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7 Reasons to Own Gold

Why Own Gold

Gold has always been a highly respected commodity throughout the world with coins containing gold dating back to 800 B.C. Gold has been traded for centuries and is still one of the most important investments a person could make. With this being said, there are many reasons to own gold and we have created a list of the top 7.

1)    Gold Has a History of Holding Its Value

Paper currency, coins and other such assets often lose their value, but gold is the one commodity that has retained its value for decades. It is often used as a way of passing on one’s wealth from one generation to the next.


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2)    Weakness of the U.S. Dollar

Sure, the U.S. dollar is one of the most important reserve currencies in the world,

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take the test but when the dollar drops in value, people often flock to gold for its security. There will always be large budget and trade deficits and a large increase in the U.S.’s money supply, and gold will still hold strong and will be one of the best investments you can make.

3)    Inflation

When the cost of living increases, gold prices tend to rise. This makes gold an excellent hedge against inflation even during those high inflation years that see the stock market plunging.

4)    Deflation

Just as with inflation, gold offers investors security during times of deflation. When prices decrease, businesses slow down and excessive debt takes over the economy, the purchasing power of gold will increase sharply.

5)    Increasing Demand

The demand for gold has grown over the years and not just by investors. The jewellery industry consumes just as much gold as the technology industry and those demands are increasing every year. India and China are two of the largest gold consuming nations in the world, often competing for gold with investors looking to increase their investment portfolios worth with the precious metal.

6)    Gold is uncorrelated to the stock market

Investing in an inter-connected world today can be tricky as global events almost anywhere can send the markets into a tizzy. A war in one part of the part of the world or a sudden terror attack can send shivers across the investment community globally, triggering a massive downslide. Stock markets all over the world are driven more by investor sentiment than good old-fashioned common sense and stock performance. Strong fundamentals of a company can have little influence on its stock performance if it’s caught in a market downslide.

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Here’s the deal

When you by gold and hold it in its real physical form, you offset all these risks. While it’s true you won’t get a 30% return as you would from a technology stock in the middle of a bull run, but you trade that volatility for dependability and steady growth when you invest with a good window of investment. Gold has always generated good returns and will always have value as an asset class. There is also the added security in knowing that your asset is owned by you and in your custody or safe at a location of your choice. As such, your investment is not open to the risk of sudden market action. A good window of investment could mean that you need to hold your asset for 5+ years. Within these timeframes, gold has always appreciated in value and delivered great returns in the long run. In fact, one of the main reasons that people do invest in gold is to protect themselves from market risks associated with other asset classes. Even prime real estate generating good returns over time has been known to react adversely to market forces.

7)    No issuer risk

Owning physical gold protects you against issuer risk. If you buy gold certificates, gold bonds or gold warrants, you are up against what is commonly known as issuer risk. This is the risk of the very issuer of your certificate shutting shop and filing for bankruptcy. Unthinkable as it may be, it is a possibility. If that were to happen you would be left hanging on to pieces of paper which would be worthless. In much the same way that stocks of a company become worthless when the company collapses, the issuer filing for bankruptcy could leave you high and dry.

Although there are many more reasons to own gold, these are the most popular. Are you ready to add gold to your investment portfolio? To learn more about gold investing, contact the professionals at Physical Gold today! Call us on 020 7060 9992 and talk to one of our gold advisors who can take you through the ropes of buying gold. There are many avenues to consider – coins or ingots? Rare coins? Let our investment experts guide you on how to expand your investment portfolio and add the yellow metal to it.

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Physical Gold Ownership – An Asset with no Counterparty Risk

What is a counterparty risk?

Counterparty risk is a risk within a contract where the counterparty doesn’t live up to its contractual obligations. Potentially counterparty risk is a type of risk which could be open to both parties and is one which needs to be carefully considered when entering a contract.

Counterparty risk is an everyday risk

We experience counterparty risk every day. Examples are buying shopping at a supermarket, leasing a car, paying for gas and electricity. We live in a contractual world, but do both parties always live up to their obligations?

Physical Gold Counterparty Risk
With financial markets, there is always an element of counterparty risk

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The risk in investment terms

For any type of paper-based investment, where no direct assets are involved, e.g. shares, bonds, traded funds, etc. there is always a degree of counterparty risk. Here is a list of just a few of the risks associated with the company or fund you may indirectly be dealing with:

  • Credit status – the credit status of the company / fund can create issues with ability to trade
  • Employee fraud – (e.g. embezzlement), particularly at Director level
  • Liquidity – whilst trading profitability a business may be illiquid, causing a lack of confidence with their bankers
  • Market changes – a sudden change in the market (e.g. oil price) could dramatically affect the value of an investment
  • Mergers and acquisitions – a significant organisational change could introduce new risk exposure
  • Overexposure to a bank – funds in a bank which collapses is a major financial risk


We hope you enjoy our YouTube video – “Buying gold bars – a guide for investors”

A cautionary word about gold ETFs

Don’t be fooled into thinking that gold ETFs (exchange traded funds) are free of counterparty risk,

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they are not as they are a commodity, a financial instrument. Always think of gold bullion and coins investment as entirely different from gold ETF investment. Investing in gold that you can “touch and feel” is investing in a real and tangible asset, whereas ETFs are paper gold only

Many investors think that an ETF is the same as owning physical gold, in that the funds gold is inventoried and recorded in accounts and in member areas of websites. This is true, but there are numerous risks associated with this type of investment and in recent years there has been a frequent number of increasingly severe cases of collapse and mismanagement of ETF funds. This article from Business Insider provides a useful insight.

Physical gold and silver have no counterparty risk

Precious metals like gold and silver have been traded for millennia and can be relied upon as a safe form of investment of wealth. Unlike some forms of investments, they are not country-specific, gold and silver can be traded everywhere across the world.

Gold and silver are real, tangible assets, which can be touched and have a known market price. Precious metals cannot default on payments or go bankrupt, don’t need boards of directors and are not subject to many manipulations that other investments can be.

Physical Gold Counterparty Risk
There is no counterparty risk with physical gold

Here at Physical Gold, we would always recommend a balanced portfolio of investments to spread risks. If you don’t own any gold or silver, why not buy some and reduce your counterparty risk?

Buy Physical Gold directly from us

So why not contact Physical Gold to buy real assets like gold and silver, which have no counterparty risk. We can deliver the gold and silver to you very quickly and provide an entirely smooth transaction. Contact us on 020 7060 9992 or email us through our contact form to begin discussions.

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The Predictable Liquidity of Gold

One of the main investment benefits of gold is its liquidity. In fact, if you think about it, the words “liquid” and “gold” go together as “liquid gold” proving the connection! In this article, we explore the liquidity of gold and how easy it is to convert gold bars and coins into cash in the bank.

First of all, it would be beneficial to define liquidity. Investopedia defines liquidity as:

“Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset’s price.”

Liquidity of Gold
Gold is highly liquid, convertible into cash and frequently rises in price over time

An example of poor liquidity

Take an investment item for example such as a house. This is an illiquid asset as it takes time to sell a house for its market price. Obviously, a house can be sold quickly, but this would be at a substantial drop in its value. Typically houses take 3 – 12 months to sell, so are illiquid where money is rapidly needed.


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Why is gold considered liquid?

Here are just some of the reasons why gold is considered liquid: PHYS01_Animated_Gif_2_MPU

  • Gold prices are published 24/7, gold can readily be sold at any time
  • Gold based products such as jewellery can readily be sold for cash at high street jewellers
  • Gold can be sold at any volume, from millions of Kg to an individual bar or coin
  • Gold has a long track record of success (it was even used in Roman times), which adds to market confidence

The appeal of gold’s liquidity

The liquidity of gold is undoubtedly a benefit, which many investors overlook, but think about it for a minute, if you needed to convert gold into cash quickly, liquidity is vital! The fact that gold has a spot price worldwide means it can be treated similarly to a currency but actually has less risk than an individual currency which is subject to the whims of the economy of the currency in question. Private investors have recognised the importance of portfolio diversification through gold and have recognised the liquidity issues associated with investments such as commodities, hedge funds, shares, etc.

Liquidity of Gold

Liquidity of Gold Coins

To maximize the ease at which you can sell your investment gold, buying bullion gold coins generally beats the liquidity of gold bars or collectors coins. Coins have the advantage of being small in a denomination which increases the selling options, therefore enhancing liquidity. There are more people who can afford a small coin than a large bar, so more buyers equates to an easier sale. Bullion coins are the most liquid of all as they require less expertise and knowledge than numismatic (older) coins. To achieve the optimum price when selling obscure or collectors coins, more time is required to find the right buyer than basic investment bullion coins.

Other benefits of gold investment

When you consider other benefits of gold in investment

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such as its rarity, as an inflation hedge, for investment portfolio diversity, its increasing industrial demand, the collectability/appeal of owning gold coins, etc. there are many other reasons too apart from liquidity to invest in gold. Effectively liquidity is an added extra benefit for free!

Contact Physical Gold to invest in gold

Investing in gold couldn’t be easier, simply contact Physical Gold today on 020 7060 9992 and we can advise you on the best gold investment approach for your circumstances. Look around our site to view our options and email us to arrange a call or with any questions you may have about gold investment.

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Gold Investment – a Great Family Heirloom

Gold investment as an heirloom, it’s a definite option. Many investors tend to think of gold as a short-medium term investment but really there’s every reason to think about gold investment as a family heirloom, one that can be passed to the next generations. We explore this topic in our latest article.

First of all, let’s provide a definition of the word “heirloom” from the Oxford English Dictionary –

“A valuable object that has belonged to a family for several generations”.

Gold Investment as an Heirloom
Historic gold price chart showing gold has been a sound historical investment

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Classic family heirlooms

Of course, for an heirloom to be deemed “valuable” within a family it doesn’t have to be an investment, treasured non-investment type heirlooms could include furniture, keepsakes, letters, photographs, scrapbooks, etc. The primary focus of this article though will be investment type heirlooms!

Examples of classic family investment heirlooms include art, ceramics, collections (e.g. stamps), cookware, jewellery, musical instruments, property, rugs and not least precious metals such as gold and silver!

Building family heirlooms with gold

Many wise investors have decided to build family heirlooms based on gold! There are two main ways to do this:

It’s generally thought for heirloom purposes that investing in gold coins is better than investing in gold bars. The reason is primarily that gold coins have more interest than gold bars, which whilst valuable have no intrinsic appeal outside of investment.

Gold Investment as an Heirloom
Family heirlooms could be built with gold coins or bars

Buying gold coins adds numismatic / collectible value

When buying gold coins there is an opportunity for numismatic / collectible value to accrue. This is “over and above” the core precious metal within the coins, which will also vary over time. Prudent investment may lead to a significant return on original investments.

For example, how nice would it be right now to have built up a collection of Britannia coins, buying one each year from their launch in 1987 onwards. As we write you’d have 31 in your collection and have built a family heirloom into the bargain!

Build a gold family heirloom with Physical Gold

So why not build a legacy which will last? A gold investment heirloom for future generations of your family? Insider's Guide to gold and silverYou can do by ordering through Physical Gold, whether it’s a one-off or occasional investment or through our monthly saver account.

If you have an existing gold heirloom, then why not simply add to it? We can recommend gold options, which would be a perfect addition to your gold based heirloom.

Contacting Physical Gold

Call us today on 020 7060 9992 to discuss heirloom planning, or email us via our contact form. We’d be delighted to discuss the various approaches, many of which offer very beneficial tax advantages too.

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Why Gold is Better Than Cash in the Bank

Here we explore an age-old debate of cash versus gold, the benefits/disadvantages of cash and why we conclude that gold is better than cash in the bank!

Note: when we refer to cash, we are meaning cash in both a physical form as well as cash held in a bank account, which can readily be withdrawn.

Gold Better Than Cash
Gold bars or cash, we discuss which is the best option

Benefits of cash

We start our discussions with the benefits of cash, because clearly there are many which we have listed below:

  • Familiar – as a type of investment cash is familiar to everybody. Cash can readily be traded for goods and services as required
  • Highly liquid – a major benefit of cash is that it is highly liquid. In times of need, the cash owner can use this for whatever purposes they require
  • No counterparty risk – holding physical cash has no counterparty risk. Cash in the bank has the risk (albeit small) of the banking collapse and forfeiture/freezing by government authorities

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Disadvantages of cash

There are many disadvantages of cash as a form of investment, we go on to discuss just some of these below:

  • Destructible – cash in a physical form is destructible, notes will burn for example
  • Devaluation – cash could literally become worth a reduced amount through an overnight currency devaluation by the issuing government
  • Fraud – cash can be fraudulently copied and may cause the owner to have worthless paper (when stored physically)
  • Inflation – as inflation rises the value of cash declines, in times of rampant inflation an investment nest egg can seriously deteriorate
  • Local use only – most currencies can only be used locally, for global use they need to be converted, which usually attracts an exchange rate conversion fee
  • No capital gains opportunity – there is literally no capital gains to be made from cash (other than perhaps in an economy in deflation, which is rare)
  • Theft/loss – physical cash could be stolen or lost. Cash in a bank account could be stolen through fraud and/or bank employee misconduct
Gold Better Than Cash
Inflation is a major enemy of cash

Why invest in gold rather than keep the cash?

When looking through the above list of benefits and disadvantages of cash one conclusion can be drawn,

PHYS01_Animated_Gif_2_MPU

physical gold has all the benefits and most of the disadvantages can be mitigated against. Gold has well and truly stood the test of time and has been used as a method of exchange in trade for 5,000+ years.

Analysing the benefits of cash, we can also say that physical gold is familiar in both coin and bullion formats, is also highly liquid and has no counterparty risk.

Looking at the disadvantages of cash it is clear that physical gold doesn’t have these disadvantages in common. Physical gold is virtually indestructible, and it can’t be devalued by the whim or economic needs of a government. Physical gold stored by the owner isn’t subject to fraud and generally (looking at history) as inflation rises so does the price of gold, which is renowned as an investment product to use to hedge against inflation.

Gold investment as part of a balanced investment portfolio

 

Gold is the same worldwide, there is no need to convert at a cost into a local currency. Unlike with cash, there is a chance of capital gains with gold, historically gold prices have performed well. Physical gold could be at risk of theft, so the owner does need to make sure that strong security is in place, sometimes this could be through third-party storage, which needs to be investigated carefully to reduce counterparty risk.

Convert cash into gold now

Call 020 7060 9992 and speak to Physical Gold now about your requirements and we can advise on the best approach for you. We can advise on strategies of how to best convert your paper wealth into physical gold and in doing so realise the benefits previously described. If you prefer to, email us now at https://www.physicalgold.com/contact/ for an early reply and to start discussions.

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The Benefits of Gold in a Diverse Investment Portfolio

Having a healthy investment portfolio adds “peace of mind”, particularly when approaching or during retirement years. Having a diversity of investments is important in reducing risks and balancing out returns especially in the medium-long term. Gold is often ignored or not even considered in a portfolio. In this article, we look at the benefits of adding gold to a diverse investment portfolio.

Blasting the myth that gold is a luxury and difficult to buy

There is a myth that buying gold and storing it is difficult. This is simply untrue. Once you know how, buying gold is as easy as buying water. Look at our “how to buy gold” for comprehensive advice. If you’re in doubt give us a call at Physical Gold and we can explain the options. There are simply no reasons to eliminate gold from an investment portfolio based on “perceived” complexity of purchase.

Benefits of Gold Investment
Gold bars are a safe and attainable form of investment

Many investors think of gold as a luxury item and “out of reach”, it’s not the case. If you visit our shop you’ll see gold coins for as little as £120 and gold bar prices from only £200.


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Why invest diversely?

Investing in diverse financial products reduces risks and over the medium-long term generally increases gains too.

It’s clear to see from history that the global economy moves in cycles, different types of assets will perform better at different times during this economic cycle.

Investors would be very wealthy if they could exactly predict these cycles, PHYS01_Animated_Gif_2_MPUso to reduce risk it is prudent to spread investment across a range of financial products, some safe, some higher risk, some with higher levels of capital growth, some with higher dividend income, etc. The general thought is that low performing investments will be countered by high performing ones and overall the portfolio would deliver appropriate returns.

That’s not all….

UK households especially have seen that even currencies aren’t safe with major swings being seen on £sterling since Brexit and also with Dollars and Euros across time. The idea that savings accounts and ISAs are the only or main investment/saving method is simply flawed, there are far more options, which add diversity, reduces risk and hedge against inflation.

The mix of investment varies by circumstances, which is where an Independent Financial Advisor (IFA) can offer value. IFA’s will have a feel for the economic climate and are likely to vary the mix of investments accordingly.

What % of a portfolio should be invested in gold and precious metals?

Ask ten experts and probably receive ten answers! There are numerous reasons to invest in gold (which we list below). A major reason is safety and reducing portfolio risk as gold is classed as a safe form of investment.

In general, we believe that a minimum of 5% and a maximum of 20% of a widespread investment portfolio should be in gold (bullion or coins). An IFA can advise based on personal circumstances, the exact mix will vary depending on returns required and level of aggression and attitude towards investment.

Benefits of Gold Investment
Coins could feature as part of an investment portfolio and add numismatic interest

Benefits of gold investment

The primary aim of this article is the diversity of portfolio, but it’s useful here to highlight some of the beneficial aspects of gold investment:

  • Collectible/hobby – potentially gold coin investment could become a hobby (“numismatics”)
  • Hedge against inflation – gold has in the long-term been used as a hedge against inflation
  • Indestructible – gold can’t be destroyed, cash/property can burn
  • Liquid – gold is liquid and can rapidly be turned into cash, unlike other investments such as property
  • Potentially higher profits – gold will potentially make higher profits than other investments (e.g. low-interest savings accounts)
  • Reduced counterparty risk – eliminate risks associated with third parties
  • Reduced risk of banking collapse – store wealth outside of the banking system
  • Reduced risk of financial market collapse – if markets collapse, e.g. Stock Exchange, gold is a safe haven
  • Safe – as discussed previously gold investment is seen as relatively “safe”, which has its value in a diverse portfolio, gold is often turned too in times of economic turmoil
  • UK Tax-free benefits – there are tax benefits associated with a gold investment in the UK

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Related article

Also, see our previous related article “The Benefits of Gold” for information on similar topics.

Invest in gold with Physical Gold

So, if having read this article you’re interested in adding physical gold to your investment portfolio then call us today on 020 7060 9992. We are experts in the supply of gold coins and bullion and can advise on adding diversity through gold to your portfolio.

We also sell silver too, which is another excellent way of diversifying your investment portfolio. Why not visit our contact us page and send us an email today to start discussions?

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The Health Benefits of Gold

The benefits of eating gold

We’re talking gold leaf and dust here – not gold bars or coins! One thing we need to make sure about from the start is that we are talking about the edibility of gold flakes, dust and salts here. Gold bars and gold coins are 100% inedible!

Some facts about edible gold

Edible gold is chemically inert and will not react inside the human body (e.g. to stomach acids). Gold will simply pass through the digestion system and will not absorb. In theory, people can eat as much gold flakes, dust or salts as they like without getting ill, it’s like any food though, stomach aches are likely to be the result of excess eating.

Edible gold has an E Number, which is E175 and is widely recognised as a food additive. Edible gold is also gluten-free and there is no need for any form of testing on animals.

As 24-karat gold is often considered too fragile and soft most edible gold also has small amounts of silver added too.

Health Benefits of Gold
Champagne with gold flakes – a drink with the WOW factor

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What are the health benefits of consuming gold?

Now we have established that it’s safe to consume gold, we can now detail some of the health benefits of eating gold, these are listed below:

  • Anti-inflammatory – gold salts are well-known for their use in rheumatoid arthritis treatment and in similar applications
  • Cancer treatment – gold isotope 198 is used in some forms of cancer treatment
  • Dentistry – gold alloys are widely used in restorative dental surgery in applications such as bridges and crowns
  • Mental health – Treats mental health and nervous disorders such as depression, epilepsy and migraine headaches as well as increasing concentration and awareness
  • Psychological – There is a psychological aspect to many consumers who believe something this valuable and rare must also be of benefit to health!
  • Surgery – gold is used in surgery to repair blood vessels, bones, membranes and nerves

Accreditations of gold for consumption

The following agencies are just some of the agencies which recognise that gold is safe for consumption by humans:

Health Benefits of gold
Goldwasser is a popular drink in Poland and Germany which contains gold

Food and drink recipes for gold

Here are some suggestions as to how to add gold flakes into food and drink recipes. The primary reason to add gold in food and drink is ostentatiousness as gold has no taste or nutritional value, but does have health benefits previously described:

  • Chocolates and sweets – dust gold onto chocolates and sweets to add a WOW factor. Sweets with gold leaf are popular in Asia, with sweets like Vark being in popular use
  • Decoration – gold is used as a decorative additive to desserts and champagne flutes, etc.
  • Drinks – gold dust/flakes can be added to drinks such as Champagne and other expensive treats such as cocktails. In Poland, Goldwasser (translated Gold Water) is a traditional herbal liqueur
  • Fruits – Add gold dust to fruits such as dates, figs, grapes, oranges and pomegranates, etc.

Insider's Guide to gold and silver

Learn about “Understanding the gold price per oz” in this Physical Gold video.

Contacting Physical Gold

The above reveals just how precious gold really is. Obviously as a business, Physical Gold is here to buy gold primarily for investments, but we thought this was an interesting and fun topic you’d want to hear about! If you want to buy or sell gold coins (e.g. gold Britannias and gold Sovereigns) or gold bars (100g, 1oz, or even 1KG) call us now on 020 7060 9992, or email us through our contact page.

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UK Interest Rates Double – How will this impact Gold Trading?

The UK interest rate rise

On Thursday 2nd November, the Bank of England raised UK interest rates for the first time in over a decade. This doubles the interest rate, with a rise from 0.25% to 0.5%, re-establishing the rate, which was cut in June 2016 due to the Brexit decision. The 0.5% rate had previously been in place since 2009 following the financial crisis.

Interest Rates
Mark Carney of the Bank of England has announced a doubling of UK interest rates

Why the increase?

The Bank has raised interest rates primarily to stifle surging inflation at a time of stagnating wage growth. The UK Consumer Prices Index currently stands at 3% which is its highest since April 2012, some Analysts have predicted this could rise to over 5%. This decision by the bank is aimed at calming down UK spending by reducing the demand for services and goods.

The inflationary rises are largely caused by the weakness of £ sterling following Brexit and also a slowdown in the UKM economy. If interest rates were kept at 0.25% it would only make inflationary pressures worse in the minds of the Bank.


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Impact of the interest rate rise on consumers

The impact of the rate rises is obvious in that borrowers suffer, whilst savers benefit! This is because many millions of UK mortgages and savings accounts are based on the base rate of the Bank of England. Within hours of the announcement, the FT reports that Lloyds Bank, Royal Bank of Scotland, Santander, TSB and Yorkshire Building Society had all revised changes to both their mortgages and savings account rates.

Outlook for borrowers

In the UK, 43% of homeowners have either variable or tracker type mortgages, both of which will see an almost immediate increase in mortgage rates. This is bad news for UK households with mortgages in the run-up until Christmas.

Outlook for savers

Conversely, the news for savers is welcomed as many will see an immediate 0.25% increase in their variable rate based savings accounts. This will particularly benefit many pensioners in the UK.

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Gold investment for savers

Gold and other precious metals investment are often said to be a hedge against inflation, we have previously written about this ourselves here. Now then, could be a great time for savers to invest in gold with some of their increased income from savings accounts following the rate cut. Diversifying investments (particularly in times of inflationary pressure) is always a wise idea.

Low priced investment options

For borrowers facing an interest rate rise, all is not lost! Gold and precious metal investment needn’t cost a fortune, below we list two investment options all costing less than £300 each at the time of writing:

Discuss the interest rates with Physical Gold

If there is any aspect of the UK rate rise you’d like to discuss about precious metals investment, then don’t hesitate to call us on 020 7060 9992 for a friendly discussion. Also, feel free to email us using our contact form for an early reply.

Image Credit: Bank of England

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What is Signature Gold?

On 2nd June 2015, the Royal Mint launched “Signature Gold”, which is both a brand name and trading service they provide. Here we explore what Signature Gold is, how to buy and sell it as well as storage and legal aspects of this form of gold investment.

About Signature Gold

The Signature Gold service requires a personal account with the Royal Mint, which will require scrutiny/approval before the service can be used. Accounts can be set up and the service used at http://www.royalmintbullion.com/. The service is available 24 hours per day x 365 days per year.

A management fee is charged for the service, this is 0.5% + VAT per annum and is charged quarterly in arrears. The fee will be based on the average daily value of total gold held by the customer in the vault.


Thinking about buying gold? Download the 7 step cheat sheet first


Signature Gold is a form of fractional gold investment, where investors buy a fraction of a 999.9 fine gold bar. The Royal Mint buy 400 oz. gold bars specifically for this service, which comply with the LBMA Good Delivery Standard. The service was introduced as an entry level gold investment product with investments starting at only £20.

Signature Gold
Signature Gold is a form of fractional gold bar investment and is available from the Royal Mint

The customer deals with the Royal Mint from start to finish, no other third parties are involved. There is no exposure therefore to any form of counterparty risk via this service.

Buying and selling Signature Gold

Customers of the service buy gold based on value rather than weight, e.g. £20 rather than a coin or by the ounce, etc. Gold bought through the service can be sold at any time, once sold gold is available instantly through the customer’s personal account with the Royal Mint.

Gold is bought based on prices published on the website, which are linked to the current gold price on the open market. Gold bought or sold is priced to the nearest 0.001 oz.

“The Gold price today & investing in gold medium to long term” a Physical Gold Ltd. YouTube video.

Storage and legal aspects

Customers do not have physical access to their gold, which is stored in the Royal Mint’s vaults in London. Insider's Guide to gold and silverThe Royal Mint always has more of the gold bars stored in the vault than have been bought by customers. Customers have full legal ownership over every ounce of gold they buy.

Should you buy Signature Gold?

In our February 2017 article “the do’s and don’ts of buying gold” we recommended, “not buying large amounts of fractional coins”. This advice still stands and there are more effective physical gold investment strategies such as buying gold coins and gold bars.

Contacting Physical Gold to discuss fractional gold investments

We can only say so much in an article as everybody’s circumstances are slightly different, so call us on 020 7060 9992 for friendly and impartial advice. Emails can be sent via our contact page, we look forward to hearing from you.

 

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King Edward VII Sovereign – All You Need to Know

British Sovereigns have existed since ancient times, but the modern-day Sovereign has been minted since Great Recoinage of 1816. Sovereigns have been produced for each Monarch since this time with King Edward VII being no exception. In this article, we provide various facts and insights about King Edward VII sovereigns.

Date of King Edward VII Sovereigns

King Edward VII was king of the UK and British Dominions from 22nd January 1901 through until 6th May 1910. Therefore, King Edward VII Sovereigns were minted at this time with coins being available with dates from 1902 (when King Edward was crowned) until his death in 1910.

King Edward VII Sovereign
The King Edward VII Sovereign

Sovereign design

This sovereign features the following design on the obverse/reverse:PHYS01_Animated_Gif_2_MPU

  • Obverse – The obverse features a portrait of Edward VII
  • Reverse – The reverse displays a St. George and Dragon design

Where were they minted?

There are five possible mint locations for King Edward VII sovereigns, these are listed below with the quantities minted (around 200 million in total):

  • London – 105 million
  • Australia:
    • Melbourne – 31 million
    • Perth – 42 million
    • Sydney – 22 million
  • Ottawa, Canada – Only 45,000
Kind Edward VII Sovereign
Example of the obverse side of a 1909 King Edward VII Sovereign

Production quantities by year

The following were the production quantities of gold sovereigns for each year:

  • 1902 – 16.1 million
  • 1903 – 19.9 million
  • 1904 – 21.3 million
  • 1905 – 16.4 million
  • 1906 – 21.7 million
  • 1907 – 29.3 million
  • 1908 – 21.7 million
  • 1909 – 21.8 million and
  • 1910 – 32.3 million

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Use as £1 coin

Until the first world war sovereigns were used as £1 coins. The majority of the population could not afford to keep them as collectibles, so many sovereigns became worn through active use. Therefore, to this day the quality of sovereigns is extremely variable with matte proof and extra fine examples commanding a significant price premium.

Investment approach

The gold amount within a King Edward VII sovereign weighs about 0.2354 troy oz. (i.e. just less than quarter of an oz. When calculating as an investment it’s easy to see that a premium is paid for these Sovereigns over the market price for gold. This is the balance between the current gold price and its numismatic value. When buying coins like this it’s important to remember for your investment you are not only becoming a gold owner, but also will benefit from the future collectors’ demand for these Sovereigns. If in doubt just give us a call and we can advise on the best investment approach for your circumstances.

Buying King Edward VII Sovereigns through Physical Gold

If you are looking to buy this famous and highly collectible Sovereign, then why not contact us here at Physical Gold on 020 7060 9992? We, of course, stock this Sovereign, but what we hold does fluctuate, so contact us for our latest holdings and price. If you need a specific year or level of quality, please let us know.

Image Credit: James Shepherd

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50 Years of the South African Krugerrand in 2017

The 3rd July 1967 was an important date in the world of gold coins as it saw the release of the Krugerrand by the South African Mint. The Krugerrand was an important vehicle for South Africa to release its gold reserves worldwide. At the time South Africa was mining c75% of the world’s annual gold supply and this coin was a convenient and collectible way for the gold to be used and was more affordable to the man on the street than gold bars.


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Name origin

The Krugerrand has a name origin, split into two parts, which are:

  • Kruger – Named after Paul Kruger, the president of the South African Republic from 1883 to 1900. His portrait features on one side of the coin
  • Rand – The rand is a currency used in South Africa and is named after the “White waters’ ridge” (Witwatersrand in Afrikaans). This area is prolific for gold mining and is the origin of in excess of 50% of the gold ever mined on earth
South African Krugerrand
Investing in gold Krugerrands is a solid investment idea

10 amazing facts and stats about the Krugerrand

  • The Krugerrand was the world’s first 1oz. weight gold coin, where weight was used as the denomination
  • They have no face value, instead, the coin’s value is actively known across the world and is based on its precious metal content
  • The Krugerrand is easily the most recognisable gold coin worldwide
  • In 1980, ½ oz. ¼ oz. and 1/10 oz. versions of the Krugerrand were released to help investors with more restricted budgets
  • The Krugerrand has been mass produced, with more than fifty million being minted to date
  • The reverse side of a Krugerrand features a springbok, a type of South African antelope and symbol of the country
  • The coin is gold alloy featuring 91.67% 22-Karat gold and 8.33% copper (this is quite like the constitution of a British Sovereign)
  • Proof versions of the coin have been produced with collectors in mind as opposed to a primary motive of investment. Proof coins have 220 serrations on the edge of the coin whereas the standard bullion coins have just 160
  • Platinum and silver proof versions of the Krugerrand were released for the fiftieth anniversary
  • A special 50oz. version of the coin was minted for the fiftieth anniversary, these are highly collectible as only fifty were ever minted
South African Krugerrand
It’s the 50th anniversary of the South African Krugerrand in 2017

Here’s to another fifty years

Whilst other countries have released their own national coins (e.g. the Canadian Maple Leaf (1979), the American Golden Eagle (1986) and the Britannia (1987), etc.) demand worldwide for the Krugerrand is still extremely strong. This coin has well and truly stood the test of time and has not disappointed happy investors. Here’s looking forward to another fifty years of the Krugerrand.

Further reading

For further information about the South African Krugerrand also read our recent insight article by clicking South African Krugerrand.

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Buying Krugerrands from Physical Gold

It’s the 50th (or Golden anniversary) of the Krugerrand, so why not buy some now from us here at Physical Gold? Call us today on 020 7060 9992 to place your order or discuss your requirements or email us via our contact form here.

 

Image Credit: Rajeev Prasad

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8 of the Very Best Foreign Silver Coins – 2012 to 2017

The last five years have seen a massive amount of new issue releases of foreign silver coins around the world. We have carefully researched past mintages and created a list of eight of the very best foreign silver coins issued over the past five years. Of course, this is subject to opinion, but we believe adding one each of these eight coins will be a great addition to any silver investment portfolio and silver numismatic collection. We now start our list, which is provided in-country alphabetical order.

  • Australia – 2012 1Kg Australian Diamond Jubilee Silver Coin

We start our journey around the world with a fine Australian coin, the 2012 1Kg silver coin to commemorate the diamond jubilee of Queen Elizabeth II. This will be very tricky to acquire as it only had a mintage of 600. This is a 99.99% proof quality silver coin and comes with a certificate of authenticity and presentation packaging. As the coin is 1Kg in weight the coin is also more expensive than many in this list, with a silver value alone of c£400, expect to pay £1,400+ for this coin.


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  • Australia – 2017 1Kg Silver Kookaburra coin

We stay in Australia for our second coin, which is the 2017 1Kg version of the highly investible and collectable ever-popular Kookaburra series of coins. First introduced in 1990 these coins have stood the test of time and we are highly hopeful of the 2017 version, which as of November only had a mintage of 3,628 which is far lower than previous years (2016 – 13,355 and 2015 – 27,094). These are legal tender in Australia with a value of $30Aus. The good news is that these are available in-store today for around £550 at the time of writing, visit https://www.physicalgold.com/1-kilo-kookaburra-silver-2018/ for further details.

Foreign Silver Coins
The Australian 2017 1 Kilo Kookaburra silver coin
  • Austria – 2017 0.5oz. Gabriel – The Revealing Angel

We now move swiftly on to Austria a country with a rich coin publishing tradition. We love the Revealing Angel coin recently released, this is proof quality silver weighing 0.5oz. With a limited mintage of 30,000, we are sure this will be popular and rise in value over time. Available at around £40, there is a significant premium to pay, which is for the numismatic value and the high collectability of this coin. Also, from Austria checkout the Philharmonic range of coins, which we hold in stock.

  • Barbados – 2016 1oz. Golden Jubilee – Limited Edition 1000 mintage

To celebrate Barbados’ golden jubilee the

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central bank of Barbados released this special commemorative 1oz. silver coin for the occasion. Made of 99.9% pure silver and featuring some gold-plated elements this coin has an attractively low mintage of only 1,000. Buy now if you can find this coin as it is bound to be popular and is very likely to rise in price over time. This coin also has the attraction of being from an unusual coin publishing country, so adds a little extra appeal to a collection.

  • Canada – 2016 0.28oz. Queen Elizabeth Rose with Selective Rose Gold Plating

We noticed this special limited edition 0.28oz silver coin from the Canada mint. It’s a 99.99% silver coin featuring selective rose gold plating. Very attractive on the eye this coin only has a mintage of 10,000 and is legal tender in Canada with a face value of $3Canadian. This coin is extremely attractive on the eye and comes with its own presentation box. Buying one of these is highly recommended. Also, from Canada why not consider buying a 1oz. Silver Maple leaf coin, details at https://www.physicalgold.com/silver-maple-leaf-1oz-coin-2020/, these are also highly collectable and investible.

  • Falkland Islands – 2017 1oz. Britannia Falkland Islands Silver Bullion Coin

Pobjoy mint produced this attractive coin commemorating the 35th anniversary of the Falklands War. Very patriotic, this coin features an effigy of Queen Elizabeth II on the obverse and the reverse has “Britannia rules the waves” with a classic image of Britannia with trident, headgear and robe. Mintage is guaranteed to be a maximum 50,000 but the final figure is not known as production is ongoing.

  • New Zealand – 2013 1 oz. Proof Gilded Snake Silver Lunar Coin

We love the lunar range of coins which are available from the New Zealand Mint. Published for each Lunar Year each one has its own appeal. We particularly liked the 2013 Year of the Snake proof, which is 99.9% proof quality silver and to coincide with the year had a mintage of only 2,013. This is bound to increase in popularity and we advise buying this and other years including 2014 Horse, 2015 Goat, 2016 Monkey, 2017 Rooster and 2018 Dog.

  • Somalia – 2016 1 oz. Somalian Silver Elephant Proof Coin

If you like to collect unusual countries coins, then why not buy one from Somalia? Made from 99.99% grade silver these coins are minted in Germany by the Bavarian Mint. Highly collectable these coins are competitively priced at just above the silver spot price. Offering less investment potential due to their higher mintage numbers, these coins are still very attractive on the eye and a very worthwhile buy!

Note: We are unable to publish images of the coins above due to licence restrictions, but these can be viewed by clicking on the links provided.
Insider's Guide to gold and silver

Buying foreign investment silver coins from Physical Gold

Physical Gold always hold a stock of foreign investment silver coins, these vary from week to week so contact us to explore our latest stock holdings. Also, check out our foreign silver coins page, which lists popular silver coins such as the Australian KoalaAustralian KookaburraCanadian Maple Leaf and Austrian Philharmonic.

 

Why not contact us today on 020 7060 9992 or email us via our contact page for further information on investing in foreign silver coins?