How to Buy Gold? The Ultimate Guide to Investing in Gold
For centuries savvy investors have been aware of the importance of gold as part of a well balanced portfolio. In addition to offering wealth diversification, gold is a world renowned safe haven for investors offering the ultimate insurance and protection against turbulent economic times. History illustrates gold is a timeless asset, not only proving to be a successful preserver of wealth, but growing gold prices and record demand has ensured it has outperformed all other forms of investment.
November 2011 saw the release of new ground breaking statistics from the World Gold Council who published a 33% rise in global gold investment ownership. With influential nations such as China and India leading the way after posting rises of 69.5% and 34% respectively, the world now seems to be turning to gold bullion. However this unprecedented consumer demand for gold has not only been experienced in the Far East, Middle East and South Asia. Germany, Switzerland, Turkey, France and the UK all experienced substantial growth in gold bar and coin ownership with increased numbers of individuals taking their money out of banks and holding it in gold. With investment gold demand and ownership continuing to hit new highs, has there ever been a better time to buy gold?
How to invest in gold bullion? The ultimate guide to buying gold provides essential reading for all investors. Whether you’re new to gold investment or highly experienced at buying and holding gold, the guide is packed with must read advice on the best way to buy gold, including why buy gold, when to buy gold, where to buy gold and storing gold. The how to buy gold guide also looks into buying gold bars or coins, paying capital gains tax on gold and the benefits of buying physical gold over electronic gold or paper gold, plus much more.
Why Buy Gold?
Why buy gold? In times of economic uncertainty and instability buying gold makes more sense than anything else. With confidence in the banking system and worldwide economy at an all-time low, gold bullion could be the ultimate insurance and should act as an essential part of everybody’s investment portfolio. With the famous yellow metal in greater demand than ever, there are many reasons why people should buy gold. Owning gold could be the ultimate way to preserve your wealth, and possibly make a healthy return in these uncertain times. It’s an age old question which people have been asking for centuries – where is my money really safe? And more and more people are now choosing the oldest answer: GOLD.
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Why Buy Physical Gold? Physical Gold Versus ETFs
Why buy physical gold? As the old saying goes; if you don't hold it, you don't own it. There really are numerous benefits of physically holding your gold in your hands, as opposed to buying electronic gold (ETF) or paper gold. In these unpredictable economic times of banking instability, low interest rates, underperforming currency markets, volatile stocks and repeated rounds of printing money, gold offers a welcome safeguard to the turbulence. However not any form of gold, but physical gold. Physical gold is a timeless asset which will always have a value and always lasts the test of time. Holding physical gold bars and/or gold coins provides the ultimate control and insurance for your wealth against financial crisis in an underperforming wider economy.
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Where to Buy Gold?
Where to buy gold? Research is everything. Your decision to buy gold online wouldn’t have been taken lightly and should be backed by your own research. Much the same, when it comes to selecting your chosen bullion dealer, again research is vital. The Internet is the best place to conduct your research. The Internet holds information about the impartial experiences, opinions and recommendations of millions of people all around the world. It sounds obvious, but why not start your research by simply typing in the bullion dealers brand name into Google.co.uk. The Internet really is the world's largest open forum in which company's have no control. It will become quickly apparent if a bullion dealer has a negative online reputation, in which case they should be avoided at all costs.
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When to Buy Gold?
When to buy gold? Looking back at historical data, in hindsight it is easy to identify 2005/06 as a great time to buy gold bullion before the constant rises when the price of gold stood at just £250 T/OZ. Again in 2007/08 the UK banking crisis offered another great opportunity to jump onto the gold bandwagon with the gold price standing at around £350 T/OZ. Many investors did indeed see these signs early and took full advantage, having since seen their gold investments flourish with almost a decade of constant rises and an increase of over 250% (December 2011) in the past five years alone. Some of the most common questions heard now on a daily basis are; is it too late to buy gold? And; how much longer can the gold price continue to rise? Unfortunately, there's no exact science when knowing when to buy gold, but there are lots of effective and timeless techniques and indicators that most successful investors use to help them and look out for.
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Should I Buy Gold Bars or Gold Coins?
Should I buy gold bars or gold coins? Whether you’re new to bullion investment or not, deciding whether to invest in bullion bars or bullion coins should take some consideration. Before making this decision it would be advisable that you conduct your research as there is no definitive right or wrong answer, it will vary depending on the needs and circumstances of the individual investor. However, as when making any other investment there are a several factors to consider including the value of your investment and the product premiums, how long you plan on holding your gold, storing it, capital gains tax (CGT) and how you plan on realising the value of your investment.
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Should I Buy Silver as well as Gold?
Should I buy silver and gold? Many investors spend time deciding whether to buy gold or buy silver, however the savviest investors own both. Whereas gold could offer the ultimate insurance and protection against uncertain economic times, silver is a more speculative investment. Despite gold and silver both being commonly invested precious metals, silver is an entirely different investment which can realise substantial profits despite the initial VAT outlay. And it’s because of these differences, why owning both gold and silver together can be of benefit.
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Do I Pay Capital Gains Tax on Gold?
Do I pay Capital Gains Tax on Gold? Capital Gains Tax or CGT is a tax on the gain or profit you make when you sell anything, give away or otherwise dispose of something. It applies to assets that you own, such as bullion, shares or property. There's a tax-free allowance of £10,100 (2011) and some additional relief that may reduce your Capital Gains Tax bill. Most bullion investors will never have to pay this tax due to the size of their investment and many other investors choose to only buy tax free British gold coins which are CGT exempt such as gold sovereign coins and half sovereign coins, however it is important that investors know where they stand.
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Is Gold and Silver Bullion Subject to VAT?
Is silver bullion subject to VAT? A common question asked by investors is, ‘do I have to pay VAT on bullion?’ The good news is you don’t have to pay VAT on gold investment bullion. This includes all gold bullion investment bars and coins purchased in the UK and EU, meaning all gold bullion is completely VAT free. However, unlike gold bullion, VAT is payable at 20% on silver coins and bars making silver a more long term, speculative investment. However, due to the volatile nature of the silver price, returns are often quickly realised with the price of silver up 212% in 3 years (December 2011). If you are VAT registered and think you may be able to claim your tax back, then we advise you speak to your Accountant.
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Where Should I Store my Gold?
Where should I store my gold? The physical possession and control of your bullion is one of the main benefits of investing in physical gold bullion over electronic or paper gold, however you must consider where to store your gold. There really is no one correct answer, the truth is you can do with it as you please and can store it where you like; it really is down to personal preference. Storing gold bullion really isn’t anything new; people have been successfully storing gold and silver bullion for centuries and is particularly common in Germany and India. On a basic level there are three different options; a bank safety deposit box, a home safe or, be a bit more creative. All three options offer a variety of pros and cons and should be investigated before making a decision as to how to store your gold bars and gold coins.
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Why Buy Gold Online at Bullion by Post?
Why buy gold online at BullionbyPost? Bullion by Post are the UK's market leading online bullion dealer based in the heart of the famous Birmingham Jewellery Quarter, Europe's largest Jewellery hotspot. BullionbyPost sell gold and silver bars and coins to private UK bullion investors dispatching thousands of parcels every month. Bullion by Post are a fully authorised distributor of London Bullion Market Approved (LMBA) Umicore and Metalor gold and silver bullion bars. The company is also a British Royal Mint authorised distributor and only sells authentic mint coins and sets. Click here to read what our customers have to say about our service.
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How to Buy Gold Online at BullionbyPost?
How to buy gold online at Bullion by Post? Buying gold online at BullionbyPost is quick, simple and secure. You can create and register your account online in as little a two minutes. Once your account is set up, you can buy gold and buy silver bullion online 24 hours a day at the click of a button. Your online account will also allow you to track the performance of your gold investment against the current price of gold as well as providing you with the latest product news and a safe place to store your invoices. With a comprehensive range of gold and silver bullion products available at low margins, buying gold online has never been so safe and easy.
Register your FREE online Account today and receive a host of benefits including our Gold Price Alert Service, 24 hour access to buy gold quickly and safely, access to your invoices and full order history to monitor your investment performance, monthly insight and offers direct to your inbox, plus much more. Click here to register your FREE online account today.
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If you have any questions about gold bullion investment please feel free to contact our knowledgeable and friendly team on 0121 554 9914 who will be happy to talk your through any queries you may have. Alternatively, you can e-mail us on: firstname.lastname@example.org and we will get back to you as soon as possible. Looking to buy gold bullion bars and coins? View our range of gold bullion.