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Old 19th Sep 2012, 17:44
  #1 (permalink)  
Thread Starter
Join Date: Nov 2006
Location: Noo Yoik
Posts: 126

Question for the Finance Experts out there.
I've been buying physical gold for the last year (on the dips).
I've heard about HSBC's Gold ETF's. Pretty handy because they can be bought online if you have an account. No storage costs, no Insurance costs, no security problems, and easy exit and entry.
I'm considering doing some more buying in this manner.

Anybody got an opinion on the HSBC product? Good or Bad?
Meccano is offline  
Old 19th Sep 2012, 21:47
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Join Date: Jan 2009
Location: Kowloon
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I've been trying to remember who said this, but I can't, so apologies to you:

"When you're stuck in a fire, would you rather have a fire extinguisher, or a picture of one?"

I think a Gold ETF is a great way of trading gold, but nothing else. If you've been buying physical gold (and can easily get hold of it when needed - ie, not in a bank vault) then you probably already understand the benefits. So don't swap one for the other.

Like you, I buy physical, but at times I use ETFs to go short or even double short if I'm feeling extra crazy...

As far as HSBC is concerned, I don't have anything against their product, but I personally trade US ETFs, just because of the much, much larger volume (hence liquidity) available.
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Old 19th Sep 2012, 23:46
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F+CK HSBC and their ETF.
If you don't hold it, you don't own it.
Why bother with an ETF, its only good for trading.

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Old 20th Sep 2012, 00:05
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Thanks for the replies. Yeah, that's why I went for physical gold to build up a reserve at the beginning. The predictions of collapse of Western Banking were so hot at the time that I wouldn't trust ETFs.
But it seems to me that such a global collapse has receded now. There may still be risk for individual European banks in particular, but nobody serious is talking about a systemic problem which could bring down the whole system any more, and Asian Banks are among the strongest. I have no big worries about HSBC in particular.
So, rather than just buying physical and vaulting it I see benefits in having ETFs for the same reason as China Flyer. Mainly to do with trading and buying into short rallies. It's an entirely different play from stocking up on the physical.

So, if nobody thinks HSBC are too expensive, or otherwise untrustworthy (hah, a Bank, untrustworthy!) then I may take a punt.
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Old 20th Sep 2012, 02:18
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Where does one buy physical gold in HKG? Coins or bars?
Really interested but can I sell it in other countries?
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Old 20th Sep 2012, 02:25
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I use this crowd. Gold Bullion, Investing in Gold Bars & Gold Coins -
Not because they're cheapest, but because I know them and trust them.
They deliver to Hong Kong.
You can sell back to them. Or if you prefer to sell elsewhere no problem, thats why we buy physical, eh! But best if product still in original packaging from source. You need to shop around a bit.
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Old 20th Sep 2012, 03:52
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Remember, buying into an ETF is the same as buying shares of a trust owned by the biggest C's of them all, the BANK...!! Not backed up by any physical gold at all, the price can do the total opposite to the gold price and can easily go to nothing when everybody decides to sell up. The US "fed" has just delivered open ended QE3 which will ensure further destruction of the economy, so as AAIGUY said .......STACK IT UP.....!!! It will become real "money" again soon, as the World economies crumble and they naturally revert back to gold and silver as money.
Old 20th Sep 2012, 09:08
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Join Date: Jul 2008
Location: HKG
Posts: 187
Buy the SPDR gold fund if youre not in the mood for coins and bars but don't want the risk of paper gold - on HKG exchange - no HK: 2840.
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Old 20th Sep 2012, 11:22
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Join Date: Nov 2006
Location: HKG
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With HSBC you can also buy paper gold directly from your bank account. I hold bullion for long term, but have used paper gold for trading and also for things like saving for HK tax. I put 15% monthly in there, then sell it towards the end of the year for my tax bill. Been doing this for years and getting nice returns as a bonus. With QE to infinity, I suspect this strategy will continue to work for quite some time.
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Old 20th Sep 2012, 13:15
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Join Date: May 2007
Location: Shower house of Africa
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I buy 1oz Kruger Rands directly from the Scoin stores in South Africa.
They store it for you free of charge.

They have a store at OR Tambo airport (FAJS)

Last edited by Ghost_Rider737; 20th Sep 2012 at 13:19.
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Old 20th Sep 2012, 21:22
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Join Date: Jan 2009
Location: Kowloon
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Hang Seng in Mongkok (the large branch, on the corner of Nathan Rd and Shantung St) is where I buy gold coins.

Don't know if any other branches sell them.

They do need your details (ID card or passport), but I guess (hope?) that those details stay within the bank.

Last edited by China Flyer; 20th Sep 2012 at 21:22.
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Old 21st Sep 2012, 21:07
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Join Date: Jul 2001
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Not all ETFs are the same. Some offer real asset backing (eg Lyxor/Soc Gen, and Blackrock I think). Many are indeed, just complex derivatives, some with alarming hidden +/- leveraging or counterpartyrisk.

Find a quality ETF and I cant see the point in the real metal; Expensive and awkward to hold.

Last edited by Joe le Taxi; 21st Sep 2012 at 21:11.
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Old 22nd Sep 2012, 03:23
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Join Date: Jan 2005
Location: Asia
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Physical gold has its risks too.

Counterfeit gold bars discovered in New York City - U.S. News
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Old 22nd Sep 2012, 04:02
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Join Date: Jan 2010
Location: Eagles Nest
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What's the law in regard to taking the aust coin with a face value of $100 into Aust . Is it considered $100 towards the $10,000 or its real value ie 1800+ .
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Old 22nd Sep 2012, 09:22
  #15 (permalink)  
Join Date: Nov 2011
Location: Here
Posts: 345
Don't buy fraudulent ETF's, buy physical. Watch this video from 12 minutes onwards.

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Old 23rd Sep 2012, 00:21
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Join Date: Jan 2010
Location: Eagles Nest
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LTC , thanks for the advice ! So from all of that I learnt when it comes to investing , the trick is , don't get divorced , got it ! Thanks !
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