With a seemingly wobbly world economy, the precious metal has again become more attractive for investors.
For those looking to buy gold online for the first time, the options can seem bewildering. Senior bullion dealer Oliver Temple gives a brief beginner’s guide to investing in gold.
Why Invest In Gold?
Historically, gold has always performed well in times of economic uncertainty. After the recent financial crisis, gold jumped to record highs of $1,900 an ounce.
As the Chancellor said at the beginning of the year, 2016 could see the UK’s economy facing a “cocktail of threats’.
China’s slowing economy, low crude oil prices and the Greece bail-out situation could be affecting generally the rising gold prices we have seen since the beginning of the year.
There has also been the US interest rate rise in December and there is uncertainty for our own economy over the possibility of the UK leaving the EU.
Gold, it seems, has its shine back. My advice may surprise investors but we prefer to be honest.
Gold prices can rise and fall so putting all their portfolios into the metal would, I suggest, be unwise. Instead gold should be around 5% – 10% of an investment portfolio. The precious metal should be thought of more like an insurance policy and for the medium to long-term.
There are different ways of investing in gold such as gold-backed Exchange Traded Funds (ETFs). At Gold Investments we deal with physical gold – and we have built up a first-class reputation in the field since we began in 1981. We are one of the oldest bullion dealers in the UK and are trusted by our many customers.
Physical gold is held by most central banks and in fact many have been buying the yellow metal in large quantities in the last year.
Gold is a finite currency which is universally accepted. Physical gold can also be passed down the generations.
Buy Gold Coins Or Gold Bars?
Whether you buy gold coins or gold bars is up to investors. We are always happy to pass on our expert knowledge.
Gold coins perhaps have the advantage that they allow for greater flexible. You could sell off part of your gold coins portfolio, rather than being tied to selling the whole investment. Gold coins are easier to sell.
For larger investments, gold bars could be a better alternative from a practical point of view.
The Britannia and sovereign are also attractive for some investors; in the UK both coins are legal tender. If they are sold there is no capital gains tax to pay.
One of the most popular coins is the South African Krugerrand. In 1980, the Krugerrand accounted for 90% of the global gold coin market.
It is worth noting that there is no VAT to pay on gold.
Self Investment Pension Portfolios (SIPPs)
What some may not realise is that gold can be used as part of their Self Investment Pension Portfolios. You can see more details here.
Through our Gold Club, our investors are actually able to sell gold back to us. You can find out more here.
Some investors may not know that physical gold can also be stored securely by a few bullion houses.
Gold Investments’ bullion vaults are at London Silver Vaults at Chancery Lane, which have their own interesting history.
You can read more about the vaults here.
Here To Help
Buying gold online does not have to be daunting.
At Gold Investments, we have a wealth of experience and are always happy to pass on our expert knowledge to investors. Gold could be a good investment for any size of budget.
This website makes it easy to buy gold online securely.
To discuss your gold options, contact Oliver and his friendly team contact: 0207 283 7752 or email: [email protected]
On LinkedIn? Why not connect to Oliver?
Image from AscensionDigital at freedigitaldigitalphotos.net