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The Complete Guide for New Gold Investors

Tuesday, June 30, 2020

As a novice gold investor you might be visiting an online precious metals marketplace for the first time. Perhaps you’ve heard of the tendency of gold to help investors batten down the hatches and ride out turbulent and stormy periods of economic uncertainty, downturns and even recessions.

If your interest has been piqued by the potential of gold to bolster your portfolio, 2020 might be the year for you to invest in gold. In this article we’ll guide you through everything you need to know about investing in gold and other precious metals. Perhaps it’s time to add some dazzle to your portfolio.

Gold prices are close to an all-time high

At the time of writing (June 26th) the gold price is £1,418 per troy ounce (the standard UK measurement for gold, approx. 31 grams), which is just £32 off the all-time high UK gold price of £1,450.85.

With many economic commentators predicting a UK recession as a result of COVID-19, prominent voices in the gold community are forecasting a resulting gold bull run, during which the gold price may well reach a new record. Demand for physical gold remains high in 2020, so now could be a highly opportune moment for a new investor to add precious metals to their investment portfolio, because gold could prove to be a safe asset amid coronavirus turbulence.

Gold often surges during turbulent market conditions

In 2019, gold prices reached an all-time high, as investors lost confidence due to Brexit uncertainty, and sought the safe haven of gold. This is because gold is considered resistant to periods of economic instability, in fact gold prices often rise during recessions. During the 2008 recession gold entered a bull run – a period where gold prices rise significantly – with prices more than doubling in just three years by 2011 to £1,182 per troy ounce.

Gold is a long term store of wealth

Newcomers to gold investing are often stumped by the question of when is the best time for them to buy gold online. The question that matters most is not when the best time to buy gold is according to gold prices, but rather when an investor can personally afford to purchase gold.

New investors often get lured into studying day-to-day price fluctuations in gold prices, but gold and other precious metals, in contrast to other forms of investment, are considered long term investments and the gains from buying when prices are lower should be viewed against the years of potential change that follow.

What is the difference between gold bars, coins and rounds?

Gold coins for investment can look similar to everyday currency, or can be more decorative and ornate in nature. Gold coins are generally fairly portable, often weighing 1 Oz. In general gold coins are a great choice for a first time investor, because they are available at relatively low value, and individual coins can easily be sold when you want to release equity.

Gold coins also make fantastic gifts for a loved one, can be an attractive decoration and are often collected by hobbyists.

Gold bars are often sold in greater quantities than gold coins. Small quantities, including 1, 2.5, 5 and 10 gram bars are available, however large gold bars can weigh up to a kilogram.     

Home delivery or secure storage?

One of the most common questions from investors new to gold is ‘where should I store my bars or coins?’ There are two options available, at home storage or a dedicated storage facility.

Those with small investments may choose to secure their gold at home using a secure storage space, usually a safe. Make sure you consider how much space you’ll need to safely house your gold, as well as enough space to expand your collection in the future. As an example, a 45 litre 81cm x 31cm x 18cm safe will hold around 10 kilograms of gold bullion bars.

Ensure your safe is protected against theft and environmental damage. Safes have a cash rating, this indicates the protection it provides. You’ll also need to ensure any home contents insurance policies you do have cover the value of gold you’re holding at home. You will also want to guard against environmental damage from fire and water damage. You can ensure you’re protected by choosing a safe that’s water tight and has a fire rating.

Larger investors often opt for storage facilities. We offer a range of safes and storage options for gold.

Track the live gold price

Our tool allows investors to directly track the live gold price. We base our price tacker on the live gold spot price in £ Sterling. The spot price is the standard at which a troy ounce of gold can be bought or sold.

We also have historic gold price charts which give a picture of how the gold price is trending. It shows the evening fix price of gold set each business day, we have records going back 50 years.

In addition to our gold price chart, check our silver price chartplatinum price chart or palladium price chart.

You can buy gold online VAT free

Investment quality gold bullion bars and coins are free from VAT. Gold for investment purposes has been exempt for VAT since 2000 by EU law. Other precious metals including platinum, silver and palladium will include a VAT charge, which can add a significant expense to your investment. This makes gold bullion bars and coins one of the most lucrative precious metals investments.

You can buy gold without Capital Gains Tax (CGT)

CGT is applied to the sale of an asset that has appreciated in value. It is applicable to many gold items, but not to legal tender. British legal currency including Gold Half Sovereigns, Gold Full Sovereigns, Gold Britannia and Silver Britannia is CGT-free.

Buy tax free gold today and benefit from a tax free investment opportunity.

How to buy gold online

Step 1 – understand the basics including terminology like spot price, troy ounce and more. Once you’re familiar with terms like this, research the products you might be interested in purchasing, whether gold or silver, coins, bars or rounds.

Step 2 – browse our website using our categories or search for a specific product in the search bar.

Step 3 – add you item(s) to the shopping cart and fill in your details, including payment details and shipping address, if you’re choosing to store your items at home. Visit our delivery page for more options, including collecting your items from our office.

Step 4 – click the checkout button and your free fully-insured delivery will be dispatched the very same day.

Step 5 – receive your items and let us know what you thought about our service levels.

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Service levels

We recently posted an operational update to reassure our customers that the gold supply chain and delivery process have started to reopen after the interruption of COVID-19, due to safety concerns.

Read the message for full details on our temporary policies.