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Frequently Asked Questions

Buying gold and silver is easy with New Zealand Mint. Please check our Frequently Asked Questions and feel free to submit any questions of your own using the contact form in the bottom menu.
 

What is bullion? Click here for more

Means melting place, from the French bouillon, boiling, derived from the Latin bullio. Bullion is precious metal (gold or silver) that is valued by its weight. Unlike commemorative or numismatic coins which are valued by limited mintage, rarity, condition and age, bullion coins are purchased by investors seeking a simple and tangible means to invest.

Why invest in gold or silver bullion? Click here for more

Making precious metals part of your financial planning is one of the rules of good investment strategy. And people like the idea of holding something of real value in their hands, instead of trusting everything to a bank or broker. The economic forces that affect the price of precious metals are different from, and often opposed to, the forces which determine the price of most common financial assets. This independent movement of precious metals to other financial assets can reduce overall portfolio volatility and contributes balance.

If you are conservative or if you are aggressive in your investment approach, precious metals can represent an important part of your asset allocation. Some experts suggest that 10 to 15% of portfolio assets should be in precious metals. No matter what level of risk you as an investor wish to take, your portfolio needs a secure foundation.

Gold and silver are one of the most liquid of all investments. They are readily portable and easy to store. This is recognized in every country and they can be easily and discreetly bought and sold then converted to cash at any time without attracting any GST.

What is the spot price? Click here for more

The Spot Price is the internationally agreed price, based on supply and demand, for a 1 troy ounce of gold or silver in granulated form. Spot prices can change every minute. All spot prices for silver and gold quoted by New Zealand Mint are always quoted to you in New Zealand Dollars, unless stated otherwise.

What is a troy ounce? Click here for more

A troy ounce is the traditional unit of weight for precious metals.

One troy ounce = 31.1035 grams

32.151 oz = 1 Kilogram

Why do I pay a premium over the spot price? Click here for more

When you buy any bullion product you are buying a precious metal that has been manufactured and minted into a form that can be traded. The premium over the spot price is made up of this manufacturing cost.

What is meant by the margin spread? Click here for more

When you buy precious metal you pay a premium above the live spot price, for example 6%. When you sell your precious metal you receive a price below the live spot rate, for example 1%. Therefore in this example the margin spread is 7 percentage points, which is the difference between the price of buying and selling bullion.

Where can I sell my precious metals? Click here for more

Because both Gold and Silver are an international standard you are be able to trade coins and bars in most countries around the world.

Buying and selling precious metals above 99.5% purity is GST exempt in NZ. The NZ Mint offers competitive buy back rates in NZ on the Gold Kiwi and the Silver Fern 1oz coins.
 

Does the price include GST? Click here for more

Gold, Silver and Platinum in their purest form are tax exempt, whether they are bars or coins. While you will receive an invoice from The NZ Mint, it will be a GST exempt invoice.

Note: Please be aware that several international gold bullion coins such as Krugerrands and American Eagles are not GST exempt due to their gold purity levels.

What are the shipping and insurance charges to receive my order? Click here for more

The gold or silver you purchase can be delivered directly to you by secured and insured courier. This will also require a signature for receipt of the goods.

New Zealand Mint will phone you the day before delivery to confirm that someone will be signing for the goods

All shipping costs including freight and insurance will be included in your faxed contract.

Current prices within New Zealand are:

For all gold purchases up to $40,000 = $30.00

For all silver purchases up to 5 kg = $30.00

For all silver purchases above 6 kg please call for a quote

Alternatively, you can arrange to visit the Mint at your convenience to pick up your order.

When do I need to pay for my precious metal order? Click here for more

You need to pay for your metal the same day that you order it.

The New Zealand Mint will provide its NZ Dollar account details in the contract that has been emailed or faxed to you. You must arrange for a credit to this account and confirm payment (cash, internet banking, bank to bank transfer or EFTPOS) within one hour. We require this confirmation as most deposits are processed overnight. If you do not provide this confirmation New Zealand Mint retains the right to cancel your order.

If you would like to pay in another currency, please inform your bullion trader.

Do I have to pay any commission on my purchase? Click here for more

While many institutions and dealers charge a commission on trading precious metals, The New Zealand Mint does not charge commission.

What forms of payments does The New Zealand Mint accept? Click here for more

As is international practice in trading precious metals, The New Zealand Mint only accepts the following forms of payment: overnight bank transfer, cash (New Zealand Dollars), EFTPOS and internet banking.

When can I take delivery of my purchase? Click here for more

This is dependent on delivery times but you can expect to take physical possession of your purchase within five working days. Most products are available for pickup on the following business day, but please check availability beforehand.

Can I store my precious metal purchase at New Zealand Mint? Click here for more

Yes. You can either use our allocated storage service, Mint Storage, or you can hire a safety deposit box of your own, for which only you will hold the key.

What do I need to do before I purchase precious metals? Click here for more

As with any investment, you must do your research. Speak to a financial advisor and decide how much you can afford to invest.

What is allocated storage? Click here for more

Allocated storage means that we store physical gold or silver on your behalf, in your name. With physical storage you are the owner of the metal and there is no counterparty risk.

What is counterparty risk? Click here for more

Counterparty risk is the risk of loss due to another party to a contract not living up to its obligations e.g. a company fails and is unable to pay what is owed to people.

What is dollar-cost averaging? Click here for more

Dollar-cost averaging is the process of buying a set dollar value on a regular basis over a set time period, instead of buying a larger amount all at once. This means your prices are closer to the average price of gold for that period, so you have a lower risk of buying when the market is high.

Does this mean I will always be better off with dollar-cost averaging? Click here for more

Not necessarily. While you reduce the risk of buying when the market is high, there is a chance the average price will be higher than the price you could have purchased at initially. If this happens you will end up paying more for your metal than if you bought it all in one go. You are best to do your research and decide whether you are more comfortable buying all of your metal at once or by using dollar-cost averaging.