivation to overcharge for allocated.

The wholesale storage rate (including insurance) is about 0.1% per annum in a
commercial vault. It will usually be many times that much in a bank. BullionVault
charges 0.12% per annum, with a minimum of $4 per month.

4. Direct overseas ownership


Don't get caught out by a trust deed or vault in the wrong jurisdiction. Think
about exchange controls. In a world of severe economic contraction, you would almost
certainly still be able to travel (if you can afford to buy the ticket), enabling you to
physically collect your gold and realize its value outside controls in your home
jurisdiction. This is why direct overseas ownership often works better than ownership
through a trust. An intermediating trust deed could result in the ownership of gold
effectively being trapped in the country where the trust was set up.

5. Avoid certification. Insist on regular publication of bar lists & reconciliation


There are two big problems with gold certificates. Firstly they convert your gold into a
security, i.e. the certificate becomes the thing you own, not the gold itself, putting the
issuer between you and the gold, which means the problems of trusts apply again. Gold
is a tangible good, so it does not need the complexity of being wrapped as a security.
You can own the stuff itself, and involve no-one else in your title.

The second problem with certificates is that there's no way of knowing how many
certificates have been issued, which is a threat to your unique ownership. Modern
technology can help here, by allowing you internet access to view the register of all
owners. BullionVault is the only custody service in the world which publishes โ€“ every
day โ€“ bar lists reconciled to individual private holdings. You can see the public evidence
of your holding, reconciled to the current bar list; our central register defines who owns
what, and eliminates the possibility of double counting. But however you choose to buy
gold, check your metal is separately identified on the reconciliation.

6. Make sure ownership records are independently audited


You want the auditor, and not the service provider, to vouch for how this thorough study
reconciles your ownership records with the physical property. See that the bullion is
checked and reported on annually by a qualified assayer.
7. Consider your crisis response


Could you effect a rapid location switch and/or international shipment? Currency crises
blow up with alarming speed. Gold stored via a stock-exchange traded instrument (such
as a Gold ETF) is not particularly mobile. There will usually be only one vault in one
jurisdiction storing all the gold. The problem is that trading out of that jurisdiction
requires a three-day stock exchange settlement period, after which your stockbroker will
send your money to you, probably incurring another few days' delay.

You may well be safer if you can either instantly sell your gold and buy in another
physical location, or ask for your gold to be shipped. Both of these are simple
transactions on BullionVault. The first you can do on-line. The second takes advantage
of the fact that BullionVault's vault operator routinely transports bullion from one
international vault location to another. The shipment can be arranged without the bullion
ever leaving the control of the commercial vault operator, which makes it much easier
and cheaper to set up โ€“ fast.

8. Right to withdraw for personal possession
If you choose the cost-savings, liquidity and security of using safe custody, you must
also retain the right to withdraw your property in full. All BBullionVault customers have
the right to take possession of their gold. Each gram is physically present in the vault of
their choice, available for withdrawal.

9. Liquidity โ€“ look for 24/7 trading; don't rely on just one counterparty
Gold is not like a stock-market share. Most stocks only move when their local market is
open. Gold moves all the time. Since price action occurs during Asian, European and
American market hours, you should be able to act when the price moves, too. So you
need a marketplace which stays open.

BullionVault is currently the only gold market in the world which is open 24 hours a day,
7 days a week. On BullionVault, users also quote their own prices. So there are
thousands of counterparties free to quote to you, and to whom you can freely quote your
own price.

One-counterparty systems, in contrast, force you to sell your gold back to the system
operator. This eliminates competition and allows the provider to quote wide spreads.
Whereas free competition on price massively reduces the cost of the spread.

Paul Tustain,

Settlement-systems specialist Paul Tustain launched BullionVault in 2005 to make the
security and cost-efficiencies of the professional wholesale gold market available to
private investors. Designed specifically to meet his own needs as a risk-averse investor,
BullionVault's online precious metals exchange is now the world's largest provider of
physical gold and silver ownership to private individuals.
Trade smart, not with Greed

                                    Pierre A Pienaar




Pierre A Pienaar retired in 2011 from business.

I would like to share my passion, my interests, knowledge & experiences
in Forex, Options, Gold Investments, Futures, Stocks, Binary Options, Economics,
Stamp Collection, Sports, Gardening, Reading, Photography, and Politics




Resources for the Trader:


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Gold  knowledge   a gold buyer's checklist

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Gold knowledge a gold buyer's checklist

  • 1. Gold Knowledge & Tips by Pierre A Pienaar A Gold Buyer's Checklist A nine-point checklist for secure gold investment... Dear Reader, LOOKING TO buy gold today? Here's a nine-point check-list for secure gold investment presented by Investor's Chronicle Gold Conference, hosted at the London Stock Exchange... #1. Don't take it home, except maybe a few coins History is littered with sad stories of people who bought gold (rightly) because they feared severe economic contraction in their home country, and then made the mistake of holding their gold at home. When they needed it they could not release its value because it had become contraband. Think of Zimbabwe (now), Argentina (2001), Yugoslavia (1990s), Vietnam & Cambodia (1970s), Nazi Germany (1930s), the USA (1933), Russia (1917). Gold secures your wealth when it is held in a reliable country. This is unlikely to be your own country if you are wise to be buying gold. 2. Buy 'Good Delivery' fine bullion to save 6-10% over coins & small bars
  • 2. The world's best gold (assayed at 99.5% or better, and traded 100% 'fine' โ€“ i.e. gross bar weight x assayed purity) has a rock-solid perpetual guarantee of its quality and is, surprisingly, also the cheapest. Good Delivery gold also sells for the highest prices. That's because Good Delivery bullion is the spot market standard and is massively more liquid than coin markets. 3. Use allocated storage at a commercial vault โ€“ not a bank Persuading you to hold your gold 'unallocated' lets banks finance their own liquidity reserve with your gold. It is so attractive to banks that they significantly overcharge for the safer 'allocated' storage option. So don't use banks to store gold. Instead, use fully allocated and insured commercial vaults; they don't have a liquidity reserve requirement, and therefore have no motivation to overcharge for allocated. The wholesale storage rate (including insurance) is about 0.1% per annum in a commercial vault. It will usually be many times that much in a bank. BullionVault charges 0.12% per annum, with a minimum of $4 per month. 4. Direct overseas ownership Don't get caught out by a trust deed or vault in the wrong jurisdiction. Think about exchange controls. In a world of severe economic contraction, you would almost certainly still be able to travel (if you can afford to buy the ticket), enabling you to physically collect your gold and realize its value outside controls in your home jurisdiction. This is why direct overseas ownership often works better than ownership through a trust. An intermediating trust deed could result in the ownership of gold effectively being trapped in the country where the trust was set up. 5. Avoid certification. Insist on regular publication of bar lists & reconciliation There are two big problems with gold certificates. Firstly they convert your gold into a security, i.e. the certificate becomes the thing you own, not the gold itself, putting the issuer between you and the gold, which means the problems of trusts apply again. Gold is a tangible good, so it does not need the complexity of being wrapped as a security. You can own the stuff itself, and involve no-one else in your title. The second problem with certificates is that there's no way of knowing how many certificates have been issued, which is a threat to your unique ownership. Modern technology can help here, by allowing you internet access to view the register of all owners. BullionVault is the only custody service in the world which publishes โ€“ every day โ€“ bar lists reconciled to individual private holdings. You can see the public evidence of your holding, reconciled to the current bar list; our central register defines who owns what, and eliminates the possibility of double counting. But however you choose to buy gold, check your metal is separately identified on the reconciliation. 6. Make sure ownership records are independently audited You want the auditor, and not the service provider, to vouch for how this thorough study reconciles your ownership records with the physical property. See that the bullion is checked and reported on annually by a qualified assayer.
  • 3. 7. Consider your crisis response Could you effect a rapid location switch and/or international shipment? Currency crises blow up with alarming speed. Gold stored via a stock-exchange traded instrument (such as a Gold ETF) is not particularly mobile. There will usually be only one vault in one jurisdiction storing all the gold. The problem is that trading out of that jurisdiction requires a three-day stock exchange settlement period, after which your stockbroker will send your money to you, probably incurring another few days' delay. You may well be safer if you can either instantly sell your gold and buy in another physical location, or ask for your gold to be shipped. Both of these are simple transactions on BullionVault. The first you can do on-line. The second takes advantage of the fact that BullionVault's vault operator routinely transports bullion from one international vault location to another. The shipment can be arranged without the bullion ever leaving the control of the commercial vault operator, which makes it much easier and cheaper to set up โ€“ fast. 8. Right to withdraw for personal possession If you choose the cost-savings, liquidity and security of using safe custody, you must also retain the right to withdraw your property in full. All BBullionVault customers have the right to take possession of their gold. Each gram is physically present in the vault of their choice, available for withdrawal. 9. Liquidity โ€“ look for 24/7 trading; don't rely on just one counterparty Gold is not like a stock-market share. Most stocks only move when their local market is open. Gold moves all the time. Since price action occurs during Asian, European and American market hours, you should be able to act when the price moves, too. So you need a marketplace which stays open. BullionVault is currently the only gold market in the world which is open 24 hours a day, 7 days a week. On BullionVault, users also quote their own prices. So there are thousands of counterparties free to quote to you, and to whom you can freely quote your own price. One-counterparty systems, in contrast, force you to sell your gold back to the system operator. This eliminates competition and allows the provider to quote wide spreads. Whereas free competition on price massively reduces the cost of the spread. Paul Tustain, Settlement-systems specialist Paul Tustain launched BullionVault in 2005 to make the security and cost-efficiencies of the professional wholesale gold market available to private investors. Designed specifically to meet his own needs as a risk-averse investor, BullionVault's online precious metals exchange is now the world's largest provider of physical gold and silver ownership to private individuals.
  • 4. Trade smart, not with Greed Pierre A Pienaar Pierre A Pienaar retired in 2011 from business. I would like to share my passion, my interests, knowledge & experiences in Forex, Options, Gold Investments, Futures, Stocks, Binary Options, Economics, Stamp Collection, Sports, Gardening, Reading, Photography, and Politics Resources for the Trader: FUTURES PRICES Updated every 10 minutes around the clock Join Timothy Evans on his journey as he navigates the financial markets in the search of profits. Timothy provides in depth market analysis as he cuts through market noise in his search for market opportunity. Receive the following with your subscription to In-The- Money, a traderโ€™s journey to the land of profits: Subscribe here Your Gateway to Global Options on Futures Markets Long Leaf Xpress is well suited for the trader who wants quick execution on the electronic markets. Traders have the ability to trade futures and options from a price
  • 5. chart or an order ticket. Long Leaf Xpress also offers option chains, Depth of Market for futures and options plus streaming real-time quotes and charts. Supported Instruments: Futures, Options on Futures. If you wish to have preferential treatment with your Futures Trading Account, please contact Tony Klancic and refer to this report: Resources For The Independent Trader TradersVideoPlaybook Ultimate Spot Gold Trading Business & Investing Book Market Timing Indicators + Platform Store Predictions for Free Unique features such as Inside Viewerโ„ข Trade Controllerโ„ข & Visual Trading Machineโ„ข Automated Trading Systems Todayโ€™s Top 50 Stocks list Todayโ€™s Top Preforming - A Turn-key, All-inclusive ETFs Solution for Developers Top 10 Penny Stocks Todayโ€™s Top Preforming Free Stock Trend Forex Pairs Analysis "It's Hands-Down The Think Global, Grow Rich: 7 6 Successful Trader Things Easiest Money You Can Principles for Building a In Common Make From Wall Street" Global Portfolio Carl Delfeld Substantial risk of loss There is a substantial risk of loss of stocks, options, and foreign equities are substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading.