12 May 2020, By DeafAdmin
All that Glitters: Everything you need to know about Gold Bullion
Is Gold Bullion a safe investment? What exactly is it? How much can I win in The Deaf Lottery? Here are all your questions about Gold Bullion, answered by an expert.
With the COVID-19 pandemic turning our expectation of work, travel and everyday activities on their head, we’re all looking for some predictability in our lives.
Unsurprisingly, the pandemic has also lead to financial uncertainty, and at The Deaf Lottery we’re being asked more and more about Gold Bullion, one of the cornerstones of our prize offerings (our Major Prize, for instance, can include up to $800,000 in Gold).
We caught up with Stephanie Cumming, director of Ainslie Bullion, a proud Prize Partner of The Deaf Lottery for over 20 years, to find out more about Gold Bullion, how it works, and if it’s a safe investment in these unusual times.
Hi Stephanie, with the ongoing economic and social uncertainty, have you found more people are becoming interested in gold? Have you been able to keep up with demand?
Since the beginning of the year, but especially since March, bullion dealers world-wide have been inundated with interest in bullion. Ainslie is no different, with this last month being the busiest we have ever encountered! We have kept up with demand, through long hours and a great team effort.
All the Major Prize options in The Deaf Lottery contain a portion of Gold Bullion. How does this process work? Do Deaf Lottery winners will receive actual gold bars?
When we receive the notification of the win, we lock in the price of gold at that time. The winner takes either the physical gold, or puts that gold into an Ainslie Storage Account for ease of trade, or sells the gold to us and takes the cash. If gold is chosen, we send physical gold in cast bar format to the winner for a very reasonable freight charge (or if local, they can come into our office to collect the gold). If the winner decides to cash out, they receive the deposit to their account the same day that the prize funds are deposited to our account.
Are there different types of gold bullion available?
In general, gold comes in many size bars and types of bars as well as bullion coins. We sell gold bars from 1g up to 1kg (the largest bar available on the retail market). When we provide a winner with their prize, we provide it in bars of varying sizes, depending on the value.
What is the most common reaction when someone sees their gold for the first time?
Gold certainly seems alluring to most people. It will never lose its shine, even if buried for years. It is very dense and some are surprised at the size for value. For example, a 1kg gold bar (currently valued at about $88000.00) is the size of an older iPhone, but it weighs 1kg! It is interesting to see some reactions once it is held in their hands. Some are in awe of the colour and feel, others are intrigued by the small size for value involved.
What are some of the advantages of buying gold?
Gold is easy to store and easy to trade. It can be cashed out on any week day, making it a very liquid asset. Whereas, property or the like, may take some day/weeks to get the cash or finalise the transaction. The ownership of physical gold (as opposed to ETF’s) has no counter party risk and is generally uncorrelated to shares and property. When the value of traditional assets in a portfolio ( property , shares) goes down, gold has, historically, gone up.
Do you think gold will continue to be an important commodity into the future?
Gold as a form of currency has a 5000 year history. Fiat currencies have come and gone. Gold has always had value!