You have to define whether thats physical or paper.
If HK is giving 0.13% for physical, i find that hard to believe.
That spread cant even pay for storage...........

of course selling physical is not a problem, but your resell value is less 20% or more than market current price.
those physical gold bar/coin usually protected with plastic and verified by certificate. your resell value will be lots lower if you lose the certificate. and if you open up the plastic protective cover, your resell value plungs down again.

My own opinion bout physical gold. no point buying physical if you cant touch directly the gold. the plastic dont feel good enough to touch. and you cant hear properly the cool ting sound of gold.

buy paper as an investment against inflation.

buy physical if you think major calaostrophe coming soon that will cause the failure of banking system.

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Added on April 17, 2012, 4:57 pm
safety deposit box at home. it dont really cost much. bout 5k can get you a sinple one