How to Buy Gold Guide to Investing in Gold

Post on: 20 Апрель, 2016 No Comment

How to Buy Gold Guide to Investing in Gold

For centuries savvy investors have been aware of the importance of gold as part of a well balanced portfolio. In addition to offering wealth diversification, gold is a world renowned safe haven for investors offering the ultimate insurance and protection against turbulent economic times. History illustrates gold is a timeless asset, not only proving to be a successful preserver of wealth, but high gold prices and record demand has ensured it has outperformed most other forms of investment.

February 2014 saw the release of the most recent ‘ Gold Demand Trends ’ statistics from the World Gold Council who published a 28% rise in global gold bar and coin investment in 2013. Chinese consumer’s appetite for gold continued, breaking previous demand records. Interestingly, investors shied away from gold investment through ETF’s as institutional positions were sold. By contrast, the demand for gold bars and coins surged to an all-time high, highlighting the importance of physical gold to consumers. With unprecedented consumer demand for gold bars and coins in the Far East, Middle East and South Asia and a very strong start to 2014 for the gold price, could it be an ideal time for you to buy physical gold?

How to invest in gold bullion?

In times of economic uncertainty and instability, buying gold makes more sense than anything else. With confidence in the banking system and worldwide economy at an all-time low, gold bullion could be the ultimate insurance and should act as an essential part of everybody’s investment portfolio.

With the famous yellow metal in greater demand than ever, there are many rasons why people should buy gold. Owning gold could be the ultimate way to preserve your wealth, and possibly make a healthy return in these uncertain times. It’s an age old question which people have been asking for centuries – where is my money really safe? And more and more people are now choosing the oldest answer: GOLD.

As the old saying goes; if you don’t hold it, you don’t own it. There really are numerous benefits of physically holding your gold in your hands, as opposed to buying electronic gold (ETF) or paper gold. In these unpredictable economic times of banking instability, low interest rates, underperforming currency markets, volatile stocks and repeated rounds of printing money, gold offers a welcome safeguard to the turbulence.

Research is everything. Your decision to buy gold online wouldn’t have been taken lightly and should be backed by your own research. Much the same, when it comes to selecting your chosen bullion dealer, again research is vital. The Internet is the best place to conduct your research. The Internet holds information about the impartial experiences, opinions and recommendations of millions of people all around the world. It sounds obvious, but why not start your research by simply typing in the bullion dealers brand name into Google.co.uk. The Internet really is the world’s largest open forum in which companies have no control. It will become quickly apparent if a bullion dealer has a negative online reputation, in which case they should be avoided at all costs.

When to Buy Gold?

Looking back at historical data, in hindsight it is easy to identify 2005/06 as a great time to buy gold bullion before the constant rises when the price of gold stood at just £250 T/OZ. Again in 2007/08 the UK banking crisis offered another great opportunity to jump onto the gold bandwagon with the gold price standing at around £350 T/OZ. Some of the most common questions heard now on a daily basis are; is it too late to buy gold? And; how much longer can the gold price continue to rise?

Unfortunately, there’s no exact science when knowing when to buy gold, but there are lots of effective and timeless techniques and indicators that most successful investors use to help them and look out for.

Gold Bars Vs Gold Coins?

Whether you’re new to bullion investment or not, deciding whether to invest in bullion bars or bullion coins should take some consideration. Before making this decision, it would be advisable that you conduct your research as there is no definitive right or wrong answer, it will vary depending on the needs and circumstances of the individual investor. However, as when making any other investment there are a several factors to consider including: the value of your investment and the product premiums, how long you plan on holding your gold, storing it, capital gains tax (CGT) and how you plan on realising the value of your investment.

Should I Buy Gold & Silver?

Many investors spend time deciding whether to buy gold or buy silver, however the savviest investors own both. Whereas gold could offer the ultimate insurance and protection against uncertain economic times, silver is a more speculative investment. Despite gold and silver both being commonly invested precious metals, silver is an entirely different investment which can realise substantial profits despite the initial VAT outlay. It’s because of these differences that owning both gold and silver together can be of benefit.

Do I Pay Capital Gains Tax on Gold?

Capital Gains Tax or CGT is a tax on the gain or profit you make when you sell anything, give away or otherwise dispose of something. It applies to assets that you own, such as bullion, shares or property. There’s a tax-free allowance of £10,900 (2013/14) and some additional relief that may reduce your Capital Gains Tax bill. Most bullion investors will never have to pay this tax due to the size of their investment and many other investors choose to only buy tax free British gold coins which are CGT exempt such as gold sovereign coins and half sovereign coins, however it is important that investors know where they stand.

Is Bullion Subject to VAT?

How to Buy Gold Guide to Investing in Gold

The good news is investment grade gold is VAT free. This includes all the gold bullion bars and coins on our website. However, unlike gold, VAT is payable on silver at 20% making silver a more long term, speculative investment. However, due to the volatile nature of the silver price, returns are often quickly realised. If you are VAT registered and think you may be able to claim your VAT back, then we advise you speak to your Accountant.

The physical possession and control of your bullion is one of the main benefits of investing in physical gold bullion over electronic or paper gold, however you must consider where to store your gold. There really is no one correct answer, the truth is you can do with it as you please and can store it where you like; it really is down to personal preference. Storing gold bullion really isn’t anything new; people have been successfully storing gold and silver bullion for centuries and is particularly common in Germany and India.

Why Buy Gold Online at BullionByPost?

BullionByPost is the largest and most trusted bullion dealer in the UK dispatching thousands of parcels for free fully insured next day delivery every month. BullionByPost is a fully authorised distributor of London Bullion Market Approved (LMBA) Umicore, Heraeus and Metalor bars as well as an authorised distributor for the British Royal Mint.

How to Buy Gold Online at BullionByPost?

Buying gold online at BullionByPost is quick, simple and secure. You can create and register your account online in as little as two minutes. Once your account is setup, you can buy gold and buy silver bullion online 24 hours a day at the click of a button. Your online account will also allow you to track the performance of your gold investment against the current price of gold as well as providing you with the latest product news and a safe place to store your invoices. With a comprehensive range of gold and silver bullion products available at low margins, buying gold online has never been so safe and easy.

Register your FREE online Account today and receive a host of benefits including our Gold Price Alert Service, 24 hour access to buy gold quickly and safely, access to your invoices and full order history to monitor your investment performance, monthly insight and offers direct to your inbox, plus much more. Click here to register your FREE online account today.

Related Links: If you have any questions about gold bullion investment, please feel free to contact our knowledgeable and friendly team on 0121 634 8060 who will be happy to talk your through any queries you may have. Alternatively, you can e-mail us on: [email protected] and we will get back to you as soon as possible.


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