How did the Gold price fare in 2015 and what it means for investors.

Gold Price in 2015

It’s a universal truth that, whichever way you look at the figures, 2015 wasn’t a good year for the price of gold, but that leads us to two important points…

  • A year is still a very short period of time when it comes to framing investment performance and it’s worth noting that gold’s ten year performance still averages 11% annual returns, despite the gold price in 2015 dipping. As Warren Buffet once said, ‘our favourite holding period is forever’.
  • In addition to this, the falls of 2015 created an excellent buying opportunity. As gold was well off its peak, those yet to enter the market were presented with an ideal opportunity to do so.

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Gold in 2014 ended at $1,183.90 (per ounce) and closed out 2015 at $1,060.30. In Sterling terms, this represents a more modest gold price fall of around 6.5% during the year.

This fall in the gold price was driven by a number of factors throughout the year, but the single most influential one was that investors were waiting to see what the US Federal Reserve was going to do with interest rates. With gold often priced in US$, any minor change in the US currency is analysed closely and there is little doubt that the mooted rate rise throughout 2015 – and eventual decision to raise in December – had a large impact.

What does this mean for you in 2016?

Related – 5 Steps to gold investment

This again means two things for investors:

  • When the rate settled, gold began to rise almost immediately in 2016, with particularly strong price rises in February. The world economy also continues to encounter challenges, which historically suggests further strong performances for the price of gold. For those wishing to sell some or all of their holding at this point, this is obviously encouraging. Gold has hardly been below $1,200 since the start of February, representing potentially good profit – depending on when a purchase was made. These sharp rises are great news for investors wishing to release their capital and lock in profits.
  • Even with these recent price rises being good news, the longer term – with a climate of economic uncertainty, potential ‘Brexit’ in the UK and an open Presidential race in the US – bodes well for gold. It’s still 30%+ off its peak in 2012, which suggests there is plenty of room for growth, especially in a climate likely to encourage upward price movement. Therefore gold still presents a fantastic buying opportunity for new investors, or those wishing to supplement current holdings.

With gold price in 2015 behind us and a hugely positive start to 2016, it currently appears that next year’s price analysis could be a much more positive review.


Tax year end: Is Gold the tax-free investment you’re looking for?

2019 Tax Year End

With the tax year end upon us, now’s the time that many take a hard look at their finances and make investment decisions for the following year. But if you’re one of the savvy investors already owning physical gold, then you’ll know buying gold and silver aren’t affected by the tax deadline.

Tax year-end brings a fresh start

If your money is currently in an ISA or savings account, then the tax year end might have you rethinking your investments and considering gold (or silver).

If you’re one of the thousands of investors wanting to move your money around, to reduce your tax exposure and maximise your gains, this article will provide insight into some important tax considerations, which every investor should know about.

Want to learn more about gold’s tax efficiency? Download the Insiders Guide to tax-efficient gold

ISAs are limited tax-free investments

Many investors just think of ISAs as tax-free investments, when in reality, they’re limited tax-free investments – meaning there’s an upper limit to how much you can save. The ISA limit for 2019/2020 remains at £20,000 maximum, but you can’t roll over any unused portion to the next year, so you have to use it or lose it.

Tax Year End
Keep TAX rates down with UK Gold

Regular savings accounts are taxed

If your money is in an old fashioned, regular savings account, you’ll be charged a tax on any interest it generates. This makes a savings account quite unappealing for those who’ve already maxed out their ISAs. Especially with the highest available rates being around 1.5% and the majority of interest rates currently yielding sub-1% even before tax!

Capital Gains Taxes on assets you sell

If you’re looking into selling an asset or Buy-to-Let property that you own, you’ll likely end up paying Capital Gains Tax on the profits of that sale. This is especially true for those who’ve already reached their CGT allowance for the year. Many forms of Gold, on the other hand, are actually CGT free.

The lifetime allowance could affect your pension

The lifetime allowance, which was previously reduced from £1.25 million to £1 million, PHYS01_Animated_Gif_2_MPUis a limit on the value of payments on your pension and could affect many people who’ve already reached this new allowance total. If you’ve saved into your pension throughout your working life, you could already be at this limit and you’ll be taxed heavier than in previous years. Check the Money Advice Service dedicated page for the latest allowance rates and related information.

UK Gold Coins have no Capital Gains Tax and no VAT

Physical gold has always been a worthy investment and gold investments make a great addition to any portfolio. Due to there being no upper limit on how much you can purchase in a year and certain forms of gold falling into the bracket for CGT and VAT free investments, it is looked on favourably by many investors. Currently, all bullion coins that are classed as legal tender in the UK which includes coins such as gold Sovereigns and gold Britannias, are CGT exempt. They are also VAT free providing the coins were minted after 1800 and classified as legal tender.

Coins to buy from Physical Gold

If you want to consider an investment that will appreciate tax-free, then take a look at our tax free-gold coins (including the 2019 Gold Sovereign and the Dragon Queen’s Beast) or our VAT free Silver. even offers the opportunity to add gold to your Self Invested Personal Pension (SIPP) to achieve a balanced portfolio. Currently, the UK Government are willing to pay up to 45% towards the cost of your gold if you invest through a SIPP. This is applicable to all investment-grade gold bars or wafer that are professionally stored and have a purity of at least 99.5%.

Contact Physical Gold for 2019/2020 Financial Planning

Providing you’re looking for an investment that will help you diversify and protect your assets, whilst avoiding CGT and VAT, you can’t go wrong with Physical Gold. Call us without delay on 020 7060 9992 to speak to us or complete our contact form. We can provide guidance on how gold can comfortably fit into a wider investment portfolio for the financial year ahead.


Image Sources: Geralt