• Last Updated:
  • Jul 8th, 2020 11:01 am
Tags:
None
Deal Addict
User avatar
Sep 13, 2007
4109 posts
4655 upvotes
GTA
I don't know of any advantage to owning actual bullion vs a certificate. The certificate will be cheaper, easier to store and easily cashable, correct me if I'm wrong.
Deal Addict
Dec 3, 2014
2014 posts
1272 upvotes
Ontario
Kfox wrote: I don't know of any advantage to owning actual bullion vs a certificate. The certificate will be cheaper, easier to store and easily cashable, correct me if I'm wrong.
Correct. Notably it’ll also be secure. Holding gold at your house is great as long as nobody knows about it.
Deal Fanatic
Oct 7, 2007
7581 posts
3671 upvotes
To realize the true security that comes with gold, if this is the purpose for buying gold in the first place, is to have the gold in your possession. Otherwise, there is a possibility that you may not actually be able to get your hands on it at the moment you think you need it. (I learned this when taking one of the Canadian securities courses.)
Deal Expert
Jan 7, 2002
21005 posts
14915 upvotes
Waterloo, ON
choclover wrote: To realize the true security that comes with gold, if this is the purpose for buying gold in the first place, is to have the gold in your possession. Otherwise, there is a possibility that you may not actually be able to get your hands on it at the moment you think you need it. (I learned this when taking one of the Canadian securities courses.)
This is the dilemma. If you let the bank store the metal (any PM) on your behalf (e.g. certificates, ETFs, etc.) you may not be able to convert them to metal in time of need. If you take possession of metal you not only assume risk of loss/theft but you also have the onus to prove what you have is legit should you ever want to sell it to a bank or dealer.

If the concern is to have physical metal in your possession in case of emergencies like natural disasters, wars, hyperinflation etc. where the paper money system collapses, then circulating, small denomination coins are better than wafers and bars because they're harder to fake. They're also more suitable for use as ersatz currency due to the relatively small amount of PM value, i.e. it's easier to use a small gold coin to pay for a loaf of bread than a 1oz gold coin or wafer. OTOH there may be larger spreads on coins. And because coins are made from alloys, you'll need a larger physical size and weight than pure PM.

These are just some of the issues one has to consider when deciding what form of PM to buy.
veni, vidi, Visa
Banned
Jun 15, 2012
2837 posts
1004 upvotes
Saskatoon
Thatdealguy wrote: Looking to invest and heard about China's gold scandal recently. Is it a good time to invest in gold?

They always say gold never loses its value.

If so, where can I get legit gold in Canada?
Here is the list of DNA dealers on Royal Canadian mint website (The Bullion DNA anti-counterfeiting technology is only available through a registered Bullion DNA dealer. Get a listing of current Bullion DNA dealers here).
https://www.mint.ca/store/mint/customer ... r-10900014

I would recommend don’t bother with gold ETFs and other derivatives.
No need to type thank you; upvote=thanks.
Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

“Because gold is honest money it is disliked by dishonest men.” – R. Paul
Deal Fanatic
Oct 7, 2007
7581 posts
3671 upvotes
bylo wrote: This is the dilemma. If you let the bank store the metal (any PM) on your behalf (e.g. certificates, ETFs, etc.) you may not be able to convert them to metal in time of need. If you take possession of metal you not only assume risk of loss/theft but you also have the onus to prove what you have is legit should you ever want to sell it to a bank or dealer.

If the concern is to have physical metal in your possession in case of emergencies like natural disasters, wars, hyperinflation etc. where the paper money system collapses, then circulating, small denomination coins are better than wafers and bars because they're harder to fake. They're also more suitable for use as ersatz currency due to the relatively small amount of PM value, i.e. it's easier to use a small gold coin to pay for a loaf of bread than a 1oz gold coin or wafer. OTOH there may be larger spreads on coins. And because coins are made from alloys, you'll need a larger physical size and weight than pure PM.

These are just some of the issues one has to consider when deciding what form of PM to buy.
Fair enough. All legitimate factors worth consideration.

In terms of addressing the concerns about authenticity, are Canadian gold wafers not sealed with a stamp that legitimizes them and makes them harder to fake? In other words, if you purchase the gold from a bank or legitimate seller and it has the seal on it (and you preserve the seal), is this not sufficient when it comes time to resell? If not, what means are needed to provide support down the road that the wafer is indeed authentic such that you do not need to break the seal to do so?
Deal Addict
User avatar
Oct 14, 2015
1184 posts
859 upvotes
There are devices to check the authenticity of precious metals;
don't even have to remove the metal from the packaging.

They're not cheap, but any reputable coin shop will have one.

Top