Peter August on investing in tangible assets

Getting physical: investing in tangible assets - MyWealth, by Melanie Timbrell 
While storing wealth in tangible assets like gold, art and jewellery has long found favour with high net worth individuals, recent market volatility has led to more investors asking what gold bullion or a portfolio of art might be able to do for them. 
Peter August, chief executive of Melbourne Mint, says that a large part of the attraction to physical gold in the form of investors buying bullion, stems from a desire for contro
“A lot of people lost a lot in the share market during the GFC in areas in which they had no control,” August said.
“Owning physical gold and silver you have more control over the asset than if you invested through say, a gold ETF (exchanfe traded fund) or shares in a gold miner, where there is associated third party risk.
“If you buy gold then it’s yours – you can see it, touch it and hold it.”
August says that most of those investors holding physical gold tend to do so for the longer term, recognising that although there can be sudden sell-offs in the precious metal which impact price, they tend to be short term in nature.
“Investors are becoming more savvy about having physical gold and silver as a separate asset class. We’ve seen gold rise from US$258 to just under US$1400 at the moment [not adjusted for inflation] in the last 12 years so there has been a consistent rise with more of the market recognising it as a stable investment over time.”

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