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Protecting Your WealthGold and Silver Bullion
in Australia
Protecting Your WealthGold & Silver in Australia
� 4 Key Reasons for Buying Gold & Silver Bullion
� Physical Bullion versus Futures and ETF’s
� Purchasing Bullion in Australia
� Storing Bullion in Australia
4 Key Reasons for Buying Gold & Silver Bullion
1. Hedge against Global Economic Uncertainty
� Unsustainable Government Debt
o US $17 trillion
� Excludes unfunded liabilities
o Japan $10 trillion
� 230% of GDP
o Eurozone $12 trillion
� PIGS average 126% of GDP
US Debt Limit
US Debt
Gold Price
4 Key Reasons for Buying Gold & Silver Bullion
1. Hedge against Global Economic Uncertainty…continued..
� Rampant Monetisation & Easy Money
o US Quantitative Easing (QE) � $85 billion / month
o Japan “Abenomics” � $75 billion / month
o Near zero interest rate policies
� Unwinding of Derivatives
o Potentially $1 quadrillion globally
o Bond run could trigger
� Gold & Silver are REAL money – not paper Fiat currency
o Have been for thousands of years…
Gold Price
US Monetary Base
4 Key Reasons for Buying Gold & Silver Bullion
2. Fundamental Shift – “Weak” to “Strong” Hands
� Most Speculators flushed out
o Big price corrections in April and June
o Speculators scared and stop-loss orders triggered
o Large outflows from ETF’s
� Net Futures Positions of big Bullion Banks now Long
o Same banks were Short and covered at lower prices
o 25% of COMEX positions held by 1 Bullion Bank
� Biggest concentrated long position in COMEX history
4 Key Reasons for Buying Gold & Silver Bullion
2. Fundamental Shift – “Weak” to “Strong” Hands… continued..
� Strong shift from “paper” (ETFs and Futures) to physical bullion
o China and India (more generally the East) very big buyers
� 50% of all gold bars and coins 2Q13
o Eastern Central Banks big purchasers
� China officially only 2% of reserves
o Record sales of US Mint coins
o Rising premiums for physical bullion
� Disconnect from paper price
4 Key Reasons for Buying Gold & Silver
3. Supply & Demand
� Price and industrial disputes affect supply
o Current low prices below many mine’s cost
o Low prices also reduce scrap availability
� Gold - Strong demand for investment & jewellery
o Both private and central bank
� Silver - Very strong demand
o Investment - Ratio @ 60:1, India, US Mint
o Industrial - Solar panels, medical, electronics - all growing
Chinese Gold Production
Gold Imports through Hong Kong
4 Key Reasons for Buying Gold & Silver Bullion
4. Diversifying your Investment Portfolio
� Shares, property, and bonds all exposed
o Another financial crisis would bring down shares and property
o Bonds will suffer with any tapering of QE
� In Australia both Gold and Silver have outperformed shares and
property over last 10 years
� Introduces a hard asset
� Can be located in different country. International pricing.
Physical Bullion versus Futures and ETF’s
� Paper trading is widely viewed as manipulated
o Largely controlled by Big 4 Bullion Banks
o April/May price plunge highly suspect
� Disconnect between paper and physical prices
o Plunging paper price but rampant physical sales in May
o Increased premiums on physical to reflect reality
� ETF’s – Physical holdings may not match shares
o Testimony before CFTC Hearing of 100:1
o Recent examples of large funds stating cash settlement not metal
� Paper is only EVER a promise to pay
o Why risk trusting the promise if you can own the
real thing easily?
Purchasing Bullion in Australia
� One of the world’s largest producers
� Strong and globally competitive bullion supply
� Currency Hedge
o AUD expected to fall (Reserve Bank objective plus China trade)
o Buying USD spot lead commodity in AUD potential benefit
� Ainslie Bullion www.ainsliebullion.com.au
o One of the largest in Australia. Largest in Brisbane, closest State
city to China
o Privately owned and nearly 40 years old
o Purchases by internet, phone or in person
o Can supply Perth Mint Chinese Lunar Year coins at same price
o Free insured delivery to Reserve Vault in Brisbane
Storing Bullion in Australia
� Sound diversification strategy
o Provides product mix AND geographical mix
� Australia geopolitically stable
� Non Government storage options
o Addresses concerns of confiscation
� Non Bank or Financial Institution options
o Alleviates concerns of global trend to Cyprus style ‘bail ins’.
� . www.reservevault.com.au
o Independently owned – non Government, non Bank / Financial Inst
o Largest in Australia
o World Class Secure Storage
o Specialising in Bullion with a range of options
o Custodial Storage available – allows secure remote access
o Insurance underwritten by Lloyds of London
� Still very much a world in Economic turmoil
o Too much debt
o Too much easy money
o Toxic Derivatives still in the system
� Gold and Silver Bullion are real money
o Can’t be ‘printed’ or extinguished like paper
o Money for thousands of years
� Diversify your portfolio both by investment type and location
� Store your wealth outside of Bank and Government influence
� Both buying and secure storage is easy with Ainslie Bullion
Thank you.
Please see me after the talk if you have any queries
Paul EngemanPaul EngemanPaul EngemanPaul EngemanDisclaimer:
This information and that expressed by the presenter is provided for general
information purposes only. You should seek independent professional advice. The
content, views and opinions may be sourced from a third party. Ainslie Bullion
and/or the Reserve Vault do not guarantee the accuracy of this information and
accept no liability for any loss incurred as a result of this information.
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