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Gold Bullion

Investing in gold bullion is simpler than many people think and is a great way to diversify an investment portfolio with a highly secure recession-proof tangible asset. A range of gold bullion investments are available to suit a variety of budgets – buy gold today tax-free online from Physical Gold Limited. We deliver (within the UK) gold bullion direct to your door and also offer a gold storage service in highly secure vaults.

More Information

Gold Bullion from Physical Gold Limited

What is gold bullion?

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.

Types of gold bullion

There are effectively two types of gold bullion sold by gold dealers, these are gold bars and gold coins, which we discuss below:

1)    Gold bars (also known as ingots)

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:

The 1oz gold bar from Metalor is a popular investment option
The 1oz gold bar from Metalor is a popular investment option

How can I calculate the price of a gold bar?

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.

Dealer premiums and commissions

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.

Which size bar is right for me?

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.

What is the difference between gold bullion and gold bars?

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.

2)    Gold 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:

  1. Gold bullion coins and
  2. Gold commemorative/collectable coins

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:

Gold bullion coins

These are mass-produced gold coins aimed at investors to deliver the “maximum amount of gold for your money”, examples include:

The UK gold sovereign coin is a popular bullion coin investment
The UK gold sovereign coin is a popular bullion coin investment

Commemorative/collectable gold coins

These are special edition gold coins aimed at collectors and numismatists:

  • New issue – many new issue gold coins are minted. These are often priced at a considerable premium over their gold spot price Effectively these are a gamble in that the investor is hoping that the collectability premium rises over time. The price of the coin will rise either when a) the collectability premium rises and b) the gold spot price rises
  • Rare and collectable coins – a range of specialist gold coins, which will have a significant premium to the current gold spot price for their weight due to their collectable scarcity

Tax advantages of buying gold bullion

Depending on the type of gold bullion you buy there are some tax advantages available in the form of VAT free and CGT free.

VAT free investments

In order to be VAT free, the following criteria must be met:

  1. Minimum millesimal finesse – this must be 995 for gold bars and 0.900 for coins
  2. Mintage age – the gold must have been minted after 1800
  3. Legal tender – the gold needs to be legal tender in its country of issue, see: HMRC in Notice 701/21A Investment Gold Coins

CGT free investments

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.

Gold storage

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.

Contacting Physical Gold Limited

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.