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What are the most common questions about Gold Investment UK?

While some people are seasoned gold investors, gold investment in the UK can be a whole new world for many. In the past decade, gold investment has evolved to become far more mainstream, but most investors remain novices. As such, we regularly help our customers answer questions they have about the market, buying process and how to sell.

One thing’s for sure, you shouldn’t be embarrassed or shy to ask these questions. You need to feel comfortable and understand any asset if you’re considering investing your hard-earned cash. As leading gold investment UK specialists we’ve heard all possible questions many times.


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But what are the most common questions we receive?

Type of gold

Clearly, there’s a choice when you come to buy your gold. Questions range from whether you should buy bars or gold coins, 22 or 24-carat gold, or whether various year coins are worth investing in over others. It’s certainly worth doing your research independently as well as seeking advice from experts. Together you should be able to make the right choice. Gold should always be seen as a medium to long-term investment, so there’s no rush to buy. Make sure you’re happy with the type of bar or coin you wish to buy before taking the plunge. While we at Physical Gold focus on selecting the best type of gold for investment purposes, other gold merchants are simply shops and might try to persuade you to buy a type of gold which they have in stock and can’t shift.

The simple answer to these questions is that the best type of gold will vary from individual to individual, which is why our consultation process starts from the beginning and looks at your specific motivations and needs.  Insider's Guide to gold and silver

Is timing important with gold investment UK?

The golden question (if you’ll pardon the pun!), is what the prospects are for gold in 2022, and whether now is a good time to buy. Be wary of any gold dealer who guarantees returns. No-one has a crystal ball. As mentioned previously, the exact level at which you enter the market isn’t crucial, as gold generally gains in value above the rate of inflation in the long term. However, a good dealer will certainly help you buy in a trough to pick up that extra bit of value and also help you select gold which offers value at that time of purchase. For example, it may be a bad time to buy Maple Leaf coins as there may be a shortage leading to inflated premiums, whereas other coins may provide a buying opportunity as they’re currently trading cheaper.

One shrewd method of eradicating the timing issue is to drip-feed money into gold or split your investment into 2 or 3 tranches. Therefore you iron out some of the volatility and secure various prices, hedging your bets.

Are there tax-efficient ways of buying gold?

If an investment is the main purpose for buying gold, then it’s not only your buy and sell price which contributes to overall returns. Tax plays a crucial role also. Everyone wants to know the best ways to invest in gold. Seeking guidance from a reputable gold dealer will help select tax-efficient gold as gold investment in the UK has several tax advantages. Anyone who’s watched James Bond films may dream of owning huge gold bars. But selling them may incur 28% Capital Gains Tax. Others may not realise that 18-carat gold attracts VAT, whereas 22-carat and 24-carat coins and bars are exempt. UK Tax-free gold coins are usually a safe bet for cash investors, and Pension Gold is a great method of adding bullion to your retirement plan while avoiding VAT, CGT and receiving tax relief on your purchase.

How do I store gold?

Questions range simply from where to store gold, to the exact requirements and costs of each specific option. Certainly, if you’re seeking security and protection from your physical gold, then allocated and segregated storage is the only sure way to be safe. Ensure you receive the correct paperwork to prove your ownership. We’ve heard of horror stories of where gold bought and supposedly stored, wasn’t available when clients wished to taken delivery of that gold. Other rumours suggest that unallocated gold accounts will crumble if too many investors wish to sell at the same time.

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How do I buy Gold?

Start off be contemplating what you’re trying to achieve from your investment. Is your primary motivation to maximise returns, or is it to buy small pieces of gold to pass onto grand children one day.

Your investment time-frame and appetite for risk may also help determine whether to go for older numismatic coins or simple bullion coins or bars.

We provide guidance as to which choices will best suit your needs. And for those who feel they want a mixed and balanced tax free portfolio, we offer a service to create a portfolio for you.

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Is it the right time to buy gold?

Is it a good time to buy gold as an investment?

The phrase we hear more often than any is; “Is now a good time to buy gold?”. I’ll address that in this update.

One good phrase for timing the gold market is; “Its not the timing of the market, but time in the market”. Trying to buy at the bottom and sell at the top may sound like a wise strategy, but in reality it’s impossible and can lead to reducing your returns and security. The fact is that holding gold over the long term has proven over the years to provide a secure storage of wealth and outperform inflation.

But I don’t want to just beat inflation, I want big returns…..

It’s human nature to want to beat inflation by a large margin and gain more substantial returns. So timing in and out of the market plays a role in achieving this.

Good time to buy gold
Add gold to your portfolio

While it’s impossible to predict the future, despite many so-called market experts making gold price predictions, timing is about stacking the odds in your favour. This means you look at market fundamentals and choose to invest in assets which look most likely to perform well.

While allocating your money into different asset classes is always recommended, it’s fair to say that now seems like a good time to buy gold.

Because gold has such a long history, we’re able to see how gold has performed before to help predict how it might perform over the next few years.

The gold price has almost always risen in times of severe economic downturns.

Are we heading into an economic downturn?

Even before the pandemic, markets were overheated and global debt at record highs. Since Covid took hold, Governments around the world have opted to print more fiat money to support their suffering communities in the form of furlough support. Now, nearly 2 years on from the start, there seems to be a lethal cocktail mixing which could lead to the mother of all recessions.

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

The following ingredients are now in play;

  • Inflation is rising quickly around the world. This is expected when Quantitative Easing programs around the world have been operating at full tilt. Increase the supply of a currency, and it’s value will fall. But we’re also witnessing inflation from broken supply chains. Petrol, building materials, electronic components for cars, food, carbon dioxide, the list goes on. They are all contributing to prices rising at alarming rates. Consequence; Money in the bank is losing value every day. The cost of living is rising. Interest rates will rise soon, increasing mortgage payments for many.
  • Tax hikes are being put in place to try to reduce (or more realistically stem) the spiralling debt. This can be in the form of increasing National Insurance, reduced tax free thresholds for taxes like Capital Gains, and reduced welfare. Consequence: Less disposable income for the average person means economic growth will be strangled
  • Continued restrictions are dampening trade. Travel limitations and business restrictions are preventing businesses getting back to anywhere near full capacity. High streets are quiet and shops are closing. Furloughing has ended so the safety net is now gone. Consequences: We’re likely to see a spike in companies going under and individuals losing their jobs
  • Equity and property markets will likely fall in response to negative growth, poor company performance and less ability to afford to move home.
  • Continued uncertainty will dampen consumer and corporate confidence. With further spikes in Covid cases, potential further lockdowns and possible ‘long-Covid’ consequences, companies will limit investment and consumers spend less.

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How is gold supply and demand at the moment?

During the height of the pandemic, we saw enquiries increase around 700% year on year. That initial rush has calmed, but demand from new investors now seeking the security and protection gold offers as a safe haven, continues to grow. Overall demand remains above pre-pandemic levels and we expect this to rise as recession kicks in.

Institutional money will also increase gold holdings as many competing asset classes suffer. They will look to move allocations out of stocks, bonds and cash, and into gold.

And gold supply….?

Supply of new coins and bars is managing to keep pace with demand. However, due to very few gold holders wishing to sell, we still see huge shortages in the secondary market. It has now been 2 years since we saw decent amounts of sellers in the markets. With the looming economic difficulties ahead, I can’t envisage this changing anytime soon. Premiums on many gold coins are increasing.

Good time to buy gold?
Shortage of pre-owned gold coins

Where is the gold price?

As of the time of writing (November 2021), the gold price is moving upwards. It remains more than 10% below it’s all time high in 2020, but has gained around 8% in the past month, as momentum builds.

This was expected as we moved out of the furlough support and inflation began to take hold. While we can’t predict with certainty where the gold price will move in the short term, it seems that now represents good value.

With all these elements working together and interest rates likely to rise for the first time in a decade, it seems like now is a good time to be buying gold.

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Will high inflation affect me?

* Updated November 2021

During the last decade the Bank of England has increased its Government debt from £200bn to over £800bn as a result of its  Quantitive Easing Program  . The aim of the program, to stimulate demand for goods and keep inflation low during and post the covid pandemic has been hindered by rising energy prices in addition to supply shortages and bottleneck issues due to Brexit.

With inflation still rising (from 2%-3.1%) and the bank expecting it to reach 5% early next year, this is not good news for the consumer.  High inflation erodes purchasing power, so it will cost more to buy the same things. We’re already seeing prices for fuel, building materials and food rising, demonstrating how the scourge of inflation affects everyone, regardless of background or buying habits

Protect your wealth with gold during these uncertain economic times.


More money printing on the cards

There has been much talk recently of the Bank of England printing more money in an attempt to stoke the flames of recovery.  The British Chambers of Commerce have put out a plea for the Bank to inject a further £50b into their Quantitative Easing (QE) program.

This program already stands at £200b, and many speculate that this size will grow considerably over the coming year as the Bank seeks ways to fend off a double dip.  With the UK debt being the number one priority we will all see our tax bills rise and Government handouts dwindle as George Osborne attempts to rein in spending.

So what does this mean to the average man in the street? Surely any cash injections will be beneficial and help keep the economy bubbling while we tackle the huge debt mountain.


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Can lead to high inflation

In the short term, the QE program may well be disguising the depth of the problems we face. I see it as a sticky plaster over the gaping wound which our excessive borrowing has inflicted.  The main problem in the medium term of simply printing more currency is high inflation.

By injecting more money into the economy, we are helping devalue our own currency. The last country to use QE in a major way was Zimbabwe and they now have inflation well over 1 million percent! This means its people struggle to carry enough currency to even pay for a loaf of bread.

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The danger in the UK is the combination of the QE with the record low interest rates and already simmering inflation levels. With inflation already over 3% during the worst economic downturn of our generation, just imagine where it will be once they QE kicks in and we start to emerge from depression.  The difficulty is the lack of control we have over cost push inflation. With populations and consumption increasing, natural resources come under further pressure. Commodity prices are helping push up prices of goods and stoke the flames of inflation.

With savings rates at banks usually below 1%, the value of your money is diminishing day by day. If inflation hits double figures, the pace at which your savings depreciate will increase considerably.  Many people will see their hard earned money and kid’s inheritance being able to buy less and less.

Protect your wealth with gold

Many of these savers are now moving some of their Sterling based savings sideways into gold.  This commodity has always historically been seen as a great hedge against inflation, and unlike Sterling you cannot simply print more of it! As a precious metal it needs to be discovered and mined and World Gold Council stats show that new discoveries and supply are low, helping to push its value higher.

Only time will tell if we see further Quantitative Easing and high inflation in double digits, but it makes sense to prepare for the possibility considering all the factors point in that direction.

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Tax free gold bought by disgruntled bank savers

*Updated Nov 2021

More than a decade on from observing a gradual move towards gold as a savings vehicle, we’re seeing the theme become more mainstream.

Interest rates have remained at record lows, meaning bank savings for UK savers yields near to zero.

With supply chains deeply impacted by Covid and Brexit, supply-push inflation is increasing rapidly. Combined with the catalyst of global Quantitative Easing, inflation is mounting a charge upwards.

In reality, this means that leaving money in the bank in 2021 and 2022, returns far less in interest than the current inflation rate.

Add in the very real fear of a global banking crash, and many more people are looking to diversify their savings into precious metals, in order to protect the buying power of their money. We expect to see this theme continue as the world suffers the economic consequences of the pandemic.

Bank savers switching to gold

London, October 14 – Physical Gold Limited, a gold bullion dealer based in the City of London, today reported a massive rise in the number of investors switching out of bank deposits and into solid gold.

With UK interest rates at an all time low, returns on deposit accounts and cash savings are significantly below the rates achieved in the past. In fact many bank savers report interest rates below 1%, even before savings tax is applied.

Traditionally a safe haven to park cash during economic or political turmoil, deposit accounts are now deemed to offer less preservation and protection to savers’ money. The credit crunch has seen banks widening the gap between where they are willing to lend money and pay bank savers. For the latter group, this has meant record low returns.

These poor returns are further threatened by the looming possibility of high inflation. With the framework of record low interest rates, relentless public spending, and the unprecedented move by the Bank of England to print £175bn of new money with Quantitative Easing, the eventual emergence from recession could see the onset of inflation. This would further erode the value of savings, whereby people could see their money able to buy less and less as time goes on.


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In an interview today, Dan Fisher, CEO of Physical Gold Limited said:

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“There is a growing concern about a currency crash, both in Dollars and Sterling.  Gold has protected against the scourge of inflation throughout history and has proved to be the ultimate safe haven asset.”

A new, but very real risk associated with bank savings is that of Counterparty Risk.  With many of the High Street banks everyone has grown up with now being bailed out by the UK Government, and examples of overstretching such as Northern Rock, it now means savers have to worry if their money is safe at all. With only £50,000 protected in the UK, any money above this is exposed to the underlying bank’s Counterparty Risk.

Switching money into physical gold coins and bars eradicates any such exposure altogether. The precious metal is independent of any corporate or Government policy, and by its very nature as a physical asset, its value cannot fall to zero. In fact the underlying $ gold price has soared over 200% in the past 5 years alone.

Unlike with bank savings, investment into certain gold coins is totally free from tax, so any gains made on the investment can be kept rather than shared with The Treasury.

Physical Gold Limited has seen many everyday people switching some of their savings into gold and reaping the benefits of the comfort and returns it can provide.  Many savers are even contributing regularly as a savings scheme, to gradually build up a golden nest egg.

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Which are the best gold coins to buy?

One of the most common questions I hear is from keen investors wanting to know the best gold coins to buy as an investment.

The most important thing people seem to overlook is the ease in which you’ll be able to sell the coins. It sounds obvious, but so many buyers focus purely on trying to get as much gold for their money when they invest that they forget to consider the liquidity of the gold.

Liquidity makes the best gold coins

Remember that your profit is only realised on physical gold when you actually sell the coins at a profit. So when buying coins your primary focus must be on choosing well-known coins in desirable condition. So please don’t be tempted by an obscure coin just because its £10 cheaper than its globally renowned alternative.  With this in mind, any of the well-known bullion coins are a safe bet. These could be Sovereigns, Britannias, Krugerrands, Eagles, etc. You can find a comprehensive list with thorough descriptions at Bullion coins.

A novice should never try to be too smart by delving into the world of numismatic or historical coins. These generally present high potential profit, but also large losses for those without market experience.  Proof coins should generally be avoided by the gold investor as you won’t necessarily get the full premium back that they command.

Sovereign coins

For very modest investors it can be fun to select a variety of bullion coins for your portfolio, perhaps choosing some Sovereign coins with an interesting background or coins with beautiful designs.

Queen’s Beasts coins

For those seeking a chance to turbo charge their returns and willing to take a modest increase in risk, the Royal Mint’s Queen’s Beasts series of coins can be a clever option.

This is a series of 11 one ounce 24 carat gold coins (also produced in silver and fractional versions), which are limited in issuance. In contrast to the Britannia or Sovereign bullion coins which are unlimited and mass produced, the Queen’s Beasts coins have been released coin by coin, every 6 months. Once a particular version is all sold, they’re not produced any more.

This relative scarcity, combined with a degree of collectability, has pushed up premiums on these coins far quicker than standard bullion coins.

While the first 8 coins in the series already command high prices, the most recent 2-3 coins are still being produced, albeit not for long. Therefore, premiums on the most recent releases are still only slightly higher than the standard Britannia. While there’s no guarantee that their prices will mirror the earlier coins in the series, there’s a good chance.

Insider's Guide to gold and silver

Tax efficiency

However, for those UK investors considering a more sizeable investment you must consider factors such as tax. Capital Gains tax was recently increased for higher rate tax payers in the UK to 28%. That means that if you sell your gold coins at a profit exceeding your annual limit (currently around £12k) then you’ll pay away almost a third of that excess to the taxman. Any other assets you sell in that year will use up that £12k limit too. So if you sell shares or an investment property and make a profit, you’ll no doubt be paying CGT on all your gold profit!


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The great news is that with some careful planning and help from a reputable gold dealer, you can source tax free gold coins. Britannia,  Sovereign and Queen’s Beasts coins are all free from Capital gains Tax for UK residents due to their status as legal tender. Quite simply the taxman cannot tax the movement of legal currency. For this reason, together with the fact that these two coins are amongst the world’s best known, most UK investors are best off investing into these tax free gold coins.

The most important rule with gold coin investing is that everyone’s situation, needs and motivations for buying differ, and so the best gold coins to buy may also vary. This is where the real value of a knowledgeable gold dealer pays dividends!

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Gold provides inflation and deflation protection

**Updated Nov 2021

Inflation is now rising rapidly as a consequence of;

  1. Massive global Quantitative Easing as a reaction to the Covid pandemic, devaluing fiat currencies around the world
  2. Supply squeeze inflation, caused by a combination of Brexit and Covid-related supply chain issues. With panic buying rearing it’s head, the UK has experienced shortages of petrol, food and toilet rolls.

In 2021 and beyond, gold is becoming a mainstream way of moving money out of the banks to achieve protection from the erosive power of inflation.


With Bank of England policy maker Adam Posen stating the case to print more money, it reinforces the case for owning physical gold.

The Bank of England have already printed £200b of Quantitative Easing (QE) in a desperate attempt to support the UK’s floundering economy. There is now talk within the central bank to extend this by another £50b and potentially open the doors for a further £200b of ‘funny money’.

Inflationary environment

But what does all this mean to you and me? Well, the last country to use QE in this way was Zimbabwe and they now have over 1million % inflation rates. That means its people literally cannot carry enough money to buy a loaf of bread! Now I’m not suggesting for a moment that we will see similar levels here in the UK. However, this untested act of desperation combined with the record low interest rates can provide the perfect cocktail for an inflationary environment. I can definitely see inflation hitting double digits in the UK in the next few years as the economy eventually heats up.

For the average person that means that their hard earned cash will lose its buying power. If wages don’t increase by 10% or more, then we will all be worse off. Our savings in the bank which receive 1% or less interest now will be losing value day after day.

Insider's Guide to gold and silverDeflation

That’s why I feel it is the proactive and prudent saver who looks to shift a proportion of their savings sideways into physcial gold. Why expose yourself entirely to Sterling, its probable weakness and inflation? Surely its wise to spread your eggs into various baskets and the gold basket is the safe haven asset which protects against both inflation and deflation.

It is policies such as QE which reminds us all that its always worth having a little gold in your portfolio as we never know what the world will look like tomorrow. Certainly we can never safely predict where the central banks will decide to stop.

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Physical Gold – 6 reasons it beats gold funds and ETFs

Gold funds or physical gold?

1. Security and Integrity

While ETFs have provided an accessible way for investors to gain exposure to the gold market there are many fears circulating about their security and integrity. For starters, the fact it is a structured paper asset that not everyone fully understands tends to defeat the object of owning a simple tangible asset like gold. So many investors have been stung over the past 5 years investing into asset-backed securities that were rated AAA by the credit rating agencies, only to see them downgraded to junk status overnight when everyone realised that the subprime mortgages they were linked to would not payout. It transpired that many very sophisticated investors never really knew which assets the bond was linked to or understood their lack of protection against such defaults. So are you more comfortable understanding the risks of holding gold coins or gold funds or ETFs?

Press reports are speculating that only 10% of the traded ETF value is backed by actual gold. With a distinct lack of auditing, its difficult to know for sure what the exact figure is.

Jefferey Christian of the CPM Group confirmed that gold is leveraged around 100:1 at a Commodities Futures Trade Commission (CFTC) Hearing on March 26, 2010. This means that there are around 100 claims for each ounce of gold in existence and so not enough gold to be delivered to everyone who has been promised paper gold.

So the question remains would you be able to access the value of your ETF if half or more of the investors decided to withdraw at the same time?


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2. Counterparty Risk

The term counterparty risk has become far more used and relevant over the past few

PHYS01_Animated_Gif_2_MPUyears. This term didn’t seem relevant to bank deposits a decade ago it went without saying that leaving savings in a high street bank was safe. But things have changed dramatically. Now we’ve seen our major high street banks on the brink of collapse. Who would have believed me 15 years ago if I’d have predicted that RBS, Nat West and Lloyds would be mostly Government owned?

The 2008 credit crunch saw bankruptcies to seriously major corporations from General Motors to Lehman Brothers. I saw many friends who had built up shares in Lehmans over many years of work and anticipated those stocks providing their retirement. No-one could have predicted that they would lose value so quickly and Lehman would go under.

We then saw the next phase of counterparty risk with Sovereign debt. Investors who thought they were taking on very little risk by investing in Government bonds faced the very real prospect of not being paid out in full. Countries such as Ireland, Greece, Portugal and Spain need help from the EU and IMF to repay their debts. There is every chance that bondholders will not receive all the capital back.

And now, in the new Covid world, Government debt is at record highs and corporations are struggling to adapt and survive under the new world parameters.

With physical gold, there is NO counterparty risk. It doesn’t matter if a Government fails to repay bonds, a corporation goes bankrupt or even if the gold dealer you bought the gold from ceases trading. You will always have the physical asset to do with as you like.

By investing in gold mining stock, ETF or Gold funds each poses some sort of counterparty exposure and a threat to the value of your asset. Remember paper gold is a promise to pay, not the real thing!

3. Risk Profile

If you’re considering a choice between mining stocks and physical gold, its crucial to realise that these are different asset classes with entirely different risk profiles. Firstly, investing in mining stocks means your investment is linked to the performance of one company. As a paper asset, if that company underperforms, or even worse goes bankrupt, there is a chance that your investment becomes worthless. The value of gold coins and bars can never fall to zero or anywhere near because of the intrinsic gold content. During times of global economic turmoil mining stocks and bullion perform quite differently. Terror threats, currency depreciations, huge unemployment, record deficits and banking crises don’t provide conducive conditions for equity markets, which is why we’ve seen more and more people fleeing to the safety of gold bars and coins. Generally, while mining stocks have the potential for impressive returns they tend not to outperform physical gold during times of crisis such as the recent credit crunch. During sharp market declines such as the 1987 stock market crash, mining stocks become correlated to the broad equity markets rather than the price of bullion.

4. Comprehensive Insurance

If the reason you want to invest in gold is for portfolio insurance then make sure you have a Comprehensive policy! Everyone knows that gold provides security against economic and political unrest, making it the perfect safe haven asset in the current world in which we live. In that case, you want this wealth protection to be thorough. By investing in paper gold its like buying an insurance policy with get-out clauses. In other words, it doesn’t provide full coverage. There are still risks attached such as counterparty risk. By investing into physical gold, its like having the most comprehensive insurance available, putting your mind at rest that no matter what the next financial headline is, your physical gold holding will provide the necessary balance.

Insider's Guide to gold and silver

5. Tax Efficiency

In the UK, there is the opportunity to own physical gold coins which are completely tax-free. All investment grade gold is VAT exempt. You pay no income tax while holding the gold and UK coins such as the Britannia and Sovereign are Capital Gains Tax-free due to their status as legal tender. Compare this to paper gold such as a mining stock or gold funds where you’ll have to pay income tax on any dividends and capital gains tax if you sell the shares at a profit. With CGT now up to 28% for higher rate taxpayers, that’s nearly a third of your profits!

6. Accessibility

Accessibility in times of crisis is crucial. After all, gold should act as your crisis hedge. Over the past month, we’ve read about the attempted ink-cartridge bombers and MI5 revealing renewed threats to the UK, France and Germany. The Eiffel Tower has been evacuated twice in recent months. If one of these attempts gets through and the financial system collapses for a week or so how easy is it to access funds through your gold ETF, mining shares or Gold funds? By holding the physical metal itself, especially in the form of globally recognised coins, you hold the ultimate liquidity.

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Is a Krugerrand coin a good investment?

Economic instability

With central banks around the world still printing QE money going into 2022 to support their Covid-affected economies, the value of fiat currency is diminishing. Signs of inflation, possible interest rate increases and tax hikes, suggest to many experts that a global recession, the size of which we’ve never known, is upon us.

It’s no surprise then, that investors are increasingly turning to gold to provide some diversification and protection from the coming economic storm. But if most people are asked which gold coins to buy, they will be stumped.

The Krugerrand coin is one of those coins which most people, even my grandmother, have heard of and this is for good reason. For many, it represents one of the best choices of gold in which to invest your hard-earned money.

A South African coin first minted in 1967, the intention was to lure global investment into

Insider's Guide to gold and silverbuying gold coins from South Africa’s rich gold reserves. Up until recently the Republic was the number one producer of gold and has only just been overtaken by the Chinese powerhouse.

To appeal to the investment market it was the first coin to contain exactly 1oz of pure gold, ensuring a straightforward marketing proposition compared to the likes of a Sovereign which contains 0.2354oz. Interestingly this fixed gold weight rather than a fixed face value (like most other bullion coins) meant that the Krugerrand coin represented a convenient store of wealth regardless of inflationary levels.

Krugerrand coin most common globally

Despite no face value, the coin is legal tender in its home country and is therefore minted in a durable alloy mix. Its overall gold content is 22carat or 91.67% pure as the gold is alloyed with copper to provide resilience and maintain its integrity. This is one of its major selling points now.  With approximately 50 million in circulation, it represents one of the most active secondary markets in gold coins and a vast majority of the Krugerrands we see of 30 or 40 years old are still in fantastic condition.

Indeed due to the huge number in circulation and its global recognition, the depth of the Krugerrand’s liquidity is only matched by that of the British Sovereign, a coin that has built up its liquidity over many more years. There are more Krugerrands in circulation than all the other gold bullion coins combined.  As an investment into a physical asset, this is very important. Just like when buying and selling a house, it is not only the price you manage to purchase the property at but also the sale price which will determine your profit. If you buy a house for a great price but it’s on the main road and appeals to a very niche market, then it is more difficult to sell and the eventual sale price will inevitably be affected. The same goes for gold. Buy a Krugerrand and you’ll be able to sell the coin easily at any time, maximising your chances of securing a good price.


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Incredibly by 1980, the Krugerrand coin accounted for 90% of the gold coin market. It’s a telling recognition of its success that it has spawned so many other copycats worldwide including the Canadian Mapleleaf in 1979, the Australian Nugget in 1981, the American Eagle in 1986 and the UK Britannia in 1987.

So the Krugerrand is a very liquid coin, easy to buy and sell and it maintains its condition well. But how does it’s price compare to other 1oz bullion coins? From what we see at Physical Gold Ltd, the Krugerrand offers amongst the best value of ANY 1oz gold coin. Due to its resilience to scratches, I’d recommend buying second-hand coins rather than the most recently minted. Like a new car’s premium, it’s almost always better value to buy a ‘nearly new’ version. Brand new Krugerrands can be 3-5% more expensive. I’d also try to steer clear of the smaller half, quarter and 1/10th ounce versions as premiums rise with each smaller coin. I’d also avoid Proof versions of the coin. Although pretty, I’m not convinced you’ll receive the same premium that you paid for the coin when you come to sell. Your best bet is to stick with the better value bullion version.

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The only potential drawback I see for UK investors as that of Capital Gains Tax. Like a majority of other assets, any profits on Krugerrands have to be declared and are liable for tax of up to 28% if you breach the modest thresholds. Now, this may not be an issue if you only buy a handful of Krugerrands, have no other assets to breach your tax-free threshold or, the sin of all sins, decide not to declare the sale to HMRC.

However, for those playing by the book who invest £10k or more into gold coins, the last thing you’ll want to do is give almost a third of your profits back in tax. For this reason, we always prefer mixing Krugerrands with a portfolio of coins such as the UK tax free coins – The Sovereign and Britannia.   This way a shrewd investor can dispose of these assets strategically so they never pay any tax at all!

Contact Physical Gold

Is a Krugerrand a wise investment? You bet! Why not contact Physical Gold Limited to discuss Krugerrand gold coins and silver coins investment. Call us on 020 706 0 9992 to also discuss buying gold bars and silver bars too. Visit our contact page for general contact information.

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Maximise your returns with a ‘Buyback Guarantee’

Physical Golds Buyback Guarantee

Because we only sell the most liquid types of gold and silver coins and bars, were able to offer all our clients a Buyback Guarantee. We promise to repurchase any metals sold by us, regardless of how much time has lapsed since purchase. This provides you with the knowledge and comfort that if you need to quickly sell any, or all, of your holdings, then well facilitate that for you.

In fact, we go a step further, as we believe our role in buying back is as important as our guidance when selling. We give you a sell it now market rate for all your gold or silver if you need to sell immediately. Alternatively, if you’re able to wait, we make a note of your intention to sell and try, as brokers, to match with buyers over the coming weeks. If there’s a solution that works, then you’ll obtain an enhanced price, as were essentially cutting out the wholesale element.


Get the best prices when selling your gold coins. Download the 10 step cheat sheet


Buy the right asset in the first place

Investing in physical assets, rather than paper shares, gives you the peace of mind that

PHYS01_Animated_Gif_2_MPUyou own something real, with a tangible value. But often, selling that physical asset can be more challenging than offloading its paper or electronic counterpart. Fine wine, art and property are such examples. They may be appealing investments, but you only realise your profit if and when you’re able to sell that asset.

For this reason, it’s important to have an exit strategy in place even before you buy the asset. How many times have you heard of someone holding out for a price on their property, only to be told its only worth what someone will pay.

The best starting point is to ensure the asset you buy is as liquid as possible. For example, if you buy an investment property, ensure you don’t narrow your possible future buyers, by purchasing an obscure property like a converted lighthouse. The reason 2 bed flats are such popular investments, is because they’re easy to sell, thus achieving the best possible price.

Gold investment and property are comparable in this way. Its crucial to buy gold or silver which is world renowned and desirable. At Physical Gold, we only sell very liquid gold and silver, providing the backbone of our buyback guarantee. We don’t offer obscure collectors pieces, as we believe liquidity plays a key role in maximising returns.

What selling options do I have?

If you purchased well-known, liquid coins, then you have various selling options. Certainly if they’re pre-owned coins they’ll possess an additional value over and above their gold content reflecting their additional history, relative rarity and desirability. If you’re able to sell these coins off piece meal, to private individuals, you’ll obtain the best possible price, as you may be able to find investors and collectors willing to pay higher premiums for certain coins.

At the opposite end of the spectrum, there’s the convenience of a local jeweller. The compromise is that the jeweller is likely to melt the metal down for jewellery and pay you below market rate.

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The Gold Price Today – a Video from Physical Gold

The Gold Price Today

In this video, I’ll show you how to find the gold price today, track and analyse its performance and then exploit any themes and strategies to invest over the medium to long term.

The simplest and quickest way to track the gold price right now is to look at the top of our website. The price is updated every 60 seconds and displayed in both ounces and grams. An alternative would be to download a gold app like Kitco to your phone so you can track prices on the move.

It’s important to understand that this is the benchmark price, not necessarily the exact price at which you can buy and sell gold. If you want to learn more about how the gold price works, be sure to checkout out our other video ‘Understanding the gold price’.

If you want to dive a bit deeper, then our Gold Price Chart page features an interactive historical price graph and explains the gold price in detail, including;

  • Factors influencing the gold price
  • The LBMA’s role
  • Currency influence on prices
  • A market history
  • And, Pricing gold coins and bars

If you want to invest in gold, be sure to study this page first.

So now we know the gold price, how can we profit over the medium to long term?

1. Buy in dips

Over the short term, the gold price can be volatile. PHYS01_Animated_Gif_2_MPUTry to buy your gold on a dip day, when the price is lower, rather than when the price has moved higher. This may only be a slight difference, but every little bit helps improve profits.

Looking at historical price charts will help you understand where the current gold price is in a historical context. Right now, we can see the price is still below its all-time high of 2020. Buying during the quieter times when the price is relatively low has proven to produce the best long term profits time and again.

 

2. Long term portfolio insurance and wealth preservation

Rather than trying to trade the gold market, or predicting price movements, a good strategy is to see gold as a long term protection. Its safe haven status means that regardless of the current gold price if stock markets and paper currency devalue, gold tends to rise in worth. This means, your overall wealth is protected from nasty market downturns.

With low interest rates, bank savings rates are also low, usually lower than inflation itself. This can mean that leaving money in the bank actually devalues every day it’s sat there. Gold has shown to outperform inflation over the long term, appealing to those seeking a store of wealth.

3. Buy gold regularly

An alternative strategy overcomes the need to really look at the gold price at all. Buying gold on a regular basis can average out the cost of gold so that when the price falls, you buy at the lower level. This approach appeals to those with limited capital to invest, but like the idea of gradually building up a gold holding, perhaps on a monthly basis. We offer a simple solution to achieve this with our Gold Monthly Saver, which starts from only £350/month.

So there you go. Start by doing some research on the gold price, understand how it works, and take a look at historical performance. Then grab one of our 3 strategies and invest away!

I hope you’ve found today’s video helpful. If so, please make sure you also check out our full catalogue of video guides covering everything you need to know about gold and silver.

Buy gold at the best prices from Physical Gold

If you’re looking to buy gold coins and bars at competitive prices, then take a look at Physical Gold’s online store. We’re able to offer gold at rock bottom prices, updated every 60 seconds with the live gold price. Quantity discounts are displayed online so you can decide the most economical way of buying.

If you need guidance on the buying process, or simply need help on which gold coins or bars to buy, then our friendly team are here to help. You can call on 020 7060 9992, engage on live chat from the website or leave us a message here.

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How do I know the gold and silver are real?

If you’re new to investing in gold and silver, then a typical concern is ensuring the gold or silver you buy is authentic and of a high grade. The motivation for most gold investors is to reduce their overall risk, so the last thing they want is to risk buying bogus coins or bars. Certainly, for the novice, the safest bet is to buy from a reputable dealer.

Research is crucial to ensure the credibility and integrity of the dealer (and as such, the metals they provide). At Physical Gold we operate a very tight process to ensure sub-standard or counterfeit metals don’t enter our system.

Gold and silver sourcing and numismatic checks

We source our metals direct from manufacturers or mints, or from authorised dealers, ensuring their provenance is known.  Gold or silver purchased from the public is tested and verified by our numismatic team and rejected if it doesn’t meet our strict standards.

Insider's Guide to gold and silverAccreditations / track record

We are proud members of the British Numismatic Association (BNTA), which means we adhere to a strict code of ethics and guidelines on all our metals. Membership requires prior vetting and approval by existing members, to verify a dealer’s integrity. Regular stolen and fake goods alerts are circulated within the BNTA so that we’re aware of any forgeries on the market.    Look out for the BNTA logo to ensure your dealer is accredited and has signed up to such code of ethics. We’re also members of the British Numismatic Society, an organisation made up of coin professionals, established as far back as 1903.

Certificate of authenticity

We can provide a Certificate of Authenticity upon request with a purchase you make through us, guaranteeing its authenticity and that your purchase has been checked and meets our standards.


Want to know how your finances would fare in a market downturn? Take the test to find out


Buyback guarantee

We are proud to offer all our customers a guarantee to buy back all gold or silver bought from us, regardless of time lapsed.  This demonstrates the confidence we have in our own checks and processes.

So if you’re considering purchasing silver or gold, but are unsure how to judge its authenticity, then worry no more. That’s our job as the experts, to provide you with protection and assurance.

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Physical Gold versus Gold ETF

Accessing Gold & Silver

It’s not what you do, it’s the way that you do it!  It’s possible to gain exposure to gold and silver in many ways, but the outcome may be completely different from one to another. The most common ways to get involved with gold investment are;

By purchasing physical bullion, buying shares in an exchange traded fund (Gold ETF), a traditional fund or mining company, or riskier option such as spread betting, futures or contracts for difference (CFD).

Insider's Guide to gold and silver
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Gold ETF, fund or Physical Gold. Which option is best for me?

Each option of exposure to precious metals has its merits. The right choice will depend on your individual objectives. For example, if you have a high appetite for risk, then you may fancy your luck investing in a mining company. Alternatively, if you’re looking to actively trade the market, then electronic options such as ETFs will be the most efficient way to achieve the short-term speculation.

Risk

However, the most powerful benefit offered by gold and silver, is balance and protection. As well as professional traders, regular, everyday people buy gold and silver to REDUCE their overall risk.

Electronic and paper options provide investors with exposure to the market, but they also present additional risks. This undermines the value of gold & silver as a crisis hedge, or as portfolio insurance in the first place. Investment experience should also play a role in deciding which type of gold investment to opt for. Certainly derivatives should be left well alone by most people as they’re far more suitable for experienced investors. If the market moves against you, the amount you lose isn’t just limited to your original investment due to leverage.


Thinking of gold investment? Download the  crucial 7 steps cheat sheet first


Similarly, if you’re tempted to invest into a gold mining company, far more research is required. Not only do you need to understand the gold market itself, but also you’ll need to examine into the underlying mining company, it’s structure and the ability of its management. Selecting a gold fund reduces the risk of depending on one company’s performance. However, you’re still investing into mining companies rather than gold itself. At the end of the day, you only actually own a piece of paper. Your exposure is not only to the underlying companies within the fund, but also to the manager’s of the fund itself.

A Gold ETF can be a better way of gaining exposure to gold itself, but it too represents certain risks. The fund may be leveraged, so that the amount invested into the ETF isn’t necessarily backed up by the equivalent amount in gold bullion. This means that if sufficient holders of the gold ETF wished to sell their holding simultaneously, there possibly won’t be enough physical gold to satisfy all those sales.

Costs and tax efficiency

Undoubtedly, if your buying cost is your main focus, then ETFs and funds are the cheapest ways to buy gold or gold related companies. The cost of manufacturing gold coins and bars is more expensive than simply buying something electronically. However there are other costs to consider. Funds generally have ongoing management fees to pay. Physical Gold needs to be stored which costs money, although an increasing number of investors are taking personal possession of their coins and bars to storage cheaply at home.

A major factor commonly overlooked is tax efficiency. Investment grade gold is VAT-exempt and certain coins are Capital Gains Tax (CGT) free making ownership fully tax efficient. For the few percent extra you pay when buying, you may well be saving up to 28% later when you sell at a profit.

CGT more important 2022 and beyond

In 2022 and beyond, CGT is a prime target for the UK Government to raise taxes in an attempt to reduce some of their furlough-induced debt. The two areas that have been discussed for amendment are;

  1. The current CGT tax free allowance of £12,300 could be reduced. Calculations predict that reducing this threshold to £5k, would double the Treasury’s income from CGT. Abolishing the allowance entirely would triple tax receipts
  2. Increasing the rate that CGT is charged at to match an investors income tax level (up to 40-45% for some!)

Clearly, once you’ve invested in gold, any changes to CGT are out of your control. Therefore, physical gold and silver coins are by far the safest way of providing long-term stability and remain tax efficient.

It’s also the most suitable way of passing wealth down the generations. Trust me, kids prefer to receive something tangible with real value than a piece of paper promising worth. They present the most secure method of protecting your family’s wealth in a tax efficient way.

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Silver is the new Gold, or is it?

Silver or gold?

One of the keys to great investment is timing and staying ahead of the pack. I receive many enquiries from keen investors asking about the prospects for silver.  Everyone has seen how well gold has performed over the years and many commentators feel that silver has huge upside potential.

I always describe gold as ‘reducing the risk in your life’, while silver is about ‘taking risk’. Obviously with higher risk, comes higher potential reward. Nearly half our customers buy silver, compared to a minority of around 10% a decade ago. These customers feel silver has vast profit potential, so are willing to take the additional risk.

As a purely speculative punt, buying silver may be worth a bet but only as part of a well balanced portfolio. You’d certainly need nerves of steel to put significant funds into silver.  However, dig a little deeper and silver may not live up to being the new gold investment at all.

Here are 7 reasons why buying physical gold is still the best precious metals investment;

  1. There is much less research and analysis available on the silver market as it’s  less developed as an investment market. The more research available, the better chance you have of assessing an asset’s prospect
  2. If you buy gold there is no VAT to pay on the purchase. However, silver is not VAT exempt so you’re 20% down before you’ve even started
  3. The gold market has evolved into a highly competitive and efficient arena. So the bid/offer spread (or difference where a dealer will buy and sell a piece of gold) is relatively tight (perhaps 5-10%). However, with less competition silver spreads can be 3 or 4 times those of gold, so silver needs to rise significantly in price before you break even
  4. Silver is less ’precious’ than gold as there’s more of it in existence! The lack of supply and difficulty in extracting gold provides a huge support to its price. If you have an asset who’s supply could increase significantly, the price of that asset is always exposed to a sharp fall
  5. Due to silver’s lower price per kilo you will literally get more product for your money than with gold. This means that a £50k gold investment can be shipped cheaply and discreetly whereas the equivalent in silver would be heavy and expensive to deliver
  6. Storing silver is also more problematic to gold due to its cheapness. £50k of gold can fit into a tiny safe at home. But £50k of silver needs 70-80 times more space (that’s alot of silver coins!)
  7. With the global economy at its most unstable in history, and the expectation of inflation and a huge post-Covid recession – the Safe Haven tag of gold provides one of the most compelling reasons to buy gold. Silver quite simply is not known as the ultimate safe haven so is less relevant as a portfolio insurance in today’s climate.

So if you want exposure to the silver market it may be better seeking a more efficient method such as mining shares or ETCs. If you still seek the comfort of owning the physical metal itself, then buy gold coins or bullion.

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7 reasons Sovereign coins are a great place to start when looking to buy gold

You can’t go wrong with Sovereign coins

While most UK investors have owned property, shares, bonds and ISAs at some point, gold investment is still pretty new. If you’re a novice, what’s the best place to start a physical gold portfolio? In our opinion Gold Sovereigns provide a perfect starting point for the new gold investor!

1. Great value – Sovereign coins have existed for hundreds of years so there’s a very deep second hand market. This means that older Sovereigns provide a lower price per ounce as than any other gold coin – perhaps along with Krugerrands. Buying any asset at a low price is a great starting point!

*Pro-tip: Buy the pre-owned ‘Best value’ Sovereigns. They’re cheaper than brand new ones, but will obtain the same price when you sell.

2. Further discounts with volume – Specialist dealers like Physical Gold will generally  be able to offer even lower prices if you buy 50 Sovereigns or more. In fact discounts can be achieved on a sliding scale once you look at more than a single coin. Our website has handy volume discount tables for each coin.

3. Easy to sell – Sovereign Gold Coins are arguably the most established bullion coin in the market so you’ll always be able to sell the coins at a great price. If you try to sell an obscure coin, the reduced number of buyers will be reflected in a lower price per ounce for that piece of gold

*Pro-tip: Give your dealer a week or two notice that you wish to sell, and you may achieve a slightly higher selling price if the dealer can match up your sale with a buyer.

4. Affordable – While 1oz gold coins are now trading around the £1,400 mark, Sovereign coins are around a quarter of the size and price. This provides a great opportunity to dip your toe in the market or even set up a regular gold savings scheme, whereby you receive a Sovereign coin every monthPHYS01_Animated_Gif_2_MPU

5. Tax free – Sovereigns are VAT exempt like all other forms of investment grade gold. However, they have the huge added benefit of also being Capital Gains Tax free due to their status as legal tender in the UK. For a novice seeking to buy gold, this provides peace of mind that you’ll never be hit with a tax bill

6. Flexible – Due to their small size, even a modest investment of say £2,000 will provide 6 Sovereign coins. This provides versatility that you can sell as little as one coin at any time of you need to realise some cash. Larger coins or bars do not offer this flexibility

7. Talking Point –   The sheer variety of issue dates and Sovereign heads available means that a novice investor can own a piece of history as well as a superb investment. For anyone who’s enjoyed watching The Crown on Netflix, modern Sovereign coins date back more than 200 years, reflecting the various monarchs and periods of reigning.

 

So if you want get started in the world of gold, buy Gold Sovereigns and you won’t go far wrong.

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Buy Gold as an Easter Gift – 2nd – 5th April 2021

Are you looking for a unique and special gift to give a loved one this Easter? Easter is now the second biggest holiday of the year for gifting presents, after Christmas. It is no longer enough to simply buy someone chocolate. Gift giving at Easter is becoming increasingly popular. Here at Physical Gold, we specialise in a wide range of one-off gold investments including bullion coins and gold bars, the perfect gifts this Easter.

Easter 2021 Dates

The dates for Easter 2021 are:

  • Good Friday – April 2nd, 2021
  • Easter Sunday – April 4th, 2021
  • Easter Bank Holiday Monday – April 5th, 2021

Gold’s association with Easter

There are many traditions that are typically associated with the Easter holidays. Bunny’s, cards, chocolate eggs, and hot cross buns to name but a few. Gold’s association with Easter, however, goes a long way back and it has often been a common practice to paint an egg gold or decorate it in gold leaf at Easter.

This practice was partly influenced by King Edward 1 who once ordered 450 eggs to be gold leaved and coloured to give as gifts to the royal household. Gold is widely recognised as one of the official colours of Easter, along with purple (colour of lent), white (colour of Easter Sunday) and red (the blood of Jesus).

Before this though, graves in Egypt have found ostrich eggs decorated in gold and silver which were dated to five thousand years ago, so the link between gold and eggs actually far pre-dates Easter.


Read the FREE Gold Insider’s Guide PDF to ensure you buy the best gold


 

Buy Gold as an Easter Gift
Golden Easter Eggs

 

In 2009 Selfridges made headlines when they advertised a gold themed Easter egg for the incredible sum of £1000. The Easter egg contained a particularly rare one-ounce gold Britannia coin no longer produced by the Royal Mint and was advertised as the ultimate luxury gift.

Why gold coins are the perfect gift this Easter

During the 13th century, the British royal family gave gifts of food, clothes and coins to the poor on the Thursday before Easter. By the time Charles II came to the throne in 1630, special coins known as Maundy money were produced specifically for the occasion. In the US, one of their long-standing Easter traditions is to fill Easter eggs with chocolate coins or sometimes even real coins can be used.

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Gold coins such as Sovereigns and Britannias make very special and unique Easter gifts. Gold is seen as an excellent store of wealth and has continually held its value over long periods. The gift of gold is one that will last a lifetime as opposed to just the 15 minutes it takes to eat an Easter egg. Gold coins that are classed as British legal tender also benefit from being Vat and Capital gains tax-free in the UK providing, they are over 22 karats.

Here are three specific gold investments you may want to make this Easter, which suit a variety of budgets:

Gift the gift of gold this Easter

Gold represents the perfect gift for either a loved one or special family member this Easter. Not only is it something they can cherish and look after, with a view to possibly handing it down to future generations, it also introduces them to the world of investing.

Physical Gold has one of the largest selections of gold available in the UK. Whether you’re looking to purchase gold sovereigns or gold bars, we have the ideal gift for you this Easter. For more information on any of our product or services, please give us a call on 020 7060 9992.

Image Sources: Postapo