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Most investors prefer to invest in both gold coins and bars when building their portfolio. Gold coins are preferred by investors who have a numismatic interest. However, many investors prefer to buy bars. So, we need to understand the advantages and disadvantages of investing in coins or bars.

We receive a lot of questions about buying gold bars. For convenience, we have summarised some of the most popular questions we receive in this handy gold bars FAQs with answers guide, which we hope helps with your investment questions.

Are gold bars a good investment?

Bars of gold are a good long term investment to provide balance and protection from economic downturns. The value tends to rise during times of political and economic instability and has averaged more than the inflation rate over time. Large bars offer better value than smaller ones, although divisibility should be a consideration. To be Capital Gains Tax-free, buying UK gold coins offers an alternative.

Are gold bars illegal?

Owning bars of gold is completely legal. The question arises due to a period in US history just after the great depression in 1933 when the US Government issued a decree making it illegal to hold gold in the form of gold bullion without a unique warrant. Any gold owned privately could be confiscated in an attempt to stabilise the floundering economy. This lasted until 1974, and all restrictions have been rescinded since 1 Jan 1975.

Are gold bars traceable?

Unlike financial securities such as equities and bonds, there is no requirement to formally register gold bar ownership. Electronic gold ownership such as ETFs would be more easily traceable as an ownership register exists which is why so many investors prefer the physical, tangible nature of bars of gold.

Are gold bars 24 carats?

Generally, all bars sold by gold dealers will be 24 carats in purity. However, not all sold globally are 24 carats. The term ‘bar’ really only refers to the format of the physical gold. You should not assume that purity is automatically 24 carats. Many mined on the African continent are only 22 carats, which make them difficult to sell outside of Africa. Often these bars are melted down and used for jewellery.

Are gold bars taxable?

Gold 24 carat bars are not taxable when purchased in the UK. They benefit from a VAT exemption on investment gold (gold in the form of a coin or bar with a minimum of 995/1000 parts gold). Therefore, sub-grade 22-carat versions would be taxable. When bars are sold, any gains should be declared and are applicable for Capital Gains Tax if the annual allowance is breached.

Are gold bars registered?

The production of bars of gold is registered with the relevant assayer, and a serial number recorded. However, there does not need to be a register of private buyers. Gold dealers will need to invoice buyers and keep records, but these are not publicly available.

Are gold bars soft?

They are hard to the touch. But due to their high purity (24 carats), they are relatively soft in metal terms. Pure gold is malleable, so have a major possibility of scratching due to this. This is the reason why Sovereigns coins are produced in 22 carat format, which is deemed a more robust alloy.

Are gold bars tax free?

They are VAT free if they are 24 carats in purity due to the VAT exemption on investment-grade gold. There is no income tax when holding them, and Capital Gains tax will only be applied on any gains in value upon sale that surpass your annual allowance. Investors should sell bars strategically that have increased in value, i.e., some either side of tax year end will deem the bars tax free.

Are gold bars worth buying?

They are worth buying if you seek a tangible asset with no counterparty risk. Physical ownership is beneficial to provide balance to a portfolio consisting of mainly paper assets. The value can go up and down and is related to the underlying gold price. The gold price generally moves up in times of uncertainty so is desirable for those seeking a hedge against unstable markets.

Are gold bars pure gold?

Most bars are 24 carat gold which is the highest carat possible. Some bars on the African continent are a lower purity of 22 carats. The 24 carat bars are referred to as pure gold, but technically they are not 100% pure. Purity can be anywhere from 995 parts per 1,000 upwards, but most reputable bar producers make bars of 999.9 purity.

This 1oz bar from Metalor is clearly marked as 999.9 purity and is available to buy from Physical Gold Limited

This 1oz bar from Metalor is clearly marked as 999.9 purity and is available to buy from Physical Gold Limited

Gold bars vs bullion

The terms gold bullion and bars are somewhat interchangeable. Both generally refer to 24 carat gold in the form of a rectangular bar. However, bullion is also a term used to describe the ‘investment finish’ of certain coins. Bullion coins are minted for value purposes as opposed to proof finish coins which are more expensive collector’s items.

Are gold bars real?

It is easier for fraudsters to fake or add non-gold substances to bars than coins. This is because the design of a coin is far more complex and difficult to copy. The best place to buy is from a trusted gold dealer, where they tightly control their supply network. All genuine bars should also come with serial numbers and many with a certificate from the mint.

Are gold bars heavy?

This all depends on the size of the gold bar. Due to its high value, most people are surprised by quite how small and light a bar £1,000 will buy you. However, as a dense metal, the larger buys can be very heavy. For instance, the largest is 400 ounces or 12.5kg but are smaller than a standard brick which weighs a mere 3.5kg.

Gold coins or bars for investment?

Gold coins are generally deemed to be a better investment than gold bars, as long as you buy the right ones. Buying gold coins offers more divisibility than bars, benefit from quantity discounts, can be easier to sell, and be Capital Gains Tax-free. Of course, the investment objectives and investment amount will also determine which is best.

How are gold bars made?

They can be made in 2 distinct ways. Generally smaller bars tend to be minted, whereby a sheet of gold is stamped and cut into the required size, shape, and weights. These minted bars tend to be exceptionally clean looking with a smooth precise finish. For larger bars, a second method is used to create what is known as cast bars. Molten gold is poured into set size moulds to produce ingots. The finish of these tends to be more natural and rougher.

How do I buy gold bars?

It is best to buy directly from a precious metals dealer. Prices will be transparent and based on the live market. Usually, discounts are offered for purchasing bars in quantity. You benefit from the peace of mind knowing your investment is genuine and high quality and you will have a place to sell the bars when the time comes.

How do I sell gold bars?

It is best to sell bars through a reputable gold dealer. In the UK, stick to a gold broker who is a member of the British Numismatic Trade Association (BNTA). Try to ensure you have the bar certificate if it is loose. It is possible to take bars into jewellers, but they will likely pay a lower price as they will simply melt down the bar.

Gold bars versus ETF

Both Gold ETFs and bars have their value linked to the underlying gold price, so they both provide a degree of balance to mainstream assets. Bars benefit from having no counterparty risk whereas gold ETFs can be leveraged and there are additional risks associated with the provider. Buy/sell margins are tighter with ETFs due to their electronic efficiency. Fees may exist with both investments, ETF management fees, and gold bar storage costs.

How much are gold bars worth?

The value of a gold bar depends on the underlying gold price and the weight of the bar. The approximate value of the bar can be calculated by multiplying the current gold price in grams by the weight in grams in the bar. As most bars are 24 carats, pure gold), no other sums are needed. The actual price will likely be slightly lower by a couple of percent depending on supply and demand in the market.

Should I buy gold bars without a certificate?

We would recommend that all bars of gold should have an accompanying certificate. This certificate will come from the refiner and will prove that strict quality control standards set by the LBMA have been met. The certificate will provide a serial number, proof of authenticity and will have the place of origin on it.

Gold bars vs coins

Unless buying a substantial quantity of gold, choosing the right gold coins can be a better investment than bars. Bars can command lower premiums when large in size, but coins benefit from being more divisible. UK coins have the added advantage of being free from Capital Gains Tax for UK residents, and older coins provide more historical interest than bars.

When to buy gold bars?

As an investment, buy bars when the gold price is low to enjoy capital appreciation when the gold price rises. Prices tend to rise during times of Dollar weakness and general economic instability. So, do not wait for the economy to slump as the gold price would already have risen. Buying gold in good times and selling in bad times will reap the biggest profits.

When to sell gold bars?

It is best to sell bars in the middle of an economic crisis as the price will likely be the highest. Gold is sought as a safe haven in these times, so demand goes up and the price of gold follows. This directly impacts the price you can fetch for your gold bar.

Gold bars versus Krugerrands

Bars of gold can be cheaper per gram to buy than Krugerrands if bought in a large size like 1kg. However, Krugerrands are a good value coin, so the gain is minimal. An advantage of Krugerrands is that you can sell one coin or a handful whenever you need to. Owning one large gold bar does not allow this. Buying lots of smaller bars is expensive.

Buy a 1kg Metalor gold bar from Physical Gold Limited

Buy a 1kg Metalor gold bar from Physical Gold Limited

What gold bars should I buy?

If you are seeking investment, then try to buy the cheapest 24 carat bar possible. Premiums are paid for certain brands, especially from Switzerland, or enhanced packaging, but these premiums may not be recouped upon sale. Pre-owned gold bars can be bought cheaply, just ensure they have a certificate and buy from a reputable gold dealer.

Can gold bars be confiscated?

In the UK, bars can only be confiscated if they are linked to money laundering or crime. In the US, under current federal laws, gold bullion can technically be confiscated in times of crisis, but rare coins do not fall into the confiscation category. All privately-held bullion could be confiscated during the Executive order 6102 after 1933, but that expired by 1975.

Can I buy gold bars at my bank?

Very few banks sell gold these days as they have many other revenue streams and gold is deemed to be a specialist area. To purchase bars, it would probably be best to go to a reputable gold dealer to benefit from extensive choice, guidance, and general good advice about the timing of purchasing and selling.

Do all bars of gold have serial numbers?

All bars over 250g should have a serial number on them. This serial number helps an assay office authenticate the gold bullion. Generally, this serial number will be on your invoice, so it can be traced back to your dealer.

Gold versus silver bars

Silver bars are clearly far more affordable than bars of gold due to the price differential of around 80:1. This means that buying a bar for £3,000 can be underwhelming for those expecting a large brick-like bar. In contrast, a huge 5kg silver bar cost less than £2,500. Due to the low silver price, the relative production cost is higher than for gold, so bid/offer spreads are wider. Both bars can be held as safe havens, but the value of silver can also go up with industrial demand.

5kg bars like this Umicore bar are available from Physical Gold Limited

5kg bars like this Umicore bar are available from Physical Gold Limited

Talk to Physical Gold

If you have any further questions we are only a phone call away when you call us on 020 7060 9992. We can also be contacted via webform, so please contact us and we will do our best to help with all your gold bar-related enquiries.

While some investors prefer gold coins, others prefer gold bars. Gold bars can be a great repository of value and they are a vehicle for investors who believe in owning a tangible asset like a chunk of gold, in the form of a gold bar. Let us now explore why gold bars can be a great addition to your portfolio and where to buy them.

Advantages of investing in a gold bar

Gold bars present an attractive value proposition for investors because they provide an opportunity to buy gold at a lower price per gram. This is possible because the manufacturing costs of producing a gold bar is lesser than minting a coin. Gold bars do not carry an intricate design element.

The bars are produced by pouring liquid gold into a mould, and the purity value and the refiner stamp is engraved on the bar. Gold bars also come in a variety of sizes and weights. There are large gold bars that can weigh a kilo. However, if you are buying gold bars to strengthen your portfolio, it is better to invest in smaller bars than larger ones. This creates divisibility, variety, and liquidity for your portfolio.

Insider's Guide to gold and silver

This approach can provide advantages when selling. Investing in a large gold bar like a kilo simply means that you have to let go of a large quantity of gold at a single price point in the market. However, selling smaller bars allows you to take advantage of the price movements and generate better profits.

Where to Buy Gold Bars for Investment?

Gold bars offer investment-grade gold at a lower price per gram

Avoid premium brands

Premium brands like PAMP or Metalor can be attractive to investors, however, remember that you are paying a premium simply for the brand name. When buying a gold bar, the only things you need to check are the refiner stamp, serial number, weight, and purity value. It’s often a good idea to invest in pre-owned bars, as they provide better value for money with the same gold content.

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Where should you go to buy a gold bar?

There are many options available to investors if they wish to purchase a gold bar. There are high-street gold dealers or jewellers who can sell you a gold bar. Alternatively, you can also find gold bars on auction sites like eBay. But, should you buy an important and valuable investment product from these sources?

Where to Buy Gold Bars for Investment?

Investment-grade gold bars are VAT free in the UK

Gold investment bars should be bought from a professional dealer only. If you want to buy gold bullion bars, then they should also come with a serial number, be certified and have a purity of 999.9 at least. Don’t be tempted to buy lower grade bars or from eBay. Finding a reputed UK gold dealer is the first step you should take when buying a gold bar for investment.

How can you identify a reputed UK gold dealer??

Most reputed gold dealers in the UK will be registered with the British Numismatic Trade Association (BNTA). So, by visiting their website, you can easily shortlist several reputed gold dealers near you. The next step is to call them and find out if they provide a certificate of authenticity and a buyback scheme. Most reputed dealers will also offer free advice for you to buy the best gold bars.

Talk to Physical Gold about buying your gold bars

Physical Gold is a highly reputed UK gold dealer and the company’s investment team offers free advice on buying gold bars to investors like you. Call us on (020) 7060 9992 or reach out to us online via our website. Our investment team will be happy to answer your queries and advise you on buying the right gold bars for your portfolio.

 

Image credits: Wikimedia Commons and hamiltonleen

Buying a gold bar can often create great advantages for an investor’s portfolio. Firstly, gold bars allow you the opportunity to acquire gold at a slightly lower price point than coins. This is primarily due to lower manufacturing costs in terms of design and finishing.

The spot price of gold itself does not change, whether you are buying bars or coins. Additionally, gold bars are available in different sizes. Many investors prefer to purchase larger bars like the 1 kg gold bar. They may treasure the joy of purchasing and owning a large quantity of gold that they can add to their investment portfolio. However, many investors prefer to buy smaller bars, and a popular choice is the 10 gram gold bar. Let’s understand why.

buying 10 gram gold bars

Buying many 10 gram gold bars can get you a good discount

Divisibility

The first reason that any investor would want to buy smaller bars, is to enhance the divisibility of the portfolio. Owning a 1 kg bar may seem satisfying and rewarding, but at the time of selling, the investor gets only one chance to sell all the gold at a single price point.

This means that investors cannot plan to take advantage of different price points in the market. They have to decide to sell at a particular price, believing that its right for them. So, while smaller bars may be more expensive, although only slightly so, investing in a 10 g gold bar offers you the advantage of divisibility. Also, if an investor purchases a large number of them, dealers are happy to offer discounts. Therefore, if the plan is to acquire 1 kg of gold, buying these smaller bars is likely to be more advantageous.

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Payment advantages

Purchasing gold bars from a reputed dealer can often be carried out over the phone or online. It is not mandatory or essential for the buyer to visit the dealer’s premises personally. However, there are certain rules and regulations one needs to follow. For example, large transactions that are typically over £10,000, requires identification to be provided.

However, when buying a 10 gram gold bar, this isn’t required. Purchases can be planned in batches so that the value of the transaction does not exceed £10,000. It is also important to note that credit and debit cards will generally be accepted in the case of smaller transactions and purchases of smaller bars. However, larger purchases require the buyer to pay online. Many investors prefer to use the debit or credit card route, so buying a 10 gram gold bar could be better.

buying 10 gram gold bars

Gold bars as big as 250 kg are available

Variety

Any gold portfolio would generally benefit from a variety of coins and bars. This is also an essential factor to bear in mind when investing in gold bars. A 10 gram gold bar is a popular product and is produced by different well-known refiners across the world. So, buying these smaller bars gives you the advantage of choice. You may choose to invest in bars manufactured by two or three different refiners, with a different look and feel, design and refiner stamp.

Insider's Guide to gold and silver

Tax efficiency

In the UK, all investment-grade gold is VAT exempt. Similarly, gold bars may also be capital gains tax (CGT) exempt. However, if the gold bars you are purchasing isn’t, some tax planning may be required. CGT is only chargeable on profits that you accumulate, over and above the £12,000 threshold in a single tax year. Therefore, buying smaller bars can help you plan your taxes better, e.g., having a £24,000 threshold if bars are sold over two years.

Get in touch with the gold experts at Physical Gold

Whether you are investing in large bars or a single 10 gram gold bar, our experts at Physical Gold are best placed to offer you the right advice for your purchases. Call us on (020) 7060 9992 or get in touch with us online and a member of our team would be happy to answer your questions and offer you the right advice.

Image credits: Reverent and Wikimedia Commons

Buying Gold and Silver Bullion

Gold and silver bullion commonly refer to bars rather than bullion finish coins. Precious metals merchants generally buy and sell both metals so it’s possible to buy gold and silver from the same place. There are certain distinct advantages to buying bullion. The most important advantage is the elimination of counterparty risk and taking control of one’s wealth. Counterparty risk refers to the risk associated with the promise of delivery from a third party. If you invest in gold company stocks, paper gold or other gold instruments, you open yourself up to these risks. Therefore, buying gold and silver bullion can be an excellent strategy to minimise risks and maximise returns.


Click here to download the FREE Insider’s Guide to Buying Gold and Silver Bullion


Knowing the spot price of gold and silver

The first step in purchasing gold and silver bullion is to know the spot price and how it works. Nowadays, it’s very easy to find out the prevailing spot prices of these precious metals. Most reputed online dealers and regulatory bodies like the LBMA display the spot price on their website. Since the spot price is a dynamically changing number, it will be displayed as a ticker. It’s important to understand that you will never buy gold or silver bullion at the exact spot price. When buying, you would likely pay a small premium, over and above the spot price. Similarly, when selling, the price you achieve will be slightly below the spot price. Researching the spot prices and knowing about the market is an essential first step to buy gold and silver bullion.

How to buy gold and silver bullion

Buying bullion coins can generate healthy returns

Getting to know a reputed dealer

Another important step in making the right investments in gold and silver is to go through a reputed dealer. Firstly, a high-street gold seller will not have a wide choice of products available to purchase. Secondly, making high-value purchases on the high street is usually a risky business. Check out the company’s track record and reviews before placing an order online. It may be worth calling them first to check their customer service. Larger bullion will be better value, but divisibility should also be a consideration.

How to buy Gold and Silver Bullion

Gold bullion bars carry lower production costs

At Physical Gold, every product we sell comes with a buyback guarantee. This assures customers that the gold bullion they buy from us is certified and genuine. This also makes a difference to buyers, as they can sell off their investments easily through the same dealer. It’s important to do your own research when selecting a dealer so that you can pick the right one.

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Dangers of buying from Mints

Another way to buy gold and silver coins is to buy it directly from the Royal Mint. If you choose to buy non-UK bullion, there are other reputed mints in the world, like the Perth Mint in Australia, from where you may be able to purchase your bullion online through their websites. However, you may end up paying more for packaging and processing costs. Many reputed mints will also try to sell you proof coins. These are more polished and better looking and attract higher prices due to their finish. However, you must bear in mind that the gold and silver content remains the same. So, you are unlikely to receive a higher price at the time of selling, simply because they are proof coins. If your objective is to maximise your gains, you may be better off picking the right bargains from the secondary market through a dealer.

Get in touch with us to plan your gold and silver bullion investments

The economic crisis of the post-pandemic era has already started unfolding through the first half of 2020. Many investors are moving to precious metals in order to hedge their risks. If you are thinking of buying bullion, call us directly on (020) 7060 9992, to discuss your investments. We are certain you can benefit from the right advice. You may also reach our investment team through our website.

 

Image Credits: Tony Media and Pxfuel

physical gold index page

 

Best place to buy gold bullion

Everyone wants to own their own gold bars and coins. You only have to open the papers to read that traditional investments are flagging, and alternative assets should now play a part in everyone’s portfolio. Of course, it is common knowledge that savvy investors always turn to precious metals during times of economic uncertainty. Well, the global markets have had an unprecedented run – probably the longest spell of economic uncertainty ever since 2008. Well, if you look back at the gold price charts for 2011, you will see that at the peak of the crisis, everyone turned to gold. Infact, gold prices climbed to above $1900 for one troy ounce in August 2011.

Bullion prices set to rise

Right now, the news is probably getting worse. If the pundits are to be believed, over 12 years of economic uncertainty has now culminated in what looks like yet another possible global economic crash. The predictions of gloom and doom have now been in the news for a while. Europe has been neck-deep in economic crisis for a long time, driven by a number of factors, including fears of a hard Brexit. Now that Brexit has actually happened, the uncertainty has not gone away. Speculations are rife about how the new rules of engagement are likely to affect the already beleaguered European economy.

best place to buy gold bullion

Gold bullion bars are attractive to investors due to lower production costs

Elsewhere in the world, regional political instability and the US-China trade war has created a boiling pot of economic turmoil that could destabilise the global economy once again. Already, gold prices have shot up to $ 1600 per Troy ounce. If we look back in history, this is usually an indicator of investors pulling out of the global capital markets and parking their money in gold.

Bullion once again a safe haven asset

Apart from the global economic downturn, this earlier period of the 2008 economic crisis witnessed a tumultuous time in the US economy, as the debt ceiling crisis unfolded. Due to this, investors lost confidence in the US dollar and turned to gold. Well, in the present day, apart from global geo-political tensions, uncertainty continues to rear its ugly head in the form of Brexit, as well as the unfolding US foreign policy. Once again, it’s time to turn to gold bullion, in order to hedge against the risks of a possible downturn in the global capital markets, as well as forex markets.


Thinking of buying gold bullion? Download our FREE Insiders Guide to gold investing here


The important part?

Just as important to know is that physical gold beats paper gold for security hands down. This is simply because paper gold companies often sell off their gold holdings when gold prices take a beating. Additionally, paper gold – aka ETFs carry counterparty risks. This simply means that the company that issued the paper certifying your investment in gold holdings can underperform and sink. If that were to happen, your paper gold investments are worth nothing. Many paper gold companies also issue gold bonds in excess of the actual physical gold holdings to back them up.

Ultimately, this undervalues your investment as there is now lesser gold to back up your paper certificate. So, if it’s physical gold that you should be buying, in form of gold bullion, it’s important to find out where one can get the best deals. But where is the best place to buy gold bullion?

best place to buy gold bullion

To get a genuine deal, it’s important to buy bullion from a reputed dealer

Where should I buy gold bars and coins?

Many people we speak to ask us where the best place to buy gold bullion is and they often mention eBay. Clearly eBay is a wonderful marketplace to pick up some great prices on almost anything you may wish to buy. However I would strongly urge you never to buy gold bullion through eBay. Gold appeals because it reduces your overall risk of being hit by market downfalls and shocks. So why would you want to take on the huge risk of buying from eBay.

Unless you have very sophisticated testing equipment, there is no way of knowing the gold is genuine, its purity or quality. You are leaving yourself exposed to fraud. If you are happy that it is the right time to buy then the other consideration is price. Gold is not a great fit for eBay due to the associated PayPal fees. Any seller will have to factor these fees into their gold price and pass them onto yourself.
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The Royal Mint

At the other end of the safety spectrum is The Royal Mint. The name itself provides the reassurance that your gold can be trusted and is of top quality and condition. The restriction with this avenue is that The Mint only sells new gold coins (such as the Sovereign or the Britannia), it doesn’t offer circulated coins or gold bullion at all. So if you’re looking for tax free gold coins then The Royal Mint can certainly offer you pretty coins. However, if gold investment is your main driving force, then this is an extremely expensive option. You will essentially be receiving far less gold for your money than if you source the gold elsewhere. You cannot sell the gold back to the Mint so to realise a profit on your gold investment you will need to sell at the prevailing rate to a gold dealer. Paying this initial premium on the gold will severely hamper your returns. However, I’d say that The Mint are a decent source for obtaining presents for a family as some of their coins come in wonderfully packaged boxes, albeit at inflated prices. They also offer a huge number of collectors’ editions if that’s your interest.

Overall best place to buy gold bullion?

A source you can trust to obtain top quality gold bullion,

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at competitive prices and you can also sell back to them when you need? The answer is a UK gold dealer. The best place to start is the British Numismatic Trade Association (BNTA) who registers all the trustworthy gold dealers in the UK. If dealers are a member of this association, they need to adhere to a strict code of ethics, and you will have a dispute process should their service and goods fall below this code. Generally, you will have a decent choice of gold bullion and coins with a dealer, depending on their area of speciality. Some may focus on numismatic or collectors’ coins, while others focus on investment gold coins and bars. Prices are very competitive (particularly for bulk deals) or buying a kilo gold bar and crucially they may be able to provide access to circulated tax free gold coins which provide the best value of all. You will receive full documentation with any good dealer and even benefit from market guidance on the gold price and types of gold.

best place to buy gold bullion

Bullion coins are easily available at low premiums

Identifying a reputed gold dealer

Many investors are daunted at the prospect of looking for a trustworthy gold dealer. However, this can be a simple task if a common-sense based approach is followed. As explained earlier, the BNTA can be an excellent starting point. As a regulatory body in the industry, they have a verified list of several gold dealers in the country. The first step is to select a few dealers from that list and vet them yourself, before trading.

Remember, online dealers, are likely to provide you with a larger catalogue of products than the traditional high street gold dealer, who may offer you limited choices. It’s also easier to check the market reputation of an online dealer via the Internet. If the business has had a long track record of being in the market, they are likely to have several customers who have posted reviews online. Going through these reviews would give you an idea of the trust factor of each dealer.

Communication is key

Calling the dealer is an excellent idea and any reputed dealer worth its salt will be open to answering any questions that you may have regarding investments. They would also be able to offer you a buyback scheme and documents guaranteeing the quality of the gold they’re selling. Of course, if the dealer refuses to buyback what they’re offering, clearly something could be wrong. Most reputed dealers would also offer you the option of storing your gold with them in an LBMA approved vault. They would also offer you a secure, insured delivery option in the event you choose to collect the gold at your home. Once you’ve gone through these steps, you’re likely to shortlist a couple of reputed online dealers whom you can start doing business with.

Get in touch with us for advice on identifying a specialist gold dealer

So next time you’re looking to buy gold, look no further than a specialist gold dealer. The Physical Gold investment experts can help you identify specialist gold and silver investments. To speak with our investment experts, please call on 020 7060 9992 or get in touch with us online. Our team of experts are always on hand to assist you in making the right investment decision. Start off modestly, perhaps with 1oz or 100g gold bars. It’s the best call you’ll ever make. Also, why not read our beginners guide to buying gold, here?

Image credits: Matthias Wewering and Brett Hondow

 

gold storage

(Click image above to expand infographic)

Gold Storage or Delivery

Is gold storage something you’re thinking about?  Are you interested in purchasing physical Gold or silver, but concerned about where you’ll store it?   Our infographic highlights the various options available; to help put your mind at rest.

The main advantage of owning physical gold is that it’s the real thing!  There’s no counterparty risk, as there’s no electronic trading or paper involved.   It’s as real and solid as can be and something that you have the pleasure of holding in your hand.

 

But how do you keep a precious metal safe and secure?

Insured delivery direct to your door

Delivered to you fully insured, our delivery is discreet, so the whole neighbourhood won’t know what you’re taking delivery of.  It’s packaged in plain, padded envelopes, safely and securely.   We also track every package that we post, which allows us to follow up on any queries and provide reassurance on when you should expect your delivery.    If your gold or silver is in stock, and you place your order before 2pm, then we should be able to get it to you by the next working day. Before 1pm to be precise.     Should your order be out of stock then we’ll aim to deliver it within 2 – 3 days – depending on the stock availability. From 2018 all gold orders benefit from free UK delivery.


Thinking of buying gold? Download the FREE 7 step cheat sheet first


Professional gold storage vaults at the Bank of England

Home safes often have a digital locking device

Gold Storage Options

Once you’ve received your package and signed for it, there are several options for you to consider regarding storage:

Home storage

Many people choose to keep their gold stored safely at home and there are many options available for home storage.  A steel safe is the most obvious choice for safety and security – preferable bolted down to the floor.   But if bolting the safe isn’t an option, then try to keep them safe somewhere out of sight, like in a cupboard, hidden by other items.

You can also use everyday household cupboard items, like tins, packets of cereal, boxes of tea bags etc. to hide and conceal your gold, but it’s important that you remember where you’ve stored it so it doesn’t accidentally get thrown away. There are many different steel safes available for home use. These include fireproof and waterproof ones. There are even models that can be unlocked by using your fingerprints. They can also be installed inside the flooring, underneath the carpet.

There are a number of ingenious secret storage items that you can purchase from www.physicalgold.com, such as clocks or wall sockets, to help you conceal & store your precious metals.

Hiding things under the mattress is also more common than you might think, but whichever home storage option you choose, you must ensure your home insurance covers the total value of the gold.  The advantage of keeping your gold at home is that you know exactly where it is, you can keep it close and touch it, as often as you wish.

10 commandments

Bank Deposit Box

Safety deposit boxes at banks are considered to be extremely safe and secure, so it’s worth visiting your bank to ask about the availability of one if this is of interest to you.   Many banks have been withdrawing these facilities over the past few years though, so there may be a waiting list or a box may be quite difficult to acquire.

Safety Deposit Facility

A third-party safety deposit facility offers boxes for you to rent to keep your small, personal household items safe.  These facilities are usually open 9 – 5pm for you to visit and generally cost between £100 – £1000 per year to rent.

Since tariffs are expensive, it could work well as a short-term arrangement. The benefits of using a safety deposit facility are that your valuable assets are stored away from your home.

Additionally, these boxes are available in various sizes and you can choose one according to your requirements. Of course, one of the disadvantages of this arrangement is that you cannot access the box at any time of your choice. You can only do so when the facility is open. Also, there could be a natural disaster like a flood that could damage your belongings stored inside the box. In many cases, the operator may refuse to re-compensate you for your damages when this happens, simply because their insurance may not cover it

Professional Vault Storage  

The most common (and safest) gold storage option is to arrange for the secure storage of your gold with your chosen dealer, as they have access to secure vaults.  These professional vaults offer 24hr safety and security, giving you reassurance and peace of mind.   The vaults are highly secure and generally don’t allow public visits, but rest assured your gold will be personally allocated and stored separately in a fully segregated account, within your own little section in the vault.

At www.physicalgold.com, pension gold, silver coins and gold coins are stored at Loomis International, UK – one of the UK’s most secure gold storage facilities.     Silver Bars are stored at Network Securities in the Channel Islands – a specialist vault facility that has dual controlled security systems and a direct connection to the local police station.

So if you choose to store your precious metals with us, we can reassure you that all of our stored gold and silver is fully insured, segregated and completely ring-fenced and you can request home delivery of your gold at any time.   However, given the high levels of security involved, it’s often not possible for the public to request to view their gold, but we can assure you that it is there – safe and secure.PHYS01_Animated_Gif_2_MPU

The joy of owning a physical gold bar is fantastic. Investing in a gold bar can create great value for your investment portfolio while adding liquidity to it.

Why are gold bars more cost-effective than coins?

Many investors prefer to invest in a bar since they are a bit cheaper. You may be wondering why gold bars are cheaper than gold coins (such as Sovereigns and Britannias). Well, the spot price of gold would be the same whether you buy a coin or a bar. However, the premium charged over and above the spot price is lower. The manufacturing cost involved in producing a gold bar is cheaper than making a coin. This is primarily because a gold bar is a rectangular block, and does not have an intricate design element.

The importance of purity

Of course, the first point to check when buying Insider's Guide to gold and silvera gold bar is its purity. Most bars have a purity of 99.9% and this information is engraved in the refiner stamp on the face of the bar. It’s also important to check the serial number. Another useful tip is to buy pre-loved bars. These are available from dealers at a reasonable discount. Buying one of these gets you the same quantity and purity of gold, but you reduce your purchase price.

Buy a variety of bars – sizes and dimensions

When buying gold bars, it’s better to purchase a variety of bars of different dimensions. The attribute of variety is very important in building a robust portfolio. It enhances the divisibility of your holdings. If you’re selling a 1 kg bar, you’ll get one chance to sell it and your gold is gone. On the other hand, owning a variety of bars gives you the flexibility and advantage of selling at different price points. Smaller bars (such as 100g and 1oz)  may be slightly more expensive, but your dealer is sure to give you discounts if you buy a large number of them. You may not be planning to liquidate your entire gold holding. In that case, you may only need to sell a couple to meet your short-term financial objectives.

Where is the best place to buy gold bars?

It’s important to do your research when selecting a reputed dealer. It’s best to buy gold bars from a specialist bullion dealer. Avoid buying privately as authenticity could be a problem. Buying gold bars from a dealer can either be carried out online or over the phone. For transactions over £10k, identification will be required. When buying smaller gold bars, credit and debit cards are generally accepted, while online banking can be used for larger purchases. Most gold brokers will deliver your gold bar to your home address and insure the transit.

Check if the dealer has a buyback policy on gold bars. If they don’t want to buy back what they’re selling you, something is wrong. Every reputed dealer will be registered with an authorised regulatory body like the BNTA. Checking customer feedback on the internet is also an important part of ascertaining whether the dealer has a good track record. Once you’ve got all these bases covered, you’re good to go ahead and purchase the right gold bars to strengthen your portfolio.

How to buy gold bars

Gold bars are an attractive investment due to lower production costs

The importance of tax efficiency

Tax efficiency is an important consideration when investing in any gold. We all know that bullion coins are legal tender in the UK. As a result, they are Capital Gains Tax (CGT) exempt. Likewise, they are also VAT exempt, as they are considered to be investment-grade gold. But, do the same rules apply to gold bars? Of course, they are VAT exempt too. But, CGT would be chargeable on any profits accumulated above the £ 12,000 mark.

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Physical Gold – how to contact us

We are easy to contact, so why delay contact Physical Gold Limited through your preferred method. Contact us via our Contact Form, by calling 020 7060 9992 or by leaving an instant message. We look forward to working with you.

 

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Value of gold bars

When most people think of gold, they imagine the classic gold bars from films. But how much is a gold bar actually worth?

In this video, you’ll discover the 5 proven factors to calculate the value of a gold bar. By the end, you’ll learn how to buy and sell gold bars at the optimum price.

1. Gold spot price

The starting point with calculating the value of a gold bar is the current spot price. This is a moving gold price, displayed in ounces and grams and in various currencies. This isn’t the price where you can buy and sell gold but instead acts as a benchmark to calculate prices. You can see live prices at the top of websites like our own and historical price fixes on the LBMA website.

2. Weight

It may come as no surprise that gold bars are minted in a PHYS01_Animated_Gif_2_MPUlarge array of sizes and weights. The classic brick-like gold bars we see depicted in the media are known as Good-Delivery bars and weigh a whopping 400 ounces! These bars are worth several hundred thousand pounds each and is primarily traded between central banks.

Retail sizes are also commonly available from 1g to 1oz, 100g, up to 1kg. The next step to calculating the value of a gold bar is to multiply the spot price with the weight. So if the spot price of gold is £30/g and the gold bar weighs 100g, we simply multiply £30 x 100g = £3,000.

Find out how to buy 1kg gold bars here.

3. Buying or selling premium

As I mentioned at the beginning, £3,000 isn’t the price you can necessarily buy and sell the gold bar at. In fact, you’ll pay slightly more when buying the bar and receive slightly less when selling it. This is known as the bid/offer spread. An easy comparison would be when obtaining travel currency. The Sterling Dollar rate may be quoted at 1.33, but you can buy Dollars at 1.30 and sell at 1.35.

Because gold bars have no historical value, the premiums you’ll pay above the spot price are modest. Coins, on the other hand, can be worth more per gram due to a historical and scarcity value. We study the merits of gold coins versus gold bar investment, focussing on five key factors.

Higher quantity and size reduces the premium

The general rule of thumb is that the larger the gold bar, the lower the premium you’ll have to pay. Similarly, buying a large number of bars will also reduce your price per gram.

The bar brand can also impact the value when buying. Certain top-end Swiss brands will be more expensive than a near-identical bar of the same weight, manufactured by a lesser-known brand.

Focus on value, not brand

My advice is to buy the best value bar as long as its gold content is 99.99% pure.

When selling a gold bar, you’ll likely receive a slight discount to the spot price value, usually around 2%.

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4. Tax impact

One overlooked aspect of a gold bar’s value is Tax. Gold bars are VAT-exempt so tax doesn’t play a role in its value when buying. However, when selling gold bars, it’s possible any price you receive will be taxed for Capital Gains. This will only apply if you’ve made more than £12,000 profit on the sale when compared to the price you paid. Even then, tax is only applicable to the profit above this threshold. It’s also possible to sell some gold bars before the tax year-end and some afterwards to spread your profit and avoid incurring tax.

If you are considering purchasing a larger quantity of gold and want to remain tax-efficient, then UK coins could be a better option than gold bars due to their CGT-free status.

5. Timing

Clearly, the value of your gold bar will vary with time. While the gold spot price moves, so will the value of your gold bar.

But to really maximize the price at which you sell your bar, or minimise the price at which you buy, you should consider market sentiment. If you can buy when the market is very quiet, there’s every chance that gold dealers will reduce premiums or offer sales to move stock.

In the same way, if you can sell your gold bars when market demand is high, then dealers may improve the prices they’ll pay, as they know they can re-sell them quickly.

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Buy gold bars from Physical Gold

If you’re looking to buy or sell gold bars, or want some guidance on the market, then feel free to contact us at www.physicalgold.com.

Our team are available 7 days a week on 020 7060 9992, live chat on the website, or you can leave a callback request here.

If you found this video useful, then please check out our other videos here which cover our most common questions on both gold and silver investment (including bars and coins).

 

Gold Information

Live Gold Spot Price in Sterling. Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.

Silver Information

Live Silver Spot Price in Sterling. Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.