Most investors and buyers look only at the buying cost (premium over spot, delivery charges) when they buy gold. However, there are more aspects to look at when it comes to buy physical gold. Understanding gold investment requires you to assess both side of the coins : buying and selling. In fact, like any investment that make…
When you buy gold, it is with the idea in mind that you will sell in the future for profit. Therefore, you should anticipate the cost involved in buying and selling
Buy with storage
Although Gerrards offers free insured delivery in UK, you can opt for storage. This is the cheaper way to buy, own and store physical gold, since it avoids delivery or pickup. Your metal is stored and insured in secure vault and can be sold directly through an online order or a phone call.
Moreover, it gets cheaper to sell gold directly from storage rather than over the counter. You do not need to visit the bullion dealer and carry your metal with you. This is especially convenient for investors who buy gold in large quantity.
Why storage compared to ETF ?
The overall costs are usually marginally higher than ETFs (although in some cases they are lower), but many investors prefer the online bullion dealer route because they feel the gold that they buy is “theirs”. The gold bars are specifically allocated to them and they can take delivery, if they so choose.
Reduce your Capital Gain Tax
One thing that you can’t avoid with physical gold is Capital Gain Tax (CGT). Investors that sell or redeem their gold bullion must pay a cgt rate of 20 % (for UK) in the case they make a profit over £12,000 in a year. Therefore, it is recommended to opt for gold sovereign and Britannia