‘Gold has always been there and has always been desired’
They’re stable, easily stored and transported — and ‘romantic.’ Chances are your neighbours have some in the house. CARYS MILLS reports.
There was an unusual detail amid the police descriptions this past week of a series of daytime burglaries in Ottawa. Police issued a warning, saying there had been nine robberies in the past three weeks. The targets have been Ottawans of Asian descent, and the loot stolen has included coins, high-end jewelry, designer handbags — and gold bars. Sorry, did you say “gold bars”?
Who buys bars of gold?
“Discretion is critical, because if word gets around ... it doesn’t take rocket science to track you down,” said Almonte bullion dealer Sean Isaacs, who gets requests for bars at least a few times a week. “I’m sure some of your neighbours have invested in gold and you’d never know it.”
While collecting seems more popular with older generations, Isaacs said there’s no specific demographic that gravitates to the metal. But he’s noticed some collectors have gold from times of turmoil involving them or their families. “It’s saved lives in situations,” he said, comparing collecting gold to some people keeping cash under a mattress.
Why would someone want a gold bar?
Police say immigrants sometimes bring gold bars with them to Canada instead of large amounts of cash.
“It’s all about the value,” said Chris Crete, who sells gold bars in Ottawa by posting on the classified website Kijiji. Investing in something with a fairly stable value that doesn’t require a bank is part of the appeal, said Isaacs, owner of Alliance Coin & Banknote.
But so is ease of transport and storage, he said.
There’s also the “romantic” factor. “Some things haven’t changed for literally thousands of years,” Isaacs said. “Gold has always been there and has always been desired.”
Where can you get a gold bar and where should they be kept?
When Isaacs was growing up, he couldn’t afford gold but saved for a silver bar, which he got from a bank. “Now it’s a lot more difficult,” he said, because fewer banks carry them.
The Royal Canadian Mint makes gold bars, which have a 99.99 per cent purity, and recommends that people buy them through “reputable bullion dealers,” said spokeswoman Christine Aquino. Scotiabank sells bars and 1 oz. ones sold for about $1,360 this week. Isaacs said the majority of the bars he sells are 1 oz. and are tax exempt when pure.
He said he doesn’t usually give advice on storage unless people ask but when they do, he suggests a safe or bank, which protects the metal from fire as well as theft.
What security features does gold have?
The stolen Ottawa bars had serial numbers on them, according to police, but thieves may melt them or sell them on the black market.
That makes other markings and steps more important. Bars should have engravings stating quality, weight and manufacturer, Isaacs said, adding he checks identification of sellers. “You can’t just walk in with a pocket full of gold and walk out discreetly,” he said.
Although he makes sure he’s not buying stolen metal, he said thieves have their ways of selling gold.
“If you’re someone who has worked hard and put your money into metals and someone’s stolen it, it’s devastating,” he said. “I don’t know how you come back from that.”