Privacy: Are purchases of gold and silver in NZ reported?

Gold Survival Gold Article Updates:

March 6,2014

This Week:

  • NZ dollar looking toppy?
  • Bigger news than the Ukraine situation?
  • Privacy: Do purchases of gold and silver in NZ have to be reported?

 

Looking first at prices and charts…

NZD gold is down $11.15 per ounce from a week ago or 0.70% to $1591. It is hovering just below the 200 day moving average but has dropped down out of overbought territory already.

NZD Gold Chart

 

While NZD silver is down 43 cents per ounce or 1.68% to $25.20 and getting close to the top of the prior 3 month trading range we mentioned last week.

 

NZD Silver Chart

 

NZ dollar looking toppy?

The NZ dollar is at .8407 today, so is near the top of the range it has traded in over the past year. 

You can see that the kiwi dollar has been trading in a steadily narrower range between the two long blue lines forming a “wedge” pattern, from which it will before too long have to break either higher or lower out of.

NZ Dollar Chart

 

As we mentioned a couple weeks back, even on the back of all the New Zealand economy “good news” of late, the kiwi dollar hasn’t managed to break out to new highs yet. So if it again turned lower from here that would further reinforce the idea of an intermediate down trend being in play and that the bigger break could eventually be down. Of course these are just lines painted on a chart so who knows.

But it seems to us that most western stock markets particularly the USA are steadily bubbling up on the back of central bank easy money policies. This could go on for a while yet but eventually something (probably unexpected) will trip this up. When the US stock market heads south money will flow quickly into the US dollar and so this in turn would send the likes of the kiwi dollar lower ala 2008/09.

Owning gold and silver is a hedge against such a move lower by our local currency. 

 

Bigger news than the Ukraine situation?

All the talk lately has been of Ukraine, however gold and silver were both rising long before anyone had given the Ukraine situation much thought so our guess is this is not having so much impact on the gold price.

More significant may be that the GLD ETF saw its first rise in gold holdings in a year last month, increasing just over 10 tonnes in February. Granted this is small change in comparison to the over 550 tonnes that GLD shed last year. However as the always level headed Lawrie Williams of Mineweb notes:

—–

“…if what we are seeing in GLD in terms of purchases into the ETFs, rather than sales out of them, continues, and if eastern demand remains at high levels too – which it appears to be doing so far – the turnaround in physical gold availability will be very large and initiate a squeeze on gold availability in the West.  This would likely be seen in the further fall of registered gold (that available for physical delivery) tonnages in the COMEX warehouses and the possibility of a default on COMEX with regard to physical gold delivery does start to loom on the horizon.

COMEX is a manipulated market – as all markets are to a greater or lesser extent – but the fall in physical gold warehouse stocks looks to this observer to be reducing the capability of the big gold holders to keep knocking the price back to protect some very large short positions in the yellow metal…

Thus, taking an engineer’s pragmatic viewpoint, should ETF inflows continue, and Chinese and other Eastern buying hold up – admittedly two big ‘ifs’, but neither that unlikely either – the squeeze on supplies of physical gold that would develop should see prices rise over the year.  Whether it can get back to its 2012 highs over the period is, however, perhaps more than the gold investor can hope for this year, but should this trend noted above continue, one can’t rule that out for 2015.”

Source.

—–

 

On the topic of the Ukraine…

There was another interesting point which gives further credence to the idea that gold and silver did in fact bottom at the end of last year. While gold and silver rose in response to the news of Russian forces moving into the Crimea, stocks en masse fell, however gold mining stocks followed gold higher rather than the stock market in general lower.

When gold stocks diverge from the broader market it is often an indicator of a larger trend at play. Last year they diverged by falling while general equities rose, so perhaps we are seeing the beginnings of a new and opposite divergence?

 

 

This Weeks Articles

 

 

Demographics Mean a Housing Crash for Aussie (and NZ)
Housing Crash2014-02-27 00:41:07-05

Gold Survival Gold Article Updates: Feb. 27, 2014 This Week: Exit Strategies For When the Time Comes to Sell Gold and Silver Newstopia explains the Reserve Bank G20: Can we fix it? Yes we can!   Overnight it seems we have begun the correction in gold and silver we thought was due in the short […]

read more…

 

 

 

Doug Casey2014-02-27 16:05:23-05Doug Casey: “There’s going to be a bubble in gold stocks” By Doug Casey The following video is an excerpt from “Upturn Millionaires—How to Play the Turning Tides in the Precious Metals Market.” In it, natural-resource legends Doug Casey and Rick Rule discuss the deeply undervalued junior mining sector and the rare opportunity for spectacular […]read more…

 

And the Band Plays On

Band Plays On2014-03-04 20:35:56-05While this piece doesn’t directly cover precious metals, it does look at the impacts of quantitative easing and the risks that currently exist in the market place. Given these risks it offers some advice on how to best mitigate them. It will be of particular interest to anyone nearing retirement age and trying to make […]read more…

 

Studying Gold & Silver’s Past Gives Us a Glimpse of Where We’re Heading in the Future

Studying Gold2014-03-05 15:32:34-05J.S. Kim looks back to the similarities between now and 2006 when most of the mainstream were dispensing the idea that gold was over and about to head much lower. There’s also an interesting video contained within the piece… By JS Kim, Founder & Chief Investment Strategist of SmartKnowledgeU Yesterday morning, we released this article on our […]read more…

 

Privacy: Do purchases of gold and silver in NZ have to be reported?

We recently had a question from a reader on the topic of what reporting occurs with regard to gold and silver in New Zealand…

—–

“I would like to buy gold and silver but it loses appeal if government can take it back in tough times.  Are gold and silver registered at time of purchase or can what you buy with your legitimately earned money be your business only?”

—–

Here’s our thoughts on the subject:

Currently there is no legal requirement to register purchases of pure gold and silver with any government entity.

When/if you sell it back to a dealer under second hand dealer laws they must collect your details and ID and hold the bullion for 2 weeks – purely as protection in case of stolen goods. Just as any second hand dealer must do with any goods they buy off the public.

But there is no requirement to collect details when you initially buy. 

Odds are this will change in coming years as there are plans to include precious metals dealers into existing anti money laundering (AML) regulations. This would require bullion dealers such as ourselves to collect customer details as part of the “know your customer” requirements of the AML Law. Just as banks and other financial institutions must do currently, but this is still likely a couple of years away.

Here’s some details from the Ministry of Justice website (emphasis added ours)….

—–

Anti-money laundering and countering financing of terrorism

The Ministry of Justice is responsible for leading the development of New Zealand’s anti-money laundering and countering financing of terrorism (AML/CFT) policy.

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (external link) seeks to detect and deter money laundering and the financing of terrorism, contribute to public confidence in the financial system and improve New Zealand’s compliance with international laws and best practices.

The Act introduces obligations for various businesses and industries, described in the legislation as ‘reporting entities’. Reporting entities include financial institutions, casinos, certain trust and company service providers and certain financial advisers.

Three government agencies – the Financial Markets Authority, the Reserve Bank and the Department of Internal Affairs – are responsible for supervising the reporting entities.

The Act comes  into full force on 30 June 2013.

A second phase will consider introducing AML/CFT obligations for other businesses and professions, such as lawyers, accountants, conveyancing practitioners, real estate agents and businesses that deal in high-value goods, such as auctioneers and bullion dealers. Timing for that phase is yet to be determined.

—–

 

Who knows exactly what this will mean? In Australia we believe it is a $5000 limit for providing identification when purchasing bullion. So perhaps something similar with occur here?

Of course we don’t condone money laundering by criminals but we believe purchasing bullion should remain as private as possible to reduce the risk of theft – and not just from the government! If bullion dealers have to maintain lists of customers that would incentivise law breaking types to get their hands on them and have a “shopping list” of targets who have bought precious metals in the past.

So it could be a case of get in while privacy still exists for bullion buyers. Odds are this won’t last for too much longer, so consider yourself forewarned!

ConfiscationOn the topic of government confiscation, we think the odds of this are probably lower than many would think. We’d say government would take other steps prior to this.

We’ve actually written on this topic before. Check out these articles for more…

Gold Confiscation – Could it happen in New Zealand?

Windfall tax

 

Windfall Tax on Gold – a New Zealand Perspective

So if you want to beat the likely coming clamp down on privacy and also buy when the price looks to have bottomed out then get in touch.

 

 

1. Email: orders@goldsurvivalguide.co.nz

2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)

3. or Online order form with indicative pricing

 

 

 

Today’s Spot Prices

Spot GoldNZ $ 1591 / oz

US $ 1337.55 / oz

 

Spot SilverNZ $ 25.20  / oz

NZ $ 810.35  / kgUS $ 21.19  / oz

US $ 681.26  / kg


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide

Today’s Prices to Buy

1oz NZ 99.99% pure gold bar

1oz NZ Gold Ingot
 

$1645.09

1kg NZ 99.9% pure silver bar

1 Kilo NZ Silver Bar
 

$891.39
(price is per kilo for orders of 1-4 kgs)

$880.87

(price is per kilo only for orders of 5 kgs or more)

 

 

 

1oz PAMP Suisse 99.99% pure gold bar

PAMP Gold
 

$1691.69
 

1kg PAMP 99.9% pure silver bar

PAMP Silver

 

$941.39
 

1oz Canadian Gold Maple 99.99% pure gold coin
Gold Maple

 

$1710.33

1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins)

 

Silver Maple
 

 

Silver Box
 

Tube of 25 $785.25
Box of 500 $14773

(Fully insured and delivered)

 

 

 

 

 


Note:

– Prices are excluding delivery

– 1 Troy ounce = 31.1 grams

– 1 Kg = 32.15 Troy ounces

– Request special pricing for larger orders such as monster box of Canadian maple silver coins

– Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.

– Foreign currency options available so you can purchase from USD, AUD, EURO, GBP

Note: Your funds are deposited into our suppliers bank account only. We receive a finders fee direct from them only.

 


 


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Our Mission
1.
To demystify the concept of protecting and increasing ones wealth
through owning gold and silver in the current turbulent economic
environment.

2. To simplify the process of purchasing physical gold and silver bullion in NZ – particularly for first time buyers.

 

We look forward to hearing from you soon. Have a golden week!

 

 

 

David (and Glenn)

goldsurvivalguide.co.nz

Ph: 0800 888 465

From outside NZ: +64 9 281 3898

email: orders@goldsurvivalguide.co.nz

 

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The Legal stuff – Disclaimer:

We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.

 

Copyright © 2013 Gold Survival Guide. All Rights Reserved.

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