A-Z on investing in precious metals through New Zealand Mint

Getting Started

A little considered research into how precious metal investment works, and the benefits and risks that come with it is a good way to begin. Although our traders are not in a position to give you financial advice or recommend strategies, they are happy to talk you through the practical aspects involved when buying bullion through New Zealand Mint.

What is Bullion?

Bullion is a physical form of precious metal (gold and silver) that is valued by its weight and purity.

What is a Troy Ounce?

A troy ounce is the traditional unit of weight for precious metals.
One troy ounce = 31.1034 grams

What is the spot price?

The spot price is the internationally agreed price, based on supply and demand, for 1 Troy Ounce of gold and silver in granulated form.

Why do I pay a premium over the spot price?

When you buy a bullion product you are buying a precious metal that has been manufactured and minted into a tradable form. The premium over spot price covers these production costs and other costs associated with supply.

What is meant by margin spread?

When you buy a bullion product you pay a premium above the live spot price. When you sell your bullion product it is standard to be offered a price below the live spot price. The difference between these two is called the margin spread.

What is purity?

Gold purity can be expressed in carats or fineness. The traditional description of bullion purity is in parts per 1000. Pure gold is too soft to be practical for bullion and therefore it is alloyed with other metals such as silver and copper. New Zealand Mint was one of the first world mints to adopt the .9999 standard for gold coin purity with the 1oz Gold Kiwi.

Product Choice:

Once you have decided to make an investment in physical gold and silver, the next steps is deciding what form to take it in. New Zealand Mint has been minting gold and silver bullion for over four decades. We also carry a range of internationally sourced gold and silver products. New Zealand Mint are New Zealand’s official distributor for the internationally renowned supplier P.A.M.P.

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Pricing:

Gold markets are open almost 24/7; this supply and demand causes the price to change constantly. When you first contact New Zealand Mint Bullion Exchange and ask for precious metal pricing we will give you indicative prices based on these live market rates. This will give you an idea of what you can expect to pay or how much you may receive at this point in time. When you indicate that you wish to proceed we will offer you a firm price.

Does the Indicative price include the premium?

When you contact us the price we quote includes the premium. We are more than happy to run through spot prices and premium rates with you when you call.

Does the price include GST?

All precious metals (Gold and Silver) in their purest forms Gold (.9999) Silver (.999) are Tax Exempt. While you will receive an invoice from New Zealand Mint it will be a GST exempt invoice.

How long does this quoted price last?

Once you have agreed to purchase your precious metals and the trader has given you a firm price you will be emailed or faxed a quote. The price on the quote will only be held for 1 hour. To “lock in this price” you will need to confirm purchase to us within this time.

Can I get pricing in another currency?

When you contact us we will quote you in NZ Dollars, as this our local currency. We are happy to quote and accept payment in AUD, NZD or USD if requested.

Purchasing:

We strive to make investing in physical Precious Metals as straightforward as possible. When you are ready, simply pick up the phone and call the New Zealand Mint free phone 0800 696 468, and ask for a bullion trader. Your trader will then walk you through the following stages:

Selling Back:

As part of our commitment to offering customer a full service, New Zealand Mint Bullion Exchange also buys bullion products from individuals. Just like the purchasing process we try and keep the sell back process fairly straightforward. It begins when the metal you wish to sell is here on site. To get the ball rolling we recommend calling our 0800 696 468 free phone and asking a trader for an indicative buy back price.

Does the sell back price include a premium?

Yes. It is industry standard to be charged a price below the live spot rate for your metals. You are encouraged to ask your trader what rate below spot they are offering you.

Do I have to sell my Gold and Silver back to New Zealand Mint Bullion Exchange?

No. We take great care in making sure the gold and silver products we carry are of international standard. You are free to approach other local and international bullion buyers if you wish.

Will I incur GST when I sell?

As with purchasing precious metals, .9999 pure gold and .999 pure silver are GST exempt.

Additional Services

New Zealand Mint Bullion Exchange recognises that buying gold and silver is just the beginning of your investment journey and to help you make the most of your investment we provide the following services:

Storage:

Not everybody feels comfortable keeping their precious metals at home so New Zealand Mint Bullion Exchange provides an Allocated Storage Program and a Safety Deposit Box service. These two options offer varying features such as accessibility levels, minimum term, and cost. Talk to your trader regarding the option which may suit you best.

Continued market information:

Every work day, our traders post on our website a range of news articles and media releases they believe might be of interest to clients. Anybody is welcome to browse to our site and view these posts or, like a majority of clients, you might find it more convenient to subscribe to our Daily Quick Fix and receive these articles and the morning’s indicative pricing by a regular email.