Gold bars
With gold hitting a record high above $1,095 (U.S.) on Wednesday, I recalled the year my father turned into a gold bug. In 1990, at the start of the recession, he began filling his portfolio with the equities of junior mining companies. He also bought a number of gold coins and wafers and stored them in a safety deposit box.
Commodities guru Eric Sprott has built his fortune on the belief that gold - especially in its physical form - is the ultimate asset to own in any economic environment.
"In my portfolio I have 40 per cent in gold and I think that's the safest, and probably the most rewarding investment that I could have," the founder of Sprott Asset Management told investment website Seeking Alpha in an interview earlier this year. "I believe no matter what environment you're in-deflation or inflation-people will run to gold."
"For the most part, I always own physical gold. When I say gold, I really mean gold and silver; and I am probably about equal in each. I always take delivery. I want to own the physical-I don't want an owner's certificate, I don't want to own an ETF. I believe that it's really the only security you have, and you don't want any counter-party between you and your gold, so I take delivery."
For my father, gold coins and wafers were appealing because they are easily portable and transferable into cash. Maple Leaf coins are as good as currency and can be quickly exchanged at any bank or commodities trader, while wafers need to be inspected and weighed to be valued.
If you want to get your hands on gold, here are some places to start looking.
ScotiaMocatta ScotiaMocatta, a division of The Bank of Nova Scotia, is one of the world's top bullion dealers with roots dating back to 1671. The institution launched its e-store a month ago, enabling Canadians to purchase precious metals online instead of placing an order at a bank branch. Oddly, though, the website's hours are limited to between 8 a.m. and 5 p.m. (ET), Monday through Friday, while other online metals retailers take orders 24/7. ScotiaMocatta is accepting orders from within Canada only, with home delivery available to most points across the country. You can buy up to $6,000 worth of gold a day and can pay through the Interac network using Visa, MasterCard, or debit cards. A Scotiabank one-ounce gold bar is currently priced at $1,221.36 (Cnd)*.
Sprott Money In 2008, Eric Sprott launched Sprott Money, an e-commerce site that sells Canadian Maple Leafs, the gold coins that the Canadian Royal Mint first made available in 1979. Sprott Money will ship the coins worldwide, compared some other online retailers that only ship certain bullion products to certain destinations. You can place your order online or through a toll-free number. After your payment by wire, money order or cheque clears, your shipment will arrive between three and 10 business days. A one ounce coin is currently priced at $1,172.40 (U.S.) while a Royal Canadian Mint gold wafer is $1,138.58 (U.S.). You'll also have to factor in $15 for shipping, about $6 for insurance and PST.
Kitco Kitco has been selling precious metals since 1977. Through its online store, you can buy bullion bars and coins. A one-ounce Gold Maple is currently priced at $1,179.36 (U.S.) and a once-ounce gold bar is $1,117.00. The site gives you the option of shopping in Canadian currency and Kitco charges a flat shipping rate to Canada of $30 (U.S.), plus insurance charges of $4 per $1000 of gold.
* Note: This sentance has been corrected from the earlier version that said the ScotiaMocatta site was out of gold coins.