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15 Uses of Gold

What is gold used for?

Gold is one of the most sought-after and widely used commodities on the planet. The fact that it does not tarnish and is so easily shaped makes it perfect for use in all kinds of applications. It also has many other beneficial properties such as its attractive natural sparkle, and the fact that it’s a great natural conductor of electricity, highlighting the importance of gold across a range of aspects. Here are 15 different uses for gold in the modern world.

1) Jewellery

When most people picture gold, they envision a sparkling necklace or diamond embedded engagement ring. In fact, most of the world’s gold consumption is used in the production of jewellery. Figures estimate that around 52% of the world’s total production of gold is used exclusively by the jewellery industry with countries such as India and China continuing to fuel this massive demand.

Why do we use gold for jewellery?

Gold has been used to create jewellery for thousands of years. You could argue that gold is the perfect metal for jewellery for a number of reasons. One of the main reasons for its everlasting popularity is the fact that it does not react with moisture and so, therefore, does not rust and is tarnish resistant. Visually, it has incredible lustre and its yellow colour is appealing for ornamental jewellery. It’s high ability to alloy with other metals opens up huge opportunity to create a vast array of alternative colours to suit jewellery. Colours will vary according to which metals gold is combined with. Silver produces a white gold, while copper creates a reddish tinge.

Gold’s versatility lends itself to elaborate designs

Gold’s malleability provides the ability to be hammered into very thin sheets, drawn into wires and be melted and cast into ornate shapes, all of which helps creativity in jewellery. As it mixes so well with other metals, the carat (or purity) or the gold is often diluted to decrease this malleability and softness. This suits specialist jewellery production which needs to be strong enough to hold stones. Demand for bespoke jewellery has increased considerably in recent years as more consumers wish to possess individual jewellery items no one else owns. Gold’s various carat mixes make it the most versatile metal to achieve this uniqueness.

Tradition’s effect on gold’s jewellery role

Undoubtedly, the long history of gold being highly valued and representing success and power, has contributed to it being the preferred choice for jewellery. Along with tradition, gold’s ubiquity in various religions has led to vast populations expecting important objects and jewellery to be made of gold.
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2) Money/finance

After jewellery, the most common use for gold is in coinage. Due to its rarity gold has long been used as a form of currency and people were using gold coins as far back as 6000 years ago. At one stage many of the world’s currencies were fixed to a gold standard which was set at the price per ounce. Whilst we don’t use gold to make money anymore, it is still used to make bullion coins (e.g. Gold Sovereigns and Gold Britannias), and it is estimated that around 10% of the world’s gold is used in coinage or in financial stores of government.

Why was gold used as currency?

Gold’s relative scarcity suited the concept of currency ideally, with its rarity and desirability providing a sound basis for value and long term exchange. Originally, gold pieces were used as forms of exchange for goods, but overtime size of these pieces became standardised into coins to enable smoother transactions. Even when the first paper money was introduced, gold was kept as collateral to guarantee its value.

 


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3) Investment

Gold has been a popular commodity for centuries and is viewed by investors as a safe haven and an excellent store of wealth. Due to the fact that it is a tangible commodity with a long history of market performance, gold is often purchased by investors seeking to protect themselves against the risks of inflation and downturns in the economy. The most common form of gold investment is usually gold bullion bars or coins. You can also purchase gold exchange funds on the stock exchange.

Gold going digital

Gold has been digitised in various forms to open gold investment to those wishing to actively trade. Whether it takes the form of Exchange Traded Funds (ETFs), spread betting on the gold price or Gold equity funds, the precious metal plays a growing role in investors’ portfolios.

Uses of gold
100g Gold Bars

4) Collateral for a loan

In some countries, like India for example, gold is considered very precious and can be used as collateral against loans.  As we move towards a more digitised financial system, tangible assets such as gold or silver are likely to become more important and using gold as collateral could become more commonplace.

5) Dentistry

Gold has played an important role in the dental industry for nearly 3000 years, PHYS01_Animated_Gif_2_MPUand is often used in crowns, fillings and bridgework. Gold is non-toxic and can be placed in contact with the body without causing harm. The fact that it is also such a durable metal and doesn’t corrode in the mouth makes it perfect for use in dental treatment.

The use of gold in dentistry began to decline in the late 1970s due to the rising gold price. Alternatives were developed, but we’ve recently observed a renaissance in gold usage due to worries that lees inert materials may impact long-term health.

6) Medicine

The unique properties and uses of gold has meant it’s been used to treat a variety of medical conditions since around 2500 BC. Chinese physicians originally used pure gold to treat conditions such as smallpox and skin ulcers. The ancient Romans also used gold salves to treat a variety of skin problems. Today gold is still used in medicinal treatments, particularly the treatment of inflammatory conditions such as arthritis, where injections of a gold solution are sometimes administered in particularly severe cases. Since gold is very resistant to bacteria and non-toxic, it is also frequently used in bodily implants where there may be a risk of infection, such as inner ear implants.

Use of gold nanoparticles for cancer treatment

Colloidal gold nanoparticles are increasingly being used to help the delivery of chemotherapy. Their minute size and non-immunogenicity make their molecules ideal for targeted drug delivery systems. Drug molecules and tumor-specific ligands can be attached to the gold nanoparticles to pursue the tumour without redeploying through the body.

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7) Mobile phones

Not many people know this, but gold can be found in the electronics of every single mobile device in the world. Research carried out by the World Gold Council, discovered that a single phone can contain up to 50 milligrams of gold. This may not seem like a lot but when you consider the number of mobile phone’s there are in the world, it all adds up to a pretty impressive amount of gold.

Why is gold used when silver is cheaper and more conductive?

It’s all to do with the types of electronic devices and gold’s high resistance to rust and corrosion. This is particularly important with solid state electronics which use very low currents and voltage. Examples of these are light-emitting diodes (LED) and liquid crystal displays (LCD) which are based solely on semi-conductors. Obviously, this technology predominates in today’s smartphone screens. With such low voltages, the slightest corrosion at the contact points will disrupt the flow of current, so gold is utilised for its reliability. That’s why gold is a feature of high-end speaker cable connectors.

Here’s the interesting part for gold supply

With gold’s use in every mobile device, the amount of gold in the world is actually shrinking each day! Each contains about 30p of gold, not a lot right? However, with around a billion mobile phones in global circulation and each one with an average of 2 years lifespan, it soon adds up. With very few phones being recycled, this gold is lost forever.

uses of gold
Every one of the billion mobile phones contains gold

8) Computers/laptops

Gold is also frequently used in other electronic devices such as laptops and computers. It is one of the best natural conductors of electricity which is why it is often found in computer chips, allowing your computer to pass on, and receive information more easily.

Why do we use gold?

Whilst not as conductive a metal as silver, gold is more frequently used in electronics due to the fact it doesn’t ever tarnish or rust. With the need for so much data transmitting, the demand for reliability outweighs the high cost of using gold. Generally, gold is utilised to mount processing chips onto motherboards.

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9) In space

Gold plays a key role in protecting astronauts from harmful infrared rays from the sun. The visor on their helmet is coated with a thin layer of gold which acts as a filter. Gold is also used on space vehicles to help reflect infrared radiation and stabilize core temperatures. With such vast sums being invested into space research, reliability is key, so the high cost of gold isn’t a deterrent to its usage.

10) Food/drink

Some particularly up-market restaurants use gold shavings or gold leaf to decorate their more extravagant dishes. Gold is non-toxic and can be eaten without consequence, however, it can’t be digested and passes straight through the body. Gold also has no taste so the use of gold in food is purely for decorative purposes.

Uses of gold
Japanese gold leaf producers Haku Ichi, serve ice cream decorated in gold.

11) Manufacturing

Gold is frequently used in manufacturing due to its ability to conduct heat and reflect light. It can also be used as a lubricant in any number of engineering applications due to its resistance to cold welding.

12) Buildings

Some particularly grand buildings often feature some form of gold decoration. Gold leaf, in particular, is frequently used to adorn important features on buildings all over the world. Some of the most famous examples include St. Michael’s Cathedral in Kiev, whose golden domes can be seen from miles around, and the Criterion Restaurant in London with its extravagant gold leaf ceiling.

Why is gold leaf used so widely?

Apart from gold’s obvious status symbol and incredible aesthetics, its malleability is the key to it adorning so many prestigious buildings. Gold leaf is created when gold sheets are beaten to an incredibly thin 3 millionths of an inch in thickness. This amazing feat means the gold leaf is very versatile to gild and emboss non-uniform surfaces. It also reduces the cost of material dramatically, allowing larger areas to be gilded. The largest cost is, in fact, the skilled labour required to apply the specialist leaf.

Gold’s anti-corrosive and anti-bacterial qualities also make it a popular choice to use on certain internal and external building surfaces which need to be protected. Gold’s easy marriage with other metals creates the opportunity to gild buildings with a wide variety of gold leaf colours and shades. Despite this versatility, the recognisable yellow of high carat gold is usually selected due to its conspicuous nature.

Less obvious is the use of gold in glass production. It is utilised to create a red hue to the glass and is pivotal for climate control in speciality glass. Whether added to the glass compound or coated onto its surface, the addition of gold helps reflect the sun’s glare and heat while also acting as insulation in the winter.

uses of gold
Palaces and religious buildings use gold leaf to decorate domes

13) Cosmetics/beauty

Gold is frequently used in the cosmetics industry and has been hailed as a revolutionary ingredient in everything from topical skincare creams to lip balms and moisturisers. Its many properties are said to help improve skin tone and elasticity as well as providing significant anti-ageing benefits and improving blood circulation. Gold Nano-particles have been used in the products of some pretty influential names in the beauty industry including L’Oréal and Dior.

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14) Printing

Gold ink is becoming increasingly popular with printing companies since photos printed in gold can produce high quality and long-lasting images. CD’s and DVD’s that have been coated in printed gold can also resist scratches and last longer.

More recently, there’s a growing trend to use gold in 3D printing. The reduction in the cost of 3D printers and becoming more widespread has led to a number of materials being experimented with. Essentially using a cast system, gold is increasingly being chosen due produce unique and desirable one-off objects.

15) Displaying wealth & status

For some people, gold is a sign of power and status. Wealthy individuals have always been keen to show off their wealth in the form of gold, whether it’s by wearing a luxury wristwatch or a piece of fancy jewellery. Today gold is used to decorate iPhones, cars and was even used to create an exclusive credit card created by a bank in Kazakhstan. The card was made using gold, diamonds and mother of pearl.

Gold’s high esteem is also reflected in sport. Gold medals and trophies are synonymous with winners. King’s and queens still adorn crowns made of gold, rather than stronger metals, simply because of their global status.

Future uses of gold

More and more uses for gold are being discovered all the time. Our growing dependence on electronics and computers also means that gold usage is likely to grow sooner rather than later.

Harnessing the power of gold nanoparticles is also creating an ever-growing list of applications for gold. Nanoparticles are already being used in botanical research, cancer, toxin and pathogen detection and optical-electronics for sensory exploratory probes.

Physical Gold is one of the leading providers of gold and silver in the UK. Our professional team of experts help guide investors who are interested in tax-efficient solutions, to help diversify their investment portfolio. For more information, please give us a call on 020 7060 9992.

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The Recent Explosive Growth of Gold Mining in Tanzania

Tanzania – a land rich in gold

Recent research suggests that Tanzania could well be one of the largest producers of gold in the world. As a country, Tanzania has always been blessed as a land rich in minerals. Tanzania is a young nation, having gained its independence in 1961 after many years of colonial rule. Political parties were allowed only post-1992 after which the country held its first democratic elections in 1995. The current president, John Magafuli was elected in 2015. Mining accounts for 3.3% of the country’s GDP as per figures from 2013. Interestingly, 89% of the country’s exports come from gold mining. It is one of the biggest businesses in Tanzania. Apart from gold, the country’s diamond mining industry is also significant.

A spurt in gold mining

Tanzania’s gold production has increased by 700% in the last 25 years and Tanzania is the world’s 4th largest gold producer. One of the largest gold companies in the country is Acacia Mining. The company mines its gold largely from the Bulyanhulu and Buzwagi gold mines. Acacia mines and exports around 4,000 containers every year at a rate of 333 containers each month. Tanzania’s high yield mining sites, Buzwagi and Bulyanhulu are located in a town called Kahama, in the Lake Victoria region of the country, which is well known as part of the country’s lucrative gold belt.


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The nature of the underground rock structures at these mines ensures that 50% of the gold is recovered at the site itself. The balance is usually recovered from other mines which produce a gold-copper concentrate ore. However, this means that the gold still needs to be extracted from the ore. Acacia produces around 1,500,000 ounces of gold per year, which is valued at $1.89bn is the international market. Clearly, these statistics position Tanzania as the leader in gold mining in Africa. South Africa is the only other African nation that comes close in terms of gold production with annual production volumes of 140 metric tonnes.

growth in gold mining
The Buzwagi gold mine is one of Tanzania’s largest gold mines

In a recent controversy, Tanzania imposed a ban on gold exports as well as exports of other precious minerals from the country in March 2017. The ban has affected several multi-national companies involved in mining operations in the country. The Tanzanian government has stated that the ban is designed to prevent minerals from being taken out of the country for processing. However, many believe that the ban is a pressure tactic by the current government against Acacia Mining, due to an unresolved tax dispute with the company. The company’s output accounts for almost 2% of the country’s GDP.

Reasons for Tanzania’s gold mining boom

The history of Tanzania’s gold mining boom

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dates back to the early 90s when the country’s political structure opened up for greater democracy. The liberalisation of the mining industry at the time meant that by the late 80s, the monopoly exercised by the country’s state mining company, a public sector company was brought to an end. This allowed any citizen to get into mining and sell minerals. The second act of liberalisation was the country’s government allowing multi-national corporations to enter the gold exports business in the country and grow their presence in the country. The country benefited hugely through these moves, as the foreign exchange earnings multiplied and could be used to import consumer goods, invest in infrastructure, etc. These economic moves led to a virtual cycle, which in turn kicked off the artisanal gold mining boom in Tanzania.

Call us to find out more about gold investments

Of course, in order to be a savvy gold investor, you needn’t worry about Tanzanian gold. Our investment team at Physical gold can advise you on the best buys when it comes to investing in gold and building a great portfolio. All it takes is a phone call. Call us now on 020 7060 9992 or get in touch through our website to speak to a member of our team.

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How Much Is a Gold Bar Worth?

One of the questions we hear regularly, particularly from investors who are new in the gold business is one touching on the worth of a gold bar. In a bid to answer this question comprehensively, we will explore all the factors that directly affect the value of a gold bar.

Gold bars aren’t all worth the same

Before we begin, it is worth noting that all gold bars cannot cost the same. Even those that have similar weight and size may not necessarily have the same value. Also, worth noting is that the price of gold bars keeps changing each day that markets are open in accordance with the gold spot price.


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Factors that determine the value of a gold bar

1)    The current spot price of gold

Since the gold bar is just a piece of precious metal, it makes sense for the going price of gold to determine its value. The gold spot price tells buyers about the market’s dollar value of one troy ounce of pure gold. Visitors to our site can always see the latest spot price for gold and silver at the top left-hand side of our web pages.

 

Gold Bar Value
The price of gold bars continuously changes

It is important to keep in mind that the gold spot price varies from minute to minute when the market is open, and also after hours in the Asian markets. After knowing the latest spot price of gold, you should then proceed with the following steps to know the value of a gold bar.

2)    Weight and purity

After knowing the current price of gold, you should proceed to know more about the

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purity and weight of the gold bar. Typically, manufacturers stamp purity and weight details somewhere on the gold bar – either at the back or on the front.

For the most part, gold bars are either .9999 or .999 pure albeit some brands may be .995 pure. If a buyer comes across a gold bar devoid of this information, it might not be real gold. Copper and bronze are common alloy metals that resemble gold in appearance. On the other hand, gold bar weights vary dramatically from about one gram to 1 kilogram. So, the size may affect the pricing as well.

3)    Gold bar melt value

After obtaining the information about the purity and gold spot price, buyers should take gold bar’s weight (in troy ounces) and multiply that by the purity. The result will be the bar’s total pure-gold weight. After that, multiply the result by the gold’s spot price.

For example, if the gold bar weighs 10 grams (or 0.321507 troy ounces), and the gold spot price is $1250 with the purity of .9999, the gold bar value will be:

[0.321507 x .9999] x $1250 = $401.84

Therefore, in this case, the value of pure gold in the 10-gram gold bar is $353.62. This doesn’t include the premium, which is the cost above the melt value that the gold bar might sell for.

Gold Bar Value
Gold bars have a melt value

4)    Premium

A premium refers to the price added to the melt value of the gold bar. Calculation of the premium depends on many factors. Often, the demand and cost of production are the main reasons a gold bar may sell high and above the spot price. Premiums may vary depending on the gold bar’s weight, manufacturer or condition. It is usually indicated as a dollar value or percentage. Typically, as the gold bar’s weight increases, the premium will reduce.

So what’s the best value gold bars when buying?

The price you pay for physical gold will generally reduce as you buy more. In the case of gold bars, if you calculate the price per gram, larger bars are far better value than small gold bars. Infact any gold bars below an ounce in weight are really not of great value due to the high production cost. Most new small bars will be beautifully manufactured to include being encapsulated in a plastic cover, complete with certification. In comparison, similar size gold bullion coins such as Sovereigns (7.32g of pure gold) and Britannias, can be bought at lower premiums as they’re sold loose. 100g gold bars offer decent value, with 250g and 500g slightly better again, and 1kg trading pretty close to the underlying spot price.

Watch our related video – “How much is a gold bar worth?”

So 1kilo bars are the best for worth?

The problems with 1kg gold bars are that many people can’t afford to invest £30k+ into gold at once and secondly, it limits flexibility. After all, if you buy a 1kilo gold bar to reduce the cost as far as possible, then you can’t liquidate £10k worth of gold if you need to. You’re forced to sell the whole bar or nothing at all.

An alternative method to buy gold bullion at the best value is to approach quantity discounts in another way, depending on how much you have to spend. While 1kilo bars undoubtedly offer the best value, discounts are still available for buying a quantity of more modest-sized gold bars (e.g. 1oz).

Instead of buying one 1 kg gold bar, it could provide a good compromise to buy 10 x 100g bars instead. Buying ten 100g gold bars at once will enable you to receive a discount (although not quite as cheap as 1x1kilo bar), but still maintain a degree of divisibility so you can sell some of your holdings if needed.

 

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5)    Does brand matter in worth?

When buying gold bars, then the worth absolutely varies according to which brand bars you purchase. Brands such as Umicore tend to be priced slightly lower than Swiss brands such as Pamp, which command a premium. However, the importance of brand diminishes when you look to sell. Certainly, we’d pay the same for a gold bar regardless of its brand. We simply base our price on the gold price, weight and purity. So unless you especially want a Swiss brand for ego, prestige, or as a present, buy the cheapest bar possible. Its value will be the same when it comes to selling. We sell pre-owned gold bars which are amongst our best sellers to savvy investors who realise a brand shouldn’t impact a gold bar’s worth.

6)    Value of gold bars versus coins

If you’re interested in gold as an investment, then there are two main types of physical gold to consider. Gold coins and gold bars. As long as these forms of gold are at least 22 carats in purity, then both are exempt from VAT. Other types of gold like jewellery, gold dust, lower purity coins, etc, will attract VAT and so are less attractive as effective investments. Generally speaking, your gold bar will not be worth quite the same as the equivalent weight in gold coins. The value of both tracks the factors already discussed. However, gold dealers will likely pay you very slightly more for desirable bullion coins such as Sovereigns than a gold bar. This reflects that the British coins are Capital Gains tax free and can be sold to a number of potential buyers due to their modest size. Certainly larger gold bars will usually be sold back into wholesale, so premiums are slightly lower to reflect that. We’re not talking a big difference, but perhaps a percent or so, depending on the market.


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..and how about the worth of gold bullion versus older coins?

The bigger discrepancy will be when comparing the value of a gold bar with the equivalent weight in a more numismatic coin. If you look at the value of a Victorian gold Sovereign, for example, its worth is not only based on its gold content but also its age, scarcity and desirability. For that reason, the value of a gold bar will always be lower per gram. The value of gold bars will never outpace the general gold price as they don’t contain a historical or collectable value. However, gold bars would have been cheaper to buy in the first place.

gold bar value
Gold bars are not the same value as gold coins per gram

Will tax affect my gold bar’s worth?

While UK coins issued with a face value, such as Britannias and Sovereign coins, are Capital Gains tax free, gold bars are not. That means the value of your gold bar could be impacted by the tax. Obviously, if you sell your gold bar below the price you paid for it, then CGT will not have any impact on the gold bar’s worth. Similarly, if you’re gold bar has risen in value, but by not more than the annual CGT threshold (around £12k per annum), then no tax is applicable, and the bullion’s value is straightforward. However, for the larger investor, selling a considerable amount of bars at once, at a profit exceeding your annual £12k allowance, will incur tax, and therefore reduce the overall sale value of your gold bar.

One way around this for sellers of larger quantities of gold bars is to sell some bars before the April 5th tax year and others after the tax year. Spreading profits over two years, ensuring gains are below annual allowances will mean no tax. This strengthens the argument for buying lots of medium-sized bars instead of very large bars which may incur CGT.

7)   Timing

Obviously, the underlying gold price affects the 10 commandmentsvalue of gold bars, as covered in point one above. But there are other timing issues that can impact the value of your gold bar.

Firstly, the general market sentiment and supply/demand dynamic can impact the value of gold bars. That’s because the premium or discount to the spot price can vary according to how busy the market is. When the gold price rises, demand for gold increases and the number of sellers reduces. In this scenario, premiums to buy gold bars can increase to reflect the robust demand and prices paid to buy back gold also increases.

The opposite is true when the gold price is in a period of downside. Fewer buyers mean that gold bars may be snapped up at slightly lower premiums, while dealers may pay a percent less for your gold bar if you’re selling as there are an increased number of sellers.

What can I learn from this?

To maximize your gold bar’s value, buy when the market is quiet (and low) and sell when the market is on fire (even though everyone will think you’re mad!).

Secondly, the value of your gold wafer or bar can be based on either the live gold price or one of the two daily fixings. This may sound like a moot point, but it’s important to understand that on a volatile day, perhaps when important economic figures are released or interest rates increase, the price can vary greatly from morning to afternoon. So if you’re seeking to sell your gold bar, make sure you agree if you’re basing it off the live price, the morning fix (10.30am) or the afternoon fix (3 pm), as this can greatly impact your bar’s worth.

Buy Gold Bars directly from us

Now that you know how to determine the value of a gold bar, why not contact Physical Gold to buy gold bars (or even silver bars) of the weight you want? You can call us on 020 7060 9992 or send us an email through our contact page, and we will be glad to serve you.

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What is the value of a Victorian gold Sovereign

How much is a Sovereign worth?

Victorian Gold Sovereign coins can make a wonderful gift or investment and are one of the most popular forms of physical gold.

But what are the Sovereigns worth?

With the price of gold moving steadily upwards over the years and money very tight for many of us, it could be time to dig out those coins we were handed down by our Grand Parents to raise some much-needed funds. If you’re lucky enough to have been given the coins, you’ll see why Sovereigns are such a good investment as the price has risen dramatically.

Do you own one of the 10 best British gold coins in history?

1. Underlying Gold Price

We always start deriving the value of a Victorian Gold Sovereign coin from the underlying gold price, known as the spot price. This price is generally quoted in various currencies in ounces and grammes and acts as a benchmark to value the various types of gold. The value of a Victorian Gold Sovereign will be at a premium or discount to this benchmark – with the first step being to multiply the ounce spot price by 0.2354 (which is the gold weight of a Sovereign coin in ounces). The underlying gold price values all gold-based coins including Gold Sovereigns as well as Gold Britannias.


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2. What sort of Victorian Gold Sovereign do I have?

It’s important to note that not all Victorian Sovereign coins are valued the same. 95% of them will likely fetch the same price regardless of the year of issue. However other factors to consider would be the condition of the coin, the year of issue and the rarity of the coin. For instance, there are 3 varieties of Victorian heads available, each of which may attract different collectors or buyers (Young Head, Jubilee Head, Old Head).

Victoria Sovereign coin
The Victoria Old Head Sovereign

Why does this matter?

With Victorian holding the record for longest British female monarch, up until recently when Queen Elizabeth took her crown (sorry!), the Sovereigns issued during her extensive reign were updated twice. Obviously, the Young head portrait represents the early years of her reign when she was a young woman. Therefore they’re the oldest Victorian coins of the three and worth the most. Prices for young head coins can be around 15-20% than later portraits. These coins are also unique as they were produced in what’s called ‘coin alignment’ This means that the portrait side and reverse side are upside down to each other.

victorian gold sovereign
The Young Head Victorian Sovereign trades above the other two portraits

How about the later versions?

The jubilee head was the next version to be launched PHYS01_Animated_Gif_2_MPUand encompasses the middle period of Victoria’s reign, including her golden jubilee. This portrait only lasted for 7 years (compared to the Young Head’s 17-year stint) so naturally, there were fewer coins minted. For this reason, you could argue that the Jubilee Head coin is rarer than the more expensive Young Head version. Perhaps this suggests that premiums on these could rise faster in the future. Certainly, the value varies quite a lot depending on general market supply. Sometimes, it trades at the same level as the newer Old Head coin, while other times it can command 5% higher prices than the Old Head. This coin also marked the very first Sovereign to be minted in ‘medal alignment’, whereby the obverse and reverse are printed the same way around. All Sovereign issues since have followed this format.

Old Head Victorian gold Sovereign value

The Old Head Victorian coin, also known as the veiled head due to the portrait featuring the monarch wearing a veil rather than a crown, is generally the least valuable of the three versions. It’s the most recent edition so has less history about it and there is a plentiful supply. Generally, we tend to see relatively stable premiums for these coins. Because of this, they can be a really good value way of adding Victorian Sovereigns to your gold investment collection without having to pay the high premiums of the rarer coins.

victorian gold sovereign
Condition of Sovereigns will be a value factor

What else do I need to know?

Generally, the second-hand Sovereign market will provide a good price for Victorian Sovereigns as long as there isn’t visible damage to the coin or small pieces missing. Clearly, a coin of over 100 years in age isn’t expected to be in pristine condition. You may want to check whether your Victorian coin falls into the 5% of Sovereigns worth significantly more than others. If your coin is a shield back, then this could instantly demand a premium over regular coins. Years of low print runs (and therefore rarity) will also command a further premium.

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3. Mint Marks

Of course, sometimes the devil is in the detail. If you look closely at Victorian Sovereigns even of the same year and portrait, they’re not necessarily identical or command the same price. Their worth can also vary due to mint marks. These can be difficult to see but basically, a letter will depict which mint the coin was produced in. The Young Head and Jubilee Sovereigns were minted amongst three different factories, namely – London, Melbourne and Sydney. The Old Head coin added Perth Mint to the production list. Interestingly, this reflected Britain’s growing empire, with the Sovereigns to follow in the Edwardian and Georgian eras, also being minted as far afield as Canada, South Africa and India.

victorian gold sovereign
Examples of mintmarks

How can I benefit?

Depending on which branch mint the coin was made, certain coins can be worth more, depending on the quantity produced by each mint. For instance, while the various Australian mints produced Sovereign coins for between 30 and 50 years, Ottowa and Pretoria mints only produced for around a decade, with Bombay only minting during 1918!

Mint marks to look out for are London (L), Sydney (S), Melbourne (M), Perth (P), Ottowa (C), Bombay (I) and Pretoria (SA).

10 commandments

4. Timing

Exactly when you choose to sell or value your Victorian Sovereign will impact its value. We’ve already spoken about the underlying gold price, and how the worth of any gold bar or coin is calculated from that point first. Clearly selling your Gold Victorian Sovereign when the gold price is high will dramatically enhance the worth of your coin. But there are two other timing elements which play a role.

Market sentiment

The supply and demand dynamics of gold are fluid. In other words, there are times when supply is particularly tight, perhaps due to mine closures or investors hoarding their gold. Other times, we see plentiful supplies of even the more numismatic gold coins. Similarly, demand can fluctuate greatly. In particular, we experience the same theme time and again, that demand for gold rises when there’s economic or political unrest and then declines during periods of economic prosperity and global peace.

So how can I actually use this?

Intuition and common sense tell us one golden rule with investing. Buy low and sell high. Simple! However, with gold investing, retail buyers tend to buy gold as the price is rising or already high as they’re seeking a safe haven. When newspaper headlines feature stories of impending banking crises, Brexit disasters and world wars, retail investors buy gold coins and bars as security against possible stock market crashes and property price declines. Unfortunately, they’re buying at high prices as everyone else is also looking to purchase.

Conversely, when equity and property markets do well and political news is quiet, the gold price falls. When this happens, many investors sell their gold as they feel the bad times are over.  Again, the timing isn’t great as they’re selling at a low price.

But it gets worse because dealers will react to supply-demand dynamics, further amplifying the movement of the market. In other words, when everyone is selling, dealers will pay lower premiums for Victorian coins as there’s a spike in supply and fewer buyers in the market. When everyone is buying and very few offloading Victorian Sovereigns, premiums go up to reflect the difficulty in sourcing the coins.

Just like the smart money – think hedge funds and central banks, try to buy your gold sovereigns when the price is low and everyone else is selling. If you can, sell them when the market is high and everyone else is helping push up premiums.

Which price point to take

If you’re looking to sell your Victorian gold Sovereign, make sure you agree with the buyer if the price is fixed or set on either the live gold spot price or the LBMA gold fixing. On a volatile day with lots of economic news releases, the gold price can fluctuate considerably. The difference between fixing a price on the morning fix, afternoon fix or live spot price, can have a huge impact on the value of your Sovereign.

Watch our YouTube video and then decide – “Gold Britannias or Gold Sovereigns – which is the best investment?”

5. Who you sell to

Is my coin worth a premium or discount to the spot price?

If your coin is deemed to hold a numismatic value due to the year of issue or design (a value over and above simply the gold content), then it will undoubtedly fetch a premium to the spot price, in some cases up to 75% more. Otherwise, the value of the coin will depend on who you eventually sell to, and the current state and volatility of the gold market.

Selling to ‘Cash For Gold’ sites or a jeweller will undoubtedly achieve the largest discount to the benchmark (the lowest price) as these buyers will seek to melt down the gold and profit from your sale. However, this route may offer the convenience of simply dropping in the coin locally.

Selling to a collector may achieve a high premium as an individual may need your coin to complete a collection. However, you may be waiting for years to find the ‘right’ collector and you also expose yourself to the danger of dealing with the public or small unknown intermediaries.

Selling to a gold dealer should achieve a value close to the spot price while offering both convenience and safety. These coins are tax free in the UK which means gold dealer’s specialising in gold investment have a great need for these coins.  Indeed, at the moment supplies of second-hand Sovereigns are particularly tight due to the demand for physical gold, meaning that the brand new gold Sovereign coins are better valued than old ones.

 If you were handed the coin many years ago, you may be delighted to know that a coin worth around £20 when it was given to you 10 years or more ago may be worth more than £200 now.

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The Investment Potential in Buying Old British Silver Coins

The price of silver has skyrocketed over the years and silver coins are now worth a lot of money. When we look at British coinage history, we realise that coins minted after 1947 contain no silver and therefore aren’t that valuable. These pre-1947 coins are now worth more than 40 times in value, depending on their silver content and their rarity. In general, any coin that was coined before 1947 is worth a lot more than its face value. For example, coin dealers do offer a pound for a sixpence coin minted before 1947. However, in this article, we will look at the silver coins made before 1947 that’s actually worth looking for and collecting.

“Should I invest in gold or silver?” – enjoy our YouTube video.

Valuable old British coins

Pre-1920 silver coins are made using 92.5 % real silver and the ones made from 1920 to 1947 had 50% silver. These coins can, therefore, be sold as bullion. A good starting point in identifying dealers is to check out the British Numismatic Trade Association (BNTA).

Here’s a list of 6 great British silver coins from yesteryear that are valuable and boasts of fine grade silver.

  • A George III Crown is a great coin to have in your collection. These coins could date back to 1818 and normally weigh 28.27gms of 0.925 fine grade silver.

Thinking of investing in silver coins? Download our FREE Insiders Guide to silver buying and selling here


  • George IV Crowns date back to 1821 and were also minted with 0.925 fine silver. These coins weigh 28.27gms and can get you £26 to £35 depending on their condition
  • The 1892 ‘Jubilee Head’ Florin features Queen Victoria on the obverse and weighs 11.4gms of 0.925 fine grade silver. Only 283,000 were minted and these usually fetch nearly £120 in the market.
Buying Old British Silver Coins
The Victorian Silver Florin dates back to 1875 and is a highly collectable coin
  • The 1902 Edward VII British silver shilling is yet another collectable coin of value. These were issued only till 1910 and weighs 5.25gms of silver with purity of 0.925. Almost 7.9mn were coined at the time and many are still available. So, it’s worth looking out for one as each of these in a good condition could fetch around £100 in the market.
  • 1743 George II Shilling Roses is a highly collectable British silver coin. The shilling commanded a value of 12p at the time and was struck using silver mined in Britain itself from the West of England and Wales. The obverse features the profile of King George II and the reverse is adorned by the roses and plumes, symbolising the origin of the silver. A fine specimen of one of these coins could fetch around £
  • The 1847 Silver Proof Gothic Crown is considered by many numismatists around the world to be the finest silver coin ever minted. The inscriptions on the coin are in gothic script, hence the name. Queen Victoria is pictured with a crown on this coin. As these were minted as a proof, they were not circulated. Nevertheless, these coins are part of many coin auctions across the world and a good quality one could be worth around £

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Numismatics experts at Physical Gold can help you select the right silver bullion

At Physical Gold, we have a team of expert numismatists who can help you make the right investments in British silver coins. Although many of these coins aren’t necessarily priced in thousands, they are sure to get steadily dearer with the passage of time (e.g. like modern-day Sovereigns and Britannias). With silver prices steadily climbing, and the rarity and collectable value of these coins increasing, now is a good time to invest in British silver coins and hold them for the long run. Call our team on 020 7060 9992 or email us to find out more.

 

 

Image credit: Wikimedia Commons

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Buy Gold in London Direct from Physical Gold

In London today, buying gold is relatively easy, as this can be easily done through an online broker. Firstly, as a gold buyer, you need to be aware of the dos and don’ts of buying gold. There are certain advantages to buying gold online. Generally, online brokers build supply chains with large suppliers who are able to provide a wider variety of gold coins and bars that they source at competitive prices. This is vastly different from a high street broker who may only have a limited inventory to offer you, due to constraints of storage space.

When you buy gold from a high street shop, the onus is on you to make the right decision when buying, and you need to be able to tell whether or not the gold you are being sold is proper. A reputable online broker will have a team of experts, along with modern testing methods to ensure that anything you buy from them is already pre-checked and good to go. Of course, online brokers are also able to give you a better price as they do not need to incur the extra costs associated with running a regular high street store. They can offer a range of delivery and storage options, including secured storage at an approved vault, as well as secured, insured delivery to your door.


Looking to buy gold? Download our FREE 7 step cheat sheet to successful gold buying here


What to look for when dealing with an online broker

As long as the broker is a reliable one, you can rest assured that the product you’re buying is genuine and a good investment. Usually, the broker needs to be registered with an appropriate body like the British Numismatists Trade Association (BNTA). It’s important to remember that a single bad transaction could prove dear, as buying gold usually involve large sums of money.

While it’s true that you may get a good deal from an online broker, equally there are criminals who use the internet to hide. So, it’s up to you to do the proper background check on the dealer before entering into a transaction. In general, a good online broker will have a customer service line through which they can be contacted. A genuine broker will be transparent at all times and be willing to answer all your questions. If the broker in question isn’t doing that, you should be concerned and be careful of dealing with the company.

buy gold in london
Physical Gold offers safe and secure storage for all the gold you buy

Buying gold online from Physical Gold

Physical Gold is a leading online broker that Insider's Guide to gold and silverdoes all of the above and more. You can register for a free account on the website. It doesn’t matter whether you’re buying gold or not. You will still benefit from market commentary, expert opinion, industry news and buying guides, all of which are available in our ‘insights’ section.

We offer certain categories in gold. These are our Tax-Free Gold products, Pension Gold and our Monthly Saver Packages. When buying online, simply register and select the type of gold you want. Next just add your purchases to your shopping cart. Payment is easy and convenient through a bank transfer or just about any debit or credit card. You may be pleased to know that we also use a 3D secure payment system that ensures that criminals can’t hack your bank details while you’re online.

After paying, all you need to do next is select the delivery and storage option that you prefer. We offer secure, insured delivery on most products. Alternatively, we can store your gold for you at our LBMA approved storage facility. In this case, you will receive documentation from us guaranteeing your purchase and confirming that it’s in storage, that you are the legal owner of your asset and that you can access it whenever you like. All our products are shipped with a certificate of authenticity and we also give you a buyback guarantee on our products.

Call our team to find out more

Our team of experts are always willing to assist customers. You can call them on 020 7060 9992 and speak to them about buying gold online from us. You can also message us through our website and a member of our team will call you right back. We hope that the products you purchase will give you years of joy and appreciate greatly in value over the years to come.

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Buying 1KG Gold Bars Through Physical Gold

An excellent investment to build your gold portfolio is a 1kg gold bar. Even if you are starting out on building your gold investment portfolio, a 1kg bar is a great way to start. However, when making a firm commitment towards investments in gold, you need to be sure that you are buying from a reliable gold dealer.

Buying gold from Physical Gold

Our star product is the Metalor 1kg gold bar which is available at a starting price of £31,322. The current price of gold is $1313.40 per troy ounce. This works out to around £955 for 31.10g. Physical gold incentivises customers to buy more, so, when you buy in excess of 10 bars, you save £135 per bar. This works out to a saving of £1350 for 10 bars. The Metalor bar, manufactured by Swiss maker Metalor is made of pure gold with a fineness of 999.9.

The dimensions of the bar are 117 X 52 X 9 mm. The product is recognised by the London Bullion Market Association (LBMA), the world’s foremost authority in bullion products.  The LBMA sets global standards for the purity and form of the products that are traded. So, customers can buy with confidence. The best part is that buying gold bars is VAT free from Physical Gold, so that gives you great savings on your purchases. When buying multiple quantities of the one kilo bar, you save on VAT as well as on price.


Thinking of buying a 1kg gold bar? Download our 7 step cheat sheet to successful gold investing first


Buying 1KG Gold Bars
One kilo gold bars are a certified and highly re-saleable big value investment

The trust factor when buying from an online dealer

However, it’s not just about the price and savings, when making a large investment in gold bars. Every product you buy from Physical Gold comes with a certificate of authenticity and purity. You can also view our testimonials page to see what customers are saying about us.

Buying gold bars from Physical Gold

Buying from Physical Gold is really easy. Insider's Guide to gold and silverAll you need to do is open a free account. Next, add the products you wish to purchase in your online shopping cart, in this case, the 1kg Metalor gold bar. If you add more, you get greater savings. We have great delivery options for, including secure and insured delivery to your doorstep, or storage in our LBMA approved vaults. If you choose to store the gold bars in our vaults, we provide you with a storage agreement and legal documentation that establishes the fact that the assets are owned by you and gives you the right to access them at any time.

Call us to know more about buying 1kg gold bars

Our gold investment experts are always ready to guide customers on making the right purchases. Call us on 020 7060 9992 or get in touch with our team online to discuss how buying a 1kg gold bar can be a great investment and an addition to your wealth portfolio.

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How Much is a Kilo of Silver Worth?

Spot prices of silver

As a precious metal, silver is very attractive to investors simply because you can get a lot of it for a price far less than gold. Currently, the spot price of silver is trading at a ratio of 75:1 against gold. However, the price of silver is dependent heavily on supply and demand. The current price of silver is around $16 for a troy ounce. The pundits have been putting out their silver forecast for 2018. According to the current forecasts, silver is expected to rise to $21 per ounce. At price levels of $21 and above, it’s going to start looking bullish, however, at the current rate of $16 up to $21, it is expected to attract a neutral view by investors.

Factors that affect the increase of silver prices

Predictions state that there are a few factors that are likely to impact the prices of silver in 2018. Firstly, there’s the volatility surrounding cryptocurrencies like Bitcoin and Ethereum. In recent months, all cryptocurrencies have witnessed major price swings as governments and banks across the world have clamped down on them.

India’s RBI has banned all banks in the country from allowing any money to be used to purchase virtual currencies. Governments across the world have taken action against cryptocurrencies at certain levels, with China banning all exchanges and Iran putting in place a ban similar to India.


Download our FREE 7 step cheat sheet to successful silver investing here


Investors who had pumped money into these virtual currencies in the hope of making quick returns are now pulling out, and precious metals like silver are gaining ground. In addition to all of this, the US dollar is weakening. The weakening of the dollar comes in spite of the US Federal Reserve hitting their inflation target of 2% in March 2018. Other major global macro-economic factors that could affect silver prices in 2018 are Brexit and the trade wars between China and the US.

kilo of silver worth
Silver bars, worth around £394 per kilo is an excellent investment

Rising industrial demand

Industrial demand is another very big factor that is impacting the prices of silver globally. A report by the silver institute forecasts that mine production of silver could fall by 2% in 2018. On the other hand, Peru, a country leading in silver production, announced last year that production fell 12% to 323.1 metric tonnes. The world’s leaders in silver production are Mexico, China, Peru and Russia. On the other hand, demand for silver has gone up hugely. This is mainly industrial demand that seems to be continuously rising. The use of silver in photovoltaic cells in solar panels has witnessed big jumps. In 2016 alone, this demand went up by 34% to 76.6mn ounces up from 57.2mn in the previous year. Also, there is demand from other industries as well. The automobile industry registers a demand of 36mn ounces each year. In fact, the annual demand for silver from all industrial applications is approximately 561.9mn ounces.

kilo of silver worth
Photovoltaic cells used in solar panels have increased the industrial demand for silver

Finding the value of a kilo of silver

Of course, the actual value of one kilo of pure silver, otherwise known as fine silver with a purity of 999.9, is determined by its current price per troy ounce. At the current rate of $16.6, or 12.27 GBP per troy ounce, this is the price of 31.10gms. At this rate, the value of one kilo of fine silver is roughly around £394. If the international spot prices rise to $21 for a troy ounce, then one kilo would go up to approximately £500.
Insider's Guide to gold and silver

Talk to our silver experts to get the latest news on silver

At Physical Gold, our team comprises silver experts who can discuss the current price trends for silver and what to buy and when. Call us on 020 7060 9992 or please email us through our website to get in touch with the team.

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How Much is a Kilo of Gold Worth?

Spot prices of gold

The spot prices of gold change each day on the international commodities markets. These prices of gold are set by the COMEX exchange in New York. These prices remain prevalent through that day. Indeed, like all other commodities, these prices vary due to a number of factors. Of course, one of them is supply and demand. In 2017, the total amount of gold produced was 3.15 thousand metric tonnes. In contrast, this figure was 2,470 metric tonnes in 2005.

The fluctuating demand for gold

The demand for gold, however, is not dependent merely on supply and demand. Like all precious metals, gold is a lucrative asset class that investors turn to in times of turmoil in the international capital markets. For example, the current imminent trade war between China and the US has already seen several risk-averse investors move their money to gold.


Download our FREE 7 step cheat sheet to successful gold investing here


Gold prices, therefore, are dependent on macro-economic factors such as economic stability around the world, geo-political triggers such as terrorist action and wars, as well as seismic shifts in the international capital markets. If we study gold prices over the last ten years, we can see that the spot price skyrocketed to $1900 levels in August 2011. This was a huge surge from 2008, only three years back, when gold was $869.75.

 

kilo gold worth
The value of gold rises exponentially during economic crises

Volatility in gold prices

This meteoric rise of gold in just 3 years was largely due to the bubbling global financial crisis, which eventually saw the stock markets implode on August 8, 2011, commonly known as Black Monday 2011. But, again the fall of the stock markets at the time was not an isolated event in itself. It was a knee jerk reaction by paranoid investors pulling their money out of the beleaguered US economy, as a result of the US debt ceiling crisis. The American national debt basically spiralled out of control, with Standard and Poor downgrading the AAA rating for the US economy.

During every crisis over the last 20 years – the dotcom bubble, the 2008 US sub-prime debt crisis and the 2011 crisis, investors turned to gold to hedge their risks. So, we can see that the prices of gold react heavily to the economic environment at large. Even inflation is a driving factor, as is the weakening of the US dollar or the pound. However, in the middle of all the ups and downs, gold has steadily become dearer over the decades. The word ‘decades’ is an important thing to note here. As a savvy gold investor, you have to be able to take a long-term view. If you want to extract value from the precious metal, you need to remain invested over a ten or twenty year period. It’s not the kind of game, where you can make a fast buck, get in or out. Investors who have a speculative approach to investing aren’t going to extract value out of gold.

kilo gold worth
One kilo of gold is a great investment, but with gold, you have to have a long-term view

So, how much is a kilo of gold?

So, to answer our initial question – how much is a kilo of gold worth? Insider's Guide to gold and silverWell, the straight answer is that it depends on purity and price. The purity, or fineness of gold is denoted in numbers. Gold, which is only 75% pure will be called 750. 999.5 means that the gold is almost 100% pure and investors would buy it as such. We can, therefore, calculate how much a kilo of pure 999.5% gold, at today’s prices of £959.70 would be. But again, this is the price for 1 troy ounce of gold. What is a troy ounce?  A troy ounce is equal to 31.103 grams. Therefore, the price of 31.103 grams of pure gold at today’s price is £959.70. So, when we do the math, a kilo of gold at today’s prices is worth approximately £30,858. If you view the gold charts, you realise its currently hovering around the £30,900 mark.

Call us to find out more about buying gold

At Physical Gold, we pride ourselves on being a reputed online broker and giving investors a fair deal. We have many types of gold that we sell. Please call us on 020 7060 9992 or contact us via email to get in touch with a member of our investments team. We are always happy to discuss your investment goals and advise you on the best gold products to buy.

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Don’t Forget Gold and Silver When Buying a Perfect Wedding Gift

For many, their wedding day is a very special day indeed, one that could be considered the happiest day in the life of a young couple. The exchange of marriage vows, adorned in special wedding attire makes the event a celebration, the memories of which would hopefully be cherished by friends and family in the years to come. Irrespective of religion, class or nationality, weddings all over the world are carried out with pomp and gaiety and in a similar spirit. The only things that are different are the customs, in keeping with diversity across the world.

The wedding gift

Of course, gifting is a major part of the wedding festivities and often gifts of value are showered upon the joyous couple. The most valuable gifts usually come from close friends and family. Brothers, sisters, parents, grandparents and close friends will all pull out their wallets and spend lavishly on getting the happy couple a memorable gift. There are certain emotions that people generally follow when making the decision to purchase a gift. People generally try to align the gift with the personal tastes of the receiver of the gift. For many, they intend the gift to be something more than just a gift. They intend the gift to have emotional impact, so the couple would remember the person who gave them the gift.


Download our FREE 7 step cheat sheet to buying gold and silver here


gold and silver wedding gift
A gold bar makes a unique wedding gift

However, far too many people end up buying kitchen accessories and home décor when it comes to buying a wedding gift. Simply typing in ‘popular wedding gifts’ into Google, brings up a laundry list of items such as cupcake carriers, mixing bowls, glass bowl sets and baking utensils. Items of greater value perhaps, include luxury watches and even holidays for two to Dubai. But, none of these gifts will stand the test of time. Holidays will be enjoyed and a few memories preserved in the minds of the holidaymakers and pictures. Other luxury items like watches, google glasses, too will eventually reach the end of their product lives and be eventually forgotten. In order to select a wedding gift that is timeless, has lifetime value that grows and has a huge impact, one needs to turn to silver or gold.

gold and silver wedding gift
As a precious metal, silver coins are yet another attractive gifting option for a wedding

Gold as a wedding gift

The timeless value of gold can never be disputed and the precious metal makes a great wedding gift. For a high-value gift that is both impactful and unique, one can consider buying a gold bar. Gold bars are available in different sizes, from 1oz bars to 500gms and even 1 kilo.

A popular gold bar of choice is the 100g gold bar which offers great value for money. However, if buying a gold bar is not your thing, it’s worth considering gold coins instead. Gold is, of course, a wedding gift that is an asset for the young couple and for many, could be a first investment in building a wealth portfolio. They will always thank you for helping them take a step in that direction. Physical gold has many options for buying gold coins. Popular choices include the Gold Sovereign, the Gold Britannia, the 1oz Gold Lunar Dog and the Gold Krugerrand. For a great wedding gift, consider buying a case of gold coins. Cases that can hold up to 10 coins are available.

Silver as a wedding gift

In terms of budget, silver is a great deal cheaper than buying gold. PHYS01_Animated_Gif_2_MPUIn fact, the price of silver is approximately 75 times cheaper than gold. However, just because silver is cheaper than gold, doesn’t mean that it makes any less of a gift than gold. The fact that silver is cheaper, means that you can invest in more of it as a gift. Like any precious metal, it shares the properties of timelessness, uniqueness and ascending value. Physical gold has some excellent choices in silver bars, as well as collectable silver coins. An amazing purchase is the 1 kilo silver bar. Other great options in silver include the 1oz Silver Maple Leaf Coin, 2oz Silver Queens Beast Bull and the Silver Lunar Rooster.

Call our precious metals experts before you buy a wedding gift

Talk to our team of experts at Physical Gold, before you dash off and buy a wedding gift. Our precious metals experts can help guide you on the best purchase to make, so the wedding gift you buy has great style, depth and appreciates in value in the years to come. Call us on 020 7060 9992 or contact us via our website. The couple you’re buying the gift for will be happy you did.

Image credits: Bullion Vault and Pixabay

 

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The Trend for 3D Printing in Gold, Silver and Other Precious metals

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Five Songs Which Include Gold in the Title

A popular theme that songwriters across the world write about is none other than ‘gold’. It seems that mankind’s fascination with the precious metal has been immortalised in song, through the lyrics itself or in the song title. To study an apt example of the theme used in the body of the song itself takes us back to 1969 with the release of the Hollywood blockbuster, Mackenna’s Gold.

The theme song of the movie, Old Turkey Buzzard, is sung by the blind Puerto Rican singer, Jose´ Feliciano, with lyrics by Freddie Douglas. The song itself was produced by Quincy Jones, who later produced the superstar, Michael Jackson. The lyrics of the haunting tune tell the story of the desperation of men and how they dream about gold and would steal and die for gold on the rocks below, as they’ve just got to have that gold and are prepared to do anything for it. In this article, we’ll explore songs that talk about ‘gold’ in its title or the body of the song.

gold songs
Gold – the precious metal has been immortalised in song

1)    Spandau Ballet – Gold

The 1983 single by UK band, Spandau Ballet, is the fourth song from their album ‘True’. The song was written by Gary Kemp and reached No. 2 on the UK singles chart and No. 29 on the US Billboard Hot 100. The song is meant to be a love song, although the lyrics also talk about belief in oneself and how everyone should believe in themselves, as each individual is like ‘gold’. The interesting allusion to people investing in themselves to build their own strength is surprisingly similar to the philosophy of gold investors, who build their portfolios in steady and regular investments, with a vision of eventually building a strong and robust foundation that helps their wealth-building objectives ‘stand tall’, like the lyrics of the song.


Download our FREE 7 step cheat sheet to successful gold investment here


2)    Fields of Gold – Sting

A 1993 release from world-renowned UK artist Sting, the song ‘Fields of Gold’, climbed to No. 16 on the UK singles charts. The song talks about the view from Sting’s 16th century Wiltshire manor house. In the song’s lyrics, there is a promise to his lady love – in the days still left, we’ll walk in fields of gold. Of course, the reference to gold is symbolic, brought about by the golden colours of the fields, shining in the sun.  However, there appears to be a deeper meaning, an allusion to harvesting the rewards of a life’s work. Investments in gold and other precious metals take on a similar sentiment, with investors building a nest egg to fall back on in the autumn of their lives. In fact, many investors steadily invest in gold as a part of their pension funds. These investors can gain a 45% income tax relief by investing regularly through SIPP pension schemes.

3)    Goldfinger – Shirley Bassey

Of course, another all-time classic is the song ‘Goldfinger’ by Dame Shirley Bassey, which is the title track of the James Bond movie of the same name. The tune was composed by John Barry and the song was a top 10 hit, selling more than a million copies in the United States alone. The song talks ‘the man with the Midas’ touch,’ something that investors can relate to. Indeed, there are many investors who always pick the right investments at the right time and everything they do always turns to gold.

gold songs
Dame Shirley Bassey made the title track from ‘goldfinger’ popular

4)    24 karat magic – Bruno Mars

American artist Bruno Mars released the song 24 karat magic in 2016. The song is an interesting blend of hip-hop, contemporary rhythm and blues and disco. Upon release, the song came in at number 5 on the US charts and sold in excess of 1.7mn copies in the US alone within a year. The lyrics of the song talks about the 24 karat magic that’s in the air as all the girls put their pinkie rings up to the moon. The song is a tribute to the pomp and grandeur that’s brought into the world of pop music by the fashion divas. Of course, the ’24 karat magic’ resembles all the gold that’s worn by the stars of the pop world.

5)    Fools’ gold – the Stone Roses

From 1989 comes the song ‘fool’s gold’,

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written and composed by the UK band, Stone Roses. The song did not climb the charts, however, it entered later in playlists for the greatest indie anthems and the Triple J Hottest 100 of all time. The song was also used in various remixes and mash ups created by artists like Aaliyah and Run DMC. The song tells the story of a gold hunter who is making his way to find gold and how he risks his life for that gold, which ultimately may not be worth it.

Find out more about gold investments

There have been many songs written about gold, but a common theme that rings out in almost all of them is the human desire to possess gold. The precious metal has been a sound investment through centuries. If you’re keen on investing in gold, check out our guide on how to buy gold. Call our investment advisory team on 020 7060 9992 or get in touch with us online and they’ll be happy to give you information on the best gold investments that you can make, which you can’t find out from the songs about gold that are out there.

 

Image credits: Daniel Kruczynski and Wikimedia Commons

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Saving for your retirement? Here’s how gold could help secure your future.

Saving for your retirement is a top priority

If you’re currently saving for your retirement, then it’s possible that you’re using a Self Invested Personal Pension (SIPP) as one of your main methods of saving.

Your SIPP will probably carry a range of bonds, funds, shares and other elements, known as asset classes, depending on how it was set up. If you manage your SIPP yourself, then you may have added certain shares to it over time. If a company manage it on your behalf, then they will likely assign your SIPP to various funds.


Download our FREE 7 step cheat sheet to gold investment here


SIPP Gold

However, did you know that you can also add gold to your SIPP?

Gold is a separate asset class on its own and can be a very valuable part of your SIPP. But why is this? How do you add gold to your SIPP and how does it benefit your pension savings?

Firstly, the reason many people have gold in their SIPP is to provide a ‘hedge’ against the other elements of their pension. Gold isn’t linked to the price of traded shares, so for example, if the markets go down, it doesn’t necessarily mean the price of gold will also fall. In fact, historically, gold has tended to rise when traded shares have fallen.

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This can help your SIPP maintain its value due to this balance. Having a diversified SIPP like this can mean that, overall, your SIPP retains its value, or at least is protected because of this diversification, if the markets were to fall.

In this way, gold can provide security and protection to your SIPP, where otherwise it might be viewed as being exposed to market crashes, regardless of which shares or funds it’s invested in.

saving for your retirement
Gold can serve as an excellent diversification tool for a retirement portfolio

Hedging against inflation

The other big reason to add gold to your SIPP is to hedge against inflation. Although the consumer price index (CPI) data shows that inflation has fallen significantly in the last four years, the current forecast for 2018 shows inflation hovering around the 2.4% mark. Infact, UK inflation fell from 4.5% in 2011 to 0% in 2015 – a huge drop. But then, in the last two years, it rose by 2.7%, a big jump. This kind of volatility in inflation rates is ample cause for worry when it comes to protecting your investments. Inflation is one of the important market forces that simply erode your investments, as the value of your nest egg diminishes as the buying power of the pound crumbles. However, investing in gold protects your investments from both these factors. As the prices of goods and services in the economy go up, so does gold, hedging you against the risk of inflation. In addition, market trends show that investors always turn to gold, when their faith in global currencies like the dollar or pound is shaken. This creates additional market demand, further driving up the prices of gold. Since you invested wisely years ago, you are able to reap your harvest now and cash in on the higher prices.

Hedging against global crisis

Yet another important consideration is to hedge against global uncertainty. If there is a constant in our world today, this is it. Now, let’s say you’re currently in your 50s. You have another 15 odd years to retire. There’s no telling whether the current global situation is going to get better or worse. The US-China trade wars are probably going to become more intensive, as India and China become economically stronger each year. The rifts and uncertainty in Europe that started with Brexit could get worse. Already, the Russian government is seriously hedging by increasing its gold reserves as are India and China. This needs to be an important consideration when saving for your retirement and you could be better off diversifying that retirement portfolio that you’re working on, by adding gold to your SIPP, by simply downloading our investment instruction form.

Get in touch to know more about adding gold to your SIPP

Adding gold to your SIPP is also easy. If you PHYS01_Animated_Gif_2_MPUalready have a SIPP, then Physical Gold can organise the addition of gold as part of your existing investment. If you don’t already have a SIPP, then we can help you set one up, and start your investment with some gold savings.

Pension gold is a great way to save for your retirement and a great way to ‘hedge’ your existing investments for a more secure future. You can find out more about how Physical Gold can help you do this here.

Call us on 020 7060 9992 or contact us online to find out more.

Daniel Fisher formed Physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

Image credit: Wikimedia Commons

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Blog

15 Famous Quotes About Gold

Much has been written and said about the subject of precious metals and its pursuit by humans. Many have spoken about the joy and splendour of acquiring precious metals like silver and gold. Still, others have spoken about the futility of material pursuits and its lifelong obsession by its pursuers. In this section, we explore 15 quotes about gold that could possibly tickle our intellect.

1)

“Don’t gain the world and lose your soul; wisdom is better than silver and gold” – Bob Marley

In this quote, famous reggae singer-songwriter Bob Marley reminds us about the futility of chasing material things and alludes to the fact that knowledge and wisdom is far more precious an asset than man’s love for silver and gold. Source: Brainyquote.com.

2)

“It’s health that is real wealth, not pieces of gold and silver” – Mahatma Gandhi

Freedom fighter and champion of peace and non-violence, Mahatma Gandhi was an international personality, famous for his philosophy and frugal living. Indeed, this thought process is quite apt. People who ignore their health and focus only on building wealth, may not be able to enjoy the fruits of their labour, once their health breaks down. Source: Sparkpeople.com

 

quotes about gold
Gold is the universal precious metal of desire for many across the world

 

3)

“Gold medals aren’t really made of gold. They’re made of sweat, determination and a hard to find alloy called guts.”

– Dan Gable
Former American freestyle wrestler and coach Dan Gable talks about the real ingredients required inside a human being to win a gold medal. With greater introspection, we realise that it isn’t just the gold medals won in a tournament that he is referring to. It’s every achievement in life, and nothing good comes easy. Source: Goodreads.com


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4)

“All that is gold does not glitter, not all those who wander are lost; the old that is strong does not wither, deep roots are not reached by the frost.”

– J. R. Tolkien
This is an old saying, which simply reiterates the old maxim that everything isn’t always what it appears to be. It is taken from a poem written by Tolkien for the book -The Lord of the rings. Source: Wikipedia.

5)

“Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold.”

– Leo Tolstoy
Tolstoy applies the principle used by gold diggers during the gold rush, where gold was sifted from river beds and dirt and gravel washed away. In the same way, the truth emerges once all other possibilities are considered and ruled out. Source: Supanet.com

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6)

“Fire is the test of gold; adversity, of strong men”

– Martha Graham
Martha Graham was an American dancer and choreographer. The quote refers to the laboratory practice of removing impurities and base metals from gold by heating it up to 1100 degrees to extract 24k gold for conversion into gold bars and gold coins. Graham uses the comparison to say that winners come out stronger during tough times. Source: Quotefancy.com

quotes on gold
Gold is often heated to very high temperatures to remove impurities

7)

“But in truth, should I meet with gold or spices in great quantity, I shall remain till I collect as much as possible, and for this purpose, I am proceeding solely in quest of them”

– Christopher Columbus
Indeed, Christopher Columbus, the great Spanish conquistador echoes the sentiment of the explorers – to amass untold wealth and carry it back to their country. Source: izquotes.com

8)

“Everything has its limit – iron ore cannot be educated into gold”

– Mark Twain
Mark Twain, the great American novelist reminds us that people can be educated and empowered, but everyone’s own innate ability has limitations. Beyond that limit, no amount of empowerment is beneficial, in the same way, that alchemists failed to turn base metals into gold, although they tried for centuries. Source: Setquotes.com


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9)

“Praise, like gold and diamonds, owes its value only to its scarcity”

– Samuel Johnson
Samuel Johnson was an English writer and a poet. Insider's Guide to gold and silverThe writer compares praise to precious metals and concludes that praise when showered frequently, loses its value. It is valuable only when scarce, just like gold and silver. Source: quodid.com

10)

“The most pitiful among men is he who turns his dreams into silver and gold”

– Kahlil Gibran
Gibran, the award-winning Lebanese-American author speaks about the futility of chasing riches for a lifetime, instead of enriching themselves. Source: wishafriend.com

11)

“Brass shines as fair to the ignorant as gold to the goldsmiths”

– Elizabeth I
The Tudor queen, Elizabeth I, daughter of Henry VIII ruled England from 1558 – 1603. This period was known as the Elizabethan era and the country prospered greatly. She was a visionary and successful ruler and is quoted frequently. Here she implies that things that have no value seem otherwise to ignorant people, in the same way, that a seasoned goldsmith recognises gold instantly. Source: quotes.yourdictionary.com

12)

“Commodities such as gold and silver have a world market that transcends national borders, politics, religions, and race. A person may not like someone else’s religion, but he’ll accept his gold”

– Robert Kiyosaki
Robert Kiyosaki is an American businessman and author. He has authored 26 books, including a personal finance bestseller called ‘Rich Dad, Poor Dad’. In this great quote, Kiyosaki establishes the timelessness of gold and its appeal across the world. The universal value of gold and other precious metals are recognised by people who come from different cultures and every walk of life. Gold is of course insulated from political uncertainty as savvy investors move their investments to gold in order to escape market volatility caused by geo-political forces. Source: Goldsilver.com

quotes on gold
The Spanish explorers had an insatiable desire to amass as much gold as they could

13)

“The desire of gold is not for gold. It is for the means of freedom and benefit”

– Ralph Waldo Emerson
Emerson was an American lecturer, philosopher and poet who lived in the 19th century. In this visionary quote, he equates the acquisition of wealth to personal freedom and the means to pursue whatever is desired. Indeed, most gold investors invest in precious metal with this end in mind. Source: Novascotiagold.ca

14)

“The desire for gold is the most universal and deeply rooted commercial instinct of the human race”

– Gerald M. Loeb
Gerald M. Loeb was an American stockbroker and investment guru who founded E. F. Hutton & Co., a well-known Wall Street brokerage company. Forbes magazine called him ‘the most quoted man on Wall Street.’ In this quote, Loeb alludes to the human instinct of wealth accumulation, which motivates and energises everyone. Investors take every opportunity to amass wealth whenever the opportunity presents itself. Source: Marketslant.com

15)

“Gold is a treasure, and he who possesses it does all he wishes to in this world and succeeds in helping souls into paradise”

– Christopher Columbus
Christopher Columbus, the explorer believes that gold can be a solution to all desires and can empower humans to do anything in the world, including saving their souls. Gold, he believes has the power of the heavens. Of course, we must remember that Columbus had been given a task by the Spanish king – to amass wealth and return. Source: azquotes.com

Call us to find out everything you need to know about gold

At Physical Gold, we love hearing from customers just like you. We have a great team of experts who are ever willing to help you out by finding out more about your investment goals and imparting advice on how to build your investment portfolio with gold. Call us on 020 7060 9992 or contact us through our website to find out more.

Image credits: Pixnio, Pixabay and Bullion Vault

Categories
Infographics

The Wonderful Uses Of Silver

Many uses of silver

We here at Physical Gold have recently been focusing our efforts on informing the masses about our great silver investment opportunities. In doing so we have created a new infographic called The Wonderful Uses Of Silver which details all sorts of intriguing facts and stats. For instance, did you know that early x-ray films all had a hint of silver in them? And that silver helps to protect spacecraft against the likes of space radiation? This useful material is more important than most people know, and there is much to be learned about its uses. Why not have a read to see what you can discover…

Silver basics one should know

With an atomic number of 47, the precious metal is instantly recognisable by its atomic symbol – Ag, which was historically adapted from the word ‘Argentums’, which is its Latin name. Silver has amazing conductive properties and has a moderate melting point. Infact, believe it or not, silver has a melting point of 961.8, placing the element right between Germanium and Berkelium. The metal has an atomic weight of 107.86. The discovery of silver was an important step for mankind and it was one of the early metals to be discovered, probably around 5000 B.C. Interestingly, the metal can be found in nature in its elemental form, as nuggets or sometimes as crystals. Electrum, a natural alloy found in the world, is actually an alloy of gold and silver.


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Interestingly, the quantity of silver on Earth, when compared to gold is 17 times more and the precious metal is also a rare bird in the English language, as it appears that there are no words in the dictionary that rhyme with the word, silver.

uses of silver
Silver is an essential component for making printed circuit boards

Medicinal use

Silver is a very powerful anti-microbial agent and is widely used to disinfect surgical equipment all over the world. Unknown to many, silver halides were used as an integral part of the manufacture of x-ray film. Amongst other medicinal uses, silver sulfadiazine is used to treat wounds and external infections. Even breathing tubes are lined with silver to kill germs and prevent pneumonia.

Solar panels and silver

Solar panels are constructed using crystalline silicon photovoltaic cells. Silver paste contacts are used by manufacturers, which are printed on these cells. Over 100 million ounces of silver are used each year by the solar energy industry. The semi-conducting layers of these cells use the energy from the sun to produce power. The industry uses another way to produce power, by using the reflective property of silver to reflect the solar energy. Collectors capture this energy and use salts for power generation.

Use of silver in electrical components

Silver is a metal with a very high rate of conductivity,

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and this property is used by the industry to manufacture every kind of electrical component. From electrical switches to modern gadgets in the kitchen, almost all electronic devices are made using silver in one way or another.

Even mirrors are made of silver

The reflective properties of silver make it perfect for use in manufacturing mirrors. Many years ago, mercury was used to create a reflective backing on glass. However, due to the toxic properties of this element, it has long been replaced with silver by the industry.

The use of silver in photography

Traditional photography used silver halide crystals to create images. When these crystals were exposed to light, their patterns would register a change, which could then be used to develop a photograph. Of course, with the advent of digital cameras, this practice is now prevalent only in special situations where traditional photography is still in use.

Uses in the automotive industry

The super conductive properties of silver were put to use by automotive manufacturers in keeping our cars heated to a comfortable temperature. Silver is introduced inside the glass used for the windows in cars, which in turn ensures that heat remains inside the vehicle, keeping us warm during winters. Due to its high melting point, silver is also used to lubricate bearings inside the car engine.

Other interesting uses

The reflective property of silver is also used to shield spacecraft against harmful solar radiation. Silver is also combined with aluminium to form a very strong alloy that is used extensively by the air force.

Call our investment team to discuss buying silver

Silver is, therefore, an essential element, as well as a precious metal that has contributed immensely to human society. Equally, it is an attractive investment vehicle and a great asset class to invest in when building your investment portfolio. Call us on 020 7060 9992 or contact us online to know more about the best ways to add silver to your portfolio.

Image credit: Diego Torres Silvestre

 

Insider's Guide to gold and silver