FAQ

We have provided a list of commonly or frequently asked questions about purchasing with Ainslie Wealth. Please take a look below and click or tap on a heading to see the answer. If the below doesn't answer your question, feel free to contact us via phone or email.

Do I have to buy online?

Ainslie Wealth provides our customers the choice of either buying online (at a small price discount for metal), by phone, or if you’d prefer, a comfortable secure store in the heart of the Brisbane or Melbourne's CBD. All 3 are simple and the choice is yours!

Our online Web Shop allows you to see photos and descriptions of our entire range and the convenience of shopping from home or on your mobile device. The Web Shop is open 6am to 10pm 7 days a week except over a Christmas holiday period.

Many still prefer the in-store option as it allows you to discuss your options with one of our friendly consultants, discuss the market more broadly with our own Digital Strategist, and take immediate delivery of your bullion or crypto after paying either by cash, or EFTPOS. Many people like the ‘cash and carry’ option the store provides. Also, if you are after one of our Ainslie Crypto Wallets, you need to be present to see us create it and take it with you. We won't produce and send for security and liability reaons. We even provide heavily subsidised parking directly under the building. If you're in Melbourne you can park immediately adjacent in 333 Collins St (access off Flinders Lane) and we will cover the cost of parking for FREE, for up to an hour. Just remember to show your parking ticket to our admin staff, it couldn’t be easier…

Do I receive real bullion?

Yes, you do.

This may seem like a strange question but one of the alternatives in precious metals investment is buying Exchange Traded Funds, or ETF’s. These are shares listed on the ASX (or elsewhere in the world) that are meant to track the price of gold or silver through the company you buy shares in then buying and selling its physical holdings to mirror that market dynamic. You have a paper share for an unallocated metal account. To be very clear, the precious metal bullion you buy from Ainslie Bullion is the real thing. Its pure, you get to take it, you get to hold it, and nobody can change that by going broke or with the stroke of a pen or ‘printing press’ like many ‘paper’ assets including cash.

If you are considering buying ETF’s we encourage you to do your research and satisfy yourself around the fundamental question of fractional reserves. i.e. do they really hold enough gold and silver bullion should everyone want theirs, and if so could that change in a strong market. There is evidence put before legal hearings that some of the largest ETF’s in the world may have a ratio of 100 paper ounces to 1 physical ounce in store. It is now also common that these funds will only settle a sale with cash or make delivery of metal unfeasibly expensive. You should consider too that any ‘paper asset’ is simply a promise to pay and not like holding the real asset itself.

We outline in Bullion Storage just how easy it is to store your physical bullion so it just makes sense to buy the real the real thing.

Can I have crypto and bullion in my SMSF?

In any investment portfolio it is important to have a balance across a number of asset classes.

Cryptocurrencies and bullion are a perfect asset to have in your self managed super. Gold and silver also tend to be counter-cyclical to the likes of equities and property and hence provide greater assurance of have a portion of your portfolio in a healthy position when you need that income out of your super during retirement.

The good news is that it is just as simple to buy precious metals bullion through your SMSF as it is in personally. Simply provide us with copies of the front and signing page of your SMSF Deed when you complete your verification process with Ainslie.

Note that coins are classified as ‘collectibles’ by SMSF regulations and hence must be independently stored and insured. We recommend Reserve Vault to meet this criteria.

Similarly, you can also purchase cryptocurrencies in your SMSF. While still a relatively new area of SMSF investment, it is possible to hold this asset class. Please be sure to talk to your accountant regarding purchasing any crypto in your SMSF, just to ensure you have listed this invesment activity in your SMSF deed.

What are my identification requirements?

There are various company and legislative requirements.

You do not need to setup an account with us (unless you are a prospective storage customer).

Anyone coming in to our store must provide official Primary photo ID before entering for our (and your) own security purposes. If you come accompanied and your companion does not have ID or not want to come in, they can stay in our showroom room without providing ID whilst you attend to your purchase, sale or pickup.

You must identify yourself through our online verification process, before you purchase anything through our website or instore. Click here to complete this verification.

If you are buying in your Self Managed Super Fund (or another Trust Fund) we will need to take a copy of the original (or you provide a copy) of your SMSF Trust Deed (front page and signing page(s) only) together with the verified ID of all Trustees/Directors of that Trust. If the Trustee is a company, we will also need a copy of its most recent Company Statment (this is easily obtianed from your Accountant). Please see further information at the Ainslie ID Verification page for Manual Verification - Non Individuals.

If you are buying in a company name we will need to take a copy of the original (or you provide copy) of your most recent Company Statement together with the verified ID of all directors of that company. Please see further information at the Ainslie ID Verification page for Manual Verification - Non Individuals.

For the above two non-individual instances, if you are not coming in to our store the ID verification link also provides a simple form to help.

What is Bitcoin?

Bitcoin is a fully digital or “crypto” currency using blockchain technology, a consensus network that enables users to store, make and receive payments without any intermediary such as a bank or financial institution. Because it is fully open-source and decentralised, it simply cannot be ‘hacked’ or controlled by any individual or body. The value is drawn from its rarity and useability.

The workings are very complicated but in simplest of terms there will only ever be 21 million Bitcoins. Those ‘coins’ are held in blocks or a distributed public ledger (decentralised record of all payments and receipts) and that ledger is visible to everyone (open source). Not all those 21m ‘coins’ have been created though. Bitcoins are created through a digital form of mining. That mining process is essentially solving an immensely complicated mathematical problem. Because there is no single intermediary to ‘approve’ a payment, payments are approved by the consensus of a number ‘miners’ who are incentivised to do so through earning Bitcoins for their efforts through ‘transaction fees’ and block rewards. Any fraudulent transaction simply never gets approved as the algorithm will fail.

Bitcoins are held in ‘wallets’. Each wallet has a public key (or address) and a private key (or secret code). If you want to pay someone, they give you their public address and you send the Bitcoins to that address using your private key. Think of it being like your bank account number and PIN.

As a form of money that can’t simply be expanded (intrinsic value), is an accepted median of exchange (albeit still limited.. but accepted at Ainslie!), and is portable, fungible, and divisible…. you can soon see why it is getting compared to gold.

What is a wallet?

Wallets can take different forms. The most convenient is to have a digital wallet on your phone or PC. You import your Private Key if you already have one or you can create a new wallet. There are many different providers of these but most simply allow you to transact more easily with QR scanners and the like. There are also hardware wallets that provide higher levels of security and allow you to take your wallet offline whilst maintaining the same level of useability as a digital wallet. Trezor and Ledger Nano S are examples.

First time buyers at Ainslie are offered so called ‘paper wallets’. This is simply a printout of the Bitcoin address (or the ‘Shared address’) with its QR code, and the Private Key (or ‘Secret Key’). We also provide a USB copy to give you a backup. For ultimate security these should be created completely offline on a machine never online. A securely stored paper wallet simply can’t be hacked. We recommend storing it at Reserve Vault for ultimate peace of mind.

Sending and receiving bitcoin

Again, keeping it simple… if you want to buy something with Bitcoin or sell it, the recipient will most likely send you their Bitcoin address. The easiest way to send some of your Bitcoin to that address is to download a digital wallet. If you only have a paper wallet you can either import your Private Key or send the full balance (using your Private Key) into a new account created at their website or digital wallet. For ultimate security you should never use the same address twice. When you send some of your Bitcoin, all of it is sent and the ‘change’ is sent to a (essentially) new address in your wallet. This is handled by the wallet software itself.

Receiving Bitcoin is far simpler. Provide your address and the payer will deposit into it.

At any time you can check your balance by copying your Bitcoin address into a block explorer, like blockchain info and it will tell you your balance.

Crypto transaction fees

When sending Bitcoin and other cryptocurrencies you need to pay a transaction fee which in simple terms pays or incentivises the miners to approve your transaction. Transaction loads can vary in the network and at times you need to pay higher fees to achieve the first confirmation within say 30 minutes. Don’t pay enough and it could literally take weeks. Most of the popular digital wallets handle this for you, and you can even dial up the priority and how much you pay. For more information on current fees you can go to www.bitcoinfees.21.co . We are not talking large amounts. At the time of writing an average transaction cost about 82,000 satoshis (1 satoshi being the 8th decimal place), so less than 0.1%

When you buy Bitcoin off us or sell bullion for Bitcoin you will receive Bitcoin in your wallet NET of that fee which is out of our control. We use Priority settings to ensure you get your Bitcoin promptly. When you sell us Bitcoin or use Bitcoin to buy bullion we acknowledge and accept that likewise we will receive Bitcoin net of those fees and we stipulate in our terms you need to use the Priority setting as well.

Confirmations

As we discussed above, Bitcoin works on consensus algorithms and so the network needs to confirm transactions. For lower amounts most will accept 1 confirmation and for large sums 6 confirmations is the standard. This can take around 1 hour. From bitcoin.org:

“Receiving notification of a payment is almost instant with Bitcoin. However, there is a delay before the network begins to confirm your transaction by including it in a block. A confirmation means that there is a consensus on the network that the bitcoins you received haven't been sent to anyone else and are considered your property. Once your transaction has been included in one block, it will continue to be buried under every block after it, which will exponentially consolidate this consensus and decrease the risk of a reversed transaction. Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer. Every user is free to determine at what point they consider a transaction sufficiently confirmed, but 6 confirmations is often considered to be as safe as waiting 6 months on a credit card transaction.”

Couldn’t find the answer you were looking for? Feel free to Contact Us

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Swap

You can exchange any of our offered cryptocurrencies for gold and silver bullion. You can also buy any cryptocurrency with gold or silver. Move in and out of cryptocurrency with ease, while positioning your trades in stable, physical gold and silver.

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