Buying gold online

One of the biggest disruptions that have changed our world in the last decade has been the mercurial growth of online trading. The precious metals industry has not been left behind. The industry lost no time in embracing new technologies to create a robust online marketplace where gold and silver could be traded.

There are several inherent advantages of buying gold online, however, safety and security remain a key concern for investors. Reputed dealers like Physical Gold, have taken steps to make the online buying process simple, comprehensive and safe. In this article, we will explore how investors can easily purchase gold products online and build a portfolio.

Firstly, find a trustworthy gold dealer. They should have been around for a long time, have a large number of customer reviews and offer good customer service. Next, you can simply set up an online account with that gold company and add gold coins or bars to your basket. Payment options are varied and usually include an array of cards up to £5,000 in value and bank transfer for larger sums. PayPal and American Express are rarely offered due to tight margins in the industry. Good gold dealers may be able to offer advice as to which gold to buy to meet your objectives.

Finding a reputed gold dealer

A reputed gold retailer will have a proven track record of transactions and reliable customer service. When researching a gold dealer on the internet, look for customer feedback and trust ratings. If you cannot find this information about a certain company, it’s perhaps best not to deal with them. Almost all reputed gold dealers will be registered with a regulatory body in the industry, like the BNTA. Visiting their website and going through the list of dealers registered with them can be an easy way to identify the best dealers to buy from. This is often the first step and doing your research diligently can ensure the safety of your transactions with minimal chances of getting ripped off.

Checking the variety of products

Many online dealers will be able to offer you a far greater variety of gold products, than your local high-street gold dealer. Online gold dealerships have thousands of products that you can browse and select from the safety and comfort of your living room. This gives you greater flexibility to find the right products that match your investment objectives. Of course, there are safety considerations when buying gold on the high street. When you buy your gold from a high-street store and leave, your safety could be compromised. These are some of the many important considerations why you should opt to buy your gold online.

Opening an online account

Once you identify a dealer of choice and you have spent enough time going through their website and selecting the products you want, it is time to open an online account. Most reputed dealers will allow you to register for free. Simply add the gold items you want to purchase into the online cart. After you select your products, you can pay for your purchases using a debit or credit card. It’s that simple.

Making online payments

Cards may be used for purchases up to £5,000. If you wish to make purchases over and above this amount, you can do so using bank transfers. Larger purchases will require proof of identification as well. Most reputed dealers use secure payment gateways, so your bank details would not be compromised. At this point, you should also select the method of delivery. Always opt for insured delivery if you intend to collect your gold at your residence. You should also make prior arrangements for safe storage of your gold in your home. Most well-known dealers would also offer you the option of storing your gold in a secure storage facility, arranged by them.

Visit the Physical Gold website for your online purchases

Physical Gold has a very comprehensive online store that uses a 3-D secure system to make payments. Several investors have used our website to buy gold. Go on to our website and register for a free account. By following five simple steps, you can easily make online purchases. If you want to find out more about buying gold online, give us a call on (020) 7060 9992 or drop us an email.

 

Image credits: Public Domain Pictures and Wikimedia Commons

While some people are seasoned gold investors, gold investment in the UK can be a whole new world for many. In the past decade, gold investment has evolved to become far more mainstream, but most investors remain novices. As such, we regularly help our customers answer questions they have about the market, buying process and how to sell.

One thing’s for sure, you shouldn’t be embarrassed or shy to ask these questions. You need to feel comfortable and understand any asset if you’re considering investing your hard-earned cash. As leading gold investment UK specialists we’ve heard all possible questions many times.

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But what are the most common questions we receive?

Type of gold

Clearly, there’s a choice when you come to buy your gold. Questions range from whether you should buy bars or gold coins, 22 or 24-carat gold, or whether various year coins are worth investing in over others. It’s certainly worth doing your research independently as well as seeking advice from experts. Together you should be able to make the right choice. Gold should always be seen as a medium to long-term investment, so there’s no rush to buy. Make sure you’re happy with the type of bar or coin you wish to buy before taking the plunge. While we at Physical Gold focus on selecting the best type of gold for investment purposes, other gold merchants are simply shops and might try to persuade you to buy a type of gold which they have in stock and can’t shift.

The simple answer to these questions is that the best type of gold will vary from individual to individual, which is why our consultation process starts from the beginning and looks at your specific motivations and needs.  

Is timing important with gold investment UK?

The golden question (if you’ll pardon the pun!), is what the prospects are for gold in 2022, and whether now is a good time to buy. Be wary of any gold dealer who guarantees returns. No-one has a crystal ball. As mentioned previously, the exact level at which you enter the market isn’t crucial, as gold generally gains in value above the rate of inflation in the long term. However, a good dealer will certainly help you buy in a trough to pick up that extra bit of value and also help you select gold which offers value at that time of purchase. For example, it may be a bad time to buy Maple Leaf coins as there may be a shortage leading to inflated premiums, whereas other coins may provide a buying opportunity as they’re currently trading cheaper.

One shrewd method of eradicating the timing issue is to drip-feed money into gold or split your investment into 2 or 3 tranches. Therefore you iron out some of the volatility and secure various prices, hedging your bets.

Are there tax-efficient ways of buying gold?

If an investment is the main purpose for buying gold, then it’s not only your buy and sell price which contributes to overall returns. Tax plays a crucial role also. Everyone wants to know the best ways to invest in gold. Seeking guidance from a reputable gold dealer will help select tax-efficient gold as gold investment in the UK has several tax advantages. Anyone who’s watched James Bond films may dream of owning huge gold bars. But selling them may incur 28% Capital Gains Tax. Others may not realise that 18-carat gold attracts VAT, whereas 22-carat and 24-carat coins and bars are exempt. UK Tax-free gold coins are usually a safe bet for cash investors, and Pension Gold is a great method of adding bullion to your retirement plan while avoiding VAT, CGT and receiving tax relief on your purchase.

How do I store gold?

Questions range simply from where to store gold, to the exact requirements and costs of each specific option. Certainly, if you’re seeking security and protection from your physical gold, then allocated and segregated storage is the only sure way to be safe. Ensure you receive the correct paperwork to prove your ownership. We’ve heard of horror stories of where gold bought and supposedly stored, wasn’t available when clients wished to taken delivery of that gold. Other rumours suggest that unallocated gold accounts will crumble if too many investors wish to sell at the same time.

How do I buy Gold?

Start off be contemplating what you’re trying to achieve from your investment. Is your primary motivation to maximise returns, or is it to buy small pieces of gold to pass onto grand children one day.

Your investment time-frame and appetite for risk may also help determine whether to go for older numismatic coins or simple bullion coins or bars.

We provide guidance as to which choices will best suit your needs. And for those who feel they want a mixed and balanced tax free portfolio, we offer a service to create a portfolio for you.

The word bullion is both widely used and misinterpreted. It basically refers to bars and coins produced in mass for investment purposes. With regards to coins, the term also refers to the standard of production of coins minted after the early 1930s. These coins are generally regarded as the most cost efficient way of purchasing gold coins as their market value is determined almost exclusively by their gold content. In contrast to other types of coins such as proofs, commemorative, or historic coins, you will not pay premiums for packaging, finish or exclusivity. Physical Gold offer an easy way to buy gold coins online in the UK.

The end of using bullion coins as currency

It was around the 1930s that the use of gold coins was lifted from circulation as the major economic powers around the world decided to recall their gold reserves and discontinue the use of gold in coinage. However, this did not stop the minting of gold coins and the major mints around the world continued to issue gold coins for the purpose of collection by numismatists and investors alike. Many of these coins are available at the value of their weight in gold. However, there are also coins from this period that have witnessed a significant escalation in value due to numismatic interest. For example, a 1933 gold double eagle fetched a record £7.5mn at an auction in 2002.

 

Knowing what you’re buying

Numismatists have always enjoyed collecting gold coins of collectable value. Coins that enjoy rarity and historical value have a great propensity to increase in value. This value is based on the demand of the coin itself, and not it’s weight in gold. However, needless to say, counterfeiters and rogue dealers also seize the opportunity of cashing in on such trends and there are a number of fake coins circulating in the market.

Bullion coin authenticity

When investing in bullion coins (including coin sets) as part of a portfolio, it is very important to determine whether the coin is genuine. There are internationally acclaimed coin certification agencies that can ensure that the bullion you are buying is genuine. The well-known ones across the world are the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).

Getting your coin certified by one of these organisations is one way of getting it done. PCGS and NGC do appear often at important numismatic events, like the International Numismatic Convention in New York or the London based Coinex event, organised by BNTA, which has its 40^th international convention due in September 2018. Collectors who want to have their coins graded, usually file their submissions in advance and collect them at the event, while networking with other collectors and viewing the displays.

Test for fake bullion coins yourself

However, there are other methods to determine whether the coin you’re buying is a fake. A coin gauge is a handy tool often used by dealers and collectors alike to detect counterfeits. Also, it is important to bear in mind that due to the unique properties of gold, coins are difficult to duplicate. Base metals have a lower density, which means that counterfeit coins would have the wrong dimensions or be underweight. Interestingly, there is even a mobile phone app that can ping the coin with sound and analyse the echo to detect a fake. In the UK, the forgery and counterfeiting act 1981 effectively outlawed the counterfeit trade. At Physical Gold, our team of numismatist experts always ascertain the genuineness of each and every coin we trade-in. We are also happy to help you ascertain the type of gold, authenticity, and the value of your gold coins, as well as guide you on how, where, and when to get the best deals on gold bullion.

Bullion coin sizes

Bullion coins are available in various fractional denominations, but the general rule of thumb is you’ll pay increasingly more as the denomination reduces. We feel the common 1oz coins and the full Sovereigns offer a great balance of divisibility and value. Because we only source the world’s most recognised bullion coins, they are always easy to trade at the tightest margins. Investors also benefit from price savings as the quantity of bullion coins they buy grows.

Sovereign coins are now recognised by the Royal Mint as bullion quality as they’re issued to non-proof finish for investment purposes in laminated sheets. However, many older Sovereign coins are widely traded in today’s investment market alongside the newer coins. These coins pre-dating 1933 encompass the Sovereign heads of early Elizabeth, George V & VI, Edward VII & VIII and Queen Victoria. Due to their age and limited issue, they can be deemed to contain a degree of historical value – and may be classed as semi-numismatic.

In practice the cost of these coins is usually slightly less than their bullion cousins of the past 10-15 years as their historic value is cancelled out by their inferior condition. Just like with new cars, you tend to find that the latest year’s bullion coins may carry a slightly higher premium than ‘nearly new’ coins even though they are of identical design and condition. Our consultants will guide you as to the current premiums on these coins to ensure you assemble the best value portfolio of coins.

Below we list and describe some of the world’s best known bullion coins. The two main tax free bullion coins in the UK are the Britannia and the Sovereign. The Krugerrand is known as the world’s original bullion coin as it was the first to guarantee 1oz of pure gold.

There are many ways for modern consumers to invest in gold. Depending on your circumstances, you might wish to purchase gold through a one-off payment or perhaps you might decide to spread the risk by investing in a monthly saver plan. The flexible nature of gold investments means that you are never short of options when it comes to how you can invest, there are more choices now than at any time in history.

Purchasing gold outright

If you have the money to do so, then purchasing physical gold or bullion outright is the simplest way to invest in gold. You can buy bullion in two main forms. Either by purchasing gold coins (e.g. Sovereigns) or gold bars. Whilst there are pros and cons to both, it is generally considered easier to sell coins as they offer more flexibility. For example, you can sell one or two coins at a time rather than having to sell all of them.

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If you’re seeking variety….

Gold coins represent a great investment opportunity for investors. You can either invest in historic collectors’ coins or gold bullion. Collectors coins can provide great returns as they offer numismatic value as well as material value however, they also require a greater degree of market knowledge as their value is based on many different factors, not just simply their weight in gold.

Gold bullion coins are the most popular form of gold coin investment as they have a high gold content and a guaranteed level of purity. Certain gold bullion coins are also exempt from VAT and Capital Gains Tax. This includes all gold Britannia coins.

If you want to buy in bulk…

Gold bars are a great way to purchase gold in bulk. Investors have several options with regards to weight and can choose from 10g gold bars, 5g gold bars, 100g and 1oz. Many dealers also offer Vat free gold bullion bars with the option to store the bars in their own allocated vaults.

One helpful tip you might want to consider when purchasing gold is to always make sure you buy your gold through a recognised broker or professional dealer in order to avoid the risk of buying forged coins. When purchasing gold online or through sites such as eBay, you should always be careful that what you’re buying is exactly as advertised.

Monthly Saver

A monthly saver gold plan is ideal for investors who want to invest in a set amount of gold on a regular basis. If you don’t have a huge amount of funds to invest, or you want to spread the risk of investing over a longer period, then a regular gold investment plan is an ideal option.

A monthly gold saver plan offers investors the opportunity to gradually build up a portfolio of gold over time. The main benefit of purchasing gold this way is that investors avoid buying gold while it’s at its peak and doesn’t have to try and predict future twists and turns in the market.

Also, read our gold bars investment video – “Buying gold bars – a guide for investors”

Pension Gold

Holding gold in a pension plan can provide

additional security for investors looking for long-term financial security. A self-invested personal pension (SIPP) now allows individuals to benefit from additional tax relief on the cash invested in the plan and you can invest in gold bullion as part of a range of diversified investments approved by HMRC. Since the financial conduct authority added gold to its list of approved assets, investors can now benefit from up to 45% tax relief on gold bullion.

Here’s the deal….

For gold bullion to be eligible for a pension scheme it must fit certain criteria. Currently, these criteria extend to all gold bars or wafer with a purity of at least 99.5% providing it is professionally stored. The only potential disadvantage to pension gold is that you don’t own your gold directly as it belongs to your pension fund. This means that should the price of gold go up, you can’t just then decide to sell.

Invest in Physical Gold’s different gold plans

Here at Physical Gold, we offer two main investment packages including our regular monthly saver plan and our pension gold plan. If you would like to discuss either of these in more detail or need additional information on any of our other services, please give our experienced advisers a call on 020 7060 9992.

Image sources: Pexels