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.

 

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.

Image Credit: Pixabay

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.

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Storage is just one consideration. We reveal all 7 crucial factors to successful gold investing here

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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.

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.

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.

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.

 

Image credit: Michael Wuensch

 

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.

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.

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.

World Money Fair 2019

An integral part of life as a numismatist is to research and view important coin collections from around the world. This is probably as important as setting up one’s own collection. This year, numismatists from around the world will be flocking to Rosemont, Illinois to attend the World’s Fair of Money, an important global event organised by the American Numismatic Association (ANA).

What is the event all about?

The event is a 5-day exposition which will be held from 13^th to 17^th August 2019 at the Donald E. Stephens Convention Center, located in Rosemont, Illinois. The centre is strategically located for all visitors and has convenient transport links from all over. The convention centre has 6 halls and 840,000+ square foot of space for exhibitions.

The event will not only showcase rare coins and currency bank notes but also stamps, postcards and other items of antique and philatelic importance.

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Find out how to sell your gold coins at the highest possible price. Download FREE our 10-rule guide here

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Registration and timings

If you are a keen numismatist and are interested in attending this event, online registration is available for ANA members only. Non-ANA members can register at the show.

The fair is open to visitors from 1 pm on Tuesday, 13^th August. From Wednesday 14^th to Friday 16th August, the show will open at 10 am. The event will close at 6 pm on all days, barring the last, when it will close at 4 pm. Members of the ANA will enjoy free entry and special entry timings that allow them to enter the event half an hour earlier than the general public. The admission price is $8 per adult non-member, with the exception of Saturday, which is free to all visitors. Kids below 12 go free to the event on all days. Admission to the event will close 30 minutes before the official closing time.

Exhibitors from all over the world

Important numismatic entities will participate in the event. Coin grading experts like PCGS, ANACS and NGC will have their stalls up at the event. PCGS will start accepting submissions for on-site grading of coins on 13^th August and have advised attendees to the exhibition to check with a PCGS representative at their booth for the exact timings for acceptance of submissions.

About the 2018 World’s Fair of Money event

The 2018 World’s Fair of Money was held at the Pennsylvania Convention Centre, located in Philadelphia and was staged from 14^th to 18^th August, 2018.  The event had 483 bourse tables, which represented 405 companies and 1,373 dealers/support staff. The official auctions were very active and raised over $81million. In total, the event had nearly 10,000 visitors and was attributed as a great success.

About the 2017 World’s Fair of Money event

The 2017 World’s Fair of Money was held at the Colorado Convention Centre in Denver, Colorado in August 2017. The event had 500 bourse tables, which included a special sale by the US Mint that attracted considerable public interest. There were two auctions held at the 2017 event by renowned auctioneers – Heritage Auctions and Stacks-Bowers. The two auctions generated several million in sales. Interestingly, prior to the 2017 World’s Fair of Money, the previous one was held 11 years ago in 2006.

Talk to the numismatist team at Physical Gold

If you’re a keen numismatist and want to know more about buying rare coins, look no further. Our team of numismatic experts can guide you on where and how to invest in valuable coins. Call us on 020 7060 9992 or email our numismatic team to find out more.

 

Image Credit: World’s Fair of Money

5 Step Guide – How to Buy Gold

In this video, I’ll be revealing how to buy gold effectively. Clearly, there are many ways you can gain exposure to the gold market and buy gold itself – from gold jewellery, gold ETFs and gold mining shares.

But today I’ll be focussing on the 5 exact steps you need to take to buy physical gold coins or bars as an investment.

1. Find a reputable gold dealer

The best place to start is to find a gold broker. A top class specialist gold dealer will be able to provide low prices, choice, guidance, authenticity and a clear buyback process.

Ensure the gold dealer you choose is credible and has a track record. They should be members of leading associations like the BNTA.net and have excellent customer reviews.

You may find that different dealers specialise in different areas, so you should select based on which seems the best fit with your objectives. For instance, some may focus on tax efficient gold investments, while others specialise in collectable coins.

Some dealers offer a buyback guarantee and certificates of authenticity with every purchase.

2. Discuss your objectives

The most effective way to ensure you’re on the right path is to combine your own independent research with the guidance of an expert gold dealer. Different types of physical gold suit various objectives better, so it’s always best to share your aims with the dealer.

Building a trusting relationship can produce fantastic guidance and prevent you from buying the wrong type of gold for your needs.

Considerations will be how much you wish to invest, whether you want to buy regularly, your investment horizon and the purpose of your investment.

 3. Select the best solution

There are three main solutions for buying physical gold. It may be that one suits your needs better, or that you combine more than one solution.

• Firstly you can add gold bullion to your pension
• Secondly, you can invest a lump sum into gold coins or bars outside of your pension
• And finally, you can invest small amounts into gold regularly

Investing in your pension suits those with larger budgets and a long-term time frame. Tax relief is granted when buying gold bars within a SIPP, so it can be a cost-effective way of buying. Considerations would be that paperwork can take a while and you must have the correct pension to qualify for a SIPP in the first place

Buying gold outside of a pension is more flexible. You can start with buying one small bar or coin, and your money isn’t tied in until retirement like with a pension. With this route to market, you have the choice between buying gold coins or bars, or a mix of both. Your dealer should help steer you towards which is best for you, depending on value, divisibility, tax efficiency and liquidity.

Buying gold on a regular basis, like with Physical Gold’s Monthly Saver, provides access to the market for those without large available capital to invest. Buying monthly will gradually build a nest egg and enable you to exploit any price drops in the market.

4. Decide on storage or delivery

Depending on the solution you select above, you may have the choice between receiving your gold directly or having your gold dealer store it for you.

Receiving your gold is ideal. You can enjoy the comfort of having direct access and enjoy its tangibility. In all likelihood, storing it yourself can be cheaper than paying someone else to do it for you. However, you need to ensure that your gold is stored safely and is fully insured. It’s not worth cutting corners on cost and put your gold at risk. Owning gold is about reducing risk, not taking on worry.

If selecting professional storage with your dealer, make sure your gold is fully allocated and segregated. In other words, it shouldn’t be leveraged and should be ring-fenced from everyone.

5. Payment and ID

The final stage is making payment for your gold purchase. When purchasing online from a gold dealer, you can usually pay with a debit or credit card up to £5,000 and with online banking up to any amount.

When buying £10,000 or more in any one go, you’ll be asked by the dealer to provide two forms of ID for anti-money laundering.

How to Buy gold from Physical Gold

So, that’s your 5 steps. Clearly, the success depends largely on how well you select a gold dealer. Bad guidance can lead to you paying over the odds or buying obscure gold. So do your research and speak to them on the phone before you choose. Our team at Physical Gold are available to offer you as much or as little guidance as you need. We can help to select gold, as well as answer questions on storage, payment, selling and buying. Call us on 020 7060 9992.

If you liked this video, we have 20 in a series of gold & silver video guides.

How To Sell Gold

In this video, we look at the best ways to sell gold at the highest possible price. Specifically, I’ll focus on selling your gold coins or bars at the best profit, but many of the principles can also be applied to selling gold jewellery. I’ll reveal step-by-step, the five best techniques to sell gold for the most cash.

1. Look after your gold

This is a simple one. Just like maintaining your property, gold is a physical asset, so the price you achieve will be affected by its condition. 24 carat gold is especially soft and liable to scratching so handle and store with care and you’ll be able to achieve a higher price than selling scratched, chipped and dirty items.

2. Don’t buy obscure coins in the first place

This requires some forward thinking. Buying the most recognisable gold coins prove to be the easiest to sell. Let’s draw that comparison to property again. When you select which gold to buy, try to emulate buying that 2 bedrooms flat close to a train station. The more desirable your asset, the more buyers you have and the better price you’ll receive. Desperation to sell obscure gold can lead to accepting reduced prices.

Focus on balance and variety

Buying a variety of gold coins can also help squeeze extra profit out of your investment. Older and commemorative coins, for example, can command a higher price than newer coins due to scarcity and desirability.

What many investors don’t realise is that coin premiums are not fixed. Infact, they can vary by up to 20% depending on supply and market dynamics. So selling the same coin when supply is tight can yield a far higher price than selling at other times. How do we know which premiums will spike? We don’t. So owning a variety of coins increases the chances that you can sell the right coins at the right time to increases your sale price.

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Enjoyed this video? Check out all 20 gold & silver video guides here.

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3. Plan ahead when selling

Planning your sale can boost your profits in 2 ways.

Firstly, it enables you to watch underlying gold prices to strategically sell items on days when the price spikes. The gold price can easily move 2-3% in a day so pulling the trigger on those days rather than waiting until you need the money can enhance your sale price.

Working with a gold dealer will enhance prices

Secondly, providing your gold dealer with notice of your intentions can enable them to find a specific buyer for your items, which can boost the price achieved by another couple of percent. Calling a dealer on the day you wish to sell will achieve a standard rate where your gold is likely sold into the wholesale market. By telling the dealer you wish to sell certain gold items over the ensuing month, gives them an opportunity to squeeze out more profit for you.

And don’t forget, that investing in gold is a medium to long term strategy. So the longer term you plan, the higher your sale price is likely to be. That’s because the gold price can be volatile, so short term sales can be at risk of reduced profits. Over the long term, market dips have more chance of being overcome.

4. Consider Capital Gains Tax when you buy

If you’re only selling a small amount of gold, tax won’t impact you. But for those making profits of more than £12k from where they bought the gold, tax considerations can really impact the final cash you receive.

That’s because Capital Gains Tax of up to 28% is applied to gains made over the £12k threshold. But this can be avoided altogether, boosting your profits massively. By focussing your gold investment on UK legal tender gold coins, any profits when you do come to sell, are free from CGT. That’s because the Government aren’t able to tax profits made on legal tender.

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5. Shop around

Using a reputable gold dealer usually means you get a buyback guarantee for the gold they sell you. This provides a quick and easy exit strategy when you wish to sell. But it’s always worth making a few calls to other gold brokers. Depending on their stocks, some dealers may pay slightly more on any given day for a certain coin, bar or jewellery than others. Generally, cash for gold business will try to exploit your lack of expertise and offer vastly reduced prices. Read our article on How to find out the tax free gold price.

Private collectors may pay more

In fact, if you have time and patience, it’s also worth testing the private market if you have coins with more of collectable value. While large gold dealers will provide a fair price for the gold content, private buyers may be willing to pay higher premiums based more on their desire to complete a collection or to own a unique piece of gold.

Sell your gold with us

So there you have it. 5 simple strategies about how to sell gold at the highest price. If you liked this video, download our more detailed 10 commandments when selling your gold coins from our website www.physicalgold.com

If you’d like to sell your gold coins, bars or jewellery, then call a member of our team on 020 7060 9992. They’ll provide an indicative live price and email over a step-by-step process to complete your sale.

Gold investment’s role in a balanced portfolio

In this video we focus on the crucial function gold performs in a balanced investment portfolio. Specifically, I’ll reveal 7 amazing roles gold investment plays and exactly how you can use gold to enhance long term returns and provide portfolio insurance.

1. Reduces inflation risk

While different assets can provide varying returns in your portfolio, inflation always needs to be factored in. In other words, if an equity fund returns 5% year on year but inflation is at 3%, then your money has only really grown by 2%. Some assets like bonds have fixed returns, meaning their actual return after inflation can even be negative if inflation rises. This is certainly true of cash which may return around 1% in the bank while inflation stands close to 3%.

Gold has historically more than kept pace with inflation, providing a degree of wealth preservation.

2. Currency hedge

With traditional currencies such as the Dollar,Sterling and the Euro coming under continued pressure, seeking protection from devaluation is essential. In the UK, it’s likely most investors will hold assets based in Sterling. With events such as Brexit, political instability and mounting national debt, every asset within the portfolio can be exposed to a fall in Sterling’s value.

Owning gold in the portfolio protects against a weak Pound. In fact, as Sterling weakens, the value of your gold rises, regardless of the underlying gold price. Read our study Gold v Paper Money.

3. Liquidity

Gold is globally recognised and liquid, especially if you own bullion coins or bars. Not only can gold be converted back into cash quickly anywhere around the world, but it can also be sold in small quantities, enabling flexibility to liquidate part of your holding.

This high degree of liquidity enables the adventurous investor to combine gold investment with less liquid assets such as property and fine wine. Read our analysis or gold investment versus property.

4. Balance and portfolio insurance

A majority of a balanced portfolio’s assets are dependent on a strong economy to perform well. Stocks and property prices will perform well when an economy is thriving. 2008 was a stark reminder that when the global economy breaks, all your assets can fall in value at the same time. Gold is known as a safe haven asset, meaning it has a particular appeal to investors in times of economic uncertainty. This increased demand, in turn, pushes up its price.

So owning some gold alongside the other economy-dependent assets spreads investment risk in a unique way so that even in a recession, your portfolio value is protected. The majority of independent financial advisors would always advise investors to seek a balanced portfolio of investments.

5. Tax efficiency

Tax plays a crucial role in calculating your investment returns. Tax is applied to income on cash in the bank and dividends on shares. It is deducted from gains made on assets appreciating. So what can seem like a strong performing asset, can actually underperform once the tax is deducted.

There are various ways that gold investment can be completely tax free. Gold bullion, for example, qualifies for a UK SIPP pension. That means you get tax relief off your purchase price and any gains made are completely protected from tax.

You can even achieve tax efficiency with gold investing outside of your pension. Investment grade gold is VAT exempt to buy in the UK, while UK legal tender gold coins are also free from Capital Gains Tax.

6. Reduces volatility

Predicting returns on investment can be difficult, especially when your portfolio consists of a multitude of assets. Assets with variable returns like shares and gold can enjoy periods of high appreciation, but also phases of depreciation. This can impact planning. For instance, your portfolio may be worth £100k and you plan to retire in 5 years based on your expectations for its performance. If in that period, there’s a stock market crash, then your portfolio can fall in value by 30%, leaving your plans in tatters.

By owning a percentage of gold in your investment portfolio, it actually reduces the overall volatility of its overall value. If stocks and property fall in value, gold is likely to rise. This irons out volatility and enables a more predictable performance.

7. No counterparty risk

Owning bonds, stocks and even cash, essentially amounts to owning pieces of paper with the promise of value. History has demonstrated that this perceived value can fall to zero overnight. This happens if a company goes bust as Lehman Brothers did, a Government defaults on its bond repayments or there’s a run on a currency.

Focusing on physical gold bars and coins reduces this exposure to counterparty risk. Holding the real thing enables you to own a tangible asset with intrinsic value. In a growing digital age, where stock values are increasingly based on future potential rather than profits and the threat from cybercrime, physical gold provides a simple comfort in a complicated world.

If you’ve enjoyed today’s video, please feel free see all 20 of our video guides in the series.

Add balance to your portfolio with Physical Gold

If you’d like to discuss how best gold coins or bars can provide a great balance to your finances, call 020 7060 9992 to speak to a member of our knowledgable team.

Britannias versus Sovereigns

This article focuses on the two main UK investment coins – Gold Britannias and Gold Sovereigns.

For UK investors especially, these two coins are the go-to choice when putting together a gold portfolio.

But which ones are better? The Britannia or Sovereign? I’ll look at 5 factors to compare the two coins.

1. Price

Let’s start at the most obvious place, with the price. The Britannia is around four times bigger than the Sovereign, weighing 1 troy ounce. That means, its price is far higher, so for those with very modest means, the smaller Sovereign coin provides access to the market where perhaps the Britannia is out of reach.

For most investors though, a larger allocation to gold is granted, so the price per gram between the two coins can be compared. With its larger size, Britannia’s production cost is lower as a percentage of the price, allowing for a lower price per gram. So if you’re looking for the most gold coin weight for your money, then gold Britannias are the better choice.

Winner: Britannia

 

2. Variety

While there is the occasional special edition gold Britannia launches, usually, there is one type of coin to choose from – the standard 1oz bullion coin. Fractional versions also exist, allowing the investor to buy half, quarter and tenth ounce version, but these can be expensive for the privilege.

As Britannias have only been around since 1987, no coins really have historical or numismatic value. Yes, coin designs are updated every few years, but the variety with gold Britannias is very limited.

In contrast, the modern gold Sovereign has been around for 200 years. Like the gold Britannia, there is also various size option including Half Sovereigns, Double and even Quintuple Sovereigns!

But it’s the variety in age and monarch which really creates investment options. Sovereign coins can be bought with the current Queen on the front, but also there is a strong market in gold Sovereigns featuring King George, King Edward and Queen Victoria. The latter coins even vary between 3 different types of design, the Young head, jubilee head and old head versions and can be worth substantially more than newer Sovereigns.

Owning a variety of Sovereigns adds balance to an investment portfolio. It varies your upside potential between just owning bullion coins and perhaps also benefiting from numismatic gains.

I’m a strong believer in mixing the coins your own rather than owning all of one type, as it creates other profit opportunities.

Winner: Sovereign

 3. Divisibility

One of the most overlooked aspects of buying physical gold is obtaining divisibility within your portfolio.

This is one of the main reasons investors opt for gold coins rather than bars, it gives them the flexibility to sell small parts of their holding when they need.

Clearly, gold Sovereigns offer four times the divisibility of the standard 1oz Britannia. Yes, you can buy quarter and half ounce gold Britannias, but they’re a less economic method of obtaining flexibility than owning Sovereigns and Half Sovereigns.

So if you’re putting together a modest portfolio of coins – say £2-£5k – then we’d always recommend gold Sovereigns so that you can own a variety of coins and keep flexible.

However, for those looking to invest larger amounts, say £10k+, then you could still buy enough gold Britannias to achieve a great degree of divisibility.

Winner: Sovereign, unless you’re investing £10k+

 

4. Tax Efficiency

This one’s simple. Both the Sovereign and Britannia are VAT exempt when buying them as they qualify as investment grade gold.

In a similar way, any profits made on either coin are also free from Capital Gains Tax. That’s because both coins feature a face value and so qualify as legal tender in the UK. Selling any legal tender currency is free from Capital Gains tax.

Winner:               Tie

5. Liquidity

The second-hand market in any asset class is crucial when considering its merits as an investment. You can buy the best asset for capital gains in the world at a great price, but if no-one wants it when you come to sell, it fails as an investment.

Luckily, both the Sovereign and Britannia are highly sought and liquid coins globally. In the UK both coins are popular due to their tax free status. They can be sold in a matter of hours.

Globally, the Sovereign is better known as it’s been around for a lot longer than the Britannia. But the playing field is quickly changing. Since 2013, the Britannia has been minted as a 24 carat coin. While this doesn’t make any difference to gold content, it opens up the lucrative Asian market. In a land where only 24 carat appeals, the growing Chinese market love the Britannia but are more tentative towards the 22 carat Sovereign.

However, liquidity when buying is switched. While the latest year’s issue of either coin is plentiful and easy to obtain, buying pre-owned coins is a different matter.

If you wish to buy second-hand Britannias, they’re not always easy to buy when you want them. That’s because they’ve only been around for 30-odd years so there are less on the market.

In contrast, with the Sovereign’s long trading history, you’re able to obtain most types of gold Sovereign from any age, more or less when you want.

Winner: Sovereigns….just

Conclusion – gold Britannias or Sovereigns?

So there you have it, we’ve looked at 5 of the most important considerations when choosing gold coins for investment.

Ideally, owning a mixture of both, and in a range of ages and sizes, produces the most balanced portfolio. But that’s not always attainable for everyone’s financial means.

For the smaller investor, Sovereigns is the best starting point. For those seeking simplicity and the lowest purchase price, Britannias are the choice.

Either way, you won’t go wrong when investing in gold Britannias or gold Sovereigns. Silver Britannia coins are also available.

Contact a gold investment expert when buying Britannias and Sovereigns

Don’t forget that our team are here if you need any guidance on buying gold coins. Our Directors Pick is a popular choice if you want to own a gold portfolio of mixed UK coins but prefer our expertise to pick a balanced choice. You can leave a message on our Contact Us page, call our team on 020 7060 9992, or engage in the live chat function on the website.

Gold and Silver Investment Jargon

Complicated jargon exists everywhere in life. Within the investment world, jargon can sometimes prevent you from understanding the details of the investment, or cloud key facts.

Some terminology stems from the historical use of words, while others seem convenient for financial advisors to validate their existence to explain these complications.

At Physical Gold, we believe in stripping back jargon to simplify what should really be very straightforward assets – gold and silver.

This video unravels a few select pieces of jargon which crop up time and again. For the full list of investment jargon busting, click here.

1. Bullion

This is one of the most widely used terms in the market but can refer to a number of things. Some people use the term as a blanket expression for non-numismatic gold. So any low-priced gold coins and bars. This tends to be when the price is the focus and suits those wishing to avoid paying premiums for more valuable older coins.

It can also be used to explain a certain type of coin production. Most of the main gold investment coins will be produced to a number of finishes, each with their corresponding price. Bullion finish is the most basic and cheapest finish, so is targeted at the investment market, where quantity and price are the primary focus. In contrast, proof finish coins, are struck 2-3 times when minted and offer a more detailed, albeit expensive finish.

Finally, the term bullion can be used to refer to gold or silver bars. Bullion is used interchangeably with bars and wafers to focus on this area of the market rather than coins.

My recommendation is to ask questions if it’s unclear which of these meanings is being indicated.

2. Alloy, purity, carat

Very simply, alloy denotes the mix of metals within a coin and ties in with a coin’s purity and carat. Investment grade coins will all be of a purity of at least 958 parts gold per 1,000. The terms carat and purity refer to the same thing. A coin of 958 per 1,000 purity is known as being 22 carat, while a coin of at least 995 parts gold or silver are referred to as 24 carat.

Alloys are used to toughen up a coin and minimise scratches. Some of the most common alloys in popular coins such as Sovereigns will be silver and copper.

One of the biggest misconceptions with carats and purity is that 24 carat coins are far better and more valuable than 22 carats. Looking at the Gold and Silver Britannia coin is a useful example.

Up until 2013, the Britannia was produced as a 22 carat coin. While it weighed around 34g in total, the gold or silver content was 31.103g (1oz). Coins produced after 2013 were minted as 24 carat coins. The newer coins still only contain 31.103g of pure precious metal and that is now also their total weight. So in other words, both coin purities still contained exactly 1oz of pure gold or silver.

3. Face Value

While this term is simpler to understand, its implications are crucial to precious metals investors.

When a coin benefits from having a face value, that means that the mint who produced the coin have actually allocated a face value in that country’s currency to the coin. This face value will be shown either on the front or back of the coin. In theory, that means you are legally allowed to walk into a shop in the relevant country and use the gold or silver coin to buy goods up to the face value.

Now, this may sound ridiculous because the face value of a Gold Britannia, for instance, is £100, while the coin’s gold content is worth ten times that. This is where the implications come in useful.

Any coin with a face value cannot be taxed for capital gains for residents of that country. In other words, if a UK investor buys £20,000 of Britannia coins and sells them 5 years later for £50,000, their profit of £30,000 is completely tax free!

4. Segregated

Next up is a term used in the storage of gold and silver. If you choose not to physically hold your coins or bars, then many dealers can offer storage solutions. But beware, not all solutions are the same.

If gold or silver is segregated, it means that it’s legally ring-fenced as yours. That means it isn’t mixed in as a pooled investment with other investors’ gold and crucially cannot be touched by any counterparty.

For investors seeking absolute security and minimal risk, segregated storage is the only way.

5. Premium

This final piece of investment jargon is bandied around when talking about the price of physical gold and silver. Rather than indicating a top end item, it refers to the spread over the gold or silver spot price of various coins and bars.

It’s important to understand that when buying any gold or silver, whether electronic or physical, you will always buy at a premium over the live spot price.

That premium varies according to a few factors.

Firstly, coins and bars trade at a higher premium than electronic gold and silver ETFs as they have to encompass production, design and delivery costs.

Secondly, the type of coin or bar will dictate the level of premium. Brand new mass-produced bullion coins are attainable at lower premiums, then rarer old gold coins.

Finally, quantity plays a large role in the premium. Buying one coin will cost a higher premium than buying 100 coins. Similarly, buying a small 5g gold bar will cost a higher premium than a huge 1kg bar.

Our team are here to make gold and silver simple

So there, you have it, 5 key pieces of jargon busted for you. Any dealer who cannot explain these, shouldn’t be used. Websites should clearly display live prices for various quantities of coins and bars, and each product should have a comprehensive description so you know what you’re buying. If you found this video helpful, be sure to check out 20 of our best video guides.

If you have questions regarding specific gold & silver investment jargon or are seeking guidance on how to invest, then our expert team are here to help. You can either call us on 020 7060 9992, engage on live chat or leave a call back request on our contact us page.