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Chinese Panda Coin

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The Panda coin

Country: China
Face Value: 100 Yuan
Gold Content: 1 ounce (31.103g)
Purity: 99.99% (24 karat)
Gross Weight: 31.1036g
Coin Diameter: 32.103mm
First year of issue: 1982

The Chinese Panda coin is a series of gold bullion coins issued by the People’s Republic of China. This coin is 24 karat gold and has a face value of 100 Yuan. The mint introduced the Panda gold bullion coins in 1982. Each year of production, other than 2002, the reverse design of the panda coin has changed and has therefore enabled the Chinese to build a steady demand regardless of gold price fluctuations.

Over the last 30 years, Gold Panda Coins have become an established favourite with many collectors, who appreciate their stunning and unusual designs, as well as the coin’s highly distinctive colouring. The coin itself is backed by the Chinese Government which means it has a guaranteed purity level much like the UK Britannia coin or the South African Krugerrand.


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Mintmarks

One area where Panda Coins differ to other bullion coins is that they don’t contain any mintmarks to show the place where they have been produced. Pandas are produced in a number of different Chinese mints including Beijing, Shanghai, and Shenyang. In order to determine the mint, you need to take a careful look at variations between coins such as the colour of the metal or subtle design differences.

Panda Coin
2016 Chinese Panda coin

Currently, all Gold Panda Coins have a purity of 99.99, making them an ideal option for gold bullion investors. They are also available in a wide range of different denominations, depending on your investment requirements. Up until 2016, the gold Panda was produced in denominations ranging from 1oz to 1/20oz.

Now in metric…

This has now changed, however, and Panda Coins are currently being minted in metric system sizes instead. The reason for this change is purely down to the coins growing popularity with international investors. With many countries replacing the old troy ounce system with modern metrics, the People’s Republic of China felt they could capitalize on the coin’s widespread appeal by following suit. The new and updated coin sizes can be seen below:

  • 1 oz coin is now 30 grams
  • 1/2 oz coin is now 15 grams
  • 1/4 oz coin is now 8 grams
  • 1/10 oz coin is now 3 grams and
  • 1/20 oz coin is now 1 gram

Since 1983 the Panda Coin has also been available in silver. Like the Gold Panda, the Silver Panda Coin’s design changes every year making them very collectable among investors.
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The growing appeal of Panda Coins

Many astute investors believe Panda premiums could rise significantly over the coming years due to growing demand linked into China’s rise as an economic powerhouse. With their modest premiums, these coins can offer a viable bullion alternative. There is also a vast natural market for Panda Coins due to the growing amount of expatriate Chinese ethnics.

The obverse features the Temple of Heaven with Chinese characters on top saying “Zhonghua Renmin Gongheguo” meaning the People’s Republic of China. If the issue is a commemorative issue of the Chinese Panda coin, the theme will be marked below.

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Variety….

The Reverse shows different portraits of pandas that change every year, other than the one exception in 2002.

Whilst the value of gold and silver has been in continual fluctuation over the past few years, the value of Panda Coins has continually increased, and the market shows no signs of slowing down. Currently, Panda Coins are growing in value at a much higher rate than other bullion coins. This is partly due to the fact that they are comparatively relatively scarce, and also because they are only produced in fairly small mintages.

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Where to buy gold bullion in London

Where to buy gold bullion

Everyone wants to possess their own piece of gold bullion. Certainly, physical gold beats paper gold in anyone’s mind. However, unless you’re an expert, it’s not always obvious where to buy gold bullion. You want to feel comfortable that the gold is genuine, in good condition and at a great price. So, if you’re looking to buy gold bullion in London there are several options. Investors can buy gold London wide, here we provide some insights as to the best places to shop.

West End jewellery shops

You can’t beat the feeling of browsing and unearthing hidden treasures. London is fortunate to possess many obscure boutiques and jewellery shops selling all sorts of collectables. There is every chance that you may unearth the odd modest sized pieces of gold bullion.

Also, watch our YouTube video – “How much is a gold bar worth?”

However, you are far more likely to find collectable and historical gold coins in these places. The problem is that you may well end up paying far more than the bullion price as the gold is deemed to hold a degree of numismatic value. After all, do you know the value of a Victorian gold Sovereign? – See our guide to buying gold Sovereigns here and also view our main gold sovereigns page here


Before you buy gold bullion, make sure you read our FREE Ultimate Insider’s Guide to Gold Investment


Hatton Garden

One of the most famous jewellery quarters in Europe is the area known as Hatton Garden, not far from Farringdon tube station, it is a must-go place to visit when you buy gold in London. This is one long road of continuous jewellers, meaning that they have to be relatively competitive to gain your business. Their focus will be more on selling jewellery so any second-hand bullion bars they receive may well be melted down before you get the chance to buy it.  Ask what they have as it’s unlikely that such small gold bullion bars will be on display. There is also a chance that you may be able to unearth the odd gold bullion coin at reasonable prices, but they may be in poor condition. Undoubtedly though, Hatton Garden has to be one of the best places where to buy gold in London.

where to buy gold bullion
Finding gold bullion from a reliable dealer in London can often involve quite a hunt

Buy Gold London – Other Areas to Consider

Within the Central London area, many retail outlets deal in gold jewellery and bullion. However, do bear in mind that much of this is likely to be jewellery and coins. There is one shop now though, where you can buy gold bars. There are several shops around Old Bond Street, New Bond Street, Piccadilly Circus Station and Oxford Street. Oxford Street caters to the international tourists who flock to London each year and has nearly 20 shops on it. These range from mid-priced to extremely pricey. For example, the Selfridges building itself boasts of big names like Cartier, Van Cleef and Tiffany. That’s the high end.

Another area worthy of mention is Sloane Street near Knightsbridge, where there several gold dealers London premises are. This is a stone’s throw from Harrods, which is right next to the Knightsbridge tube station subway. Of course, Harrods is expensive, but there are many concession stores within the premises of Harrods. The concession model involves a brand using a designated space within a large departmental store, where deals are offered to customers. By association with Harrods, these gold retailers boost their brand image significantly.  One such example is the Graff Diamonds Concession.

and in the city…

Another area worth scouting is the area around the Bank of England. This is a well-spread area with Threadneedle Street and the Cornhill Road on one side and Princes Street and Queen Victoria Street on the other side. Near the Bank subway station, opposite the Bank of England lies the Royal Exchange – a shopping mall with several gold dealers in it. There are other large bullion dealers in the area as well on the Cornhill Road, as you go towards the Aldgate train station.

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Gold dealers

There are many specialist gold dealers located in and around London. These guys should be able to offer you a variety of bullion options, from bullion gold coins or gold bars in a variety of sizes. Always buy from members of the British Numismatic Trade Association (BNTA) or British Numismatic Society as you’ll be able to trust the authenticity of their gold.  However, before you decide to hunt down your nearest gold dealer and turn up with cash to buy your gold bullion, there are security issues to consider.

Criminals target people emerging from such premises as they know there’s a good chance that you’ll be holding some gold. As well as the threat of being mugged, it’s unlikely your gold will be insured – leaving you nursing a possible financial loss. Most gold dealers will not accept passing trade for this very reason and tend to despatch from alternative, discrete premises. You would also need to bring identification if you wished to purchase and walk away with more than £5k of gold. However, many of these suppliers will safely and securely post the gold bullion direct to your door or offer an insured storage option, this is particularly the case for bulk purposes.

When choosing where to buy gold bullion, choosing gold dealers assures you of authenticity, purity, price and security.

Our London address:

  • Physical Gold Limited, Tower 42, 5th Floor, 25 Old Broad Street, London, EC2N 1HN, UK – This is for postal contact only as we do not have appointments here. Contact information is provided below.

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Call our investment advisors to find out more about reliable dealers in London

We hope you have enjoyed our guide to where to buy gold in London. Our team of experts can be reached if you need to find out more about the safest and most reliable way to buy gold and take delivery physically. Our experts have been in the gold business for years and can advise and guide you to avoid common pitfalls. Call us today on 020 7060 9992 or get in touch via our website. We’re always happy to help.

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World Gold Council – Cryptocurrencies are no substitute for gold

Bitcoin’s parabolic price rise was the big story of 2017 – putting the spotlight on the cryptocurrency market. While gold’s performance was a solid 13%, it was a fraction of the 13-fold increase of bitcoin by the end of the year. Some commentators went as far as to claim cryptocurrencies could replace gold. Cryptocurrencies may become an established part of the financial system. But, in our view, gold is very different from cryptocurrencies, as gold:

  • is less volatileCryptocurrencies
  • has a more liquid market
  • trades in an established regulatory framework
  • has a well understood role in an investment portfolio
  • has little overlap with cryptocurrencies on many sources of demand and supply.

These characteristics underpin gold’s role as a mainstream financial asset that will likely continue to resonate in today’s digital world.

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UK Britannia Coin

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britannia coin

Britannia coins are the one-ounce British Bullion coins issued by the Royal Mint since 1987. Both proof and bullion versions have been issued every year to date and fractional versions are commonly available.  The Britannia coin is available in either silver or gold and since 2013 has a purity value of 999.9. It is currently the largest, purest British legal tender coin available on the market.

Britannia coin

County: Great Britain
Face Value: £100 GBP
Gold Content: 1 ounce (31.104g) – Alloyed with copper or silver depending on year (pure from 2013)
Purity: 917 / 1000 (22 karat) (1987-2012) or 999.9/1000 (24 karat) (2013-)
Gross Weight: 34.0500 g (1987-2012) or 31.104g (2013-)
Coin Diameter: 32.69 mm (1987-2012) or 38.61mm (2013-)
First Year of issue: 1987

British coinage history

Britain has a long history of coinage. The first coins that were minted in Britain were Celtic ones around 80 BC. The first gold and silver coins in Britain were introduced by the Romans. The gold one was called ‘Aureus’ and the silver ‘Denarius’.

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Sell your Gold Britannias at the highest possible price. Find out how with our 10 simple rules


Why Britannia?

The ‘Britannia’ first appeared on the coins of the Roman Emperor Hadrian in AD119. PHYS01_Animated_Gif_2_MPUBritannia represents the strength of the British Isles in female form and she has been depicted as a goddess since the 2nd century. Over the years she has appeared on many coins including every penny issued from 1797 up until decimalisation and all 50p coins issued before 2008. Over the years the image of Britannia has changed with more of an emphasis being placed on her maritime links (She is often referred to as the Queen of the Seas) and images of her brandishing a spear have been replaced by those portraying her with a trident.

Bullion coin market growth

After the 80s saw a significant growth in the global bullion market, the Royal Mint introduced Britannia coins to their bullion portfolio. Designed by Philip Nathan, the coin featured a new interpretation of Britannia that was powerful, yet elegant and it caught the imagination of the entire nation. Introduced in 1987, the coin made a worldwide impact and became a classic. Today, 30 years later, the classic design still remains the same – with a small addition. The new design displays a radial sunburst on her back.

Britannia coin
The beautifully designed Gold Britannia

The Britannia – Europe’s premier modern coin

The Britannia coin is fast becoming Europe’s premier modern coin and is regarded as one of the world’s most beautiful coins. This coin is admired by collectors, dealers and investors from around the world, and is, therefore, one of the World’s most liquid coins.

With the face value of £100 UK Britannia coin is considered legal tender in Great Britain and it is therefore not subject to Capital Gains Tax when sold for a profit by UK residents. As the law currently stands you are required to pay CGT for any personal goods you have sold or made a profit on over the tax-free allowance rate of £11,300. As Gold and silver Britannia’s are CGT exempt, however, you can sell as many as you want over the tax year without having to pay CGT.

Design features

The classic design featured on the 2018 1oz Britannia coin

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displays a stroking image of a standing Britannia who is portrayed as a beautiful young woman, wearing a centurion’s helmet and holding her trident aloft. The reverse side of the coin features the most recent portrait of Queen Elizabeth II which was designed by Jody Clark of the Royal Mint and first introduced in 2015. Like previous editions of the Britannia coin, it has a purity of 999.9 and is created in 24 karat gold.

Britannia gold coins originally had a fineness of 91.7% or (22 karats) gold with the alloy being copper until 1989 and silver from 1990. The Royal Mint increased purity to 24 karats from 2013 to appeal to the ever-growing Asian market.

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Collectable and with solid investment potential

These lovely 24 karat coins are an amazing investment for any numismatist or an investor. They are worth their weight in gold and have a purity of 999.9 since 2013. The 2018 edition is excellent value for money and a fitting addition to any coin collection. Investors on the other hand, who want to invest serious money in these coins as an investment in gold, would benefit from purchasing a large number of the coins. This is because it works out considerably cheaper to buy gold bullion in bulk rather than individual coins. The advantage of purchasing gold in small denominations such as a coin also gives the investor an advantage in terms of liquidity. At a later point in time, when the investor wishes to exit gold as an investment strategy, he need not dilute all his investments. He can simply sell the ones he wishes to and transfers a part of that investment to another asset class.

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Britannia coins are also currently available in a range of different weights and denominations depending on the amount you wish to invest. These include 1/2, 1/4 and 1/10th troy ounce coins which have face values of £50, £25, and £10 respectively. Since 2013 two additional sizes of Britannia coin have been introduced – a 5-ounce coin and 1/20th ounce-coin. These have face values of £500 and £5.

Another reason to invest in Britannia Coins is that they present European and UK investors with the opportunity to purchase physical gold totally exempt from VAT.  All of our Britannia coins are available to purchase VAT free and CGT exempt.

The Britannia is a prestigious coin, famous all over the world and makes an excellent companion to gold sovereign coins. It would make an excellent Christmas gift item for someone in the family or a loved one. So, as we can see, investing in a Britannia isn’t just about parking money and hedging risks. The coin is a true work of art and would make a fitting family heirloom to be passed down from one generation to the other. The coins come with their own case and are suitable for display as an outstanding work of art and a great symbol of British history. Call us on 020 7060 9992 to discuss how we may help you invest in the Britannia 2017.

 

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The Power of Regular Gold Investment Plans

Investors now have more choice than ever when it comes to investing in gold. From pension plans to savers plans, there is something to suit every requirement. Regular gold investment plans are a great way to accumulate gold over a sustained period of time while spreading both the cost and risk that comes with investing in precious commodities. Here are several reasons why you should consider investing in a regular investment plan as opposed to just purchasing gold in one lump sum.


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Invest as much or as little as you want

Regular gold investment plans allow you to invest in much smaller Insider's Guide to gold and silverquantities than you would otherwise be able to. If you’re new to investing or you don’t have a huge amount of funds, then a regular investment plan can help you spread the cost of buying gold over a longer period, so you don’t need to have the total cash up front. Generally, dealers will advertise a minimum set price you are required to invest each month, however, this could be as little as £100.

Invest when it’s convenient for you

One of the many reasons people chose to invest in regular investment plans, is that it allows them the freedom to increase or lower their investment as their circumstances change. For example, you may want to gradually increase your monthly investment over time as you’re pay increases, or perhaps you’ve finished supporting your children through college or finished repaying loans / mortgage and now have additional funds to invest? A regular gold investment plan allows you to be versatile in your investment and you can stop paying into it at any time should you wish.

Avoid market volatility

One of the most difficult aspects of investing in gold is trying to judge the best time to invest so as to maximise your profits. Investing in a regular gold investment plan takes away the difficulty of having to try and predict the market. You avoid buying all your assets when the market is at its peak and by buying gold over a sustained period you end up paying a more balanced price. This is known as unit cost average saving.

Gold Investment Plans
Gold sovereigns are a great option for investors

Lower premiums

Dealers will often offer customers incentives to enter regular gold investment plans with them. This may include lower premiums than if you were buying gold as a one-off purchase.

Set up an automatic payment

A lot of dealers allow you to set up a monthly automatic payment or standing order with them. This way you can build up your gold portfolio without the worry of having to remember to order each month.
10 commandments

Invest in our monthly saver scheme

Our monthly saver scheme is a great way to purchase gold on a month-by-month basis. We can source the best quality coins at the best possible prices, and our scheme is individually tailored to your needs, depending on the amount you wish to invest. We even post the coins direct to your door. For more information, please contact us on 020 7060 9992.

 

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The gold market in 2018 – four trends to watch out for

FacebooktwitterredditpinterestlinkedinmailIn 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold’s positive price momentum continued: US$8.2bn flowed into gold-backed ETFs and the US$ gold price rose 13.5%, its best year since 20102018 Gold trends

As 2018 begins we explore four key market trends and their implications for gold:

  • synchronised global economic growth
  • shrinking central bank balance sheets and rising rates
  • frothy asset prices
  • market transparency, efficiency, and access.

We believe that these trends will support demand and maintain gold’s relevance as a strategic asset.

Download Outlook 2018

Insider's Guide to gold and silver

Gold has delivered positive returns over the long run, outperforming key asset classes

Annual average returns over various time periods*

2018 Gold trends

*As of 31 December 2017. Annual return computations are based on total return indices, except gold where the spot price is used. This arrangement more accurately reflects portfolio level performance.

Source: Bloomberg, ICE Benchmark Administration, World Gold Council

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The Different Types of Gold Investment (Outright, Monthly Saver, Pension)

There are many ways for modern consumers to invest in gold. Depending on your circumstances, you might wish to purchase gold through a one-off payment or perhaps you might decide to spread the risk by investing in a monthly saver plan. The flexible nature of gold investments means that you are never short of options when it comes to how you can invest, there are more choices now than at any time in history.

Purchasing gold outright

If you have the money to do so, then purchasing physical gold or bullion outright is the simplest way to invest in gold. You can buy bullion in two main forms. Either by purchasing gold coins (e.g. Sovereigns) or gold bars. Whilst there are pros and cons to both, it is generally considered easier to sell coins as they offer more flexibility. For example, you can sell one or two coins at a time rather than having to sell all of them.


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If you’re seeking variety….

Gold coins represent a great investment opportunity for investors. You can either invest in historic collectors’ coins or gold bullion. Collectors coins can provide great returns as they offer numismatic value as well as material value however, they also require a greater degree of market knowledge as their value is based on many different factors, not just simply their weight in gold.
Insider's Guide to gold and silver
Gold bullion coins are the most popular form of gold coin investment as they have a high gold content and a guaranteed level of purity. Certain gold bullion coins are also exempt from VAT and Capital Gains Tax. This includes all gold Britannia coins.

If you want to buy in bulk…

Gold bars are a great way to purchase gold in bulk. Investors have several options with regards to weight and can choose from 10g gold bars, 5g gold bars, 100g and 1oz. Many dealers also offer Vat free gold bullion bars with the option to store the bars in their own allocated vaults.

One helpful tip you might want to consider when purchasing gold is to always make sure you buy your gold through a recognised broker or professional dealer in order to avoid the risk of buying forged coins. When purchasing gold online or through sites such as eBay, you should always be careful that what you’re buying is exactly as advertised.

Types of Gold Investment
100 Gram Gold Bar

Monthly Saver

A monthly saver gold plan is ideal for investors who want to invest in a set amount of gold on a regular basis. If you don’t have a huge amount of funds to invest, or you want to spread the risk of investing over a longer period, then a regular gold investment plan is an ideal option.

A monthly gold saver plan offers investors the opportunity to gradually build up a portfolio of gold over time. The main benefit of purchasing gold this way is that investors avoid buying gold while it’s at its peak and doesn’t have to try and predict future twists and turns in the market.

Also, read our gold bars investment video – “Buying gold bars – a guide for investors”

Pension Gold

Holding gold in a pension plan can provide

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additional security for investors looking for long-term financial security. A self-invested personal pension (SIPP) now allows individuals to benefit from additional tax relief on the cash invested in the plan and you can invest in gold bullion as part of a range of diversified investments approved by HMRC. Since the financial conduct authority added gold to its list of approved assets, investors can now benefit from up to 45% tax relief on gold bullion.

Here’s the deal….

For gold bullion to be eligible for a pension scheme it must fit certain criteria. Currently, these criteria extend to all gold bars or wafer with a purity of at least 99.5% providing it is professionally stored. The only potential disadvantage to pension gold is that you don’t own your gold directly as it belongs to your pension fund. This means that should the price of gold go up, you can’t just then decide to sell.

Invest in Physical Gold’s different gold plans

Here at Physical Gold, we offer two main investment packages including our regular monthly saver plan and our pension gold plan. If you would like to discuss either of these in more detail or need additional information on any of our other services, please give our experienced advisers a call on 020 7060 9992.

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Gold Investment – a Powerful Diversification Method

A diverse selection of investments is essential if you want to create a well-balanced portfolio. Most financial advisers recommend that you allow for a small percentage of alternative investments which include hard assets such as precious metals and collectables.

Gold is considered an ideal method of diversification by some investors, as it often climbs in value during times of economic crisis and its performance has very little statistical correlation to the stock market. In other words, this means that in the event of a market crash, gold is unlikely to be affected in the same way that traditional stocks and shares would.

Gold also has a long and proven market history, with people turning to the precious metal as a store of wealth for centuries. The estimated annual returns for holding gold bullion over the last 15 years is a little over 12 percent.


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Reasons to invest in gold

Gold is a tangible asset that offers real value and reduces risk. Unlike stocks and shares,

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gold is something physical that you can hold in the palm of your hand. It also offers a great alternative to fiat currency which has no real material value and is not backed by any physical commodity.

Here’s the deal…

Gold offers a material value based on the weight of its gold content whereas the value of fiat money is based heavily on supply and demand. It is also only valuable as long as people trust the central government and bank that issues the notes, whereas gold prices aren’t quite as reliant on these factors. Here are several other key reasons why gold is an investment worth considering:

High liquidity

Gold is considered a liquid asset which means that it is relatively easy to sell or convert into cash. There are thousands of sellers and dealers both online and off and physical bullion is one of the most widely traded commodities all over the world.

Production is declining

Gold is a finite resource which means we could eventually run out of it one day. Gold production has already started declining in some countries, in particular, South Africa, which used to be the biggest producer of gold in the world. As resources become scarcer and the cost of mining them increases, gold mining companies will be forced to increase their costs which could mean that gold prices rise as a result. It can take from five to 10 years to bring a new mine into production so should global demand for gold continue to rise then mining companies may struggle to meet it.

Gold Investment
Abandoned Gold Mine

Global demand

New uses for gold are being discovered all the time. Advances in technology have led to a great deal of gold being used in computer chips and electronic devices, for example. This is because although gold is more expensive than other more conductive materials such as silver and copper, it doesn’t oxidise in the same way that other metals would.

That’s not all…

There is also currently no real substitute for gold. The fact that it does not tarnish and is an excellent conductor of heat, light and electricity makes gold the ideal material for a wide range of industrial uses.

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Gold as a hedge against inflation

Gold is often purchased as a hedge against inflation. This is because traditionally gold prices have always been shown to hold their value over long periods of time, thus offering valuable protection against a potential dip in currency. Statistics have also shown that during periods of high rates of inflation, gold prices have risen significantly, making it an attractive prospect for investors.

Something to pass on to family and loved ones

Gold is often left to people as an inheritance due to the fact it is an excellent store of wealth. Gold has been proven to hold its value over a long period of time which means people trust it to continue to do so in the future. It is also incredibly durable and the fact that it doesn’t tarnish means it can be passed on to future generations as a family heirloom.

Diversify your portfolio with Physical Gold

Physical Gold offers a wide range of gold products ideal for diversifying your investment portfolio. These include a huge range of gold bullion coins such as Krugerrands, Britannia’s and Sovereigns as well as VAT free gold bars. To speak to one of our experienced advisors, please give us a call on 020 7060 9992.

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Gold Investment – The Modern Market

For thousands of years, gold has been valued as a precious commodity ideal as a store of wealth for both trading and bartering. In the last few decades, however, demand for gold purchased exclusively for investment purposes has really taken off. Nowadays there are more opportunities to buy and sell gold than ever before and with the introduction of Gold ETF’s and futures contracts, there are many new and exciting ways to invest.

Gold has become much more attainable and flexible for the average consumer and there is a more diverse range of investors than at any other time in our history, which has lead to a rise in the number of gold brokers.


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Demand from the Far East

Gold has always been viewed as a great store of wealth in countries such as India and China, however other countries in the far east including Indonesia, Vietnam, Thailand, and Malaysia are now beginning to follow suit. According to the World Gold Council, demand from South-East Asia has increased by more than 250% in the last decade alone.

In China, the government actively encourages its citizens to invest in gold, which has helped fuel demand for the precious metal further. Their motives for doing this are not completely clear, however, an obvious mistrust of the US dollar could be one reason, whilst the fact that China has now become the biggest producer of gold in the world is also likely to be a factor.

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Changing consumer attitudes

The nature of gold investment is changing dramatically, particularly in the west, where more investors are opting for a buy-and-hold approach, more typically seen from Asian buyers. Rather than looking to buy and sell, a large proportion of investors now view gold as a long-term investment and a potential nest egg for the future. The rise of social media has been useful in promoting gold investment, particularly through watching gold videos.

Why is this?

The most common reason why people invest in gold today is to provide a hedge against political unrest or inflation. Gold is seen as an excellent store of wealth and traditionally gold prices have always risen during times of economic crisis. A great example of this was evidenced by the dramatic rise in gold prices following the financial crash in 2009. Many financial advisers actually recommend that investors allocate a percentage of their portfolio to accommodate commodities such as gold and silver, so as to lower portfolio risk.

Checkout our recent article “is gold investment risk free” for further information on risk management techniques with gold.

Modern Gold Investment
Old Chinese Gold Coins

Demand for physical gold investments

Since the turn of the century demand for physical gold as an investment has risen considerably. A quick search of the internet brings up more hits on gold traders/dealers than ever before and overall demand for bars and coins rose 9 per cent year-on-year in the first quarter of 2017.

Why is this? Well, there are several reasons. One being that that gold is Insider's Guide to gold and silverbecoming much more readily available to the average consumer. Investors now have many options with regards to their ability to buy and sell gold. For example, the introduction of regular gold investment plans, allows investors to purchase smaller amounts of gold on a monthly basis.

That’s not all

Investors also have far more option with regards to how they can store gold. No longer having to worry about storing or insuring it themselves, they can choose to hold it in an allocated vault should they wish.

Ongoing geopolitical tensions and a general mistrust of the modern financial system are other reasons why gold has become an attractive option for many investors. Demand for physical gold was particularly strong following the result of Brexit in 2016 and with discussions still ongoing in Europe, coupled with increased tensions between the US and the rest of the world, it will be interesting to see how demand for physical gold is affected.

Demand for Gold ETF’s

Since its inception back in 2004, the market for gold ETF’s has gone from strength to strength. For many investors, gold ETF’s represent an exciting opportunity to capitalize on changes in the gold market without actually having to invest in physical gold. Demand for European-listed gold ETF’s has risen significantly in the last year and a half, following Brexit and news that the European central bank is continuing with its bond-buying policy until 2019. Experts are also predicting further growth in demand throughout 2018.

Invest through Physical Gold

Physical Gold is an experienced broker of precious metals, specialising in gold and silver investments. We sell a wide variety of popular gold products, including bullion gold coins and gold bars. Contact us on 020 7060 9992 to find out how we can help you invest.

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VAT – All you need to know (Updated 2021)

First of all, we’ll briefly explain what VAT is and when it applies. We then quickly move onto how this applies to purchases of precious metals, and then finally reveal some powerful methods of buying gold in the UK without paying any VAT at all!

What is VAT?

Value Added Tax (VAT) is added on to most consumer goods and services in the UK. The current general rate of VAT is 20% with some items being at a reduced or zero rate. This is added at the point of sale and the consumer will bear the charge.


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Exemptions to VAT

Many food and drinks are zero-rated except alcohol, confectionery and hot food. Most cultural and leisure activities are exempt as are some health, education and charity goods and services.

VAT rules on silver purchases

If you buy any form of silver in the UK, your purchase is

Insider's Guide to gold and silversubject to 20% VAT, regardless of purity and whether it’s a coin or bar. Despite this cost, physical silver investment in the UK has continued to grow in popularity, as analysts believe the silver price is severely undervalued.

Brexit caused the end of VAT-free silver in the UK

Prior to Brexit (31/12/2020), Physical Gold Limited were able to provide silver coins and bars without VAT. Sadly, the UK’s departure from the EU meant that the treaty which brought VAT-free silver ended.

Whilst we can’t provide silver VAT-free anymore we are still able to sell popular silver coins and bars at similar all-inclusive prices. We have made a number of changes to our silver business, which benefit the final price to our customers, these are:

  • Silver delivery – we now provide silver with no delivery charge. This is because silver is now delivered from the UK. Postal savings have been passed directly to customer’s
  • Reduced product range – we decided to reduce the number of silver products we sell. This means we buy fewer products, but more of them. In negotiations, we can bulk-buy these products, which means we pay less and pass this benefit on to the customer

Overall, these savings negate a lot of the increased price for VAT, so much so that the overall increase price caused by having to pay VAT is negligible. Additionally, we can say we are competitive with other UK dealers and our silver still represents great value for money.

Another benefit is that we can now accept mixed orders for gold and silver. You can now pay for your silver purchases by credit card up to £10,000 and mix gold and silver in the same order – offering you more flexibility.

Buying silver coins

We offer a range of bullion coins from 1oz Britannias and 2oz Queen’s Beasts coins to the most popular foreign silver coins. If you’re buying a large number of silver coins or looking to build a substantial holding over time, then don’t forget that any UK silver coins are also Capital Gains Tax-free to UK residents.

Buying silver bars

We are at able to deliver pure silver bars to UK addresses. You can benefit from the lower premiums of the larger silver bars, and buy silver bars delivered directly to your door.

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3. VAT-Free Silver Bars (For Storage)

For some, while silver investment is a great idea, they don’t want to store the metal themselves. In this case, we provide an alternative solution for those wishing to buy VAT-Free silver bars for storage. Our silver bars are stored, on your behalf, in the Channel Islands. Keeping them offshore means your purchase is exempt from VAT as they fall outside of UK tax. With large bars available, you’re able to obtain tighter margins on your silver, while still being tax efficient

VAT on gold

This depends on what type of gold you buy. Since the 1st January 2000, the VAT Act 1994 exempts Investment Grade Gold from Value Added Tax. So as long as your purchased gold qualifies as Investment Grade, then no VAT will be charged.

There are a few requirements for gold to qualify for an exemption:

Firstly, it has to be in the form of a coin or a bar. For this reason, VAT is still added to gold jewellery. PHYS01_Animated_Gif_2_MPUYou should also avoid gold dust, gold ore and gold watches if you want to be tax efficient.

If you opt for a gold bar, the purity needs to be at least 995 thousandths. The good news is that a majority of gold bars on the market exceed this, at 999 thousandths gold, with the rest generally meeting the minimum requirement.

..and how about coins?

For gold coins, the purity target is lowered to 900 thousandths, meaning that any coin of 22 carats or higher will qualify. There are a few extra guidelines for coins – they must be minted after 1800, have been legal tender in its country of origin and not usually sell at more than 180% of the market value of its gold content. Essentially these additional rules exclude very old, obscure numismatic coins.

6 Hacks to buying the best value gold sovereign coins – Watch our video now!!!

 

If all this sounds complicated, don’t worry. We only sell gold coins and bars that meet these requirements and qualify as Investment Grade, so you’ll never pay Value Added Tax when buying gold through Physical Gold.

How can you take this a step further?

If you want your gold investment to be completely tax-efficient, then buying UK gold coins also benefits from being Capital Gains Tax-free. They already meet the VAT exempt criteria but are also tax-free upon sale due to their legal tender status. With each Sovereign, Britannia, special edition UK coins and variants of these, each coin possesses an actual face value. The Government can’t tax you on the movement of legal currency, so buying and selling UK gold coins is completely tax-free!

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Tips and Advice When Working with a Gold Investment Broker

When investing in gold, particularly for the first time, it is usually best to work with an established broker who has a good amount of knowledge and can advise you on the best options for your requirements. If you haven’t worked with a broker before, here are some tips and advice on how to get the most from their services.

Check their reputation

The gold market is incredibly competitive and there are hundreds of

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brokers out there all offering similar deals and services. Before going with a broker, it is always best to make sure you do some research on them first, to make sure they’re the right company for your needs.

Nowhere to hide…

A simple internet search will tell you everything you need to know about them, including their videos, ratings and reviews so be sure to shop around before making any decisions. Different brokers will also have different levels of knowledge and expertise, so it is always best to shop around before settling on the right one for you.

Be aware of hidden costs

All brokers need to earn a living, and to try and get customers through the door they often advertise deals that seem a little too good to be true. For example, they might offer very low prices or super quick delivery times. Always be careful to check there are no hidden costs when using these brokers services as they will often charge extra for insurance or for shipping the item in order to make extra money.

Research the area you want to invest in

Most investors have a specific idea of what they want to invest in and will have their own personal reasons for doing so. For example, some investors might prefer to invest in gold coins if they have an interest in numismatics, whilst others may prefer to invest in gold bars as it makes it easier to purchase gold in large amounts.


Find out the 10 secrets to selling your gold coins at the highest possible price


Why Does This Matter?

In order for a broker to provide you with the best possible service, it is important that you research the area you want to invest in and understand any pros and cons and risks that apply to the products you want to invest in. For instance, if you plan to invest in gold bars, you may want to know how much it costs to store them.

Gold Investment Broker
James II Gold Guinea

Check the Spread

One thing you should always check before buying or selling gold from a broker is the spread price. This is the difference between the price they buy the gold for and the prices they sell the gold to you for. The price they buy the gold for will always be lower than the price they pay for purchasing gold from you. The spread can vary greatly from broker to broker so it’s important that you make sure you’re getting the best possible value from your investment.

Commission Charges and Administration Fees

A lot of gold brokers charge commission fees which vary depending on which establishment you go to. This is something you should consider before working with a particular broker. You also need to be aware that administration costs will factor into any deal you make, so be sure to check these prices as well. Administration costs can relate to any number of factors including storage as well as postage & packing.
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Working with Physical Gold

One of the main benefits of buying and selling gold through an experienced broker as opposed to just your average dealer is that they tend to have a greater degree of market knowledge and can advise you on the best options for your particular needs. Physical Gold has been established since 2008 and have many years of combined experience in investment gold. For more information on our broker services, please contact us on 020 7060 9992.

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Is Gold Investment Risk Free?

Like any investment, there is a certain element of risk that comes with investing in gold. Although it is safer than many other investments, there is always the danger that either demand or value could fall, and there is often no definite way of knowing when it could rise again. Gold is thought of as a safe haven for many investors and many financial advisers recommend that you store a percentage of your wealth in gold – usually between 5 – 20%, however, you shouldn’t be misled by claims that gold is 100% risk-free.


Discover how to minimise your risks with the Ultimate Insiders Guide to gold investment. Download FREE


Gold as a store of wealth

Gold is renowned for being an excellent store of wealth. Essentially this means PHYS01_Animated_Gif_2_MPUthat it has the ability to hold its value over a long period of time, hence the reason why some people consider it to be risk-free. This reputation is based on centuries of performance results indicating that gold prices tend to go up in times of economic instability or political unrest.

But there’s a catch….

There is no guarantee that this will continue to be the case in the future, however, and there is always the chance that substitute investments for gold will become more popular. As a tangible asset, gold will always have some sort of physical value, but investors should be aware of the risks and be aware that it is not entirely risk-free.

A good example of the risks involved in gold investments can be perfectly demonstrated by what happened after gold prices hit a peak in 2011. Following the financial crisis in 2009, the value of gold went through the roof. In the Autumn of 2011, gold prices had reached nearly $2000 dollars an ounce, an increase of over $1000 in less than two years. Today gold prices have dropped to around $1,260 so if you’d bought gold at its peak value in 2011, you’d have made a considerable loss. It might be years, if at all before gold prices reach those sorts of heights again.

Storage risks

Like any other valuable commodity, gold needs to be stored securely in order to prevent theft or damage etc. If you’re storing the gold yourself then you need to ensure that it is properly stored in a safe or other suitable storage solution and that you are properly insured should anything happen to it.


Worried about the risk of a market downturn? See how exposed you are with our FREE test


Here’s the deal…

If your gold is being stored by a third party, then you need to make sure you know your rights with regards to ownership of the gold should the company fail or go bust. With an allocated gold account, the gold belongs to you even if the company responsible for storing it goes bust. However, you should always check whether the company are contractually obliged to lend your gold out to anyone. If your gold is stored in an unallocated vault and the company goes bust, then you wouldn’t have legal ownership of the gold as it doesn’t physically belong to you. You would instead only have legal rights as an unsecured creditor.

Gold Investment Risk
Gold Bars Stored in A Vault

Risks of scams

There’s a huge amount of gold dealers about these days, the vast majority of which are perfectly respectable, however, there is always the risk that you could be defrauded, particularly when purchasing gold from online sellers and on rogue websites. Before investing in gold, you should always make sure you shop around and get an idea of prices as well as carrying out your own market research. This way you can minimize the risks and avoid being ripped off.

Talk to one of our advisors

A reputable and honest dealer will steer you towards the right investments for your requirements and not push you towards purchases with high mark-ups. Here at Physical Gold, we have nearly a decade of experience aiding clients in expanding their gold portfolio with tax-efficient and secure solutions. We can supply a range of options helping you to diversify your investments and create a well-balanced portfolio. Please contact us on 020 7060 9992 for more information.

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5 YouTube Videos About Gold Investment

YouTube is a great tool for investors seeking additional information about gold investments. There are literally thousands of videos out there, covering a wide range of topics, many of which can really help you get ahead with regards as to how to invest. Whether you’re looking for investment advice from some of the industry’s top leaders or helpful tips from other investors, there is always more you can learn in order to help maximize your returns.

Not sure where to start? Here are Physical Gold’s top 5 YouTube videos on gold investment:

5.Investing in Gold – How to invest in gold for beginners

This 4-minute video provides a basic introduction to gold investments and is aimed at new investors just starting out. It is informative, easy to listen to and offers a quick summary for beginners. It comes with recommendations on where to buy gold as well as advice on delivery and the potential risks associated with purchasing gold from sites like eBay. Whilst it doesn’t go into too much detail, it outlines some of the most important aspects of investing in gold.


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4. Why invest in gold – MoneyWeek

Although this 7-minute video is from 2014, the topics of discussion are still relevant and address important factors about why gold is a worthwhile investment. Some of the issues discussed include global risk, uncertainty, economic crisis and climate change as well how all of these factors can affect the performance of gold.

3. Before you buy 1 ounce of gold or silver

In this 12-minute video, Mike Maloney discusses some of the scams associated with gold investing and what to look out for if you’re a new investor. Some of the topics for discussion include why it’s better to go with a reputable business and potential warning signs that a company is not 100% legitimate.

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2. Where to buy & where not to buy gold

This 24-minute video informs viewers about gold purchasing options from a regular investor’s perspective. In the video, he discusses his experiences in buying precious metals and offers tips and advice on gold. He discusses the different ways of investing in gold as well as tips on holding it yourself. He also talks about over spot pricing and free gold kits.

1. Why gold & silver? – Mike Maloney – silver & gold investing

Number 1 on our list is this 1-hour 20-minute video, which goes through the complete pros and cons of investing in gold & silver. In it, they talk about the federal reserve, fractional reserve banking and currency creation as well as gold accounts for an expanding currency supply.

Contact Physical Gold for more information

We hope you have enjoyed watching our top 5 videos and found the information useful and informative. For more information on gold investments, please speak to one of our experienced brokers by giving us a call on 020 7060 9992 or simply emailing [email protected].

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Aurum Gold Wafers – the Smallest Verifiable Unit of Gold

Also known as gold notes, due to their passing resemblance to paper money, Aurum Gold Wafers are currently the smallest verifiable unit of gold available on the market. Trademarked and manufactured by Oregon-based company Valaurum, they are easier to authenticate than most other forms of gold due to the gold content in an Aurum being manufactured in a very thin sheet rather than being hidden within a coin or bar.

What are Aurum Gold Wafers?

Aurum (Latin for gold) Wafers are incredibly thin sheets of gold, typically weighing only 1/10th gram, although there are other units of weight available, including ¼ gram Aurums and 1/20th gram Aurums. Each individual Aurum contains pure 24 karat gold.


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Here’s how it works…

The process used to create Gold Aurums is known as deposition. It involves heating the Aurum deposit to 2000 degrees Fahrenheit, before sealing the resulting gold between two layers of polyester film in order to protect it. The gold used in each Aurum has been weighed using only the most accurate measuring scales and has undergone rigorous testing carried out by the company themselves as well as their manufacturer, and independent laboratories. This allows Valaurum to confirm the precise amount of gold in each Aurum.

Aurum Gold Wafers
Pure Gold in its Rawest Form

Why invest in Aurum over other forms of gold?

One of the major advantages of investing in Aurum over gold bars or other forms of gold, is that it is much more affordable. Investors who are new to gold investing or just want to invest in a small amount can do so fairly easily with Aurum wafers. Due to its incredibly streamlined form, gold Aurum is very easily stored and transported, saving you valuable storage/shipping expense. The fact that it is easily verifiable and already in note form also makes it much easier for bartering and trading.

Why does this matter?

If we were to ever return to a gold backed monetary standard, which many experts argue could be a very real possibility in the future, the technology used to create Gold Aurums could lead the way for future currency. One factor to consider before investing in gold Aurum, however, is that you will likely pay a higher premium than if you were purchasing gold bars or coins. From an investment point of view, you would need to buy quite a large amount of Aurum gold wafers to see any significant sort of return. Their high resolution, beautifully presentation, engraved imagery, however, makes them ideal as an investment gift for a loved one or family member.
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Discover all the latest news & insight into the gold industry with Physical Gold

For more gold industry news, investment tips and advice, please head over to our insights page. Physical Gold are experienced and respected dealers of gold and silver based in the UK. If you would like to speak to one of our advisors, please contact us on 020 7060 9992.

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The Gold Futures Market – An Overview and Guide

Futures contracts provide investors with a more flexible way to invest in precious metals without the need for investing the full amount up front. To buy or sell a futures contract, investors need not put up the whole value of the contract, but must instead pay a margin deposit as a show of good faith that they will make good on the contract.

How futures contracts work

Futures contracts are a contract for the future sale of an item specifying PHYS01_Animated_Gif_2_MPUthe date and place that the sale will take place. The contract will also address issues such as ownership and constructive possession of the gold, insurance details and the total sum of the margins.

The idea behind futures contracts is that it allows both consumers and producers of gold to manage gold price risk by locking in the price they wish to buy/sell that product for in the future. For investors, gold futures offer them the chance to invest in the future price of gold for only a fraction of the total cost of the contract. Most of the time, the futures contract isn’t actually settled financially as the contract is sold on before any physical gold changes hands.

Why invest in futures contracts?

Investors of futures contracts fall into two main categories. Hedger and speculator. Hedgers purchase gold futures as a hedge in order to against the price of gold going up or down whereas speculators hope to make money by taking advantage of favourable price movements in the market.

An example of a hedger might be someone who believes the price of gold will rise and wants to take out a futures contract to lock in a guaranteed price should prices indeed go up. This way they can offset any future price increases by selling the futures contract.

How else can you use futures?

A speculator, on the other hand, hopes to benefit from market volatility by gambling on potentially favourable price movements. For example, imagine you purchased a futures contract when gold prices were at their lowest and the value of gold suddenly shot up, you could then sell it on at a profit. Alternatively, if you thought gold prices were likely to go down, you could then sell your gold futures while their prices were still at a peak.


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The best part….

One of the main benefits of investing in gold futures as opposed to buying gold outright is that it requires considerably less capital. The higher amount of financial leverage afforded by gold futures also provides a higher risk/higher return investment.

The disadvantage of futures contracts versus physical gold purchases, however is the risk that you could lose greater sums of money if the price of gold moves quickly in the opposite direction to your futures bet.

Gold Futures Market
Gold Futures Offer an Alternative To Physical Gold

Long/short positions & gold options

When investing in gold futures you have the option to take up either a long position or short position.

Short position

If you think the price of gold is likely to go down, then you might take up a short position on futures contracts. In which case you would pay a margin price to take temporary ownership of the stock and sell them straight on. If the price of gold then goes down, you can then buy the gold back at a profit before returning the stock to the original seller, having made a profit. The main risk of taking out a short position is that if the market doesn’t go the way you predicted you will still have to return the gold even if you have made a loss on it.

Long position

If you think the price of gold is likely to go up, then you would then opt for a long position on futures contracts. This is where you would take full ownership of the stock and hold on to it in the hope that gold prices go up over time.

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Gold options

Gold options are slightly different to futures contracts. An options contract allows an investor to make a bet on whether the price of gold will go up or down in the future. On reaching the date specified in the contract, they will then have made a profit or loss based on the difference between where the price actually finishes and how much they’ve predicted it to go up or down by.

Here’s the deal…..

Options contracts are divided into two classes, either calls or puts. If you think gold prices will go up, you would purchase Gold call options. If you believe that gold prices will fall then can buy gold put options instead.

Overall options are a higher risk investment than buying physical gold as you could lose all the money you have invested if the market turns against you.

Discover more about the gold investment market with Physical Gold

Physical Gold are specialist brokers in gold and silver. We offer a wide range of gold based investments as well as providing additional insight into the industry and all the latest news and tips on investing. (See our insights page) For more information please contact one of our friendly and helpful advisers on 020 7060 9992.

 

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