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Gold has always been the go-to precious metal if you are looking for safety, security, and an investment with a track record of growth through the years. This is also true today with gold markets trading higher and more investors looking to get in on the market.
Buying gold or other commodities in Australia there are several points to consider. Not least of these is which broker to choose for buying gold. Here we will take a closer look at the best places to buy gold in Australia as well as a few critical points to look out for when making your choice.
Key Considerations Before Buying Gold in Australia
Broker Reputation: First and foremost you want to make sure you are dealing with a reputable broker. Strong indicators here can include the length of time they have been operating, positive reviews from a large pool of users, and any other professional accreditations they are holding. All of the brokers we have selected are among the most trusted in the country.
Storage Location: Double-checking the fees, not only the spread on trading but most importantly any storage fees are very important to your bottom line. Local storage in Australia is beneficial and means you can even see your physical holdings in many cases.
Local Taxes and Regulations: Being fully aware of your tax liabilities and any other local regulations is also very important. In Australia, as with many other countries, there are favorable tax terms in place on investment-grade gold that we will look at in more detail below.
Best Places to Buy Gold in Australia
BullionStar is among the most trusted names in the industry anywhere in the world. BullionStar is based in Singapore where they run a hugely transparent operation facilitating your investment in over 1,000 different products across 10 categories including not only gold bars but coins and more though they do boast a good reputation among Australian traders and others around the world
They can provide a completely tax-free environment for your gold bullion purchases thanks to the tax and reporting-free environment in Singapore, while also facilitating your 24/7 online access to your holdings from Australia and other jurisdictions. These holdings are also fully insured and held in the most secure physical storage that is certified and regularly audited. BullionStar will also send you pictures of your holdings or you can view them in person at their physical location in Singapore.
Their spread on trading gold and other precious metal products is extremely low while storage fees start from only 0.09% per annum with a daily minimum fee of 0.19 SGD. You can also keep cash as well as gold and commodities on your account at BullionStar to take advantage of online trading at any time. The broker also has impeccable financial records that they make available transparently on a regular basis.
GoldBroker.com is another extremely popular broker choice if you are looking to buy gold or other precious metals in Australia. The broker is backed by a highly experienced team and is UK-based having been around since 2011. They are though kept very accessible to traders from Australia and other countries around the world. With storage facilities in Singapore and other major countries like the US, Switzerland, and Canada, this is also ideal for those who wish to avail of the tax-free environment.
Alongside competitive pricing on gold and the other assets they offer, the broker is able to provide you with direct and certified ownership of the gold in your own name and without any intermediaries. This makes the process extremely smooth and user-friendly particularly if you are new to buy or trading gold.
The fees here are GoldBroker.com remain competitive also. They have a sliding scale in place that varies depending on the size of your gold holdings with charges ranging from 0.95% for more than 4,500 ounces, to 1.5% on anything below $20,000 in value. The minimum investment here is $10,000 and they also provide a very useful and competitive buyback service as well as shipping capabilities.
Bullion Vault is another top choice if you are looking for an industry name to buy gold in Australia. The company was founded in 2003 and has risen to become one of the most high-volume gold trading and storage services in the world with vault locations in several countries.
As well as being able to trade from around the world in gold, silver, and other precious metals, Bullion Vault also allows you to hold an account and automatic gold investment plan that you can set up to make regular purchases at some of the best prices offered through their service.
They are known as one of the most secure for physical storage around the world, and all of your funds that are not yet invested are also kept in a segregated top-tier bank account, that along with your precious metal holdings, is fully insured. Commission on purchases starts from 0.5% on the first $75,000 of gold which drops on a sliding scale with higher purchases. Storage fees are 0.12% on your stored gold per year. This is billed on a monthly basis.
Australia Gold Tax Regulations
Similarly to buying gold in a host of other major countries, you will find that Australia does not impose a tax on the precious metal as long as it reaches at least a 99.5% purity. This classifies it as investment grade, and exempt from goods and services tax.
While you do not have to pay GST on your holdings, you may be liable for Australian Capital Gains Tax when or if you decide to cash in on your gold and make a profit. Depending on your situation and status, this could go from nothing up to around 24% as a maximum applicable rate, though you should always consult with a tax expert prior to making any choices.
The lack of GST on investment-grade gold and the fact that brokers are not obligated to make any kind of tax withholdings puts you in a positive position, particularly if you would like to buy through one of the above-mentioned brokers based in tax-free havens like Singapore.
Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.