Precious metals and bullion specialist ABC Bullion has launched Australia’s first gold decumulation plan (GDP), allowing investors to access regular cashflow from their investments.
The product launched in front of more than 700 clients, VIP guests, and government ministers at the sold out and standing room only ABC Bullion Precious Metals Forum: Gold and the New World Order held at the Ivy Ballroom in Sydney.
Speaking to Mining.com.au, General Manager Jordan Eliseo says there are several motivators that drove the decision for ABC to unveil the GDP.
“If you look at gold and its attributes as an investment, it’s very well recognised by investors worldwide, including in Australia, that over the long run, it performs quite well,” Eliseo says.
“Perhaps more importantly, it is a source of security and safety within a portfolio.”
With most investors recognising gold as a safe-haven asset, currently sitting at $5,197 per ounce, Eliseo says one of the things holding investors back from putting some of their portfolio into gold is the fact that it doesn’t have income.
“The product essentially allows people to get regular cashflow from their bullion investments,” he says.
Eliseo explains that the cashflow is funded by the fractional sales of gold each month to meet cashflow requirements of an investor.
For example, an ABC Bullion client will make an initial investment into the product of $100,000 into gold and at the exact time they make the transaction, gold’s spot price is at $5,000 per ounce – resulting in the client buying 20 ounces of gold.
At the same time, the client says to ABC Bullion, it would like to receive $500 per month in cashflow. On a monthly basis, ABC Bullion would then buy-back the required amount of gold to fund that cash payment.
ABC Bullion’s GDP has no lock-in periods, delivers flexibility to investors, while transactions, holdings and portfolio valuations can be monitored 24/7 through the ABC Bullion website.
Eliseo notes that like any asset, the return on gold is not guaranteed – but with interest rates low and equity markets being expensive – “investors and market commentators are very firmly of the view that gold is in a bull market.”
“That is, returns going forward are quite likely to be at least as good as what they have been historically and for those reasons, a product like this really is a unique way for investors to access the potential benefits of investing in precious metals,” the General Manager says.
Trading Economics says gold’s spot price rose over the weekend, trading in a narrow range since repeatedly testing record highs of US$3,500 per ounce in April amid signs of a dovish pivot by the Federal Reserve and robust demand for safe assets.
ABC Bullion is Australasia’s precious metals and bullion specialist for over 50 years has assisted investors of every type to buy and sell gold bullion, silver, platinum, and palladium.
Write to Aaliyah Rogan at Mining.com.au
Images: ABC Bullion
