Here is a list of the most common questions we are asked by our customers. We hope this list helps clarify most of your questions, however if you wish to know anything, else please feel free to ask. Everyone who works for Bayside Bullion are long term Investors in precious metals and are all passionate about the industry and are happy to help.
[Gold vs Silver]
Gold and Silver have both been used as money for thousands of years and are used these day predominately as a ‘store of wealth’ they function as a store of wealth because as Countries print more currency we then have more cash chasing the same amount of goods creating inflation. As the prices of Fuel, Energy, Labour, Diesel etc. rises then so does the cost of mining Gold and Silver.
Since Gold and Silver need to be mined at a profit, shortages will develop in these metals when the cost of mining goes above the value of the metals, causing the price of Gold and Silver to then rise. This long term trend of rising metal prices is how Gold and Silver maintains it’s status as a store of wealth. Silver also has an additional component to it being it is also an industrial metal and is used ‘direct in’ or ‘in the process of’ producing almost every item we use in our modern day. While Gold and Silver generally always move in the same direction,
Silver tends to be more volatile, meaning when Gold goes up 5% then Silver can easily move up 10%. This also applies on the way down, if Gold was to fall 5% then it wouldn’t be uncommon for Silver to fall 10%. This movement means that typically Gold is a better short term store of wealth and Silver is ‘potentially’ a better long term store of wealth, historically speaking. We always recommend getting some of each, if you are risk obverse and looking shorter term then you would likely look at getting mostly Gold with some Silver as well.
If you where highly bullish on the metals and was willing to hold an investment position for a long period of time you could consider a larger holding in Silver over Gold, however you would need to consider the logistical transport and storage of that amount of Silver. Most people generally go for a fairly even mix depending on their timeframe that they predict they will hold the metals for. As a rough guide, if you are looking at less than 2 years then 90% Gold and 10% Silver, 2 – 7 years then perhaps a 75% Gold and 25% Silver split, 7 – 20 years 50% Gold 50% Silver. This is to allow for any volatility in the metals over time, while both Gold and Silver may have outpaced Interest Rates over the past 40 years there are still the odd years that they pull back in price for short periods of time, so having both Gold and Silver allows better options when it comes time to sell some.
For a transaction over AU$5,000 we require an account to be established, which is just one Government photo ID, such as Drivers License or Passport. Any transactions under AU$5,000 we don’t ask for ID unless the customer want their name on a Tax Invoice, otherwise we just put the name down as Cash Sale for sales and Cash Purchase for buy backs.
[Bar Sizes and Types]
We sell a variety of Bars in different brands, different types as well as coins which can be pretty confusing to start with, however we sell mostly the same items over and over. Companies, Trusts and Superfunds we recommend going for some of the slightly higher priced items that come with individual serial numbers for storage and auditing purposes. Other high premium items are ideal for Gifts as they look a lot nicer, however everything is still the same weight and purity.
For most we always recommend the lowest premium items as this means you get the most amount of Gold and Silver for your money and as you can see from the buyback prices we buy them all back at the same rate anyway. The most common items we sell are the 1oz and 1/2oz Australian Cast Gold Bars and the 1Kg and 10oz Australian Silver Bars. Another item some people like is the 1oz Silver Kangaroo Coins, as they are the lowest premium Silver Coins. Most people that buy these buy them not as much as an Investment but more as an emergency barter currency in the event of a Banking crisis, which can be good to have a small amount of just in case, but not necessarily important as far as an investment goes.
When you are ready to purchase you can look up the items you wish to purchase from our website and give us a call and we can prepare an Invoice for you with our Banking Details on it. When we do this we will hold the price for you for the next 60 minutes to allow you time to arrange the transfer with your Bank. Depending on banking limits you may have to go into your Bank to arrange a Telegraphic Transfer or Real Time Gross Settlement with the Bank. We just require that you send us a copy of the receipt within the hour so we can hold that price for you. Since the prices are moving every second and updating every minute we are not able to accept things like Bank Cheques and will require a prompt transfer. The funds don’t have to clear straight away but we will need a proof of transfer so we can lock in prices with our supply chain. Once the funds have cleared and your items are ready for collection then you are able to come into the store with an ID and collect them at your convenience, we have free parking here and can assist loading your purchase into your vehicle if you decide to buy a fair quantity of Silver, Gold you can typically carry out in your pocket. We keep a fair bit of Gold and Silver in stock however we have been experiencing some delays with Silver atm, if we have your order in stock you can collect as soon as the payment clears. If we have to order it in then it’s typically 1-2 weeks on Gold and 3-4 weeks on Silver, however this gets a bit tricky over the Christmas period. Everything we hold for customers is all safely stored and Insured here until collected, so as items come in most people will wait until it’s all ready to come collect all in one go and it’s all insured in the meantime. We do also offer long term storage at $15 per ounce per year for Gold and $15 per kilo per year for Silver, however we do personally recommend to people to get your own metals into your own hands.
Pretty much just bring it back into the store and we will either give you cash or transfer back to your bank account, being the Metals Market is a Market that is priced based on Supply and Demand we are always buying back at our advertised rate based on the spot price.