This is designed for those seeking the cheapest 5g gold bullion available and is not focused on a particular brand. You’ll receive 5g 24 carat (999.9 purity) gold bullion bars from stock, which will be manufactured by one of the world’s best-known refiners. Brands will include Heraeus, Umicore, UBS, Perth Mint, Credit Suisse, Pamp, Bairds, and Metalor, amongst others.
Gold bullion prices consist purely of the intrinsic gold content value plus a manufacturing cost. Unlike rare collectors coins, limited edition gold coin sets, or proof finish gold, you don’t pay a premium for rarity or history. Therefore, buying gold bars can provide excellent value for those focused on gold investing. Because the best value bars are from excess stock, you pay a lower price than if you were to select your brand.
Buying 5g gold bars hits the sweet spot for gold bullion. Due to its size, manufacturing cost as a percentage of the overall price is far lower than with smaller. For those seeking the lowest gold price per gram possible, focussing on larger denominated bars will bring down price per gram. Electing for the ‘best value’ bars provides an additional discount. Physical Gold Limited generally will pay the same when you come to sell one of these bars versus selling a gold bar whose brand you originally chose. After all, it’s still the same quantity of gold in the same format. Buying larger bars such as 500g or 1kg may shave a fraction more off the gold price per gram, but you then lose the flexibility of owning multiple pieces of gold and the ability to sell some, rather than all, of your holding.
The two obvious alternatives to this product would be the Metalor 5g Gold bar. This costs slightly more, but you know you’ll own a Swiss produced gold bar in a sealed tamper-proof packet. If it’s a gift or you desire that certainty, then this can be a sound option. However, the ‘best value’ bars include Swiss refiners and sealed bars, so you may end up with the same bar at a lower cost, depending on what we have in stock.
If you’re looking to invest a sum of money that permits buying several 5g gold bars, then tax free gold coins are definitely worth considering. These have the advantage of buying more divisible, with Sovereign coins costing around £250 each and also being completely tax free. While gold bars are VAT exempt, the UK coins are also Capital Gains Tax free, meaning you’ll get to keep all your profits.
With an annual tax free allowance of over £12,000, UK investors can still make handsome profits on gold bullion bars without paying any CGT.