Investing through an Individual Savings Accounts is a tax efficient way of growing or preserving your wealth. ISAs are easy to open and manage, but how do they compare to physical gold?
THE NUMBERS
The graph above shows gold plotted against savings in a cash ISA represented by the average interest rate paid by financial institutions to cash ISA accounts according to Bank of England data.
On the graph we can also see inflation. £10k invested in 2000, due to inflation, needs to have the same purchasing power as £15,500 21 years later. This means just to maintain the absolute value of your investment it would have to grow to £15,500.
GOLD: As you can see, £10k invested in gold is worth £77k today, a 670% increase in the value of your portfolio.
ISA: And £10k invested in an ISA grows to £17,350 over this time, with relatively robust interest rates in the early part of the century but dropping to below 1% from 2009 and remaining this low for the next 12 years.
Gold and ISAs are both considered “safe haven” investments, but gold has far greater built-in potential for growth.
COMPARING ISAS AND GOLD
TAX FREE GOLD
While it may seem that the principal advantage of ISAs over gold is their relatively low cost of entry and ease of storage, these advantages can also be achieved with gold. With investments like The Pure Gold Company’s Gold Saver, gold can be purchased in amounts suitable for smaller-scale investors.
TAX FREE SILVER
Individuals that purchase physical silver within the EU are required to pay VAT. However The Pure Gold Company is able to supply physical silver free from VAT when stored outside the EU, and Capital Gains Tax when purchasing coins minted by the Royal Mint.
PERFORMANCE
Gold’s performance far outstrips that of cash ISA savings. If you invested £10,000 in an ISA in 2017 you’d have generated just £260 in interest over the past 5 years. With gold, on the other hand, your £10,000 of gold would now be worth more than £14,680.
RESTRICTIONS
Gold also has the distinction of being without the restrictions normally placed on ISAs. They act in a similar way but without a ceiling. You can buy as much gold as you can afford, store it where you want without having to rely on banks, and see it grow in value without relying on bottom-tier ISA interest.
TAX
Investment grade gold is exempt from VAT and gold coins minted by the Royal Mint are Capital Gains Tax free, so depending on individual circumstances your investment may be completely free from any tax.
WHY GOLD?
- A proven asset in times of uncertainty
- Reliable value thanks to its durability, rarity and status as an investment commodity
- Several banks warning of an equity crash, leading to rise in gold prices
- Tax efficient depending on individual circumstances
- Physical, tangible asset
- Invest without restrictions
- Read more reasons to invest in gold
WHY ISAS?
- ISAs offer fully government-sanctioned tax relief, so they are tax-efficient
- Lots of consumer options
- Not necessary to start with a large amount of capital
- Stocks and shares ISAs exist and help small-scale investors to start investing
CONCLUSION: GOLD
ISAs are specifically designed to be a good way to store or invest small amounts of money, but the limits under which they are offered and the scale on which those investments operate limits their potential either as a storage medium or as a base for investment.
Gold is not only safer than an ISA, as it’s not tied directly to the banking system, it is more lucrative, with a return that far outstripped other assets during the last two decades.
All these factors make gold a powerful asset for the future, ideal for difficult financial times and for storing wealth for the long-term. If you’re looking protect your wealth against the uncertainty of the future, gold is an ideal investment.
For more information in investing in physical gold as a storage or investment medium for your wealth, contact The Pure Gold Company today or download an investor guide.
HOW TO BUY GOLD & SILVER
Our Simple 4-step process makes physical gold and silver buying easy.
Q & A
One of our dedicated specialists will work with you to answer any questions you have. We will provide you with factual information (benefits / drawbacks) about all available products. The length of this conversation is down to you and is an opportunity to ask us as many questions as possible. Please note we are not permitted to provide any financial advice. If you require advice, we suggest you speak to a financial advisor.
PURCHASE ORDER
When you feel confident that you’ve had all your questions answered, you will be asked to complete a purchase order, which is your instruction to purchase metals.
PAYMENT
In order to lock in the price and complete your order, you must then make a payment, via bank transfer or personal cheque. We no longer accept any payments over the phone / card payments.
STORAGE AND DELIVERY
We can either deliver your gold directly to you, via our insured delivery service, or you can choose to have your gold safely stored, in a London Bullion Market Association (LBMA) vault, where your physical metals are allocated in your name and with full insurance provided.
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WHY US
Reputable & fully accreditedBuy-back guarantee
Fully certified metal
Free delivery or storage
Customer focussed
No hidden charges
5* independent reviews
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IN THE PRESS
CHARLES CAMPLING – POLICE OFFICER – SURREY POLICE SERVICE
I decided to make my first tentative steps into investment in gold with the help of The Pure Gold Company due to the good reputation they have dealing with the less experienced investor such as myself. I feel their reputation is well deserved. I was kept informed, anything I didn’t understand was explained well. I have no reservations in recommending The Pure Gold Company to those looking to buy gold or silver.
SIR GEOFFREY LEIGH – PROPERTY ENTREPRENEUR
I found The Pure Gold Company knowledgeable and trustworthy and in my opinion wouldn’t hesitate to recommend them
ANNABEL BARTFELD – AMBASSADOR FOR GREAT ORMOND STREET HOSPITAL
These guys were patient and seemed to understand my situation well. They weren’t pushy or salesy and gave me all the facts so that I could make my own decision. I was surprised at how straightforward they made the process and would certainly recommend The Pure Gold Company to anyone looking to buy gold or silver
OLIVER SHIPTON – PARTNER AT LEE & THOMPSON LLP
Having thoroughly researched the gold investment market I found The Pure Gold Company. They were knowledgeable, transparent and kept it all very simple. My gold arrived the next day and I’m now discussing options for silver storage. I wouldn’t hesitate in recommending them…
RACHELINE NATALIE MICHAELS – DIRECTOR, HEXAGON OF HIGHGATE LTD
A friend recommended The Pure Gold Company, as they have a reputation of assisting beginners, they were fantastic. They explained in detail how it all works and what options would best suit our circumstances. They guided us on timing and saved us 6% by waiting a couple of weeks
