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According to the Farlex Financial Dictionary, gold bullion is
“Pure gold that may be bought and sold for investment. Most gold bullion is at least 99.9% pure. It is usually smelted into either gold bars or gold coins. Gold bullion is a commodity that investors often use as a hedge against recession and inflation; Thus, while it is volatile like most commodities, it always maintains a relatively high value. Gold bullion is measured by mass and purity rather than face value.”
There are effectively two types of gold bullion sold by gold dealers, these are gold bars and gold coins, which we discuss below:
Gold bars are manufactured in a range of weights and are measured in troy ounces. A troy ounce is 31.1035g and is about 9.7% more than an imperial ounce which weighs 28.3495g.
Here at Physical Gold, we sell gold bars from Metalor. They are based in Switzerland and as a business has traded since 1852. They are amongst the world’s most reputable and well-known refiners of high-quality 999.9 purity gold. Listed below are some Metalor gold bar options available from Physical Gold:
Calculating the price of a gold bar will depend on two factors – price and weight. The price is determined by the spot price, which is updated continuously during trading every day. The latest £ spot price for a troy oz of gold can be seen at the top left of every page of our website.
Please note when buying gold bars, you will always pay a premium over the spot price to accommodate dealer margins. Also, when selling gold bars you will pay a commission, so will receive a price below the current spot price.
This will depend upon the investor’s circumstances. As gold is an expensive commodity it’s generally better to buy smaller bars, which are more divisible when you come to sell. The 100g gold bar tends to be popular and for most investors, it would be best to buy ten of these rather than a 1 x 1KG gold bar.
Many investors assume that gold bullion is effectively the same as gold bars. They are different in that gold bullion is the raw gold metal prior to smelting, so could become bars or coins.
As an alternative to gold bars, bullion can also be bought in the form of gold coins. These are a highly popular form of gold investment and are especially suitable for smaller investments where divisibility is important.
There are two main types of gold coin investments:
A range of sizes are popular including 1oz, 2oz and 10oz. Listed below are some of the popular gold coins sold through Physical Gold Limited:
These are mass-produced gold coins aimed at investors to deliver the “maximum amount of gold for your money”, examples include:
These are special edition gold coins aimed at collectors and numismatists:
Depending on the type of gold bullion you buy there are some tax advantages available in the form of VAT free and CGT free.
In order to be VAT free, the following criteria must be met:
Certain gold investments are CGT (Capital Gains Tax) free. This enables the investor to make a profit on the investment, which is tax free. Gold Sovereign coins and Gold Britannia coins are two examples of CGT free investments
Buying gold tax free is a fairly complex topic, our advice is to speak to our experts BEFORE investing to maximise the tax efficiency of your investment.
We can provide insured storage for gold bullion investments of £2,500 and above. Please visit https://www.physicalgold.com/delivery-storage for full details of our service.
Contact Physical Gold with all your questions relating to buying gold bullion. We can advise on the best strategy to suit your financial circumstances, including through monthly savings plans and pensions. Why not call us on 0207 6060 9992 or visit our contact page to complete our contact form for a quick response.