Buying gold for investment purposes can seem mystifying at first. There are many practical considerations: storage, transport, liquidation, and tax. Discover all there is to know about buying gold for investment with this comprehensive guide.
Investors can purchase gold from certified dealers in a variety of quantities and grades, typically in bullion or bars. With the Pure Gold Company, buyers are sold gold that is investment grade (22 karats) or higher.
Investors are then provided with a certificate of authenticity, and the option to either store their gold within a secured facility, (usually a London Market Bullion Association vault) or have it shipped to their residence for safekeeping. Delivery is fully insured under the Pure Gold Company’s insurance from point of sale until it is delivered. From then on, it’s at the investor’s discretion to sell or distribute their gold as they wish.
Gold’s appeal lies in the fact that its value is not tied to the health of the stock market and that it has an inverse relationship with the values of major currencies. In a time where economies all over the world are experiencing instability, gold behaves in a different way. Its value holds as other markets crash. Purchasing gold also comes with significant tax benefits.
Unlike other investments, gold does not require investors to pay VAT on investment grade gold, or Capital Gains Tax on UK investment grade gold and silver coins.
An easy way to differentiate between paper and physical gold is to think of one as a bank cheque and the other as cash. Paper gold is allocated in gold certificates instead of physical gold bars or bullion, and often comes in the form of futures contracts, mining stocks or gold exchange-traded funds (ETF). Paper gold comes with a much higher risk of purchasing and isn’t as useful in times of financial crisis.
Physical gold is gold you have within your possession. Should investors need to liquidate their assets quickly, physical gold can be easily sold for needed capital, exempt from the Capital Gains Tax.
The Pure Gold Company has a simple, four-step process in place for buying physical gold.
1. Consult with our advisers to find the best investment for you.
2. Create a purchase order to instruct us to buy your chosen gold.
3. Payment is either by cheque or bank transfer (card payments are available for some smaller orders).
4. The final stage is storage and delivery. The Pure Gold Company can deliver your precious metals to a location of your choosing via our fully insured and complementary delivery service. Storage is also available in the London Bullion Market Association’s vaults, with allocated storage bays and full insurance.
