| Silver, Platinum and Gold Bullion: A Critical Component for Every Portfolio | 9/8/2010 |
Bullion Management Group offers precious metal commodity funds and mutual funds for high net worth investors, including gold bullion bars, as well as silver and platinum bullion. Price forecasts for gold in 2008 cover a wide range, but current gold and silver prices do not really matter. Why? Because over the long term, prices of precious metals - gold, silver and platinum - will rise to much higher levels, in all currencies. Why invest in the BullionFund commodity fund?
Open-end mutual fund trust
BullionFund precious metal assets are held in trust. There can be no third-party claims. You can buy or sell your units daily at Net Asset Value.
Secure
BullionFund is structured to eliminate any risk associated with storage; the bullion is held in a segregated, allocated section of the Bank of Nova Scotia's main branch in Toronto. The bullion is not subject to any third-party claims, and can only be removed in order to meet redemption requests. RBC Dexia controls BullionFund's bank accounts and provides back-office services. Bullion holdings are verified annually by BullionFund's auditors, Ernst & Young LLP.
Cost-effective
Bullion is purchased at a small premium over the prevailing spot price, net of commissions, including insured delivery costs and bar charges.
Liquidity is not an issue
The daily trading volume on global bullion markets is large enough to accommodate purchases and redemptions of any size.
Internal diversification
By purchasing all three precious metal commodities, BullionFund maximizes your bullion returns and reduces volatility over the long-term.
BullionFund has a fixed investment policy
Your investment in silver, platinum and gold bullion bars does not depend on any particular company's promise or ability to perform. BullionFund only
purchases equal dollar amounts of gold, silver and platinum bullion. It does not buy futures or certificates and does not rebalance, hedge, leverage or lease holdings.
Tax-efficient
Unlike most other mutual funds, there are no sales or withholding taxes on bullion purchases in Canada. BullionFund is approved for all Canadian registered plans. All redemption taxes flow through to the redeeming unit holder.Many North Americans confuse gold bullion with mining stocks, and do not appreciate that bullion is an entirely different asset class with vastly different risk and liquidity characteristics. Most US and Canadian portfolios have no allocation to precious metals whatsoever, while many of the world's wealthiest families have substantial gold holdings. Ask your financial advisor for more information. Bullion holdings are fully insured, and stored under a custodial agreement on a segregated, allocated basis, meaning that specific identifiable bars are held on behalf of the fund. Allocated gold bullion bars may not be lent into the market as part of the custodian's general pool of metal or used in any way without the knowledge and consent of the owner. Contact us today for more information about: - Commodity Funds
- Current Gold and Silver Prices
- Gold Bullion
- Gold Bullion Bars
- Gold Bullion Prices
- Gold Mutual Funds
- High Net Worth Investments
- Platinum Bullion
- Precious Metal Funds
- Silver Bullion
- Current Silver and Gold Prices
- Prices for Gold Bullion
- Mutual Funds for Gold
- Investments for High Net Worth Individuals
- Funds for Precious Metals
The Dow-Gold ratio peaked at 40:1 in 1999. With the ratio currently at 20:1 and falling, NOW is the time to increase portfolio allocations of gold bullion bars and other precious metals. The current trend favouring physical assets such as gold, silver and platinum could last at least another 10 years.
BullionFund makes it easy, convenient and cost-effective to purchase and hold real platinum, silver and gold bullion. Previously, investments in precious metals were only available through commodity funds and mining stocks. Now investors can purchase and hold physical gold, silver and platinum bullion in both their investment portfolios and/or all registered accounts, such as RRSPs.
Investment in bullion, especially gold, silver and platinum, should not be considered a short-term speculation, rather a long-term investment that always forms part of your portfolio.
The Fund's structure echoes the unique characteristics of bullion. Unlike traditional financial assets, the value of bullion can never decline to zero. Unlike bonds, bullion is not someone else's liability, and unlike stocks its value is not based on anyone's promise of performance. In order to maintain these unique characteristics, the Fund was structured with a fixed investment policy of purchasing equal amounts of each metal. As a result, unit prices are primarily a function of silver, platinum and gold bullion prices alone, and do not depend on the trading skills of a portfolio manager. BullionFund is an open-end silver, platinum and gold mutual fund trust that invests exclusively in equal proportions of unencumbered, fully allocated gold, silver and platinum bullion. The legal structure of an open-end mutual fund trust ensures that liquidity is equal to that of the bullion itself, and that no third party can have any claim against Fund assets, other than direct expenses of the Fund. BMG BullionFund is an open-end mutual fund trust that invests exclusively in equal proportions of unencumbered, fully allocated gold, silver and platinum bullion.
What are the benefits of owning a mutual fund that holds bullion?
Protects portfolios from market fluctuations
Precious metals can rise when stocks, bonds, real estate and Treasury bills fall, acting as a hedge against the instability of other investments.
Minimizes the impact of inflation
Platinum, silver and gold bullion prices typically increase with rising inflation, meaning that precious metal commodity funds offer insurance against inflation.
Provides portfolio diversification
Diversification protects investment portfolios. Ibbotson Associates, a world-renowned authority on asset allocation theory, concluded that investors could improve portfolio returns and reduce risk by holding 7% - 16% of silver, platinum and gold bars. No other investment reacts to market downturns as well as precious metals bullion; it is the best-known portfolio insurance.
Tactical asset allocation - taking advantage of normal market cycles
The market moves in cycles lasting approximately 20 years. It is important to rebalance your portfolio after trend changes in order to maximize returns and reduce risk.
The Fund offers both Canadian- and US-dollar denominated units, and offers a number of different classes to accommodate retail investors, individual high net worth investments, institutional investors and funds in Canada and internationally. BMG BullionFund provides investors with a cost-effective, convenient way to purchase and store physical bullion, including gold, silver and platinum.
