Economic uncertainty seems to be a given in the times that we live in. Over the last ten years, economic uncertainty across the globe has hit record highs. According to a study conducted by the news network, CNBC in 2016, uncertainty has risen by around 60% in the last five years alone. These figures beat the uncertainty levels of 2008, which we all recognise as the peak of the global recession, spurred on by the US sub-prime mortgage crisis that sounded the death knell for big-ticket investment banks like Lehman Brothers and brought banks like Northern Rock to its knees. The recent spike in uncertainty was exacerbated by events like Brexit, which has had an impact not just in Europe, but across the economies of Asia, Japan, Oceania and the Americas.
The findings of the study revealed that uncertainty went up in the US economy by 19.8% between 2015 and 2016. During the same period, Brazil recorded a spike of 22.6%, China by 83.2%, Australia – 44.6%, France – 28.8% and India – 4.7%. However, the largest increase in uncertainty was recorded in the United Kingdom – 160%.
Uncertainty in global stock markets sees investors move their money to gold
How does uncertainty impact the economy?
Back in 1983, Ben Bernanke published a paper that attempted to model the effects of uncertainty on the economy. Bernanke, some you may recall was the Chairman of the US federal reserve at the time and also a professor at Stanford University. Bernanke observed that certain macroeconomic factors such as oil price fluctuations, monetary and fiscal policy adjustments and even the entry of new technologies were disrupters and triggered investors to move their investments across asset classes and global markets. Even more disastrous are geopolitical events like war and the threat of terrorism. In addition, the world is today threatened by the increasing incidence of natural disasters. A case in point is the 2011 tsunami that struck Japan. That tsunami alone caused losses of $360bn and is considered to be the most expensive natural disaster of all time.
Why is gold considered to a safe haven during uncertainty?
Well, first of all, gold is a tangible asset that one can take physical possession of and store. Gold has been a creator of value since time immemorial. We are well aware that gold was used extensively as a metal of choice for coinage across the world throughout history. The value of gold, therefore, continues to remain stable, and demand for gold is driven by the value it commands in the eyes of human beings.
Gold is scarce and this is yet another factor that adds value to the precious metal. Rising demand and scarcity of supply creates an unbeatable value proposition that cannot be matched by other asset classes. While the price of gold may fluctuate, its intrinsic value in the eyes of an investor remains. On the other hand, stocks, bonds, debt papers, ETFs, and even cash deposits represented by fiat money, are only able to derive their value from the trading price in the market. They have no intrinsic value.
Secondly, other investments are affected by inflation or rising and falling interest rates. Gold is well insulated from these macroeconomic forces. When we see gold price trends over the years, we realise that the price of gold moves inversely to the US dollar. This means when the dollar falls, the price of gold goes up. Therefore, investing in physical gold is a great hedge against inflation and can also create purchasing power for the investor in the years to come.
Holding physical gold can help beat uncertainty and inflation
At times of economic uncertainty, several investors may start to worry about the value of their investments in asset classes like equities. As they start to pull out, the prices start to fluctuate wildly, creating volatility. Most of the value locked in these virtual asset classes cannot be accessed physically, so one may have little or no control over them. At such times, gold investments are generally more secure, as it is a stable asset class and it is something that you can hold in a physical form. Once again, a quick look at gold prices over the years shows us ups and downs, but these losses and gains even out over a period of time and gold is considered to be a stable investment over time.
Most importantly, many investors view their purchases of gold as a constant. They believe that even if we see a total economic collapse around the globe at some point in time, gold will be that one thing which will still hold value. In our opinion, that is reason enough to hold gold.
Talk to our precious metals team about your gold investments
At Physical gold, our team of experts have many years of experience in dealing with precious metals. You’re in safe hands knowing we have membership of various trade associations including the Royal Numismatic Society. They are able to advise you on the best way to build a gold portfolio with regular investments that will stand the test of time. Call us on 020 7060 9992 or drop us a line to get in touch with the team. We always take your investment goals into consideration and advise you on the percentage of your financial portfolio that should be invested in gold, and on how to get the best buys by taking advantage of the markets.
We have earlier spoken several times about investing in precious metals. However, precious metals investing isn’t always what it seems to be. There are myths that need to be debunked about precious metals and in this article, we’ll look at what they are. Investment guru Warren Buffett once said about gold that it’s dug out of the ground somewhere in Africa and that it is buried there again and people are paid to guard it. Now, Warren Buffett has frequently spoken out against investing in gold and precious metals, but could he be right?
Myth 1 – gold may be precious, but devoid of utility
As we all know, Buffett’s primary bias against gold is that his interests are in capital markets, banking and insurance. It’s a well-known fact that his company participated in bailing out the banks during the financial crisis of 2008. Being invested in the banking sector, it’s no surprise that his investment preferences would like in asset classes away from precious metals. If we look deep, we will realise that his outburst against gold is driven more by emotion and sentiment. For several thousand years, gold has been an investment vehicle of choice for the entire world. It was used for coinage and it has several wonderful attributes such as fungibility, rarity, durability and a great hedge against inflation. Its physical qualities make it invaluable in industries such as electronics and mobile technology, to name a few.
Investing in precious metals requires knowledge of the market
Myth 2 – precious metals will have no value in the future, as the world moves to digital currencies
The age of the crypto-currency has seen investors doubting stable investment classes such as gold and silver, as many believe that eventually as we move forward to the 22nd century, precious metals may become redundant. However, the most important thing to keep in mind is that cryptocurrencies are a virtual medium. They are highly volatile and prone to great market risk and volatility. As they are not physical, investors have little control over the way they behave. Gold, on the other hand, is a highly physical and tangible asset that has been globally accepted as a repository of value for thousands of years. Gold is not a speculative asset, and investors looking to make a fast buck through short-selling would find gold unattractive. However, investors looking to build a rock solid portfolio that can outlive their own lives and can be bequeathed to future generations would find the stability of gold reassuring.
Myth 3 – the price of precious metals behaves inversely when interest rates rise
In order to look deeper into whether or not this myth has any basis, we need to take a long hard look at gold price trends over the years. It stands to logic, that when interest rates are on the rise, investors are better off putting their money into currency markets. However, if we see gold price trends as recent as 2015, we can see that the Fed initiated an interest rate hike in December of that year. It was commonly believed at the time that gold and silver would plummet. While the US interest rates rose from 2014 to 2016, both precious metals witnessed price increases
Gold investments are safe in storage like the Bank of England gold vault above
Myth 4 – in the event of a global economic crash, gold may crash completely
As gold is both a precious metal as well as a commodity, it has virtually no correlation with global stock markets, bond markets or housing. One of the factors that keep the price of gold and silver on the rise is scarcity, backed by high industrial demand. As technology progresses, this demand will continue to rise and as we all know, gold is a finite asset. A recent example is the famous 2008 global economic crisis. While virtually the entire stock market was wiped out, including stocks of mining companies, gold fared well for the year. Infact, we have ample proof that investor sentiment is geared towards investing in gold as a safe haven to protect against times of economic turmoil. Therefore, a global economic meltdown would see most investors turning to precious metals like gold and silver.
Myth number 5 – the gold market is manipulated and only insiders can make money
Physical gold and silver markets are very different from paper markets. When we say paper markets, it means exchange-traded funds or ETFs. It is true that some level of manipulation happens in the paper markets, which is mostly geared towards derivatives or futures. Size and clout do matter in these markets and ordinary investors are never privy to the information available to the top financial companies and big banks. These institutional investors have top-quality research, as well as key information that allows them to make smart decisions when trading. Moreover, since their trains are high volume, they are able to get the best price. Physical gold and silver are different. At Physical gold, many of our investors are ordinary customers, just like yourself. Our precious metal steam is able to advise investors like yourselves on the best way to buy gold and silver. We can also help you get price advantages since we are able to obtain large discounts.
Always research your broker rather than walk into a high street gold store
Myth 6 – gold doesn’t pay you any interest and this makes it a bad investment
Well, if you’re a shareholder of large companies you might notice that these big-ticket companies also pay you no interest and the annual dividend is a mere pittance. Infact, one of the biggest critics of gold – Warren Buffett’s company, Berkshire Hathaway does not pay interest or dividends. On the other hand, there are many junk bonds that can get you yield of 50% more for short spans of time, but they are highly risky and the market is very volatile. Even investments made in cash deposits, which are backed by your bank are prone to lose value, simply due to inflation. The reason that physical gold or silver doesn’t pay you interests is that they are not debt instruments. In the UK, many of your investments and physical gold are tax-free. This is an added advantage of investing in physical gold. However, your earnings from the equity and debt markets are subject to taxation.
Myth 7 – precious metals do not fit well into an asset allocation strategy
The reality is in fact far from it. Precious metals do form an integral part of any asset allocation strategy, along with several other asset classes ranging from real estate, capital markets, mutual funds and cash deposits. It aids in diversifying a portfolio. Infact, many investment experts do claim that investors should have at least 12 to 15% of their portfolio allocated to precious metals.
Myth 8 – buying precious metals are unsafe, as you are likely to be cheated or burgled
When buying precious metals, it is important to connect with a reputed online broker. A reputed online broker will have a team in place who would speak with you, discuss your investment goals, advise you on how to invest and guide you on the best way to invest in precious metals. For example, at Physical Gold, all our products come with a certificate of genuineness and a guaranteed buyback, should you want to liquidate your asset. Like all other investments, investing in physical gold and silver requires some knowledge of how when and where to buy. This ensures that you don’t end up trading with a rogue broker and get cheated. As far as storage goes, many reputed brokers, including Physical Gold do offer storage facilities to their customers, should they not be willing to take delivery of their physical gold and silver. Our customers get to store their assets safely in an LBMA approved vault. Even if you do prefer taking physical delivery of your purchases, we are able to dispatch them via insured courier and can advise you of certain accessories that you can buy in order to safely store your gold at home.
Talk to our investment experts before putting your money into precious metals
In the same way that it’s important to debunk myths about precious metals investing, it’s also important to speak with knowledgeable advisors before making investment decisions and buying precious metals. Call us now on 020 7060 9992, or drop us an email via our website and a member of our team will be in touch with you shortly to discuss your investments.
Timeless and elegant, a beautiful gold Christening gift is always an excellent choice. But it’s not always easy to decide what to choose; a stunning pendant the child can wear as they grow up? A handy little money box perhaps. After all, gold is synonymous with wealth, plans for the future and the importance of saving. It has long been traditional in many cultures that the gift of a bullion bar or coin symbolises hope for the future and can, of course, be invested. Why choose a Christening gift that everyone else will have thought of? Cash says clothes and toys; gold says university and first car
gold crucifix
Gold money boxes
When a new baby comes along, there’s usually a well-meaning queue of grandparents, godparents and friends who would like to give money. So why not choose a beautiful gold money box to keep it all safe in one place. Available in a massive variety of shapes and designs a stunning gold money box makes the perfect addition to any nursery. You could even give it alongside a beautiful gold coin collection too.
Gold photo albums
The perfect elegant Christening present idea, a gold photo frame is ideal for displaying a special photo from the big day. No matter what size or design you choose, a gold photo frame is something that can be cherished and enjoyed for years to come.
A classic Christening gift that spans centuries, gold baby bangles can be as ornate as you like, or simply plain. They can also be inscribed with a personal message and most bangles come with an expandable clasp, so they can carry on wearing the bangle even as they grow.
Gold pendants
Gold Christening pendants usually take the form of the crucifix and signify the important religious aspect of a child’s Christening day. You can choose any purity from 9 carat right up to 24 carat gold, and again you can have the child’s name or a personalised inscription added on the back.
A gold bound book
Gold trinket boxes
With the birth of a new baby comes the start (or extension!) of a family, with years of happy memories to come. A beautiful little trinket or gift box makes the ideal keepsake as throughout the child’s life new mementos can be added and cherished. A gold trinket box is also ideal for parents to store precious memories as their child grows, such as a first lock of hair and tiny pieces of baby jewellery.
Gold cutlery
Gold cutlery sets have been a popular choice of Christening present throughout the centuries. Not only are they wonderfully practical, they’re perfect for a wall or cabinet display to commemorate the special day for years to come. Signifying luxury and wealth, you’ll find all sorts of gold cutlery including knives, forks, spoons, teaspoon rests and much more. Parents, grandparents and godparents can also choose to add to the collection too.
Gold commemorative plate
Give a gift that will last a lifetime with a gold commemorative plate. Complete with a display stand, you can choose a personalised inscription like a poem, wish for the future or simply the child’s name and Christening date.
Contact Physical Gold to invest in gold today
Looking to invest in the perfect gold Christening gift but not sure where to start? Physical Gold is here to help. Call us on 020 7060 9992 or drop us an email to ask a question, find out more about our investment opportunities or simply get some further advice.
A guide we have put together to help understand – gold jargon, gold lingo, gold terminology, gold terms, gold definitions, investing jargon, silver jargon, silver terminology and silver terms. As an investor keen on investing in gold or silver, it’s important to be up to date with silver and gold terminology. The precious metals market has several such terms, which it would seem are known only to savvy investors. When trading in gold and silver, we need to be aware of these terms as parties we deal with, such as gold investment brokers, financial advisors, numismatists, all use these terms in one way or the other when dealing with clients. There are key terms to be aware of, for example, gold and silver are measured in troy ounces. The troy ounce is not the same as a regular ounce. A troy ounce is 31.103 gms. This means a troy ounce is 1.09 regular ounces. This is an interesting example. Often, investors buy a 100-ounce gold bar. They would expect that it weighs 6.25lbs on the scale, but when it shows 6.85lbs, it often leaves them confused.
Gold craftsmen and traders often use industry jargon to communicate
Similarly, there is a difference between sterling silver and pure silver. Pure silver, otherwise known as ‘fine silver’ is the purest form of the white metal available in the industry, which has a purity of 99.9%. However, the problem with using fine silver to manufacture jewellery or silverware is that it’s way too soft and malleable. These items, which enjoy high demand from customers require a much harder version of silver that can hold shape, as well as provide a durable, shiny exterior. After all, the lure of silver is in its shine and sparkle. So, manufacturers use another form of silver, called sterling silver, which is, in fact, an alloy. It’s only 92.5% pure silver, while the other 7.5% consists of base metals.
Decoding the jargon
Every trade has its own technical language that we often call lingo or jargon. Have you ever heard two doctors having a conversation? They usually use a lot of words which are a part of medical terminology, and they look like they perfectly understand each other. However, it can be frustrating for a layperson, to whom it all sounds like double Dutch. Now, as an investor, you need to learn the precious metals business first. How else are you going to make money out of it if you don’t understand it in the first place? So, you need to learn the language of the trade. The minute you do that and go have a conversation with a gold trader, you will be taken seriously right away. Now that you speak the language, you’re one of them and you won’t be treated like a novice. Gold and silver terminology also comes in handy when doing your own research. All investors do their research on the market before making purchase decisions. Familiarity with investment-related jargon is essential for you, especially if you’re new to investing in precious metals.Learn all about jargon by watching, “Gold & silver investment jargon explained”
Call our team of consultants to learn more
At Physical Gold, our team of consultants are ever ready to guide investors just like you in learning more about the market. We believe that savvy investors are important in creating a balanced marketplace. Call us on 020 7060 9992 or contact us via email to connect with one of our consultants. We will try our best to avoid unnecessary investing jargon!
An A-Z Glossary of Terms for Gold and Silver
Listed below is an A-Z of many gold and silver terms you will find in the gold and silver industry. These are arranged in ascending alphabetical order.
A – B
Alloy
A mixture of two or more metals. Metals such as silver, nickel, copper and zinc are frequently mixed with gold to improve its hardness and/or change its colour.
Allocated Gold
When an investor buys gold outright and stores it in a professional bullion vault with a safekeeping agreement in the custody of a bank, it is commonly known as allocated gold. This gold is not the property of the bank but is owned by the investor. In the event of the bank becoming insolvent, allocated gold is not lost. However, the investor may require paying certain storage charges to the bank which needs to be factored into the cost of the transaction.
American Eagle
The American Eagle is a type of official bullion coin which is produced by the United States Mint. First released in 1986, the coin is predominantly minted in gold but has on occasions also been minted in both Silver and Platinum.
Assay
An analysis of a metal used to determine its purity. A series of assays can be run to determine the alloys in the metal as well.
AG
The chemical symbol for silver with atomic number 47.
AU
The chemical symbol for gold which is derived from “aurum”, the Latin word for gold.
BNTA
British Numismatic Trade Association
Britannia coin
The Britannia is the British one-ounce gold or silver coin, first produced in 1987.
BU
Brilliant Uncirculated used to describe a coin in new condition. The same pristine condition as when it left the mint.
Buffalo
The Buffalo is the American one ounce 24 karat gold coin, first produced in 2006.
Bull Market
A market in which the primary trend is up.
Bullion
Precious metals in bulk form which are traded are known as bullion. Bullion can come in the form of bars or minted into coins.
Bullion Coin
A coin with a symbolic face value whose market value is determined only by its inherent precious metal content.
C – G
Capital Gains Tax (CGT)
A capital gains tax (CGT) is a tax charged on the profit realised on the sale of certain assets that were purchased at a lower price. The most common capital gains are realized from the sale of bonds, stocks, and property. There is no Capital Gains Tax (CGT) to pay when a UK resident sells British legal tender coins at a profit. This contrasts with many alternative investments that attract income or capital gains tax. Therefore, an investor gets to keep all their profit, which further enhances returns.
Carat
See Karat
Certified Gold
A “certified” gold coin is encapsulated in a tamper-proof, sonically-sealed, high-security hard plastic holder, with a unique certification number and bar-code permanently sealed inside each coin capsule for the protection of the investor.
Chinese Lunar Coins
These are coins minted for each Chinese New Year by the Shanghai Mint. These have been minted each year since 1981 and are available in gold, platinum and silver. The reverse of each lunar coin depicts the zodiac animal for that lunar year, whereas the obverse reflects an image of cultural significance in China.
Commodity
A useful physical asset whose value is based on its commercial use and scarcity.
Counterfeit
Counterfeiting of precious metals is where imitations are created to deceive or defraud the buyer. They look genuine to the naked eye but when tested are counterfeit. Always buy gold and silver from a reputable dealer such as Physical Gold.
Device
A design found on a coin. Frequently it is the bust or profile of a person who symbolizes a particular country at a particular time in history or a country’s coat of arms or insignia.
Die
An engraved metal tool used to strike or stamp the design on a coin.
Divisibility
How many individual elements a precious metals allocation consists of. It is deemed to have more divisibility to hold 10 x 1 ounce gold bars than 1 x 10 ounce bar.
Electrum
This is a naturally occurring gold and silver alloy, which also contains trace elements of other metals (e.g. copper).
ETFs
Exchange-traded funds or ETF’s are another way to buy gold without physically owning them. The funds are managed by fund managers who have proven expertise in the gold market, so the assumption is that they would know better about trading in gold than an ordinary individual. When buying an ETF, you buy units in an exchange-traded fund, and as the fund performs better, the value of your units goes up. However, it’s important to research the fund before putting your money into it. Many funds have different expense structures and it’s important to understand these properly. The liquidity of the fund is also important, as many funds sell their units without backing them properly buy gold. This can cause problems later on if several investors start selling their units, the fund may not have enough assets to back themselves up.
Face Value
The legal monetary value stamped on a coin.
Field
The open area or background on a coin.
Fineness
The purity of a precious metal measured in 1,000 parts of an alloy: a gold bar of .995 fineness contains 995 parts gold and 5 parts of another metal.
Fine Weight
The metallic weight of a coin, ingot, or bar, as opposed to the item’s gross weight which includes the weight of the alloying metal.
Gold Eagle
The Eagle is the American one ounce 22 karat gold coin, first issued in 1986.
Gold Futures
A future is a financial product where you take a product position now, and the settlement date is a pre-decided date in the future. This means that you don’t have to pay for the entire amount at this point in time and the seller also doesn’t need to deliver any gold to you. Many investors speculate on gold future trades, in an attempt to buy and sell before the delivery date and simply pay out their gains and losses. You need to pay a margin when buying a gold future. A margin is a down payment that locks you into the deal, reassuring the seller that you will not walk away. One needs to be aware that if the price of gold falls during that period, the margin needs to be topped up.
Gold Reserves
These are reserves of gold held by the central banks of governments for numerous purposes such as currency protection and managing balance of payments deficits, etc. Governments often top-up gold reserves in times of economic uncertainty
Gold:Silver ratio
The amount of silver you can buy with the same money it costs to buy one ounce of gold at any given point in time based on their spot prices. So, a ratio of 85 would mean that 1 ounce of gold would buy 85 ounces of silver.
Gold SIPP
A SIPP is a self-invested personal pension plan . Gold can be part of this plan as an investment and SIPP options are available with physical gold. SIPP plans in the UK are capital gains tax-free in addition to which the government might pay up to 45% of the cost of your gold investments . The important thing to note is that the gold will not come to you physically and will be held by your pension fund. There are also certain administration fees that you may need to pay to your pension fund when you invest in such a scheme.
Gold Standard
A monetary system based on convertibility into gold; paper money backed and interchangeable with gold.
C – G
Ingot
An ingot is a form of gold bar, which gets its name from the mould in which the bar is cast
Intrinsic Value
The value of a coin’s metal content, based on its spot price .
Junk Silver
A piece of silver with a purity of less than 90%.
Karat (also spelled carat)
From the Greek word “keration”, meaning carob bean, the term karat is now used to indicate the proportion of gold relative to other substances within a metallic material. One carat is equivalent to a fraction of one twenty-fourth. Gold purity can also be quoted in thousandths, with 24-Karat gold referring to around 999 thousandths. The typical gold bar will have a minimum of 23.88 Karats (or 995 thousandths), and the minimum gold content required to mint any marketable gold coin is 21.6 carats or 900 thousandths.
Krugerrand
The Krugerrand is the South African one ounce 22 karat gold coin, first produced in 1967.
LBMA (London Bullion Market Association)
This is a wholesale market trading in gold and silver, which is over the counter. Members of the LBMA are usually refiners are bullion dealers, activities are overseen by the Bank of England
Legal Tender
Currency in specified denominations which you could use as payment. Legal tender coins have a face value (i.e. Britannia £100) but the gold content is far more valuable than the amount written on it.
Liquidity
The ease in which an asset can be turned into cash.
London Fix
Twice daily bidding sessions in London of five major gold firms, at which the price of gold is “fixed” or set.
Lustre
A shiny appearance on the surface of a coin, usually an uncirculated coin.
Maple Leaf
The Maple Leaf is the Canadian one ounce 24 karat gold coin, first produced in 1979.
Market Value
The price at which a coin or bullion item trades.
Mintmark
The mintmark is a letter or symbol on a coin that identifies where that particular coin was produced.
C – G
Nugget (or Kangaroo)
The Nugget is the Australian one ounce 24 karat gold coin, first produced in 1986. A gold nugget is also a form of naturally occurring gold in its non-refined state, e.g. as found in a gold mine.
Numismatic Coins
Coins whose prices depend more on their rarity, condition, dates, and mint marks than on their gold content alone.
Numismatist
A collector and student of money, especially coins. Numismatic refers to coins of a more historical and collectable nature.
Obverse / Reverse
The obverse is the front of a coin, usually consisting of the image of one or more people. The reverse is the rear of the coin which often features a picture or design.
Paper gold / Paper silver
Ownership of gold or silver which isn’t tangible. Examples are Electronic Traded Funds (ETFs), mining shares, precious metals funds.
Philharmonic
The Philharmonic is the Austrian one ounce 24 karat gold coin, first produced in 1989.
Physical gold / Physical silver
Real gold and silver which can be touched and held. Common forms are bars, coins and jewellery.
Pooled silver / Pooled gold
An arrangement whereby the investor’s precious metals are held by a third party and mixed in with those of other investors. It is common practice for pooled accounts to actually contain less precious metals than it should.
Premium
The additional cost of a gold or silver coin or bullion over and above the spot gold/silver price, including the costs of fabrication, and distribution. Rare coins carry an additional premium called numismatic value which is based on scarcity, quality, demand and intangible factors.
Proof Gold
Each Proof coin is carefully inspected throughout the manufacturing process to make sure that only perfect specimens are issued. Proof coins are usually of a limited issue and often have employed different minting techniques to produce a highly polished mirror finish to the field (background) and a matt finish to the raised features.
Raw Gold
Bullion coins that have not been certified or encapsulated
Safe Haven Asset
A safe haven asset is where people typically invest in times of political turbulence or uncertainty. Gold is known as the ultimate safe haven.
Segregated Storage
Your gold/silver coins or bars are kept apart from other investor’s precious metals. Just as importantly the gold/silver does not fall onto the balance sheet of either the dealer or the storage facility. This means that in the event of either another investor, the dealer, or indeed the storage company itself going bankrupt, your precious metals are fully protected and cannot be touched by creditors.
SIPP
A Self Invested Personal Pension (SIPP) is a UK retirement plan offering the investor the widest possible choice of investments. Investors are able to obtain a discount of up to 50% through tax relief as gold bullion is the only commodity to qualify for a SIPP.
Sovereign
The Sovereign is a British coin weighing 0.2354 oz and was first produced in 1489.
Spread
The difference between the bid and ask price (i.e. the price where we would buy or sell the gold/silver).
Sterling Silver
A standard of silver defined by law as 925 parts pure silver per 1000 parts overall. Sterling silver is the principal standard in the UK and USA.
Tangible Assets
An asset which is tangible i.e. is capable of being felt or touched, something which has real substance and is not imaginary. Hence the name of our Company, Physical Gold.
Troy Ounce
The standard weight in which gold and silver are quoted in the international market, weighing 31.1035g.
VAT
A tax added to certain products and services at sale. The percentage is currently 20%. There is no VAT to pay when you buy investment grade gold coins or bars. This is a great advantage over silver and platinum, both of which generally attract VAT. You’re now able to also buy physical silver through Physical Gold Ltd without being charged VAT.
Best gold and silver apps
The all penetrating world of apps has ensured that today there’s an app for almost anything. Sure enough, it’s no different for investors and enthusiasts of gold and silver. From price trends to authenticity testing, there’s a range of apps out there for precious metals. Let’s take a quick look at some of the best smartphone apps related to gold and silver.
1. Gold and metal detector
The app is targeted at users who want to look for their gold or silver jewellery lost inside the home. The app actually works for most metals, however, users tend to use it to mainly look for their lost gold rings or silver bracelets and the like. Basically, the app uses a magnetic sensor built into most mobile phones to look for metals. Like most metal detector apps, the app measures magnetic field values and detects metals by identifying them when they are within range.
2. Gold price live
Gold price live is an app created by goldprice.org. It provides investors with silver and prices in the form of charts and graphs on a real-time basis. Investors can also view historical data, which helps them track the value of their investments over time. These are available to view through charts that display data on a monthly, half-yearly and yearly basis. Data is also available for 5 and 16 year periods in most national currencies. The prices are available to view in most fiat currencies across the world. The app updates global prices of precious metals every ten seconds, so it’s pretty current when it comes to accurate pricing. The app is available free for both Android and iOS platforms.
Another snazzy app for you, if you’re a blackberry user is money control market. Although aimed primarily at Blackberry users, which is a bit out of date, the app posts real-time updates on commodities like gold and silver, as well as global stock markets. The app is downloadable from the blackberry app world and gives investors a complete bird’s eye view, not just on gold and silver, but debt and equity investments as well.
Smartphone apps for gold and silver investors are using innovative technologies
4. The CoinTrust app
The CoinTrust app is an app that detects counterfeit gold coins and silver coins. It does this by cleverly using a bit of science. Basically, the app records a sonic signal that comes from your gold/silver coin. In order to do this, a user needs to find the relevant coin on the app, switch on the recording and then spin the coin. The app records the sound spectrum of the coin as it clatters against a hard surface and then analyses and compares the sound spectrum with the original recording of the coin stored within the app. Currently, the app has free patterns for the Gold Krugerrand and the Silver Maple Leaf. More patterns are being released soon.
5. Auracle
Yet another gold and platinum tester on the market is Auracle. The app is more advanced as it uses pen probe technology to detect the purity of gold and platinum. It also displays the karat value of the metal on the screen, with a range between 6 to 24 karats.
Call us for advice regarding your gold investment plans
Apps may be a handy tool to have when detecting a fake at home, but to get real expert advice about buying gold or checking genuine coinage, talk to our team of precious metals and numismatics experts. Call Physical Gold now on 020 7060 9992 or email us to get in touch with a member of the team. We’d love to hear from you and our experts can give you some great tips on gold and silver investing. Call us now.
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 Philadelphia 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 14th to 18th August 2018 at the Pennsylvania Convention Centre, located in Philadelphia. Based in downtown Philadelphia, the centre is strategically located for all visitors and has convenient transport links from all over. The convention centre boasts of a million square feet of space available for meetings, exhibitions, etc. It also has the largest ballroom in the northeastern part of the US. The fair will be held in halls D and E, which are located at 1101 Arch Street. The event will not only showcase rare coins and currency bank notes but also stamps, postcards and other items of antique and philatelic importance.
If you are a keen numismatist and are interested in attending this event, you can register for the fair here, by clicking on this link. The fair is open to visitors from 1 pm on 14th August. From the following day till 18th 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. Kids below 12 go free to the event on all days. Admission to the event will close every day at 17:30 hours.
Rare and valuable coin collections can often be worth millions
Exhibitors from all over
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 13th 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.
The 2017 World’s Fair of Money was held at the Colorado Convention Centre in Denver, Colorado last August. 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.
One of the most important considerations when investing in gold or silver is the purity of the metal you’re buying. Due to gold and silver being relatively soft metals, they are normally mixed with other metals to make them harder. Just a small difference in purity can have a massive impact on the overall value of the goods so It’s important to understand what the different figures used for measuring purity mean.
Millesimal Fineness
The purity of gold and silver bars/coins is normally referred to as “the millesimal fineness”. This measures the overall purity of precious metals based on parts per thousand. For example, if a gold bar has a fineness of 999 then it is made up of 999 parts gold to 1-part other metals. Because no form of gold available on the market is 100% pure, the purest gold bullion bars and coins, normally have a millesimal fineness of 999 or 999.9. The finer the purity of the metal, the higher its value.
“Buying gold – 5 reasons to invest”, a must-watch video for gold investors.
Like gold, silver is often measured using millesimal fineness, with the purest form of silver measuring .999. When investing in silver, however, you may come across terms such as “Sterling silver or “Britannia silver”. These hallmarks are direct references to the metal’s purity and can be found stamped on the metal itself. Both Britannia silver and Sterling silver is slightly less pure than fine silver with Britannia silver measuring 95.8 and sterling silver 92.5 on the millesimal fineness scale. Some silver bars are made in Sterling silver as are certain collectables and antiques. Britannia silver was a standard first introduced by the 1696 Coinage Act. No coins are currently minted in Britannia Silver, the last being the 2012 edition Silver Britannia.
999.9 fine gold bars
Karats
When buying gold or silver in various forms, you will sometimes find that its purity is measured in “karats”. Gold jewellery, for example, is often measured in karats. The purest form of gold is 24 karats; however, it only needs to have a millesimal fineness of 990 to obtain this status. The reason why karats are not used to measure the purity of gold and silver bullion is that they are not a fine enough measure, however, you can work out the “fineness” of precious metals measured by dividing the karat by 24 and multiplying the value by 1000. For example, a 12-karat gold necklace has a purity of 50% – 12 divided by 24 x 1000. Different countries also have different rules on the minimum purity levels required for gold and silver. Therefore, when trading in gold and silver abroad, you should be aware that what classifies as 24/18 karat gold in one country might not necessarily be the same in the UK.
Verifying the purity of precious metals
Currently, there are only two-real methods of verifying the marked fineness of precious metals and one of these methods requires destroying it completely in order to separate the different metals within it. This is known as assaying the metal. The other method uses x-ray fluorescence to determine the metal content. However, this method isn’t 100% accurate as it only measures the outermost section of the metal and therefore might get fooled by thick plating. Due to the difficulty in being able to determine the true purity of precious metals, it is always advised that you buy gold or silver from a reputable broker or dealer so as you can be assured that you’re getting what you’re paying for.
999.9 silver Queen’s Beasts coin
Invest in gold & silver through physical gold
If you’re looking to invest in gold or silver, then the best way to do so is by purchasing bullion. Bullion is the highest purity form of gold and silver and can be purchased in the form of bars (such as our 1KG silver bar) or bullion coins. Here at Physical Gold, we stock a wide range of gold and silver bullion including legal tender coins produced by the Royal Mint and gold bars in various sizes including 1oz, 100g right up to 1kilo bars. For more information on measures for gold and silver purity or to ask our advisers any questions on the best way to invest, please give us call on 020 7060 9992.
Rewarding employees is a great way to improve morale and increase motivation within the workplace. Whilst many companies offer money-based bonuses, physical gifts can also sometimes be awarded to employees. In the past, employees were often rewarded with gifts such as carriage clocks or gold watches for their performance, whilst today employees are more likely to be gifted items such as tv’s iPhones or tablets.
Bonuses of gold and silver are also sometimes gifted to employees. This is usually given in the form of bars or coins. For employers looking for a more creative way to reward their staff, gold and silver may represent the perfect option.
Reasons why you should consider rewarding staff with bonuses of gold and silver
There are now many companies which award their staff some form of monetary bonus. It has reached the point where it has become almost expected by many employees. Staff have to wait until the end of the year to receive any sort of financial bonus and they are not always enough of an incentive on their own to keep your workforce fully motivated. Bonuses of gold and silver are a much more personal reward idea. They hold their value over long periods of time and make for a timeless, unique bonus. Not only are they something that can appreciate in value, but they are also less likely to be frittered away, in the same way, that an end of year bonus might.
Gold and silver are available in a wide range of forms
Gold and silver bullion is available in both coin and bar form, offering a wide range of possibilities for employers in terms of bonuses. Whatever value you’re looking to gift as a bonus, you will find something that fits your requirements. A gold bar, for example, might make for a great retirement bonus. You could even have it engraved with a personalised message thanking your employee for their contributions over the years, making it a very special and personal bonus gift.
Bars are just one form in which gold can be supplied
Tax advantages
PAYE tax and National Insurance contributions must still be deducted from bonuses of gold and silver using the employer’s usual payroll procedures, however, gold and silver bullion often comes with certain tax advantages. For example, all legal tender coins in the UK are completely free of Capital Gains Tax whilst coins such as gold sovereigns are free from VAT.
Gold and silver coins
Coins make an ideal bonus gift. They are quite small and can be easily presented in a nice case or sleeve. There is an element of mystique surrounding coins, gold coins in particular, and they are seen as something precious and valuable. Presenting an employee with a gold coin can make them feel valued and special. It’s not something that would find at your local department store or everyday retailer unlike bonus gifts such as TVs or the latest iPhone. Here are some great examples of bullion coins that would make a very special bonus gift.
Gold Sovereigns
Gold sovereigns will probably go down in history as one of the finest ever examples of British coinage. First minted in 1489 on the orders of King Henry VII, it was the largest gold coin ever minted in Britain at the time. Today gold sovereigns are no longer in general circulation; however, they are still are still classed as legal tender along with British Bullion coins such as Britannia’s and Queen’s Beasts coins.
Gold sovereigns are stunning examples of British design and craftsmanship. They are often given as special gifts on important occasions and are a perfect reward bonus for a hard-working employee. Steeped in history there are many examples of gold sovereigns in the UK including those that have been in circulation as well as bullion coins. Browse Physical Gold’s selection of gold sovereign’s here.
Queen’s Beasts coins
Queen’s Beasts coins are a stunning collection of coins made up of 10 different coins each featuring one of the 10 heraldic beasts present at Queens Elizabeth II’s coronation. Available in either gold or silver, Queen’s Beasts are very high purity coins containing .9999 silver/gold bullion. Like gold sovereigns, Queen’s Beasts coins are also considered Legal tender in the UK and are therefore free from Capital Gains Tax. With their stunning designs and high bullion content, Queen’s Beasts coins would make an excellent bonus gift. Browse Physical Gold’s Queen’s Beasts range here.
2oz Silver Queen’s Beasts coin
Order gold or silver through Physical Gold
Physical Gold are specialist dealers in gold and silver. We offer a wide selection of investments at leading market prices, many of which are Tax and VAT free. These include bullion coins, gold sovereigns and gold/silver bars. Get in touch today to find out more by giving us a call on 020 7060 9992.
While the proverbial ‘high street gold shop’ is not completely obsolete just yet, a large percentage of the gold trade has moved online. Buying gold through a reputed online trader gives you access to a range of different products that you probably won’t get in your high street shop anyway. Moreover, large online traders are able to offer better prices by cutting out the middleman. If you think about it, the high street gold seller who operates from a small shop is really just a middleman.
Mistrust of buying gold online
In spite of that, there are investors who do not trust the online trade in precious metals. They still hold on to the notion that the best way to buy gold is to see, touch and feel it. This sentiment is perhaps one of the reasons they go to a store nearby to buy their gold and end up paying a lot more.
Glitzy high street gold shops often have limited inventory
The cons of buying ‘nearby’ gold
You’d think it’s a no-brainer. Let’s quickly review the advantages of buying online as opposed to buying from a local shop.
By buying online you have access to a much greater collection of gold products and pay less at the same time.
Your trade remains anonymous and remains under wraps. One of the biggest disadvantages of buying gold ‘nearby’ at a store is that you can become an easy target for theft.
Since your transaction takes place through a digital medium, there is an online record of your payment. In all probabilities, you would pay for your purchase using a debit or credit card or maybe a bank transfer. In any event, a record of this transaction is created at both your bank as well as the dealer’s bank. Once this online trail is created, it cannot be deleted and this protects you in the event something goes wrong. Many credit cards also offer buyer protection up to a certain amount.
Often local gold shops ply their trade based on word of mouth and footfall. However, this is not necessarily a good thing. If you’re new to buying gold and don’t know about all the dos and don’ts, you’re likely to make a mistake when buying at the shop. Online traders, on the other hand, have limited human contact with you as a customer and would always try to display professionalism.
Benefits of buying from an online gold trader
Online brokers like Physical Gold, today source gold in the form of bars and bullion direct from global manufacturers and due to the large volumes, they get preferential rates. You can gain from this, as online brokers are more likely to pass on their savings to you. This is simply due to the fact that they do not have an expensive high street showroom to run and pay out utility bills, rent, salaries, etc.
Call our team of professionals to get helpful tips on buying gold online
At Physical Gold, we pride ourselves on our professionalism and commitment to customer satisfaction. We ensure that all our products are genuine and what’s more, we also offer our customers a buyback guarantee. Our experts are happy to advise you on the best way to buy gold online. Call us on 020 7060 9992 or simply send us a message online to connect with our team of experts.
When we speak about the baby boomer generation, we think about a number of revolutionary events that happened during the sixties. Images of flower power, the birth of rock n roll, Martin Luther King, man on the moon, the Vietnam War, the Beatles – they all come to mind. The baby boomer generation was born between 1946 and 1964. Much of what happened during their time shaped the world as we know it today. It is therefore ironic that such a futuristic generation could not plan financially to retire.
Baby boomers who are now between 53 and 71 years of age would require a savings kitty of $658,000 to retire comfortably. However, the survey revealed that the average boomer in the US had only $263,000 in savings, with a large shortfall of $395,000 to cover. This gap looks difficult to cover via the existing retirement income options available to those within the age groups.
Boomers in the higher age bracket of 65 to 74, who have either already retired or are close to retirement have so far managed an average of only $300,000 in their individual savings pots, which is still not going to be enough. British boomers were not far behind. Figures released by the Office of National Statistics (ONS) show an alarming 75% rise of people in their 50s and 60s working in the UK, with no signs of slowing down.
Early retirement is a pipe dream for these boomers as many haven’t saved enough for the rest of their lives. Moreover, with the increase in life expectancy, more money would now be required for these couples to carry on living comfortably. Saga, the company that caters to the boomers has christened them ‘generation W’ – the working generation.
The baby boomers are known as the progressive generation of the sixties
Conservative investment approach
Part of this predicament could be linked to their investment philosophy. Many boomers were hit particularly hard by the Great Recession, which greatly impacted the economies of industrialised nations. Many lost their careers, leading them to search for alternative employment. Their risk appetite took a nosedive during this period, leading to conservative investing trends. QS Investors, an investment management company found that boomers preferred to put more money in cash deposits, allocating 30% of their investable capital to this asset class. However, with abysmal interest rates since 2008, the goose they reaped in the past ten years could hardly be called golden.
Boomers also invested 24% and 22% in equities and fixed income products respectively. According to the new age asset allocation model put forward by an investment expert, distribution of assets between equities and bonds at the age of 60 needs to follow a ratio of 60 – 40. Of course, as we can see with the boomers, this is hardly the case. Boomers allocated only 8% in real estate and 2% in precious metals.
The boomer’s shortfall – other reasons
Of course, inflation is another factor that has eroded the savings of baby boomers. At a time when boomers could have been on their home run to make enough to beat inflation, the recession happened. Another important factor is that the new generation has also been disenfranchised by the recession, dashing their hopes of a new mortgage and financial independence. A recent study found that people under the age of 45 in Britain owned only 900bn pounds in assets. The struggles of the new generation have put pressure on many baby boomers, who are now having to support their children.
Call our investment experts to discuss your retirement
A lucrative investable asset class missed out by the baby boomers is precious metals. Call our investment experts now to discuss how building a gold nest egg can set your mind at peace during your later years. We offer SIPP schemes as part of our pension gold packages on which you can avail of a 45% income tax relief as a UK resident. Call our investment team on 020 7060 9992 or get in touch with the team online and an advisor will reach out to you at the earliest.
Live Gold Spot Price in Sterling.
Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Silver Information
Live Silver Spot Price in Sterling.
Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.
