Dublin firm Core Bullion Traders has been announced as one of only three European distributors for the Perth Mint Certificate Program (PMCP), which is designed to appeal to those who want the security of a blue chip asset without the headaches of storage.
The deal is expected to result in projected sales of €3.2m over the next three years.
The PMCP is the only government guaranteed gold investment and storage program in the world and is fully backed by ethically sourced physical bullion in the Perth Mint.
It is wholly owned and guaranteed by the government of Western Australia and holds precious metals on behalf of over 70,000 investors worldwide.
The PMCP offering is designed to appeal to that new cohort of investors in that there are no storage fees which are traditionally associated with gold.
A certificate scheme such as the PMCP is the only way that you can invest in gold through your pension fund in Ireland, if you have an SSAP or an SSIP.
Under Revenue rules, if gold bullion is held “at arms’ length” via a gold certificate, then it is not a tangible moveable property, and fulfils the requirement that pension assets must be under the control of the pension trustee and not the scheme member.
“If you choose unallocated gold, which is simply held as part of the Perth Mint inventory, you can trade in and out of your holdings as you see fit using your uniquely numbered certificate,” said Nigel Doolin, Head of Trading at Core Bullion Traders.
“You can also choose to have your certificate backed by allocated gold which means your bars will be segregated from the rest of the Perth Mint inventory and you will be able to take delivery of your own bars at any stage.
“The difference between the Perth Mint offering and buying gold online linked to an index is that this is physically backed and fully insured under the unique Government guarantee.
A new breed of investor is leaving crypto currencies and turning to gold, but has little interest in physical bars or bullion, according to Mr Doolin.
Gold is attracting a new cohort who have witnessed the ups and downs of crypto, but are used to dealing in numbers rather than in physical assets.
Over €1.25m has moved from crypto into gold with Core Bullion Traders since virtual currency last started to crash.
“Crypto is volatile and long-term investors hate uncertainty. Whereas traditional money has gone into art and gold in times of crisis, it is now being sought by a new type of investor who may be saving for a deposit on a house,” said Mr Doolin.
While gold bullion is always VAT free in Ireland and Europe, the same is not so for other precious metals.
“You can buy silver and platinum VAT free through the PMCP as long as you don’t receive the physical metals, which means you are saving 23% straight away,” said Mr. Doolin.
“Some people don’t want to have physical gold but they want to buy into the asset class. The PMCP offering allows us to deliver a catch all service alongside our other blue chip partnerships, such as with the Dublin Assay Office.
“Although gold is not as high as some people feel it should be at present, it is continuously doing its job – it is 11.7% up on the past 12 months and 7% up since the start of the year – it is the commodity that the world has looked to throughout COVID and the current Ukraine crisis,” said Mr Doolin.
“While gold is buoyant, if you have a cash fund at the moment – it is losing value every month in real terms due to inflation.”
Featured image: Nigel Doolin, Head of Trading of Core Bullion Traders. Picture: Conor McCabe