Getting started - buying gold bullion.
A summary of the most common considerations are outlined below. For more details on our specialist services, contact our customer services team.
Why Buy Gold?
Why buy gold? Simple. Investing in gold bullion is one of the best ways to safeguard your wealth, protect against inflation and benefit from capital growth. Precious metals have seen outstanding capital growth and have beaten all other investment grade asset classes in the last 2 years. The recent turmoil in the banking industry and financial world combined with growing government debt and currency crises, have led many investors to diversify a proportion of their portfolio by buying gold as a 'safe haven'.
What is the difference between 'Gold grams' and gold bullion bars / coins?
- Gold Grams
The cheapest way to buy physical gold - allows flexibility to buy / sell individual gram units - only available for storage (not delivery)
- Gold Bars
The most popular for professional investors - all 1 kilo and 12.5 kilo bars have unique serial numbers - available for both storage or delivery
- Gold Coins
Generally more expensive than bars - usually found smaller units e.g. 0.25, 0.5 and 1 oz which provides flexibility to buy/sell in small units. Sovereign and Britannia gold coins have the advantage of being free from Capital Gains Tax - available for both storage or delivery
Gold grams are an alternative to buying individual bars or coins, where you own a portion of a large gold bullion bar. The cost per oz is lower than buying individual bars or coins and you can own gold from as little as £100. The only difference to buying individual bars and coins is that gold grams are stored in the vaults and do not have a delivery option (as each individual customers only owns a portion of a bar).
Individual bullion bars and coins
Individual bullion bars and coins, whilst slightly more expensive, provide the peace of mind that they are fully allocated to you and you are able to take physical delivery of the bars or coins whenever you wish (a modest delivery charge applies). This takes away the counter-party risk as you can easily take possession of your gold bullion, in an emergency and the value of your investment is not dependent on the viability of any company.
Do Larger Investors Prefer Gold Bars to Gold Coins?
The advantage of bars is that they provide more bullion per £ than coins, with the larger the bar, the lower the price per oz.
A big advantage of Gold sovereigns and Britannia coins is that they are free of capital gains tax. The advantage of coins is that they are generally smaller, so allow small amounts to be sold back when required. The disadvantage is that they generally cost more per oz than bars of the same weight.
Capital Gains Tax Free
In the UK, certain coins e.g. gold Sovereigns and gold Britannias are classed as 'legal tender' and are therefore exempt from Capital Gains Tax. Although there is a limited supply of Sovereigns and Britannias in the market, we are able to secure large quantities at very low rates and it is not uncommon for us to handle orders for several thousand coins at a time.
Storage or Delivery?
Most clients prefer GoldMadeSimple to manage their storage and insurance in secure independent LBMA accredited vaults, managed by Loomis International (UK) Ltd. This has the following advantages:-
- Highest levels of security
- Individual customer security boxes to hold your gold only
- Avoids delays and additional costs when selling your gold
- Delivery can be provided on demand
Delivery of bars and coins can be arranged. UK prices are shown on the order form and international quotes can be provided upon request.
Spot Price - Grams or Ounces?
The 'spot price' is a live price used by the wholesale bullion markets when dealing in gold for immediate delivery. Gold is usually quoted in US$ per Troy Ounce (ozt). A troy ounce equates to 31.1034768 grams. Gold products such as coins and bars are charged at a premium or margin over the spot, to take into account the costs of the handling, delivery, storage, insurance and commissions for the various parties involved. Smaller bars usually have a higher margin than larger bars and coins usually have a higher margin than bars of the same weight. GoldMadeSimple display the spot price updated very few seconds, in both US$ and UK£.
To guarantee that we can approve your order request at the price shown on the screen, you must have adequate cleared funds in your GoldMadeSimple account and must place your order during UK working hours. If you do not have cleared funds and want to place an order immediately, we can accept a debit card payment provided that the gold is not required for delivery. To view live prices, visit our buy gold page.