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Buying and Storing Physical Gold in Hong Kong

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Hong Kong gold

If you are one of the many people who feel uncertain about the direction of the global economy and stock market, you should be looking for other options to preserve and grow your wealth. Cryptocurrency is obviously one option, but with the high volatility that comes with it, some people may prefer more traditional stores of value. In this article, we will guide you through exactly how you can buy and store physical gold in Hong Kong, widely regarded as one of the best places in the world to buy gold.

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Bars, coins, or jewelry?

If you are buying gold as a pure investment, it is always a good idea to buy your gold as close to the gold spot price as you can get. For gold jewelry, there is always a big premium added on top of the gold spot rate to pay for the design, brand, marketing, etc. Traditional gold coins also carry a premium for their fancy design of up to 7% over the spot market value of the gold.

The best way to buy gold for investment purposes is gold bars, big or small, depending on your budget. Generally, the larger gold bar you buy, the lower the premium over the spot price will be.

Where can I buy gold bars in Hong Kong?

I personally consider Hong Kong to be the best location for buying physical gold. It is first of all a nice city to visit if you haven’t been there, prices are low, and the staff you deal with generally speak English.

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As you walk down the streets in Hong Kong, you will see gold and jewelry shops on almost every corner. Competition is fierce, and the buy/sell spread on the physical metal is therefore among the smallest you can find anywhere in the world.

In addition to very tight spreads, Hong Kong has no sales tax on gold (or anything else for that matter), keeping the prices you pay as close to the read market rate as possible. And let’s not forget that it is also an excellent place to store your gold once you have purchased it.

While gold smiths and jewelry shops in Hong Kong generally offer much better spreads than in other countries, it is still important that you make sure you don’t pay more than you need to. It is generally recommended to stick to the well-known and reputable shops. Some of the more reputable jewelry shops in Hong Kong are:

While these jewelry shops are the easiest and best known places to buy gold in Hong Kong, the most cost effective way is actually to go straight to the bank. In Hong Kong, several banks actually let you buy gold bars and coins directly over the counter, at least at their main branch in the city. The ones that are most often recommended are:

For a full list of the banks that offer this services, as well as their prices, take a look here.

How should I store my gold?

When it comes to gold storage, there are again many options available. For smaller quantities, you may choose to store your gold in your home. If you happen to have a high quality safe, it may even be totally fine to store larger quantities of gold in your home.

For most of us, however, it is preferred to store gold and other precious metals in a safe location other than your house or apartment. You could choose to bring it back to your home country to keep in in a safety deposit box in your bank, but keep in mind that you may be liable to pay import duties on gold purchased overseas when you bring it across international borders. Each country has different rules pertaining to gold specifically, so make sure to check this first if you want to bring it home with you.

My preferred option however, is to store the gold safely offshore at designated gold storage facilities. Note that this should in most cases not be the same place as you bought the gold, due to risks of default, segregation of your gold from the shop’s own gold, etc. An exception to this would obviously be if you buy your gold in a bank and store it in a safety deposit box in the same bank. In that case you know that your gold is safe and kept separate from other people or the bank’s own gold.

Designated gold storage facilities in Hong Kong will usually charge you about US$75 per year to rent a safety deposit box. Another common way to price it is as a share of your asset value, for example 0.72% of asset value per year.

Final thoughts

There is no doubt that Hong Kong, perhaps together with Singapore and Dubai, is one of the best places in the world both to buy and store gold. If this is something you have been thinking about, I recommend taking a trip to check it out for yourself. After all, Hong Kong is a great city that is worth a trip regardless of whether you choose to buy gold there or not. And as we’ve written about previously, why not open a company and bank account while you are there?

Featured image from Valcambi.com

 

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Total Mindfuck or Nirvana: Our Imaginary Phenomenon

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I love to read good books that can increase my level of understanding. I’m now reading Sapiens by Yuval Noah Harari. A truly mind-altering book that confirms many of my own beliefs (unfortunately?) and that just gave me more respect for Steve Job (see video below)

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Steve Jobs and Yuval Noah Harari are my “gods”. Everything that you see around yourself is made by man. It’s either political systems, values, human rights, the monetary system, religion or even news. As Harari explains, humans can only work in a group that is no larger than 150 people. We do not have the capacity to live in a larger group before things start to unravel. That’s why we all lived in small groups for the most of our history. Homo Sapiens evolved from other ape-like species 150 000 years ago. For 70 000 years ago we entered into a cognitive revolution that made us able to communicate and be creative, to create tools that helped us conquer the world (and kill off the Neanderthals). It’s only 12 000 years ago since we moved from foreaging to farming, where we gradually gathered together in larger groups and started to create imaginary systems to control the population. Our predecessors also had imaginary beliefs, like religion, but not the extensive systems we now see today. Religion was one of the core systems that made us able to find a common goal and live together in larger groups.

The code of Hammurabi is one of the oldest “code of conduct” that is known, dating back to 1754 years BC:

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It is one of the oldest deciphered writings of significant length in the world. The sixth Babylonian king, Hammurabi, enacted the code, and partial copies exist on a seven and a half foot stone stele and consists of 282 laws, with scaled punishments, adjusting “an eye for an eye, a tooth for a tooth” (lex talionis)[1] as graded depending on social status, of slave versus free man or woman.[2]

The code of Hammurabi was created to establish a prosperous community, Mesopotamia. Just like the founding fathers of the USA created Decleration of Independence stating:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

All laws, all religions, all politics have been created to manipulate and control our inherent DNA. We would not be able to “thrive” the way we do now in larger groups without it. One could argue that we were happier before we started to gather in larger groups (cities). But mankind would not have evolved without it.

We are all tied up to what Harari explains as “Prison Walls”. The objective phenomenon exists independent of human’s consciousness and beliefs. Radioactivity is harmful for people. That’s a fact. A subjective phenomenon is something that exists depending of a single mind’s belief and consciousness. It can disappear or change over time. E.g. I believe that a pink elephant will come and save us all within ten years. This might change if I start to believe in something else or die. The intersubjective phenomenon is something that exists in our network of communication which connects individual subjective consciousness. If one individual die, the intersubjective phenomenon (Christianity or Islam) will not disappear. However, if everyone within the network changed their mind or died, the intersubjective phenomenon would change or disappear.

Why am I writing this post? I think it’s important that you know that everything we do is created by people, for people (or the elite). The monetary system is no different. It was created to control the economic growth and position of a few people, companies or nations. Everything can be changed if enough people start to believe in something else. Cryptocurrencies could be such a shift that might change our monetary system.

Remember, you are free. Do whatever you want, don’t be restrained to people that lived on this planet for hundreds or thousands of years ago. They didn’t know what you do now.

Maybe our true goal as human kind is to reach singularity and relieve ourselves from human restraints.

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Bitcoin

Bitcoin Developer Jimmy Song Bought Bitcoin at $30: It is a Sound Investment and Money

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In an interview with Valentin Schmid of The Epoch Times, Bitcoin developer and Paxos Principal Architect Jimmy Song offered his insights into the advantages and merits of bitcoin as money, a store of value, long-term investment, and a safe haven asset.

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According to Song, one of the most important aspects of bitcoin as sound money is its unique monetary policy. Unlike most assets and reserve currencies which can be manipulated and controlled, bitcoin’s maximum supply will always remain at 21 million. Because bitcoin has a fixed supply limit and demand towards bitcoin from casual investors, institutional and retail traders are always increasing at an exponential rate, logically and mathematically, the value and price of bitcoin have to increase.

Song admitted that he was first exposed to bitcoin and a new asset class in cryptocurrencies when the price of bitcoin broke the $1 mark. But, Song purchased his first bitcoin when it was valued at $30. Today, despite the recent major price correction of bitcoin caused by the Chinese government’s nationwide ban on local bitcoin exchange, bitcoin price remains above $3,600. For Song, that is a 120-fold return on a long-term investment.

“You’re not going to be able to inflate it in any way. Bitcoin is sound money because there is a fixed supply limit and demand is always increasing. That creates a really good investment, at least from my perspective, and so I bought some at around $30. I do wish I bought a lot more but everybody in Bitcoin does,” explained Song.

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Hence, as many prominent and early investors in bitcoin including Tone Vays, WhalePanda, and Tuur Demeester explained, the most stable, secure, and smart method of trading bitcoin is trade less, hold longer, and do not overreact to short-term volatility.

But, apart from its limited supply, there are various aspects of bitcoin which provide the digital currency value. In a study, JP Vergne, a professor at Ivey Business School, discovered that the best indicator of the short-term price development of bitcoin and cryptocurrencies, in general, is developer activity around it. Vergne wrote:

We found that the best predictor of a cryptocurrency’s exchange rate is the amount of developer activity around it.

Bitcoin is a decentralized financial network and a peer-to-peer protocol in nature. Thus, it is immutable to attacks and operates on top of a transparent ledger. But, bitcoin’s decentralization also makes it difficult to reach consensus. It is challenging for developers to integrate innovative software such as Segregated Witness (SegWit), the BItcoin Core development team’s scaling and transaction malleability solution because almost everyone within the network including miners, node operators and developers have to agree to it.

Song reaffirmed a similar point to Vergne. During the interview, he explained that active developer activity around bitcoin which provides the network security value ultimately drive the bitcoin price upwards and provides it with fundamental value.

“Things like the Bitcoin software just aren’t smart enough to handle stuff like that. It has to be people that actually fix it and that’s what I think gives Bitcoin a lot of security value — because you have all these people watching it and not just like computer software that’s running on its own. It’s developers, it’s the people that are actually checking the code or watching the network figuring out low probability scenarios and how to immunize against those. That’s what gives it value. That’s what gives us security. That’s what makes it a great store of value,” said Song.

Bitcoin is still a $60 billion financial network. Many respected financial analysts including RT’s Max Keiser and Wall Street analyst Tom Lee believe bitcoin could evolve into a multi-trillion dollar financial network in the upcoming years, given that conditions are met and developer activity around it remains vibrant.

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My first experience with Robot Trading: Up $5 000 in Two Weeks

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Since I’m pressed on time with multiple obligations (job, familiy, hacked.com, CCN, MoneyMakers) I decided for a couple of weeks ago to look into robot trading. I wanted to find one or multiple robots to do the trading for me. I ended up with downloading MetaTrader 5 and buying two different robots from their marketplace. I started with 16 000 USD on the trading account, and after two weeks the robots have made me $5 000.

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That’s a whopping 31% increase within 2 weeks…!

My robots usually trade during the night, and I’ve decided to completely trust them. The 16 000 USD is a sum I’m more than happy to lose if I can learn anything from dealing with trading robots.

When that is said, MetaTrader’s interface really “SUCKS”. It’s so bad, I can’t understand why MetaTrader is considered the best trading terminal for robots. Maybe that’s a good business idea for someone out there? Disrupt MetaTrader.

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So, which robots do I use?

I do not want to disclose that just yet, I need to test my robots rigorously before I can recommend any of them. And if this is a money making machine, we can laugh all the way to the bank.

Have a good weekend.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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