Buying gold and silver
Gold and silver are the go-to precious metals for investors building their portfolios. The two metals have different attributes and prices in the market. If you’re an investor making your initial foray into the precious metals market, silver could be an excellent choice. This is because the white metal is currently more than 85 times cheaper than gold. So, affordability becomes a key factor.
Silver – a great opportunity
It’s also important to note that silver prices have a degree of volatility. But there are speculations that silver is destined to rise over the next few years. According to the experts, this is likely to happen simply because of the growing demand for silver in numerous industries and dwindling supplies. This can eventually cause a great spike in silver prices.
Gold delivers stability and value
Gold has historically been a precious metal that has stoically delivered good returns. 
Of course, it is considered to be a safe haven for investors in times of economic crisis. As international capital markets implode, the price of gold has already crossed $1600 per ounce. Even at these high prices, several investors are choosing to pull their money out of capital markets and invest in gold. But, how can one buy these precious metals safely?
Safety considerations
There are 2 main safety considerations when buying gold and silver. Firstly, it’s a risk to ensure the gold and silver are authentic, of high quality and priced correctly. Buying gold and silver from a reputable precious metals dealer will safeguard against this. Next, there’s a risk that you could be targeted for robbery if you take possession of the gold or silver. Either opting for insured delivery to your home or professional vaulting services will protect from this.
Investors should always buy gold coins from a reputed dealer
Authenticity can be ascertained in many ways. If you are investing in gold bars, there are a few steps that you can take to ensure that the gold is genuine. Gold bars will always carry a stamp from the refinery, which can be found engraved on the face of the bar. All genuine bars will also carry a number that denotes its purity. For example, if the bar has been manufactured with 24-carat gold that has 99.9% purity, the bar will display the purity number as 999.9. But, many of these features can also be duplicated by criminals. So, it’s important to purchase your gold from a reputed dealer who offers documentation to prove that gold is genuine and also has a buyback scheme.
Safe storage
If you choose to accept delivery of your gold at home and intend to store it on the premises, make sure you get a purpose-built home safe. These can be installed in your home and concealed in a way that makes it difficult for robbers to find it. On the other hand, if you choose to store your gold with your dealer, always ensure that your gold is being held securely in an LBMA approved vault. The dealer should provide you certificates that name you as the owner. Additionally, your gold should be segregated and stored.
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More steps to ensure safe buying
There are a few more steps that you can take to protect yourself. Avoid buying from online auction sites like eBay. There is no way to confirm whether the precious metals being sold are genuine. Never buy your silver or gold from individuals or dealers, without checking their reputation first. A list of registered precious metal traders can be found on the BNTA website.
Call Physical Gold to buy precious metals safely
A hassle-free way to ensure that the gold and silver you’re buying is genuine is to call the Physical Gold team of investment experts. You can reach them on (020) 7060 9992 or contact us online. You can rest assured that you’re buying genuine products at all times.
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Various options to invest in gold
Historically gold ownership has been associated with super wealthy sheikhs and the elite. However, the financial landscape has shifted to such a degree that it is now crucial for the average man in the street to consider the best ways to invest in gold.
Gold mining shares
While gold investment may be a new concept to many, share ownership is far more commonplace. So a good place to start may be gold mining shares. Just like other stocks, the price of these companies can go down as well as up and the shareholders will receive dividends if the company does well. A word of caution though is that your risk exposure is to one company only rather than to the gold price. This means that all your eggs are in one basket, so if that particular company has poor management or they struggle to discover new gold reserves, it can struggle or even go bust.
High risk gold mining shares
The possible rewards to the investor are high, but unfortunately so are the possible risks of total loss. The recent gold price adjustment meant that many miners were operating at a loss until the price recovered, leaving many precariously close to closure.
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Gold ETFs and gold funds
Gold funds such as the Blackrock Gold & General provide the advantage of spreading exposure amongst a basket of gold mining companies, reducing overall risk. However, as an investor, the value of the fund still doesn’t directly track the gold price. You have to pay management fees for the running of the fund and you only ever really own a piece of paper, meaning your investment is at risk from poor management and the underlying companies going bust.
Gold ETFs
A more direct relationship with the gold price would be with
an Exchange Traded Fund (ETF). This tracks gold far more closely and can be suited to those looking to trade in and out of gold and play the market, as charges and margins are low. However, these gold investments have an Achilles heel. Just like with shares and funds, the investor only owns the asset electronically or on paper. There has been much speculation recently that ETFs and ETCs only hold a fraction of actual physical gold compared to the amount of outstanding investment in their funds.
This means that if many investors chose to sell at the same time, there wouldn’t be the amount of gold behind the scenes to cope with the sell off and the whole structure would collapse – leaving many penniless. These concerns have manifested recently into a dual market – Electronic gold funds and physical gold – with a majority of investors wishing to move over to owning real gold bars and coins.
Physical Gold
The only way to invest in gold with total peace of mind is to buy gold coins and bars. These can be delivered directly to your door from reputable gold dealers so that you get direct access to your gold. This means that investors are immune to any companies going bust, poor fund managers, or even Governments collapsing!
Production cost of gold coins and bars
Margins are higher when buying physical gold as there is a cost associated with refining, producing and distributing gold bullion. Therefore it is far better suited to those seeking medium to long term security rather than active traders.
However, there are now a number of innovative physical gold products which further enhance the case for investing into solid gold. All investment grade gold is VAT exempt in the UK. Certain British coins have the added advantage of also being Capital Gains Tax free. Gold bullion now even qualifies for your pension with SIPP Gold, providing the chance to buy gold bars at up to 50% discount through tax relief. Finally, a very accessible way to invest in gold is through Gold Savings. This offers the chance to set up a monthly savings scheme whereby investors gradually build a holding in gold coins rather than save with a traditional bank.
Investing in physical gold is one of the best ways to acquire a tangible asset
Buying gold coins
Gold coins can be a great addition to the portfolio of any investor as they provide divisibility. But, one should know more about coins, before investing. There are three categories of gold coins. New releases are coins released by mints across the world. These are purchased by collectors and investors alike. They carry low premiums and are easily available. However, one should bear in mind that some premiums may be charged by well-known mints like the Royal Mint for packaging and presentation when these coins are purchased.
Collectable coins
The second category is collectable coins. These coins can be rare and old. Many are limited edition releases and enjoy huge interest from numismatists around the world. Due to their rarity and demand, collectable coins attract large premiums and they are unaffordable for smaller investors.
Bullion coins
Lastly, there are bullion coins. These are affordable, easily available and can be purchased in bulk with large discounts. It’s also important to focus on buying coins of different sizes, weights and dimensions as this adds flexibility and divisibility to the investment portfolio.
Gold bars are popular as well
Of course, gold bars are also a popular investment vehicle and attractive to several investors. However, one needs to bear in mind that buying a large bar implies that you can only sell it once. This is where divisibility becomes a key consideration, which we have discussed earlier. Owning smaller pieces of gold allows you to sell them off in smaller quantities when the market price is right. One can take advantage of the different price points in the market by continuously selling small quantities. But, gold bars do not support divisibility, as they are good for a single sale at one given price.
Accessible sizes
The good news is that bars are increasingly becoming available in smaller sizes. So, putting some of your investment in these can create balance for your portfolio. Another reason to invest in gold bars is lower production costs. Coins have a more intricate design element to them and higher production costs due to detailing, polishing, designing and other costs of manufacture. Gold bars are usually rectangular and simply have a purity number, serial number and refinery mark.
Always check the purity when buying a gold bar
As discussed, a gold bar will have these critical pieces of information engraved on its face. When making a purchase, it is of paramount importance that one checks these numbers. Most gold bars are produced with a purity of 99.9% and the bar will convey this information as 999.9. Never buy a bar that does not have a serial number or refinery stamp, as there is no guarantee that the gold contained within the bar is pure. Gold bars should ideally be purchased from a specialist gold dealer and one should compile a list of reputed gold dealers in the country before making a purchase.
Our specialist team of gold experts would be happy to hear from you
Physical Gold has a team of gold experts who can assist you in every step of the way when you buy gold. They can help determine the purity and advise you on what to buy and when. The advice they impart is backed by years of experience and solid research. Call our team today on (020) 7060 9992 or get in touch with us online.
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The global spread of counterparty risk
Before the demise of Lehmans, AIG and the collapse of thousands of other financial powerhouses – the words “Counterparty risk” was generally used as more of a conjectural concept. Today the phrase is used to describe both the cause and effect of our global financial status-quo. Counter-party risk reduces confidence in financial instruments. Savings accounts, government bonds and low risk equities are now seen as a matter of last resort owing to its higher risk and lower reward reputation. The literary meaning of a savings account defies the purpose in which it should be used. It’s difficult to save if the level of return is less than the rising costs of living. It’s impossible to save, if the institution responsible for holding your savings has ceased to exist. The phenomenon of counter party risk goes beyond possible and now exists in a wide and spreading sphere of probable.
People can lose money in financial instruments regardless of the vigour of their investment.
Third party ownership of assets creates counterparty risks
Owning an undervalued mining stock with great earning potential and little (perceived) downside risk still attracts the prospect of a board of directors manipulating its value. Equally, its bank’s reluctance to lend money and/or inflated borrowing rates has contributed to the demise of many companies over the last few years. Whilst Gold ETF’s track the price of physical gold – if a large proportion of holders were to sell their holdings, there wouldn’t be enough physical gold to cover peoples’ investments. The most prevalent example of counterparty risk is buying a low yielding government bond in Greece 7 years ago, only to discover that investors were forced to write up to 50% off their investments.
In order to save money, you need to be earning more than inflation (3.6%) in addition to any currency devaluation. In order to have themoney you need to ensure you have minimised counterparty risk by taking ownership and possession of the investment you have bought. Precious metals are an obvious example of this with the population turning to gold in times of austerity. Often the causes and effects of counter-party risk are the same:
Causes & Effects of Counterparty Risk
- 3rd parties taking uncalculated risk’s
- Exposure to debt in weak markets (e.g. Greece)
- Cost of borrowing increased
- Overall confidence diminished – reduces amount of cash and/or investment in entity
- Legal wrangling and unfavourable settlements diminish profit (e.g Payment Protection Insurance)
- Foreign Exchange exposures prevalent in uncertain markets
- Exposure to rouge traders
How physical gold investments beat counterparty risk
Physical gold is considered to be a safe bet. Several factors in the financial markets established physical gold investments as a safe asset class. One of the prominent factors is the lack of counterparty risk. As explained earlier, counterparty risks exist when the fulfilment of an investment is dependent on a third party. Stocks and shares of listed companies depend on the performance of that company. In order to generate returns, the stock must perform well in the equity markets. However, holding gold in its physical form nullifies this risk, as the asset is owned and controlled by you. Many people enquire about the advantages of buying gold in its electronic form. This is otherwise known as a gold ETF.
Many investors do not realise that gold ETFs are equally subject to counterparty risks. In many cases, the company that issues the ETF sells large quantities of the paper investment, without ensuring that it is appropriately backed by sufficient gold holdings. As a result, if several investors wish to call back their investments, it becomes impossible for the company to fulfil the payback. In this way, almost every investment vehicle that is linked to the global capital markets carry counterparty risks. The only way to nullify these risks is to own immovable or tangible assets like gold, silver, real estate, etc.
All kinds of physical gold, including jewellery, mitigates counterparty risk
Will counterparty risk continue to rise?
The last financial disaster of 2008 witnessed the demise of large financial institutions like Northern Rock and Lehman Bros. Once again, 12 years down the line, the world is poised to face another possible financial debacle. Government debts are on the rise in several developed economies around the world. The collapse of the Greek economy in 2008 was partially due to the country’s government debt being disproportionate to the GDP.
Currently, China’s government debt is estimated to be 300% of the country’s GDP. If we look at the world around us, we realise that increasingly, companies and financial institutions are declaring bankruptcy. In the UK, there is a real risk of a housing market collapse. Downward adjustments of credit ratings are on the rise. Additionally, there is economic uncertainty created by political events like Brexit.
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All of these factors will continue to put pressure on the global economy and create a toxic situation that could result in yet another global economic crisis. This will lead to a significant decrease in the number of counterparties that are willing and able to take on the risks of global institutional investors. Many watchful investors have already started moving their investments to gold. The current spot price of gold has risen to around $1600 and continues to rise, inching closer and closer towards the all-time market high of 2011. Clearly, investors are moving to the safe haven of gold.
Call us to discuss how you can protect your investments
At Physical Gold, the investment advice we impart to investors like yourself is backed by research on the global economy, capital markets, bond markets, commodities and precious metals. Our advisors are best placed to guide you on how to minimise your risks. In the current economic climate. Call our team on (020) 7060 9992 or get in touch with us via our website. We can help you build a safe and robust precious metals portfolio that can protect your investments.
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Gold Investment’s impact on risk
Most gold investors believe in buying and owning gold in its physical form. Needless to say, this has been a tried and tested strategy for thousands of years. Cities and civilisations have fallen, but the yellow metal has lasted the test of time. But, in today’s modern-day and age, there are innumerable asset classes to invest in. So, the obvious question in the minds of investors is – is it worth investing in gold?
While deemed as low risk, gold investment isn’t completely risk-free. We investigate gold investment and risk in this latest article.
Market risk
The first risk is that the gold price moves lower in the time you hold the gold, known as market risk. This becomes less likely over the medium term, as any market volatility is ironed out.
Lack of counterparty risks
If buying paper gold, there are further risks such as possible leveraging of the asset and counterparty risk. Paper asset classes like equities and fixed income instruments like bonds are dependent on the performance of the global capital markets, as well as companies that issue these investment papers. This is known as counterparty risk. If the company that issued your stocks or bonds fails to perform, or there is a crash in the global capital markets, your investment can quickly erode and be rendered useless. Physical gold, on the other hand, is safe from these risks, making it an excellent investment.
Physical gold investments are seen as stable and safe
A safe haven
It is a well-known fact that investors quickly turned to gold during times of financial turmoil. The spot price of gold reached its highest level at the peak of the global financial crisis in 2011. Now, more than ever, the world is once again moving towards another similar financial crisis. Therefore, the current spot price of gold has crossed the $1600 mark, inching steadily closer to the peak of 2011.
Beating the risk of inflation
Inflation is a key factor that needs to be considered when evaluating the returns on any kind of investment. When you receive returns of 6%, the actual return you make could only be 3%, if the rate of inflation at the time is 3%. The rate of inflation is a moving number, just like the capital or commodity markets. Interestingly, gold has historically beaten the rate of inflation, providing stability to investors and preserving their wealth.
Tax efficiency
As a UK investor, you are subject to value-added tax (VAT) and capital gains tax (CGT). Interestingly, gold investments (like gold coins and gold bars) are incredibly tax-efficient, depending on the type of investments you choose. All investment-grade gold is VAT exempt in the UK. At the same time, investing in gold coins (such as gold Sovereigns and gold Britannias) helps you avoid capital gains tax, as these coins are considered to be legal tender in the country.
Hedging against risks of currency devaluation
Over the last few years, we have seen the decline of traditionally strong currencies like the Euro and the GBP, owing to political instability caused by events like Brexit. There is still plenty of uncertainty in post-Brexit UK. Investing in gold helps you escape from the risks of falling currencies.
Get in touch with us to plan your gold investments
There are so many reasons to invest in gold in 2020, apart from the ones we have discussed above. Liquidity is another great attribute that gold enjoys, in addition to the balance, it can provide within a diversified portfolio. Our investment experts can help you plan your silver and gold investments and protect your wealth. Call the Physical Gold team on (020) 7060 9992 or get in touch with us online.
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Investors have always turned to gold and silver when it comes to precious metal investments, particularly in times of geo-political tension. Of course, gold has historically been the go-to asset class for precious metal investors. However, silver has become incredibly popular in recent years, in anticipation of expected price rises. But, what are the considerations that one needs to take when buying gold or silver?
Setting investment objectives
Depending on your objectives and investment amount, you’re usually best buying physical gold and silver coins as opposed to bars. These can be bought online from specialist precious metals dealers. Check out www.bnta.net for reliable brokers. Buying more coins at once will provide quantity discounts while maintaining divisibility. Infact, divisibility is one of the most important considerations when making investments in precious metals. Gold and silver bars can be great value for money, simply due to lower manufacturing costs.
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However, when selling, a large bar can prove detrimental to your investment objectives. A bar can be sold only once, at a single price point. However, coins offer the possibility of spreading your investments. So, it is important to think ahead when actually making your investments.
Silver coins are becoming increasingly attractive to investors
Identifying a reliable broker
As stated earlier, the best way to purchase gold and silver is to go through a reliable broker. An online broker would be able to give you a wider variety of choices when it comes to both bars and coins. Of course, the first step is to check whether the broker is registered with a regulatory body like the BNTA. However, there are a few more things to consider before doing business with the broker. Ideally, you should be able to get a guaranteed buyback scheme from most reliable brokers. They should also be open to discussing your investment plans and offering free advice.
Discussing your investment objectives
Once the broker has been identified, make it a point to build your investment plan, using advice from the broker. If you are keen on purchasing particular gold coins and silver coins, you should let your broker know. That way, you would have a better chance of getting to know in advance when purchasing opportunities appear in the market. Ensure that your broker adds you on their mailing list. Doing this is an essential step to becoming a smart buyer as you would benefit from advanced notification of any good investment opportunities.
Stick to your key considerations when buying
It is important to remain guided at all times by the key fundamentals of building a portfolio, such as balance, liquidity and divisibility. Tax efficiency may also be an important consideration for you. UK coins are free from Capital Gains Tax. This is because they are legal tender in the UK. When buying coins, always ensure that you buy gold and silver coins with low premiums. Most dealers will offer you good discounts when you buy in bulk. Never buy obscure coins as they are hard to sell off later on. The Britannia and the Sovereign are possibly two of your best options when it comes to buying coins. If you are interested in coins with numismatic value, you can combine collectability with profits.
Call Physical Gold to find out about the best options in buying gold and silver
Physical Gold is one of the most reputed online precious metal brokers in the UK. It would be beneficial for you to call our advisory team on (020) 7060 9992, before purchasing gold and silver. We can also be contacted online via our website. Call us today.
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A precious metal that has remained a great repository of value through the sands of time would surely be worth investing in. Of course, it is gold that comes immediately to mind. While gold is unlike volatile asset classes that generate quick returns, it has always been a steady investment vehicle that can deliver solid returns over the long term.
A medium to long-term investment
Gold has been considered an excellent medium to long-term investment for hundreds of years. Unlike cryptocurrencies, gold investment is a well-established two-way market. Gold investing is unique as the price tends to increase when many other asset classes fall, so it provides a balance to your wealth. Owning physical coins and bars is particularly appealing to those worried about owning paper assets like stocks or bonds.
Gold is a time-tested investment
Gold is a proven investment vehicle, as it has a demonstrable track record of beating the rate of inflation for investors who choose to remain invested over a longer period of time. The investment horizon is an important factor, as the price of gold can rise or fall as changes in demand and supply take place. So, it may not provide investors with a great value over a shorter term. However, when we look at the gold charts for the last 10 years, we can see that its value has steadily increased.
Known as a safe haven
Gold prices as the value of other investment classes, like stocks and bonds, fall. This is one of the main ways in which it adds balance to an investment portfolio. If we look back in history, we can observe that the gold price always shoots up during periods of economic adversity. For example, gold rose to its highest level in 2011, at the peak of the global economic crisis that started in 2008. As investors continue to move their money out of stocks and bonds and park it in gold, the yellow metal has developed a worldwide reputation as a safe haven.
Counterparty risk-free
Yet another attribute that makes gold attractive as an investment vehicle is the lack of counterparty risks. These risks are prevalent in many other asset classes such as stocks or bonds. Basically, it is an inherent risk faced by investors, which is linked to the performance of the particular mutual fund or stock. If the third party issuing the investment paper fails to perform, the investments can fall drastically. Counterparty risks are a part and parcel of every paper-based investment vehicle. Since investments in gold coins or bars are tangible and owned physically by the investor, it negates this risk and makes gold investments attractive.
Tax efficiency
Gold investments in the UK are virtually tax-free and this qualifies the yellow metal as an extremely desirable investment. Whether you’re buying gold bars or coins, all investment-grade gold in the UK is VAT free. This works out to a 20% rebate on the amount invested. Similarly, gold coins like the Britannia and the Queens Beast series are all considered to be UK legal tender. Therefore, they are also Capital Gains Tax (CGT) free. This dual advantage makes gold a great investment that provides balance, liquidity, stability and tax efficiency to investors
Our expert investment advisors can provide you with all the advice you need to make gold investments
Call our friendly team of investment advisors today on (020) 7060 9992 or get in touch with us online with your questions about gold investments. The advice our team can provide will always be backed by solid research and assist you in building a strong investment portfolio in the years to come.
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The festive gifts of the magi
The Bible contains the famous story of the three gifts of the Magi – gold, frankincense and myrrh (a kind of herbal medicinal extract). These three gifts were bestowed upon the baby Jesus – gold being the symbol of kingship on Earth. Precious metals like gold and silver have always been an integral part of the festive spirit. So, what does Christmas 2019 look like for those who wish to invest in these precious commodities?
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Silver coins for Christmas
With spot prices of silver expected to perform well in 2020, there’s no better time to invest in this precious metal than Christmas. Whether you’re in the market to buy a gift for a loved one, or simply an investment for the future, you cannot miss the 2020 Silver Britannia. The coin boasts an exquisite design and weighs 31.1g (the minimum order quantity is 5 coins). Another great purchase for Christmas is the 2oz Queen’s Beasts White Lion Silver Coin (2020). There are many great silver coin options for Christmas and many silver coin purchases are Capital Gains Tax free.
Gold coins for Christmas
An even better investment for Christmas if you want to splurge a bit more are gold coins. With gold trading at $1457 per ounce (at the time of writing), it’s an excellent investment opportunity, particularly if you want to hedge against the uncertainty of the current economy, including Brexit. The 2019 Gold Sovereign is an excellent purchase as a gift for someone special. The original sovereign was crafted during the reign of King Henry VII in 1489. This makes it one of the most important coins in British history. The 2019 version features a design by Benedetto Pistrucci on the reverse, which displays the George and Dragon. The obverse features the Queen’s portrait by Jody Clark, as Queen Elizabeth II is now officially Britain’s longest ever reigning monarch. However, the sovereign is by no means the only gold coin available for purchase this Christmas.
Another great gold coin option is the 2020 gold Britannia. This is as per its silver equivalent is a 1oz coin and is highly investable. Another interesting option are the Royal Mint’s Lunar gold coin series, in particular we recommend the recent 2019 Lunar Pig gold coin. Also, weighing in at 1oz, this is the sixth in a series of Chinese New Year coins.
Any of the Queens Beast Series make great investments, with options including the White lion of Mortimer, Yale of Beaufort, Falcon, Dragon, Unicorn and Black Bull.
Take a look at our director’s pick, which is a veritable treasure trove of some of the best gold coins around.
Gold ingots are a timeless Christmas gift for someone special
Other gold purchases for this Christmas
If you’re not a numismatist and coins are just not your thing, there are many other gold and silver options that you can look at, to bring in that festive cheer. The 100g gold bar, made by Swiss refiners Metalor could be just what you’re looking for. Gold investments are VAT free in the UK and that’s yet another reason to put your money in gold this Christmas. Apart from the 100g Metalor, there are some excellent VAT free gold bars to consider when making that all-important Christmas investment this year. All gold bars come with guaranteed purity and certification. This ensures that your investment is well protected over the years to come.
Call us before you buy your gold or silver for Christmas
We recommend that you get in touch before you make that all-important Christmas purchase this year. Our experts are well placed to guide you in making the right investment decision this Christmas. We are keen to bring festive joy to your home in 2019, as well as help you protect your investment for long, thereafter. Call us on 020 7060 9992 and one of our advisors would be happy to help you. Have a Merry Christmas and a wonderful New Year.
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Investors have two main options when it comes to storing their gold. They can either store it at home in a safe or suitable storage solution, or they can have it professionally stored on their behalf. There are many brokers that offer this as a service who will offer to store any gold you buy from them in an allocated vault, or you can also store it in a bank vault. The size of your portfolio will likely determine which option you go for but there are also other things to consider such as ease of access and the responsibility of keeping any gold you store at home safe and secured. The best method of storage is probably to use a combination of different storage methods, as by doing so you spread the risk of anything happening to your gold.
Storage is just one consideration. We reveal all 7 crucial factors to successful gold investing here
Home Storage
Safe storage
Having a safe stored in your home is an ideal solution for people with a smaller number of gold holdings since you can access it at any time. The one downside to storing your gold at home, however, is that you are solely responsible for its security. This means that you will need to ensure any gold is insured, otherwise, you won’t be applicable for any kind of pay-out should anything happen to it. Your home insurance costs are also likely to go up if you have a large amount of gold stored at home.
How should you actually do this?
If you choose to store your gold in this manner, then you should make sure that your safe is bolted to the wall or floor for security reasons and that it is hidden in a secure non-obvious place. It is also wise to let someone you know, and trust have access to its location and passcodes as well, just in case you fall ill or are unable to access it yourself for whatever reason.
There are several home safe options available in the market. You can also choose from a variety of sizes and locking systems. Fireproof safes are an excellent option to protect your valuables at home. These are manufactured using dual-layer steel walls and doors. They are pretty durable and are able to withstand a serious fire hazard and temperatures up to 1000°C. So, you can rest assured your valuables wouldn’t be destroyed. Many home safes feature padded flooring, so your gold and silver items aren’t scratched. Locking systems are pretty secure as well. The new generation home safes are manufactured with an optical fingerprint reader, as well as a digital lock. Several fingerprints can be stored on these safes, allowing access to trusted members of your family. This is also a great emergency option if you are unable to access the safe due to circumstances like ill health. You can have these safes bolted to the floor, secured inside the wall or installed underneath the carpets into your floorboards.
Other forms of storage
One common mistake made by a lot of investors is to hide their gold in a sock drawer or under the mattress, which is often the first-place thieves tend to look. If you’re storing your gold at home but don’t want to use a safe, then any hiding place you use should be subtle or clever enough that most people wouldn’t think to check there. Some people store their gold in everyday items such as fake cookie jars and hollowed out books. This is probably too obvious a hiding place as a lot of people have used these methods in the past. Another aspect to consider is that if you’re going to hide your gold under the floorboards you should also make sure you cover it with something like a cabinet or bookshelf.
Your gold is a valuable asset and requires to be stored securely
Vaulted storage
Paying to store your gold in a third-party vault, not only delivers confidence that your precious metal is secure, but these types of services are almost always guaranteed to be insured. The benefits of storing your gold in a vault are that it can save on insurance costs and you’ll have peace of mind that your gold is secure. You can access your gold at any time and you’ll be provided with a unique code to allow you to access your vault. Vaults are guarded 24 hours a day, 365 days a year, unlike your personal safe which can be left unattended daily, when you leave the house.
Gold Stored in a Vault
Bank vaults
Up until a few years ago, it was quite common to store your gold in a bank vault as it was a cheaper option for investors and guaranteed security. Banking hours and bank closures, however, have led consumers to distrust this method of storage, as it means they can’t access their gold whenever they need it. Very few banks offer gold storage services nowadays as the additional security needed is costly. Therefore, you would likely have to travel some distance to access your gold if it was stored in a bank.
Keep your gold safe and secure with Physical Gold
When purchasing gold through Physical Gold you have the choice of protected door to door delivery or high-security storage in one of our specialist vaults. Investing in gold isn’t risk-free so don’t leave yourself open to loss. Choose a solution that’s right for you and always choose a trusted provider. Call for expert advice on 020 7060 9992 or email info@www.physicalgold.com.
Both investments operate outside of the established fiat money system and both work on the basis of capital appreciation rather than paying an income. Apart from that, they pose very different risk profiles. Gold investment has existed for thousands of years and is generally used to protect wealth from inflation and market downturns.
An overview of the gold market
Apart from the intrinsic value that gold commands, the yellow metal is also recognised as a globally tradable asset. Bullion coins and bars can be converted into cash in any country.
Wealth preservation
As an inflation shield, gold protects your wealth when inflation rises. Historically, gold has always tracked the rate of inflation, providing stability to investors. But, more importantly, gold is a stable asset that investors turn to during turmoil in the capital markets. If we study the price charts of gold over the last 20 years, we find that gold has always peaked at times of global economic downturn. During these times, investors pull their money out of stocks, bonds and currencies and invest in gold. The Bitcoin market, on the other hand, cannot provide investors with a safe haven. It is volatile by nature and is a risky investment.
A bleak economic outlook in the UK?
The current economic scenario is gloomy. Media reports claim that the UK could possibly be looking at another great recession. The economic pundits believe that the country’s risk of recession is at its highest level since 2007. Much of this is attributed to the uncertainty created by Brexit. In a recent news report, the BBC claimed that the London housing market has fallen by 4.4% as of May 2019. The housing market is considered to be one of the important barometers of the health of our country’s economy. We could witness more recession and that’s likely to drive investors back to gold again.
The volatility of Bitcoins is not for the faint hearted
Bitcoin investment – aspects to consider
Bitcoin, on the other hand, is far less established and understood. While it provides the chance of huge gains, it also threatens to lose you everything. Unlike gold, Bitcoins are prone to counterparty risks. When you invest in any cryptocurrency, you’re dependent on the performance of the exchange. In a bizarre incident, the CEO of a Canadian crypto-currency firm recently passed away. With his death, all the critical passwords were lost, leaving investors high and dry. A recent article published by the UK magazine Wired claimed that 18 out of 40 Bitcoin exchanges went out of business and investors lost their money.
Volatility
Bitcoins also suffer from extreme volatility. At its peak, the price of one Bitcoin was equivalent to around US$ 19,000 in 2017, crashing down to a low of around US$ 4000 by December 2018. Now, it has once again risen to approximately US$ 12,000 in July 2019. So, it’s a rollercoaster ride that’s not for the fainthearted.
Universal acceptance?
Another big risk factor with Bitcoin investments is the lack of acceptance by the monetary systems of several countries. Many countries have banned Bitcoin exchanges from operating. Cryptocurrencies have also come under the scanner for its use in financing terrorism and illegal activities, including money laundering.
While Bitcoins use tamperproof blockchain technology, the exchanges themselves have been affected by several instances of hacking and cyber-attacks. Since it is not a regulated currency, no assurance or protection scheme is available from the government. Once the money is lost, it’s gone forever.
Conclusion
From the above, it’s amply clear that Bitcoins do not offer investors the safety and stability of physical gold. Perhaps the only attribute shared by the two vehicles of investments is that both are not adversely impacted by inflation. Gold is the safer choice and likely to remain so in the future.
Contacting Physical Gold for Advice
We are always here, available to speak and for messaging for advice and the supply of gold bars and coins. Call us on 020 7060 9992, complete our contact form, or simply leave an instant message.
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Gold Investment FAQs
We are frequently asked many questions about investing in gold. As a guide to customers and for clarity, we have listed many of these questions in this article, which we hope you enjoy reading!
1) Are gold coins a good investment?
We have written a detailed answer to this question, simply read our answer at this blog post.
2) Is gold ETF a good investment?
Read our detailed answer at https://www.physicalgold.com/insights/is-a-gold-etf-a-good-investment, we also recommend reading buying a gold ETF.
3) Which is the better investment, gold or silver?
See https://www.physicalgold.com/insights/which-is-the-better-investment-gold-or-silver for a comprehensive answer to this question.
4) Best gold investment for beginners?
The best gold investment for beginners is to focus on the well-established UK bullion coins such as Sovereigns and Britannias. Premiums are low on these coins and it’s difficult to go wrong as they’re so easy to sell at excellent prices. Avoid buying proof coins or boxed collectors coins which will cost far more.
5) Is gold a good investment?
Please read our detailed to answer to this question at this link.
Gold bars, in particular, are usually classed as a long-term investment
6) How does gold investment work?
The idea behind gold investment is that the underlying value of gold increases over time. Historically this rate of increase is higher than inflation, so the value of your investment increases in real terms. Investing in gold can take the form of physical bars and coins, gold equity funds, mining shares or ETFs.
7) Gold investment vs Bitcoin?
For our dedicated article on this topic, please read https://www.physicalgold.com/insights/gold-investment-vs-bitcoin/.
8) Best gold investment UK?
The best UK gold investment is to buy Sovereigns and Britannia coins. Physical ownership means you have no counterparty risk. The bullion coins represent great value compared to proof coins or collector’s coins, and both benefit from a strong second-hand market, so they’re easy to sell. As UK legal tender profits from selling these coins are also free from Capital Gains Tax.
Britannia gold coins are a solid investment buy
9) Where to buy gold for investment?
Click https://www.physicalgold.com/insights/where-to-buy-gold-for-investment to read this article, which answers the question.
10) Gold investment vs stocks?
Click https://www.physicalgold.com/insights/gold-investment-vs-stocks for an answer to this question.
11) Gold coins vs bars?
Visit https://www.physicalgold.com/insights/gold-coins-vs-bars for a comprehensive answer to this article.
Why not also view our video, “Gold coins – collecting as a hobby and for-profit”?
12) Gold investment for 2018?
2018 is a good year to start off in gold investment as gold prices are significantly lower than at the height of the market. Gains may not be straight away, but 2018 is a prudent starting point with Brexit still looming, equity markets due to a large price correction, and credit bubbles brewing in the background. The gold price would likely increase in any of these events.
13) How safe is gold investing?
Click how safe is gold investing to read our detailed answer to this question.
14) Gold investment vs fixed deposit?
Read https://www.physicalgold.com/insights/gold-investment-vs-fixed-deposits in our detailed FAQ answer blog article.
15) How good is gold investment right now?
As of March 2018, the gold price was around 20% off its all-time high, and around 13% off its high from the past 12 months. This provides a great buying opportunity to buy more gold for the same money. Many experts predict a significant stock market correction any times in the next 18 months which would propel the gold price upwards.
16) Which is a better investment, gold or diamonds?
Please read our detailed answer to this question by clicking this link – https://www.physicalgold.com/insights/which-is-a-better-investment-gold-or-diamonds/.
17) How to do gold investing?
If you’re wondering how to buy gold investment, then the simplest and safest way is to buy online from a reputable dealer. Research into the broker first and ensure they have a track record. They may be able to offer you guidance as to which coins and bars to buy. For example, gold bars are available in various sizes such 1oz, 100g and 1 kilo and you may need dealer advice as to which is the best to buy for your circumstances. You can either receive the gold yourself or have the dealer store it for you. When the price has risen over time, sell the gold at a profit.
18) Which gold is best for investment?
Please read our detailed answer to this question here.
19) How to buy gold investment coins?
We have written a detailed answer to this question which can be read at https://www.physicalgold.com/insights/how-to-buy-gold-investment-coins.
Gold investment coins include foreign coins such as the Krugerrand
20) Where to buy gold bars for investment?
Visit https://www.physicalgold.com/insights/where-to-buy-gold-bars-for-investment, which answers this question in detail.
Why not also view our video, “Buying gold bars – a guide for investors”?
21) What is gold investment?
We have written a detailed answer to this question. This can be accessed by clicking here.
22) What is ETF gold investing?
Buying gold ETFs is an important topic to understand. Read our answer to this question at https://www.physicalgold.com/insights/is-a-gold-etf-a-good-investment.
23) Gold investment vs property?
Click https://www.physicalgold.com/insights/gold-investment-vs-property for our answer to this question.
24) What is paper gold investment?
Read https://www.physicalgold.com/insights/what-is-paper-gold-investment for more detail on this topic and an answer to the question.
25) Gold investment and risk?
Click https://www.physicalgold.com/insights/what-risks-are-involved-in-gold-investment for a detailed answer about gold and risk.
26) Gold investment for dummies
Visit https://www.physicalgold.com/insights/gold-investment-for-dummies for a detailed answer to this question.
Why not choose our Directors Pick for great value gold investments?
27) Which is the better investment, gold or platinum?
Visit https://www.physicalgold.com/insights/which-is-the-better-investment-gold-or-platinum for a comprehensive answer.
28) Which gold coins are a good investment?
We have created a detailed answer to this question. Please visit https://www.physicalgold.com/insights/which-gold-coins-are-a-good-investment/ to read our detailed answer.
29) Should investments in gold be for the long term?
We have created a detailed answer to this question, simply visit https://www.physicalgold.com/insights/should-investments-in-gold-be-for-the-long-term/ to read this.
Contact Physical Gold today
Why not contact Physical Gold today to discuss investment approaches to gold and also with any more questions! We are here to serve and can be contacted at 020 7060 9992, also view our contact details here.