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The Do’s and Don’ts of Buying Gold

buying gold

Millions of pounds worth of physical gold is purchased every year, for many different investment purposes. While some investors like to direct their investments toward Gold Mutual Funds or Exchange Traded Funds, many more prefer the investment opportunities that physical gold provides.

Physical gold may be a new concept to a novice investor – unsure of the investment process or unaware as to how to purchase gold, or how to find a reputable dealer. If you’re considering investing in physical gold or buying gold online, read our tips on the do’s and don’ts, before you buy.


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Don’t pay a premium for proof coins

Proof coins are special edition coins, struck for collectors and often mounted in a special case. Since these coins are manufactured primarily for collectors, the focus is on their appearance, and not their grade. The coins are made using special dies that have been treated with chemicals and sanded down through industrial processes, in order to smoothen the face of the dies. As a result, when proof coins are produced, they tend to have a frosted look and the design elements stand out, in contrast to the field area. They are not manufactured for circulation and are meant for use solely as collectables. Therefore, their ornamental value is greater than regular gold coins. They are almost always more expensive than their counterparts and sold mainly for their collector’s value. For investment purposes, choose regular gold coins or bars and find a reputable gold dealer when buying gold online.

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Don’t buy coins just for historical value

As tempting as owning a piece of history may be, you may end up overpaying if you purchase gold coins just for their historical value (e.g. Gold Sovereigns). Unless you’re a collector or expert in coins, these numismatic coins can be quite confusing.  With only certain coins having much historical value, you may end up overpaying, as their value is as a ‘collectible’ and based on various different factors, rather than their gold content. Semi-numismatic coins of 100 years or less provide the best sweet spot between modest premiums and additional growth potential.

buying gold
Investors should learn the right way to invest in gold before making a purchase

Don’t buy large amounts of fractional coins

There is more value for the investor in purchasing full, one-ounce bullion coins rather than lots of smaller fractional coins.  Fractional gold coins are often sold at slightly higher markups than standard one-ounce coins and can be bought as half-ounce, a quarter-ounce and even one-twentieth of an ounce.  These smaller fractions are generally included for diversification and divisibility or to make up the value of the desired investment amount.

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Don’t buy gold using leverage

Borrowing money to make a bigger investment in gold is risky (although discounts are available for bulk buying). The price of gold is volatile, and if the price dips far enough, you may be at risk of large losses arising from the leverage.

Leverage is often offered by brokers through accounts known as margin approved trading accounts. When you use leverage to buy gold, it simply means that you are executing a trade larger than the amount of money in your trading account.

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Watch a video from our CEO, Daniel Fisher – How to Buy Gold

 

The deficit is financed by the broker and this works well for the broker since their principal objective is to sell greater volumes of gold. But, here’s the catch. What if gold prices fall to levels well below the prices you paid at the time of the trade? In this scenario, you have not only wiped out your investment but are also stuck with paying the interest on the amount you have borrowed from the broker. By trading in gold this way, you may also be paying additional intermediary commission, as well as possible interest on the money you leveraged to invest in physical gold.

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Don’t delay your payment when buying gold

When investing in gold, you should always remember that gold is a commodity and that prices do change, very often. The day you plan to buy physical gold, as opposed to an ETF, you should check the spot price of gold and ensure you make your payment on that day, to ensure you get that amount of gold.  Delaying your payment means the price and value of the gold will have changed.

But Do…

When choosing to invest in physical gold or when buying gold online, DO be sure to use a reputable gold dealer, ask about a ‘Buy-Back Guarantee’, decide if you want it delivered or stored and always check your dealer is BNTA registered. If you are buying gold coins for investment, always buy gold bullion, and not numismatic coins. The simple reason for this is that numismatics is for collectors and their prices are decided based on collector’s demand, and not the grade and amount of gold in the coin.

To learn more, read our beginners guide to gold buying and contact Physical Gold today. Our gold investment experts can address all your queries and concerns when it comes to buying physical gold. Just call us on 020 7060 9992 or drop us an email, and a member of our team will call you right back.

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15 Facts About Gold That you Might not Know

There are many amazing facts about gold. We have produced this fun article to investigate just fifteen of them. We hope you enjoy reading this article and learning about these fascinating facts relating to gold.

1.  Experts believe that approximately 80% of the earth’s gold is buried underground

According to a study carried out by Bernard Wood of Macquarie University in Australia, there is so much gold inside the Earth’s core, that if it were all to be mined and deposited on the Earth’s surface, it would be enough to sheath the entire planet with a gold covering that would be one and a half feet deep. Wood compared the composition of the Earth’s crust with that of meteorites with similar compositions. Findings from the study indicate that elements like gold, platinum and nickel were pulled toward the Earth’s iron-rich core millions of years ago when the planetary surface of the Earth had not yet formed and was a liquid mass of molten lava.

Professor Wood has pegged the amount of gold in the Earth’s core to be about 1.6 quadrillion tons! Scientists believe that it was only much later that meteorites from space deposited gold on the Earth’s surface after the complete formation of the planet and that is the gold that we mine today.

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2.  For every cubic mile of water, there could be 25 tons of gold in the sea

In a recent article published by National Geographic, researchers claim that there could be enough gold under the ocean beds to supply every person on Earth with nine pounds of gold each. This could possibly be an estimated $150 trillion of gold! Currently, a new project called Solwara 1 is being set up in Papua and New Guinea to undertake deep-sea mining operations.

However, the project has been met with strong resistance from environmental protection groups who believe that the project and others of its kind could destroy the underwater ecosystem deep in the Earth’s oceans.

Facts About Gold
Abu Dhabi boasts of a gold vending machine that delivers gold bars

3.   The world’s most expensive gold coin

The 1933 Double Eagle is an American twenty-dollar gold coin that has plenty of controversies that surrounds it. Nearly half a million of these coins were made in 1933, but none were circulated and all the coins were melted down except two. It was later discovered that twenty such coins were stolen and were therefore not melted down. Nine of these were recovered by the United States government and melted. Currently, there are only 13 in existence, out of which ten are with the US government in Fort Knox. Two are with the US National Numismatics Collection. There is only one in existence that is privately held and the collector bought it at an auction in Sotheby’s, New York for the princely sum of $7.59 million, making it the world’s most expensive gold coin.

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4.  Elvis, the king of rock n roll had a gold plated car

It is believed that rock n roll legend, Elvis Presley owned three cars specially made for him by the Stutz Motor Company. Elvis bought a Stutz Blackhawk on October 9, 1970, becoming the first person to own a Blackhawk. Elvis subsequently purchased Blackhawks manufactured for him by the Stutz Motor Company in 1971, 1972 and 1973. The 1973 model had all the chrome plating replaced with 18-carat gold plating.

5.  The chemical symbol for gold

Most of us who have studied high school chemistry are well aware that the chemical symbol for gold is Au. However, not everyone knows that the symbol originates from the Latin word, ‘aurum’, which stands for ‘shining dawn’ in the ancient language. Gold, with atomic number 79, is a noble metal. It has some unusual properties. For example, it does not rust or get discoloured. The precious metal also does not react with air and does not form oxides when it comes into contact with air.

6.  Gold can be moulded with bare hands

Pure gold can be bent with bare hands. It is considered to Insider's Guide to gold and silverbe the most malleable of all metals. Gold can be beaten into thin sheets that are 400 times thinner than a human hair. These sheets are called gold leaf and can are popular with artists who use them for gilding. An ounce of gold is so malleable that it can be beaten into a large sheet that covers an area of 100 square feet.

7.  The world’s largest nugget of gold

Two Australians are credited with the discovery of the world’s largest nugget of gold. Christened the ‘Welcome Stranger’, this nugget was huge, measuring 10 by 25 inches until it was melted. Currently, the largest nugget in existence is called the ‘Hand of Faith’, and it was also unearthed in Australia in 1980, and can be seen on display in the Golden Nugget casino in Las Vegas.

8.  The heaviest gold coin

Austria’s Philharmonic is the heaviest gold and weighs 1000 ounces, which is 31.1 kg. This is equivalent to 69 troy pounds. It has a diameter of 15 inches and is listed in the Guinness Book.

9.   Gold can be drawn into really thin wires.

As a metal, gold is so ductile that it can be drawn out into a wire that is five-millionths of a meter in width. The wire can be stretched to a distance of 50 miles (80 km).

Facts About Gold
Gold with 99.9% purity is usually quite soft and malleable

10.     South Africa used to once produce 75% of the world’s gold – now produces only 6%

South Africa’s rich gold mining industry that once produced two-thirds of all the gold in the world has now imploded and produces just 6%. One-third of the industry’s 180,000 miners were fired since 2004 and falling international demand and depleted reserves in the major mines have hit the country’s once burgeoning economy with a double whammy.

11.      The world’s largest consumption of gold happens in China

China is today the world’s largest consumer of gold, importing close to 975 tonnes annually. In comparison, India imports around 700 to 800 tonnes each year and is the world’s second-largest consumer. It is interesting to note that South Asian jewellery is purer and is made of 22-carat gold.
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12.     Gold is a disease-modifying drug

Strange as it may seem, gold is considered to be a disease-modifying antirheumatic drug (DMARD). The injections consist of sodium aurothiomalate, which contains gold and is injected into the muscle to reduce the progress of auto-immune diseases like rheumatoid arthritis (RA). They also reduce inflammation. The injection usually starts taking effect three months after it is administered.

13.     The world’s first gold coins were minted 5000 years ago

Lydia, now in modern-day Western Turkey is credited with having produced the world’s first gold coins under the reign of King Croesus (561-547 BC). The coins were not made of pure gold, but an alloy of gold and silver was used.


For insight and advice, watch our video “How to buy gold“.

14.     There is a vending machine that gives out gold bars!

The world’s first gold vending machine was inaugurated in 2010 and is situated in the lobby of the Emirates Palace Hotel in Abu Dhabi. It delivers gold bars to customers who wish to purchase them. The machine is run by a German company called TG Gold Super Markt.

15.     A 100-kilo Canadian gold coin was stolen from a German museum!

A 100-kilo gold coin called the ‘Big Maple Leaf’, the only one of its kind was minted by the Royal Canadian Mint in 2007. It was stolen from a numismatic exhibition at Bode museum in Berlin in 2017 by thieves who took it away in a wheelbarrow!

Contacting Physical Gold today

When it comes to gold investments such as gold bars and gold Sovereigns/gold Britannias, Physical Gold are the right people to guide you. Contact us now to speak to our team, we can be called at 020 7060 9992.

 

Image Credits: Public domain pictures and Michael Steinberg

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Finding Physical Gold on Social Media

In a digitally connected world today, it’s possible to purchase anything online, including real estate, cars, bikes and even gold coins and bars. However, before pulling out your credit card and making an expensive purchase online, you need to be aware of what you’re getting into and ensure that the product you’re buying is legitimate and genuine.

It’s common knowledge that social media-powered marketplaces are great when it comes to buying books, CDs, clothes, shoes and even your groceries. But would you trust an unknown seller behind a wall of anonymity, when buying gold coins or bars worth thousands of pounds? Different sites have varying levels of security and consumer protection.


Looking into physical gold investment? Download the Ultimate Insider’s Guide first


Ensuring that the product you’re buying is genuine and the seller you’re buying from is legitimate are all important steps in the buying process, when it comes to buying gold online. Remember there are plenty of online scammers waiting to relieve you of your hard earned cash, so ‘buyer beware’ is the all-important mantra.

Gold on Social Media
Social media is becoming increasingly popular with gold sellers

eBay

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Perhaps the most popular and frequently visited online marketplace in the world is eBay. Gold coins, bars and jewellery are all available on eBay. The California based ecommerce behemoth takes consumer protection seriously and even has a series of articles on how to buy gold and silver safely on eBay without getting conned. eBay’s money back guarantee protects buyers against fraud when purchases are made using PayPal. Purchases that fall within certain categories are not covered, such as real estate or intangible goods. While there is no mention of gold and silver in this category, it’s best to contact the company if in doubt before making a purchase. It’s important to note that the money back guarantee is valid for purchases only up to a certain amount. Once you’ve taken the necessary steps to protect yourself, it’s easy to find physical gold on eBay. Just search the ‘coins and paper money’ section and it’s all listed there.

Amazon

Amazon is yet another well-known social media-powered online marketplace where gold coins and bars can be found. Amazon did not allow the sale of bullion until recently. However, certain rules apply when selling gold on Amazon. In order to sell gold coins on Amazon, the seller must have a membership of PCGS, NGC/PMG, ICTA or PNG in order to establish the authenticity and credibility of the seller. Amazon has also tied up with major bullion trading companies to start listing gold products on the site.

Gold on Social Media
Many online e-commerce sites are popular with numismatists

Other popular social media sites

Many online bullion retailers have listed their pages on popular social media sites like Facebook. Facebook prohibits the sale of bullion on their platform. So, visitors simply use the company pages of these sellers to be redirected to their sites. Facebook also has private groups of sellers and buyers of gold, where buyers can contact sellers. Needless to say, utmost precaution should be exercised when entering into a trade through this route.

Instagram is another popular social media site where buyers can connect with sellers of gold coins and jewellery. Instagram is very visual and it’s important to have high-quality images to attract customers. Images now have a shopping basket tag on Instagram, so buyers can click on it and go to the seller’s e-commerce site. Etsy is another popular social media site where interested parties can buy gold coins and bars. As online selling booms in the coming years, many traditional brick and mortar bullion sellers will turn to the internet to sell.

Do your homework!

However, as discussed earlier, when buying high-value items like gold and silver without physical verification, it’s important to do your research well, vet the seller, check their social media ratings, etc. The greatest advantage of social media sites is that one can check ratings provided by other customers. Pay attention to negative comments posted and understand what the issue is about. Sometimes it may be about packaging or delayed delivery. Or is it about fake products? Is the customer accusing the seller of being a cheat? If so, stay clear of that seller.  Many have trust badges and physical verification of the seller conducted by the site itself. All of these are helpful in completing your due diligence. Once you’re done with that, happy hunting for online bargains for physical gold.
Insider's Guide to gold and silver

Contact the experts at Physical Gold

There are some great deals out there, however, if you’re unsure of what you’re buying, contact us on 020 7060 9992 and our experts will be happy to give you the right advice.

Image Credits: Pixabay and Pixabay

 

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Gold Sovereign Coins

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Gold Sovereign (Victoria – Present)

Country: Great Britain
Face Value: £1GBP
Gold Content: 0.2354 ounce (7.3224g) – Alloyed with copper, or copper and silver
Purity: 917/1000 (22 karat)
Gross Weight: 7.9881g
Coin Diameter: 22.05mm
First year of issue: Modern Sovereign 1837

The Gold Sovereign coin was first issued in 1489 for Henry VII of England and is still in production today. Sovereign coins are arguably the most famous of all gold coins and should form a part of every gold portfolio. They are desirable to investors and collectors alike. Due to their long history of production Gold Sovereign coins are split into several types, each with their own pricing and nuances. Modern coins will be of the last 10-15 years and probably still be in their plastic blister pack. Older coins, particularly dated pre-1933 tend to exchange hands either loose or in rolls of 50. Physical Gold offers an easy way to buy and sell sovereign coins.

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These British coins typically have a face value of £1 sterling or 20 shillings. When it was first released it was primarily an official piece of bullion with no mark of value on the actual coin itself. The coins were 23 karat gold and weighed 15.552 g, Henry VIII reduced the purity to 22 karats with a weight of 7.322 g.


Download the FREE Insiders Guide to Gold Sovereign Investment


The core Full Sovereign coin has spawned several other Gold Sovereigns of varying sizes. These include the 2 Pound coin (or double Sovereign), the Five Pound Coin (you guessed it – a quintuple Sovereign, making it the largest gold content of any British coin), the Half Sovereign and the Quarter Sovereign. Generally, you’ll pay more per/oz for the smaller fractional coins than the full Sovereign or larger coins.

Sovereign coin production ceased in 1604, being replaced by Unites, and later by Laurels, and then Guineas. In 1817 production of Gold Sovereign coins restarted.

Modern Sovereigns are those minted during the reign of Victoria, Edward VII, George V, George VI And Elizabeth II. These Sovereigns feature the monarch who reigned during their production on the obverse side.

The reverse most commonly features Saint George slaying a dragon which was designed by Italian engraver Benedetto Pistrucci. A number of different shields have also featured on the reverse and often attract a higher price tag.

As a coin of the realm in the UK, buying gold sovereigns benefits from being free from Capital Gains Tax for UK residents. You can buy gold sovereign using any of the order, delivery and storage options throughout the Physical Gold website

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Sovereign Coins

Alongside the Union Jack, bulldog and red telephone box, the gold sovereign coin is one of the most iconic British symbols, providing the basis of timeless gold investment as well as a treasured lifelong possession.

Another reason for their popularity amongst collectors is their worth. A fantastic way to preserve value against inflation, gold sovereign coins hold their value particularly well over time and provide an excellent all-round investment. This also makes them a popular starting point for those thinking of investing in gold.

Some choose to buy gold sovereigns from recent years, others from hundreds of years ago meaning that the value of gold sovereign coins can be hard to determine. At Physical Gold we are experts in buying and selling sovereign coins and can precisely value new and old coins.

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Gold Sovereign Coins

Those looking to sell sovereign coins often cite their flexibility as one of the motives behind their decision, allowing them to keep their investment in smaller units. Whether to sell or buy gold sovereigns, the consistency of the production quality is often still hailed as one of the finest in the world.

Gold sovereigns are made with 22-carat gold. This consists of 11 parts crown gold out of 12 and one-part copper out of 12. This composition has not changed since the issue of the 1817 sovereigns. This particular composition of the alloy used in making the sovereigns ensures the coin is more durable and protects it against scratches and dents.

With opportunity, lies danger

Gold sovereigns enjoy high demand from numismatists around the world. Due to its great demand, the coin commands a much higher price than its weight in gold. Unfortunately, this has also led to some instances of counterfeit coins appearing in the market. When buying a gold sovereign, it is therefore important to ascertain whether the coin is genuine. Gold coin dealers or brokers use a coin gauge to detect fakes, as well as checking measurements and weight. In one instance, a few fake 9-carat gold sovereigns had started circulating in the market. However, an experienced coin dealer will spot the counterfeit coin immediately due to its discrepancy in weight and thickness. Gold itself is a difficult metal to counterfeit, owing to the density and colour of the metal. Fake gold sovereigns are usually underweight or have the wrong dimensions. Today, the gold sovereign is a protected coin and enjoys protection from the UK government through the forgery and counterfeiting act 1981.

Buy Gold Sovereigns

If you wish to buy gold sovereigns, ensure you purchase from a reputable dealer to ensure the lowest price. If you are looking to sell sovereign coins Physical Gold can make the process easier. As proud members of the British Numismatic Trade Association (BNTA) Physical Gold is committed to dealing coins in a legal and efficient way. In addition to this Physical Gold is a member of the National Association of Pension Funds making it possible to buy and sell gold coins as part of a wider long term investment plan.

 

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Gold Nest Egg

What is a Nest Egg?

A nest egg is a substantial sum of money that has been saved or invested, usually for a specific purpose. A nest egg is generally earmarked for longer-term financial objectives, the most common being retirement or buying a home.

The actual term itself has been used to refer to savings since the late 17th century and originated from an old poultry farmers’ trick of placing eggs in hens’ nests, to induce them to lay more eggs.  As the chickens laid more eggs, this naturally brought the farmers more revenue.


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Why is this relevant to me?

However, you don’t need to be in your 70s to retire. Increasingly, people are retiring early to pursue their passions, travel the world and explore new horizons. However, in order to do all of this, as well as have a safety net in the twilight of your life, your savings will simply not be enough. Rising inflation, greater life expectancy, low-interest rates and a meteoric climb in the costs of living are threatening to erode whatever you have saved up. In order to build a corpus for a comfortable retirement and be able to tick off every item on your bucket list, you require a well-planned, diversified investment strategy that generates good returns and beats inflation.

Nest Egg
Building a gold nest egg is a great idea

Savings with zero taxes

For many of you reading this, by now you may have already begun saving into your nest egg and preparing for your retirement, with either a pension or ISA, or a combination of both.  If you haven’t done so already, you should consider starting right away.   Physical Gold is an alternative, tax-free opportunity of saving for your nest egg, as easily as you would save into an ISA or Pension.  But, the added advantage of certain gold and silver coins is that there’s no cap on the amount you can save per year, no lifetime allowance and zero taxes incurred on any gains you make.So worrying about squeezing your annual allowance into the tax year end is a thing of the past.
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Protection and insurance of your assets

Physical gold not only helps protect your other assets but in times of uncertainty, can help to insure them by providing balance.   History has shown us that in times of economic and political instability, gold has invariably moved up in value. Physical gold is the perfect solution for you if you want to insure your hard-earned wealth, save for your retirement and protect your nest egg from inflation and taxes.

As gold investment experts, we are ideally placed to advise you on how to build your portfolio in order to maximise returns when investing in precious metals, as well as mitigate your risks and protect your capital. Our investment experts can advise you on how to distribute your investments across asset classes – by literally ‘not placing all your eggs in one basket’. We can, therefore, review your investment goals and objectives, not just for you, but your entire family.

The best bit...

More importantly, we take into account when you want to retire, whether you want to leave a legacy and how you wish to plan your estate. Once these milestones and their subsequent timelines are established, we can then advise you on moving a portion of your investments away from riskier stocks and bonds and placing them into safer and stable investments in gold and silver. Our investment experts can guide you on how to plan these investments over time so that you build up a substantial ‘nest egg’ that you can depend on when you hang up your boots.

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A golden nest egg

Gold and silver markets have shown great promise in recent times and fared well in response to the volatility of international equity and debt markets, the falling US dollar, uncertainty in Europe due to Brexit, geo-political turmoil in the Middle East and the threat of global terrorism.

These macro events have seen investors shy away from debt and equity markets and seek safer investment options. In particular, the falling US dollar has seen global investors pulling out of their investments in USD and this has renewed interest in gold and silver. The recent uncertainty surrounding the legitimacy and acceptance of cryptocurrencies is yet another factor that has prompted investors to hedge their risks by investing in precious metals. There has been no better time to consider investing in gold and silver and our investment experts can help you do just that.

Build a nest egg with Physical Gold

With options available for almost any investor and any budget, if you want to build a solid nest egg for you & your family’s future, contact physicalgold.com today by calling 020 7060 9992.

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How to turn your interest in gold coins into a viable investment for your future

Collecting gold coins

If you’re a coin collector, numismatic scholar or just a hobbyist with an interest in gold coins, it’s likely that you already have a great deal of knowledge of the UK gold coin market. Turning that knowledge into a profitable investment for your future is a very realistic endeavour, especially given the positive state of today’s gold coin market.

As you may already be aware, there’s a sweet spot in the UK market at the moment for semi-numismatic coins. In particular, Victorian, Edwardian and Georgian sovereigns are trading at higher prices than brand new sovereigns. These higher prices are due to the scarcity of these coins compared to their newer compatriots. This presents a prospective opportunity for collectors, who may wish to retain their collection for now, in anticipation of a potential value rise as the coins age. The alternative is to cash in on an existing opportunity to trade the coins, at a price currently above their intrinsic gold weight.

Insider's Guide to gold and silver
If you’re new to collecting gold coins, it is important for you not to make mistakes when buying gold coins. One of these is purchasing from a TV infomercial. There are many TV commercials which promise collectors on the best deals on the rarest of rare coins. The problem with buying off these shows is that it will never be the best deal, no matter what they say.


10 steps to maximizing your profits with gold coins. Download the FREE PDF now


Simple logic should tell us that there are exorbitant marketing and advertising costs involved in selling coins in this manner, including the costs of producing the infomercial. These costs will be added on to the price of the coins, making them a lot dearer. Another point to consider is the rarity of the coin. If a coin is being mass marketed through advertising, it means there is a huge supply of the coins in order to meet the demand. This also means that they cannot be very rare, and often these commercials talk about the rarity of the coin in a bid to lure you into purchasing. A quick online search of the same coin will prove that it is available from other reputable sources online and offline dealers often at far more reasonable prices.

gold coins
Gold Coins Investment

Gold investment research sources

It is also important to research a coin properly before purchasing it or speak to a gold investment expert. A good starting point is the Numismatic Guaranty Corporation (NGC) or the PCGS. Both of these are reputed coin certification companies and their websites contain a wealth of information about rare coins and their values. Another great source of information about which rare coins to buy are the mints around the world, like the Royal Mint. When buying a rare gold coin, one must ensure it is certified and graded by a professional grading service. If the coin is in a slab, it should have been encapsulated by the NGC or PGCS, otherwise, it may not be in a condition that the seller claims it is in. Likewise, one should never remove a coin from a certified slab as it would affect the value.

This is crucial….

Another point to note is that a rare coin should never be cleaned. Cleaning it with solutions will simply damage the coin and erode its value. Touching a coin with bare hands is yet another complete no-no. Coins should only be handled when wearing gloves. Last but not least, when a coin is sold as a low mintage, it does not mean that it is rare. The intrinsic value of a rare coin is directly proportional to its demand, not to the numbers that were minted.

Numismatic gold coins

The above scenarios are two examples of opportunities available to utilise your knowledge of coins for your benefit. The value of gold coins is based on their gold content, coupled with a further premium reflecting their historical worth and scarcity. Because numismatic coins are valued this way – both on gold weight and historical value – it’s possible to achieve greater gains than you may otherwise be able to achieve, if you were solely investing in modern coins. This can be particularly true if you begin to save now, for the longer term, or have amassed a collection already which you’re willing to start liquidating

What should I be aware of…

However, if you’re just starting out in your coin collecting and investing, it’s wise to take care when interacting with numismatic or semi-numismatic coins. As some trade significantly above their intrinsic value, it’s feasible that you’ll pay a much higher premium. And whilst you may be able to recoup this premium upon sale, you may find yourself in a situation where it’s difficult to find a specialist buyer willing to match your valuation.

Specialist collectors may also wish to add to their holding with modern gold coins. Agility is required to capitalise on semi-numismatic coins, as they need to be purchased when premiums are low and sold at times when premiums rise. However, new sovereigns can be used to add flexibility to your collection and ensure you enjoy the benefits of owning gold coins over a longer period.

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Help from Physical Gold

Whether you’re a new or experienced collector of coins, Physical Gold can help with information on your collection, whatever your financial requirements. To learn more about how we help collectors and private individuals just like you, contact us here, call 020 7060 9992 or download our Guide to Investing in Gold and Silver.

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Choosing a Reputable Online Gold Dealer

Choosing the right gold (or silver) dealer can make all the difference, both when it comes to credibility and reassurance and also when assessing the vital elements that can affect your investment return, such as coin selection and tax-efficiency.

New investors may hesitate to buy gold because they’re not sure how to go about it or who to trust. Should you buy gold online or should you buy gold in person?


Looking for a great online gold dealer? Read the 7 crucial considerations first


Online precious metals dealer

Buying online is the most efficient way to buy physical gold. Online gold brokers and dealers have access to larger suppliers of gold coins and gold bars and can offer safe delivery direct to your door or, if you prefer, secure storage at a reputable vault.

As online brokers avoid the hefty overheads associated with a traditional brick and mortar high street store, their prices are also likely to be more competitive due to the large volumes they handle.

However, when it comes to buying gold, it is of paramount importance to do proper due diligence before transferring your hard-earned money from your bank account. It is important to remember that even one bad transaction can cost you a lot of money as gold is an expensive purchase. It’s easier for rogue dealers to hide behind the anonymity of the internet, so it’s really up to you to do the proper background checks before entering into a transaction.

online gold dealer
Buy gold online only through reputable dealers

Online reputation checking

Nowadays it’s easy to check the reputation of a company online.

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There are many ways to do this. Firstly, you can look up a company on the companies house website and check how long they have been in business. For the ‘princely’ sum of £1, you can download information about the company, find out who the directors are and whether the company has been subject to any county court judgement (CCJ) or disciplinary action by the regulators. You can also check whether any of the directors of the company are on the list of disqualified directors. You can also check the credit report of the company, ensuring that its financial situation is stable and it’s safe to do business with. Lastly, look for customer reviews online, including social media sites to dig up any dirt there may be about the dealer. Don’t forget the power of word of mouth and if you know anyone who’s done business with a particular dealer, ask them about their experience.

Is this relevant to you?

A reputable dealer will also be able to help both experienced investors, looking for diversification, as well as those looking to own gold for the first time. There are many different types of gold and silver products, and you should decide which option is best to suit your financial objectives and appetite for risk. Your chosen dealer should be able to offer options such as Tax-free gold, pension gold and monthly savings. And when the time comes to sell your gold, they should guarantee to buy it back from you, which provides you with reassurance on the liquidity of your investment.

Watch “How to buy gold”, an instructional YouTube video from Physical Gold Ltd.

Taking Delivery

Most reputed online dealers will ship your purchase to your door with real-time online tracking. They should also provide insured shipping of your bullion. There are other options for taking delivery as well. You can opt for secure delivery to a reputed vault of your choice, where your bullion can be safely stored. Some online dealers will have a physical office or premises where you can personally take delivery of your gold by arrangement, with proper proof of identity. No matter what your chosen mode of delivery, your broker should furnish you with complete information about how you can receive delivery of your investment. They should also give you storage advice, where applicable.

A good place to start, when choosing a reputable, online gold dealer, is the British Numismatic Trade Association (BNTA), as they register all the trustworthy gold dealers in the UK. We’re also members of the British Numismatic Society, established since 1903 and it’s own set of strict by-laws.

As you can see, transparency is a key element in choosing a dealer and ensuring you have a hassle free transaction. When in doubt, it is important to clarify every point before pulling out your debit or credit card and making payment. A reliable and trustworthy broker will always provide you with the information you need and act in your interest to ascertain the safety of your gold investment.

 

Work with Physical Gold – a Reputable online gold dealer

If you’re interested in buying gold or silver and would like more information, visit www.physicalgold.com. Our contact details can be viewed at https://www.physicalgold.com/contact, you can call us on 020 7060 9992.

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PHYS01_Animated_Gif_2_MPU

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Infographics

5 steps to gold investment

5 Easy Steps to Gold Investment

Whether you’re diversifying your existing portfolio, consider taking advantage of the security of gold or simply using gold and silver to save a little for your future, we would like to help you a little with your research. Included below is a link to our ‘5 steps to gold investment’ infographic. You might already know that you’re ready to own some gold or silver, but perhaps you’re unsure as to how to get started? Where do you go, what type of gold or silver do you purchase and what happens next?

Our simple five steps will provide all the information you need to begin investing. Simply click here or the image below, to view the infographic.
5 steps to gold investment

 

 

 

 

 

 

 

Are you interested in gold investment but uncertain as to how to get started? Our easy-to-follow infographic will give you all the information you need, showing how you can, in just 5 easy steps, diversify your portfolio, increase your investment returns or just put a little aside into the ultimate safe haven.

  1. Talk to an experienced gold dealer

Your best bet for securing your gold investment is to do your research and find an experienced gold dealer who are BNTA accredited, have good reviews and years of experience. Have an initial chat with them about who they are and what they do. Any credible precious metal dealer should be willing to talk through their services, explaining how they operate and your options for investing in gold. They should be able to get you the best possible price for your precious metal purchase and offer other options, such as storage or savings. They should be able to talk you through the benefits of owning gold and how it works as part of your investment portfolio.

What should I know?

Historically, the price of gold has risen steadily and predictions for gold prices in 2018 look good. Not only is gold an important asset class that you can use to diversify your investment portfolio, but it is also often considered to be a safe investment option that helps you reduce your overall exposure to market risk, especially if much of your money is invested in global stocks and bonds. In the last year alone, spot prices of gold have risen from USD 1220 to 1330. Apart from investments in gold bars, several investors enjoy investing in gold coins, which enjoy increases in price, depending on demand from numismatists around the world. Gold coins are often purchased by investors, not just for their value, but for their aesthetic appeal. All of these factors play an important role in your decision to purchase gold and you should consider discussing these with your gold investment broker, prior to purchase.


What are the 7 factors to consider before investing in Gold? Find out here


  1. Decide what type of gold you want to buy

Your dealer will be able to advise you on the different options of gold investment available, but it’s worthwhile having some idea of your objectives before you enter into the conversation.  There are generally three common choices for the type of gold you wish to buy; tax-free (UK) coins, gold bullion or foreign coins. Depending on your situation, and reasons for wanting to purchase gold, the type of coin or bullion that will be most suited to you will be different. But don’t worry. An expert broker will be able to analyse all of your requirements and give you some options on which type of gold to purchase.

  1. Decide how you want to buy your gold

Depending on which dealer you choose, there are different options available for gold investments, but it’s worth knowing a little about the different options available, before starting the conversation.

Three common options you’ll probably come across include;

  • Regular, monthly gold savings,
  • Pension gold
  • A simple one-off gold investment purchase.

Pension gold allows you to add gold as

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an element of a Self Invested Personal Pension (SIPP), diversifying and protecting your savings for your retirement.

The difference between the other two types is simply whether you just want to purchase one investment in gold or whether you want to save regularly (£250 per month, for example) to boost your gold holdings over time. The latter can often be a good option for those just starting out.

  1. Sort out some safe storage for your new gold

Whichever option you choose, you’ll soon be the proud owner of some genuine gold coins or bullion, so you’ll need to consider whether you want your gold stored or delivered to your home.

Some gold dealers will offer secure storage options, which is a very effective way of making sure your gold stays safe. But, if you do want to take delivery of your gold then you’ll need to think about some safe ‘at-home’ storage.  There are a number of clever, hidden gold storage options, like a clock or wall socket, that you can use at home. We do recommend somewhere a little more secure than under the mattress and that your home insurance covers the value of your gold investment.

  1. Complete your purchase and relax!

Once you’ve decided on all of the above, with a little guidance from your dealer if you need it, all you need to do is buy your gold online and your purchase will be complete.   Safe, insured delivery is usually within 24hrs if your gold is in stock.

Gold is one of the most resilient asset classes out there and historically, has often beaten the market benchmark for investment returns.

The most important step!

Perhaps the most important step! is to give us a call here at Physical Gold. We are here to help and can be relied on for impartial advice in all aspects of gold investment. Call us today on 020 7060 9992 or view our contact details here.

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Blog

50 Years of the 1968 UK Gold Sovereign

This year marks the 50th anniversary of the 1968 gold sovereign. The last gold sovereign to portray a young Queen Elizabeth II and the last sovereign to be issued before decimalisation (in 1971).

1968 Gold Sovereign
The obverse of 1968 UK Gold Sovereign

Elizabeth II young head sovereigns were issued between 1957 and 1968 and are considered highly collectable due to the fact they were the last sovereign to depict a younger-looking Queen Elizabeth II. Although gold sovereigns were no longer issued for circulation after 1932, the production of gold sovereigns has continued in order to meet the growing demand for gold coins. There were no proofs minted of the 1968 gold sovereign and a total of 4,203,000 sovereigns were produced that year.


Want to learn how to profit from Gold Sovereigns? Download the 10 Commandments now


A history of the gold sovereign

The first gold sovereign was minted in 1489 on the orders of King Henry VII. The idea was to make a statement in order to symbolise the countries strength and unity after years of civil war and turmoil. At the time it was the largest gold coin ever minted in Britain.

Following the King Henry VII sovereign, succeeding monarchs each chose to strike a new version of the gold sovereign as a way of displaying their own power and strength, however, this practice died out after the reign of Elizabeth I. It wasn’t until George III decided to replace the guinea with a new gold sovereign 214 years later that the coin was reintroduced into circulation. Since then the sovereign has gone on to become one of the UK’s most prized, most sought-after coins and it is still highly valued by many coin collectors today.

1968 Gold Sovereign
The reverse of 1968 UK Gold Sovereign

Why gold sovereigns make great investments

Gold sovereigns are one of Britain’s most striking and beautiful coins, Insider's Guide to gold and silverreflecting a time when the country was still at the height of its strength. Collectors who value gold sovereigns typically appreciate the incredible wealth of history behind them as well as their stunning designs. For some investors, gold sovereigns represent a way to invest in physical gold without the requirement of having to pay Capital Gains Tax, as all British legal tender is tax-exempt. Other investors look to capitalize on the scarcity value of certain rare gold sovereigns and will often pay particular attention to rare dates and issues.

Due to the fact that gold sovereigns are classed as semi-numismatics, (coins whose value is based on their numismatic value as well their bullion value) they often trade above the gold value, making them attractive investments for collectors. Gold sovereigns are also fairly liquid should you need to raise funds quickly and investors from all over the world are interested in purchasing them which means that you won’t have any trouble finding a buyer.


To learn more watch our related video – “5 Reasons to buy gold sovereigns”

Purchase gold sovereigns through physical gold

We stock a huge selection of gold sovereigns including those produced from 1957-1968. Click here to browse our complete collection.  Whatever your requirements, whether you’re looking for single investment opportunities or help to select a mixed portfolio of gold bullion, we can assist. Why not give us a call on 020 7060 9992?

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Blog

Why is Gold the Most Valued of the 118 Periodic Table Elements

Of all the 118 elements in the periodic table, there is one that has continually stood out from the rest. Gold, the most precious and beautiful of all metals, has been highly valued throughout mankind’s history and continues to capture the hearts and minds of people all over the world. For thousands of years people have been captivated by this precious yellow metal but why is it so popular and why do people desire it so greatly?


Click here to download our FREE cheat sheet revealing the 7 proven factors to successful gold investment


The perfect element

In many ways, gold is the perfect element. It is naturally beautiful, and it doesn’t react with anything, making it perfectly safe to use. It is also solid in form unlike a lot of other elements that are gases or liquids.

Gold Value
Gold coin engraved with periodic table number

Gold is the colour

Gold’s stunning yellow colour makes it unique amongst other elements on the periodic table as it is the only metal to naturally display a colour other than silvery grey or white. Gold’s colour is so unique in fact, that it even has a colour named after it.

It’s a great natural conductor

Gold is a great conductor of heat, light and electricity which is why it is used in everything from computer chips to mobile phones. Gold’s many conductive properties mean it is also very hard to find a substitute metal.

It’s not harmful

Unlike some elements that might combust into flames or react unstably when combined with other elements, gold is almost completely non-reactive. It also doesn’t have any of the other negative traits that affect many elements – it is non-poisonous (You can even eat it without any negative effects) and it is non-radioactive.
Insider's Guide to gold and silver

Physical properties

Gold is very malleable metal.  Not only is it fairly durable, it is soft enough to easily shape into different things. You can also melt gold down relatively easily, unlike other precious metals such as platinum, which makes it easier to extract.

One of the most beneficial properties of gold is that it doesn’t react with oxygen and so doesn’t tarnish in the same way that silver does. This makes gold the perfect metal for use in jewellery, and any other items you want to stay looking shiny and brand new.

Rarity

Gold is a comparatively rare metal which is why it is

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expensive to buy and so highly sought after. When people first started trading in gold, it was considered a scarcity and therefore had great physical value, which is one of the reasons why it has become such a highly regarded precious metal.

Whilst gold is rare, it is not the rarest of precious metals included in the periodic table. Metals such as platinum and palladium are actually far rarer. In the past, these metals would have been considered too rare to use as a currency which is why gold became the precious metal of choice.

Invest in gold through Physical Gold

Physical Gold specialise in a wide array of gold investments suitable for all requirements. Whether you’re looking to invest in gold bullion or collectors’ coins we can assist. Why not call us on 020 7060 9992 to discuss your options for buying gold and precious metals.

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Blog

Values Associated with Owners of Gold (Wealth, Status, Power)

Gold has long been associated with wealth and status. Ancient civilizations held the metal in particularly high regard and often used it in the creation of sacred objects such as ritual cups, daggers, and jewellery. The ancient Egyptians frequently used gold as a way to honour their gods and there are many examples of golden artefacts dated from around this time. Individuals of great power such as the pharaohs were also often buried along with their gold.

Gold as a display of status

Over the years gold has frequently been used to represent power or status PHYS01_Animated_Gif_2_MPUand some of the most iconic status symbols of recent times have been made out of gold. Whether it’s a gold iPhone, gold chain or gold Rolex, it appears that nothing says you’ve made it more than showing off a bit of gold.

Perhaps the most iconic display of wealth and status in recent times is the gold card. Due to these credit cards requiring strict application criteria in order for someone to successfully apply, it’s really no surprise that they have become the card of choice for the rich and wealthy. Gold cards come with a whole host of added benefits in order to make the user feel more distinguished such as a higher credit limit, cashback vouchers and air miles.

Celebrities and superstars

Gold jewellery has long been a favourite with celebrities and superstars and they are often seen photographed wearing some form of “bling”. Whether it’s Kanye West showing off a new gold ring or Jay Z wearing a giant gold chain, celebrities continually turn to gold in order to show off their wealth and status.

Owners of gold
Gold Rolex watches are a popular symbol of wealth amongst celebrities

Gold symbolism

The colour gold is often associated with success or achievement. A gold Rolex, for example, is often presented as a gift to someone who has just graduated from university.

Gold is also associated with strength and throughout history, gold has been linked to both masculine energy and the power of the sun.

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Foreign attitudes to gold

Certain countries, in particular, India and China, have very different attitudes to gold than ourselves. In India, where people traditionally tend to carry their wealth about their person, gold is seen as the ultimate form of portable wealth, and many of the women in particular often wear some form of gold jewellery. In China, gold is also valued very highly, and the country is one of the biggest exporters and importers of gold in the world.

For the majority of people in these countries, gold is not only seen as a display of status but also as a way for individuals to store their wealth. In China, for example, a lot of people collect gold in order to leave it to their families and loved ones after they are gone. This is because gold is viewed as a tangible asset that holds its value very well.

Store your wealth in Physical Gold

Here at Physical Gold, we offer a wide range of gold investments to suit every type of owner. For more information on our services, why not give us a call on 020 7060 9992?

A topic we all want to know the answer to – “How to sell gold for the most cash”, in our YouTube video.

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Blog

How much is a silver bar worth?

Silver bullion bars are one of the most common forms of silver investment. They are produced in several different weights and denominations depending on much you want to invest, and normally sell at a little over the spot price for silver. One of the main advantages of buying silver bars over other forms of silver investment is that the purity of the silver content contained in them is guaranteed. All silver bullion bars are composed of .995 or higher purity silver which makes them an attractive investment for investors looking for a higher rate of return.


Download the FREE Cheatsheet revealing the 7 proven factors to successful silver investing


Different weights

Silver bars are available in several different sizes and weights. Typically ranging from anything from 100 grams, to 1 kilo all the way up to 10kilos. When buying silver, it is important to think about your requirements before making any decisions as to which size bars you go for. For instance, if you are buying silver to hold onto for the future then larger sizes may be more suited to you, whilst if you are buying silver for short-term gain then smaller bars are easier to sell as they are more affordable for most buyers.

silver bar worth
Sprott silver bars

Cast or minted bars

Cast or “moulded” bars tend to be cheaper than minted bars and are typically worth much less. This is because the creation process leaves blemishes/abnormalities and they are generally cheaper to manufacture. Minted bars are typically more popular with investors and collectors due to being more aesthetically pleasing to the eye and also due to the fact they can be designed in far greater detail.

Valuing silver

Like gold, the value of silver is prone to fluctuation, however, silver represents a much more affordable option for many investors. Whilst the current value of silver is not as high as other metals such as gold and platinum, many investors believe that its price is likely to increase dramatically in the future as we are currently mining much more of the metal than we are producing. New uses for silver are also being discovered all of the time, particularly in industries such as solar energy and manufacturing.

Insider's Guide to gold and silver

Benefits of buying silver in bar form

There are several advantages to buying silver in bar form. For example, if you are looking to buy silver in bulk then a bar is more practical than coins (e.g. Britannia) or other forms of silver as it is more easily stored. Silver bars are also fairly liquid meaning you can sell them quickly if you need to raise the money in a hurry.

How the spread can affect value?

When investing in any form of silver you should always be aware of the spread. This is the difference between the price a dealer is willing to pay for silver and the price they are looking to sell it for. Dealers will always sell at a higher price as they need to earn a living. Therefore, you shouldn’t expect to make a massive profit on silver in the short term unless its market value rises dramatically, as it just isn’t realistic. The spread tends to vary considerably from dealer to dealer so in order to get the best deal you should always shop around before making any decisions.

Invest in silver bars through Physical Gold

Physical Gold, specialise in a very large selection of silver investments. We also offer a full range of gold bars (from smaller sizes like 100g and 1oz, up to 1 kilo) and silver bars from 100 grams all the way up to 5 kilos. Call us today on 020 7060 9992 to discuss your options.

Image Source: Sprott Money

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Blog

How do Interest Rates Affect the Price of Gold and Silver?

It has long been a widespread belief that interest rates have a significant impact on the prices of gold and silver.  On the face of it, this would appear to be true. If interest rates were to rise, then it would make sense that the appeal of bonds and savings accounts should go up and demand for physical assets go down. In reality, however, there is no real statistical evidence to support this. This is because there are many other factors that drive the prices of gold and silver.

Correlation between interest rates and prices of gold/silver

Whilst there is some level of correlation between interest rates and the prices of gold and silver, it is not enough to say for definite whether rising interest rates have a positive or negative effect. Over the last 50 years, the correlation between interest rates and the price of gold has only been at around 28%.


Worried how a market downturn and high-interest rates would impact your wealth? Take the Test to find out…


Rising interest rates have also been shown to have a bullish effect on PHYS01_Animated_Gif_2_MPUprecious metals in recent times, a complete contradiction to what precious metals experts have been telling us for years. Last year, for example, the prices of gold and silver rallied significantly after the federal reserve announced an increase in interest rates. One of the reasons for this is that gold and silver markets predominantly operate on investors’ expectations for the future.

If investors foresee that interest rates might rise, then the prices of gold and silver may drop a long time before the changes in interest rates are actually introduced. After interest rates have risen there may actually be a bounce in gold and silver prices as investors look to hedge their bets for the future. According to recent statistics, the chance of gold prices being higher 12 months after a Fed hike is 61%.

That’s not all

Precious metals are also purchased by many investors as a hedge against inflation. They, therefore, make quite timely investments when purchased during the course of a rate-hike cycle. Hyper-inflation in countries like Venezuela is likely to drive citizens of the country to invest their cash savings in commodities that will hold their value like gold and silver. This serves as a warning to everyone to keep an eye on the direction of inflation in their own countries as what appears to be relatively stable conditions can change quickly if confidence turns.

How do interest rates affect the price of gold
Gold and silver ten oz. bullion bars

Other factors influencing gold and silver prices

The main reason that interest rates do not tend to have a significant impact on the price of precious metals, is that there are many other factors normally involved. Investors buy gold and silver for all sorts of different reasons. They may invest in precious metals as a response to potential economic and geopolitical risks for example. After Brexit demand for gold and silver went through the roof as people were worried about the country’s economic future and how potential trade links with the rest of Europe would be affected. This uncertainty meant that people didn’t trust the markets as much as they would have normally and so investing in physical assets represented a viable alternative as well as a way to protect their wealth in the event of a market crash. Other geopolitical factors such as Trump’s administration in the US have also had an effect on gold and silver prices.

Learn more in our YouTube video – “The Gold price today & investing in gold medium to long term”

Another factor that has a big influence on gold and silver prices is the performance of the stock market. If the stock market is underperforming or has declined significantly then one of the first investments people tend to turn to is silver or gold.

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Silver prices

Silver has a wide variety of industrial uses which means its price isn’t always affected by the same factors that influence gold.  Due to its heavy industrial use, silver prices can also be influenced by a wide range of other economic forces, depending on how other markets are performing.

Purchase gold or silver through Physical Gold

Physical Gold are specialist dealers in gold and silver. We offer a wide range of investments suitable for all investors including silver bars and gold bars and CGT tax-exempt bullion coins (silver and gold). For more information on our services and how we can help you, please give us a call on 020 7060 9992.

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Industry News

World Gold Council – Enhancing The Performance of Alternatives with Gold

In recent years, buy-and-hold investors such as pension funds, endowments, insurance companies, and sovereign wealth funds have gradually increased their investments in alternative assets to diversify their portfolios and boost returns.

‘Alternatives’ make up 23% of SWF portfolios and Insider's Guide to gold and silver24% of global pension funds, up from single digits in 2000.

Alternatives can offer attractive returns but be highly correlated to the stock market during downturns and often require long holding periods. Our research suggests that gold can complement alternatives by providing returns, improving diversification, adding liquidity, and enhancing overall portfolio performance.

The financial gold market is larger than the size of many alternative assets

The estimated size of alternative assets*

World Gold Council

*Based on most recent available data on each market as of December 2017.
Source: Barclays, BIS, JP Morgan, Preqin, REIT.com, World Gold Council

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Blog

What is Gold? – A Definition

When you think of gold, there are many different things that come to mind. After all, it is one of the most widely used commodities on the planet and one of the world’s most prized natural resources. Today gold is used in everything from jewellery to computer chips and new uses for the metal are being discovered all the time.

Where does the term “gold” come from?

The term “gold” literally means “yellow” and is taken from the Old English Anglo-Saxon word ‘geolo’.


Want to know more about gold? Get our FREE Ultimate Guide to Gold here


Where is gold found?

Gold is a rare precious metal that has been discovered in countries all over the world. Some of the world’s biggest miners of gold include South Africa, China and Russia.

Gold definition
Gold rounds

Why is gold such a popular precious metal?

Gold has many beneficial properties making it ideal for use in all sorts of different things. Not only is it an excellent conductor of heat, light and electricity, it is also highly malleable and does not tarnish. Due to its flexibility, gold can be shaped into virtually anything which is why it has been held in high regard as an object of great value for thousands of years. Gold is also relatively scarce which makes it an attractive proposition for investors who wish to benefit from its rarity and keep it as a store of wealth.

Gold as a medium of exchange

Gold has been used as a medium of exchange for thousands of years. Insider's Guide to gold and silverBefore the invention of gold coins, it was originally used as an early form of bartering. For example, the ancient Egyptians often used to trade in livestock and would sometimes fashion gold in the shape of a sheep in order to exchange it for other items of value.

The first gold coins were struck back in 6th century BC, and throughout history, gold has frequently been used in the creation of coins. Early civilizations such as the Romans and the Greeks had a huge influence in developing gold coinage and gold had a pivotal role in helping them develop their empire.

On 28th October 1489, King Henry VII ordered the Royal Mint to create the largest and most valuable gold coin in circulation. The gold sovereign became the first official gold coin to be minted in the UK. England was also the very first country to adopt the gold standard back in 1821. This was upheld until 1931 when the global depression and failure of the banks lead to the country eventually abandoning the gold standard. Up until as recently as the 1970’s countries around the world including the United States still upheld the gold standard.

Gold definition
Assortment of gold bars

Interesting facts about gold

– Gold is highly valued for its unique yellow colour. it is currently the only known metal that is naturally yellow or “golden”. Other metals may develop a yellow hue if they become oxidised with other chemicals.

– Gold is literally from out of this world. It is believed that the precious metal is formed when two stars collide causing heavy elements to be ejected outwards. Check out the video here.

– Gold is non-toxic and non-irritating when ingested which means you can eat it without consequence. Edible gold leaf has frequently been used to decorate extravagant items of food.

– The world’s largest gold nugget ever found was discovered in Australia in 1872. It weighed an incredible 204lbs and was over 5 feet tall.

– It is estimated that around 20 million tons of gold is lying under the ocean.

– China is currently the biggest producer of gold in the world, responsible for producing over 463.7 tonnes of the precious metal in 2016 alone.

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Gold as an investment

Gold is one of the most popular forms of investment available today. Not only is it considered an excellent store of wealth, but it is also very liquid and easily transferrable. There are many different types of gold investments including gold bars, gold coins and gold ETF’s. Investors circumstances and what you’re looking to achieve from your investment will determine which option is the best choice for you. For example, if you don’t have a safe at home you may not wish to store gold coins in the house, and therefore you may decide it is less risky to buy gold ETF’s. Since the financial crisis of 2008, more and more investors have turned to gold as a protection against economic uncertainty particularly in countries like China and India. This is because gold is a physical asset and not so reliant on unstable currencies and market movements.

Invest in gold today with Physical Gold

Physical Gold is one of the UK’s leading gold dealers specialising in a wide range of gold investments suitable for every requirement. You can browse our catalogue of gold investments here or for more information please call us on 020 7060 9992.

Image Sources: Wikipedia and Pixabay