Bullion

Gold and silver have played a significant and continued role in human interaction for at least the last 6,000 years.

In their pure form gold and silver are referred to as bullion, or precious metals, and rightly so, as these two metals are truly rare and possess unique qualities.

27 Unique Qualities of Gold

Gold is found in the earth’s crust at .005 ppm, and above the ground it is estimated that there is only 184,000 tonnes of gold worldwide – that’s 5.9 billion troy ounces.

Silver is found in the earth’s crust in .075 ppm, and above the ground it is estimated that there is only 780,000 tonnes of silver worldwide – that’s 25 billion troy ounces

With a world population of 7 billion, that means that there is less than 1 ounce of gold and less than 4 ounces of silver available per person on the planet! Very precious indeed.

Any prospective purchaser of precious metal should first determine why they are buying gold or silver, as their answer will define what form of bullion they should consider. Outside of the industrial use of these metals, there are really only 4 reason why anyone would consider buying gold or silver.

INVESTMENT

When investing in physical bullion be it gold or silver, it is important to purchase precious metal at the least possible margin over spot price and with the least additional costs. Generally one would purchase what is called a London Bullion Market Association (LBMA) "London Good Delivery Bar”, or a bar of similar accredited industry standard. These LBMA bars are either a 400 troy ounce gold bar with a minimum purity of 995 (that is 995 parts in 1,000 are pure gold), or a 1,000 troy ounce silver bar, with a purity of 999. In addition to these LBMA bars, the one kilo gold bar of 999.9 purity should be considered as it is the most traded gold bar in the world.

The refinery production of a bar of gold or silver is done to exacting specifications, and the cost is calculated and quoted as a margin over spot price. For the three bars referred here, the margins are extremely low. These bars can be purchased from Dan El at cost, which allows our clients to enter the bullion market on the same footing as the big players in the industry. As these bars are big, heavy and extremely valuable, investors often prefer to have their bars held in secure vaulting facilities in close proximity to a refinery or bullion market and obtain a warehouse receipt or certificate as proof of their purchase. In due course investors then trade these bars off when the market favors their position. Usually a small discount of the spot price is the negotiated fee when a refinery or third party buys the investors bar. Because investors rarely takes possession of these bars, they need not be concerned with the additional costs including high shipping costs, multiple handling fees and transit insurance, therefore affording the investor opportunity to maximize profit.

Dan El provides this Bullion Bar acquisition service to its clients, and only acquires gold and silver bars for its clients that are manufactured by LBMA refineries. Dan El receives no profit from the sale of this bar to a client, but receives its reward from the storage of bars. The Bullion Bar private storage facilities used by Dan El are among the most prestigious and secure in the world. As Dan El enjoys very competitive storage rates with these facilities the client fee for bar storage is only .009 of metal stored/per annum, which is paid in bullion from the vaulted bars. Additionally Dan El clients pay a “transport to vault” fee of 15 cents/ounce which is calculated at the time of purchase. Once a client has purchased a bar from Dan El, a black light sensitive counterfeit proof certificate is then dispatched to the client.

Clearly, if one is buying gold or silver as an investment, then the Dan El Bullion Bar acquisition system offers the preferred form of bullion to hold, however to many, the cost of purchasing a full bar of gold or silver may be out of reach. This is where the Dan El Part-Bar program is superb.

Both the Dan El Bullion Bar and Part-Bar acquisition programs are second to none, and possibly the market leader on low fee private bullion acquisition and secure storage.

There is much talk today about gold and silver being profitable investments and to the savvy investor this is clearly a reality, however if investment is the only purpose one has for gold and silver, then many of their greatest attributes and values have been overlooked.

INSURANCE

For those who see benefit in holding a form of tangible "insurance" for times of economic upheaval, Artisan Bullion items such as privately minted coins and jewelry are the time tested logical "policy" to hold. This is due to the tradability of this form of bullion. We suggest that Artisan Bullion holdings should be stored securely by the owner in a safe and private "under the bed or apple tree" type facility, where the bullion can be accessed if needed. History has shown time and time again that when there is major (and in many cases not too major) economic or social turmoil, gold and silver increase dramatically in their purchasing power. 

Bullion coins and jewelry by their very nature of creation carry a greater premium above spot price than say the LBMA 400 ounce investment gold bar. This is because in effect gold coins start their life as a 400 ounce bullion bar…the bar is rolled into a flat sheet… artwork and design is created and machined into a die… and then 800 half ounce coins can be punched from that sheet. Now instead of one pouring fee as in the case of a 400 ounce bar, we have to add the collective costs of one pouring fee, fabrication costs to manufacture the sheet of gold, 800 striking fees, artwork and design, die manufacture, additional handling and machining costs and a profit for the party taking the risk in making all this happen. If the coins struck were to be one-tenth of an ounce then there would be 4,000 strike fees for this 1 bar of 400 ounces.

It is due to added manufacturing cost that coins and jewelry enter the market at a higher margin over spot per ounce than a bar, but they also tend to maintain a higher margin in their continuous market tradability. In a word, it is the convenience provided by Artisan Bullion items like coins and jewelry, that make them such a worthwhile and functional “insurance” to hold, particularly as precious metal are universal in appeal and acceptance. Even taking into account the larger premium over spot of Artisan Bullion compared to investment bars, many consider that such premiums will in time prove to be inconsequential and "par for the course" in the acquiring of tradable privately issued bullion coins and bullion jewelry.

For those who have some knowledge of history, personal holdings of Artisan Bullion precious metals is clearly a prudent policy to adopt. Even so, in considering Artisan Bullion as "insurance" rather than an "investment", it should be remembered that the return on bullion in all forms as measured by their purchasing power in times of economic upheaval, may well outstrip many traditionally accepted investments. The purchasing power of gold from 1929 to 1935 increased by 129% which is not a bad return for any investment, and certainly one that would outstrip the 20% premium over cost for Dan El Artisan Bullion.

Although Dan El endorse the broader role of Artisan Bullion being more akin to "insurance" than investment, it is universally accepted that any worthy "insurance policy" should be valued and measured by its ability to offer the greatest protection or return when it’s needed the most. This objective is achieved in no other privately held asset better than in Gold and Silver. In this role, they stand supreme.

BEAUTY

Simple truths are enduring, and the adorning qualities and beauty of gold and silver have purposed its longevity throughout millennia by arousing the artistic creativeness of men and women to fashion precious metal jewelry not only for personal adornment, but as a storehouse of wealth, symbols of remembrance, and function.

Archeological discoveries confirm an era as far back as 3,000 BCE, where gold was fashioned into jewelry. These adornments of beauty took the form of necklaces, pendants, rings, bracelets, armlets, earrings, nose rings, head ornaments, pectoral ornaments, collars and diadems, all fashioned from gold and silver. Interestingly, gold in ancient Egypt was the preferred metal for making jewelry, as it was rare, did not tarnish and could be worked easily due to its malleability. Many such ancient inspirations have been unearthed and can be enjoyed today in fine museums such as the Egyptian Museum in Cairo, or the Louvre in Paris.

Although the ancient reasoning behind the use of gold and silver as jewelry is timeless, remnants of this traditional wisdom are very much alive in 21st century communities, through the usage of wedding rings, chains, bracelets, bridal dowry, family heirlooms, discerning gifts of reward, respect and affection, religious offerings, adornments, quality time pieces, and in the Crown Jewels of Royal Ceremonies in the 46 jurisdictions ruled by Monarchs.

The jewelry market in our modern world is massive, but not all gold and silver jewelry is the same. Gold jewelry is usually measured in carats of purity. 24 carat (karat) is considered pure gold; that is 995 parts (or better) in 1,000 are gold. Gold is then “diluted” to lesser purity by adding common metals which is expressed by its carat designation. For example, 18 carat gold is 18/24ths “pure”, and can also be referred to as 750, which means 750 parts in 1,000 are gold. 9carat gold then, is 9/24ths pure, as only 375 parts in a 1,000 are gold. The balance in all gold less than 24carat, is made up of “non gold” metals such as copper, silver, nickel, zinc, or palladium. By blending different combinations of these “non gold” metals, a variety of “gold colors” can be achieved, but then the “gold” is not gold, but an alloy. Silver is considered pure or “fine” when the silver content is 999 parts in 1,000, however the common form of silver today is 925, which is an alloy of silver and copper.

Dan El only craft and sell 24 carat gold and fine silver in their jewelry offerings. This make us one of the extremely rare manufacturers of such jewelry in the world. Be it mens chains, or ladies necklaces, chains or bracelets, our designs are unique, timeless and inspiring. The true pleasure of beauty and function is often found in the simplicity of its design and we at Dan El are always looking to further our range of prestigious and timeless creations.

As modern as tomorrow’s sunrise, Dan El Artisan Bullion jewelry, remains equally representative of glory and beauty in religious ceremonies, symbolic of delegated authority in state administration, a timely reminder of family bonds, substantive as contractual security, functional as international currency, recognized as a measure of true wealth, and well able to provide a sound medium to transfer that wealth to the next generation.

As difficult as it might be for some to purchase bullion in any form, somehow being able to enjoy the tactile pleasure of unique precious metal adornments, is an experience few will encounter, but one worth striving for.

Dan El jewelry... Inspired by the past, prepared for the future, yet enjoyed today!

TRANSFER OF WEALTH

Bullion is possibly the simplest, easiest, fastest and safest means to transfer wealth. This is due to the ease and reliability that it stores wealth. One can tailor their private bullion holdings to suit their own circumstances, and in most cases, precious metals held for Investment (Bullion Bar & Part-Bar), Insurance (Artisan Bullion), and for its Beauty (Jewelry) all find their way to a balanced wealth portfolio.

Those who see wisdom in private bullion holdings, may like to consider diversifying those holdings; that is diversify what bullion forms they hold (as above), diversify how they hold them, (eg.Trust, Foundation, Partnership, etc) and diversify where they hold them (holding bullion outside the country they live in), as this provides additional and important aspects to protecting assets. It becomes clear then just how simply Private Bullion Holdings can serve as a means of transferring wealth from one generation to the next, or one jurisdiction to another, simply due to its indisputable and ageless ability to store wealth. It is with such realisations that one might give thought to the future and Estate Planning.


Once a prospective purchaser determines which of these four benefits are important to their bullion acquisition, then they might consider Dan El Bullion Bars and/or our Artisan Bullion assets.

Bullion Bars Artisan Bullion