The Best Ways to Invest in Gold Today

GoldCore's picture

The Best Ways to Invest in Gold Today

- The cost of buying and selling gold
- How to buy gold on the cheap
- How to avoid paying capital gains tax (CGT) on your gold
- Open an account with one of the online bullion dealers – the likes of GoldMoney, GoldCore or Bullion Vault
-  Gold Sovereigns and Gold Britannias make for a considerable saving on cost because of the CGT exemption

Gold Britannias and Sovereigns are free of Capital Gains Tax (CGT)

Dominic Frisby
 has looked at the best ways to invest in gold in the UK’s best selling financial publication Money Week.

Frisby looks at the various ways to invest in and own gold and points how gold ETFs are not much cheaper than online gold bullion dealers such as GoldMoney, GoldCore or Bullion Vault and yet there is the difficulty of taking delivery which is "cumbersome."

The other important consideration when investing in gold is to consider the tax implications and the capital gains tax (CGT).

Buyers of gold ETFs and digital gold through e-gold providers like Bullion Vault and GoldMoney are subject to capital gains tax. However buyers of Gold Britannias and Gold Sovereigns are not subject to this expensive tax:

Competition between ETFs and bullion dealers has conspired to drive down prices, much to the benefit of the consumer. But there is one huge cost that neither of these methods is able to avoid – tax. This assumes you’re not buying your gold via an ISA or a SIPP, which it is, for the most part, possible to do via ETF or bullion dealer.

Capital gains tax (CGT) currently stands at 20% in the UK for higher rate taxpayers and 10% for lower. Funds don’t pay CGT. It is paid by the investor when they sell or redeem, assuming they made a profit. It kicks in once you have made profits of more than £11,100 in a year (£11,300 from next tax year).

So over and above that level, you’re facing an unavoidable 10% or 20% cost for buying and selling gold at a profit. It used to be 18% or 28%. We have George Osborne and his team to thank for lowering it – but even at current rates, it’s a considerable dent to profits.

There’s another method of buying gold (and silver), which, quite legally, avoids this cost altogether. There is a slightly higher premium to spot when you buy, there are slightly higher storage costs, and there is a slight discount to spot when you sell – but we are talking about a few per cent here, nothing like 20%.

Given the potential savings involved, it’s surprising that more UK investors don’t buy their gold and silver in this way. The method I’m describing, if you haven’t already figured it out, is to buy sovereigns and Britannias.

Frisby concludes the piece by pointing out how GoldCore offer capital gains tax (CGT) free gold sovereigns and gold britannias and how Frisby likes GoldCore:

"I like Goldcore. You can deal with them either over the phone or open an account online. You can buy sovereigns, Britannias, bars and probably even bells, and they’ll take care of the storage too."

Access the Article On Money Week here


Gold and Silver Bullion - News and Commentary

Gold hits 2-wk high as Fed rate outlook weighs on dollar (Yahoo Finance)

Gold holds firm as Fed rate hike guidance weighs on dollar (Reuters)

Treasuries Resume Fed Gains as Stock Rally Falters (Bloomberg)

UPDATE 2-Russia's Nornickel says its fund buys palladium from central bank (Reuters)

China gold premiums rise on limited supply (Reuters)

Why Yellen’s first bazooka shot didn’t hurt gold (MarketWatch)

Yellen Surprises Hedge Funds Who Cut Gold Wagers Before Rally (Bloomberg)

Gold Explorers Set for `17’s Best Week as Moribund Metal Stirs (Bloomberg)

More Proof of Janet Yellen’s Idiocy (DailyReckoning)

Gold and Silver Britannia Coins from The Royal Mint (CoinWeek)


Gold Prices (LBMA AM)

20 Mar: USD 1,233.00, GBP 993.92 & EUR 1,146.57 per ounce
17 Mar: USD 1,228.75, GBP 991.85 & EUR 1,140.53 per ounce
16 Mar: USD 1,225.60, GBP 998.74 & EUR 1,143.24 per ounce
15 Mar: USD 1,202.25, GBP 986.69 & EUR 1,132.04 per ounce
14 Mar: USD 1,203.55, GBP 992.33 & EUR 1,130.86 per ounce
13 Mar: USD 1,207.80, GBP 989.79 & EUR 1,132.07 per ounce
10 Mar: USD 1,196.55, GBP 983.56 & EUR 1,127.15 per ounce

Silver Prices (LBMA)

20 Mar: USD 17.23, GBP 13.92 & EUR 16.03 per ounce
17 Mar: USD 17.40, GBP 14.08 & EUR 16.21 per ounce
16 Mar: USD 17.46, GBP 14.21 & EUR 16.28 per ounce
15 Mar: USD 16.91, GBP 13.87 & EUR 15.92 per ounce
14 Mar: USD 17.00, GBP 14.02 & EUR 15.99 per ounce
13 Mar: USD 17.02, GBP 13.92 & EUR 15.95 per ounce
10 Mar: USD 16.89, GBP 13.91 & EUR 15.92 per ounce

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Access Daily and Weekly Updates Here

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ogretown's picture

I chatted with a man who seemed to have found a novel way to make money from physical gold coins. He lives in Canada and would lend money interest free on one ounce coins, American, Canadian or Austrian.  The terms were simple. He would hand you $1000.00 CD in exchange for a coin.  The borrower had until at midnight on a set date (lenders birthday) to return the cash and get his gold coin back.  If the time passed without redemption, the lender kept the gold coin.  Worked like a charm, especially now that Canadian gold is north of $1600 per ounce.

83_vf_1100_c's picture

The author was smart holding off til the last sentence that bit about storage. I am sure there is some valid reason for having a 3rd party hold your gold but I can't imagine what that reazon could be. If you don't hold it, ya don't own it. When the SHTF it won't be there.

BandGap's picture

So you avoid taxes and charges owning the real thing? How novel.

anarchitect's picture

It's actually quite enlightened.  Canada should exempt Maples from capital gains tax; the US, Eagles; the Australians, Kangaroos; and so on.  But don't hold your breath.

northern vigor's picture

Friggin Canada....Trudeau is going to increase the capital gains tax in this budget, according to sources.

Liberals increasing taxes and sending it to the UN. 

ATP_Commish's picture

lol these kinda ZH articles remind of the nightline hot singles ads on tv at 3am... kinda feel dirty just reading em

TeaClipper's picture

Theres only one person taking care of my storage

ATP_Commish's picture

a liberty safe i presume? with a little help from mr smith and wesson.