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Updated 13:58 20/01/17

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How to Invest in Gold? The Ultimate Guide to Gold Investment


How to Buy 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 that gold is a timeless asset, not only proving to be a successful preserver of wealth, but high gold prices and record demand has ensured it has outperformed most other forms of investment.

November 2015 saw the release of the most recent ‘ Gold Demand Trends ’ statistics from the World Gold Council, who published a 33% rise in global gold bar and coin investment in 2015. Chinese consumers' appetite for gold continued, breaking previous demand records. Interestingly, investors shied away from gold investment through ETFs as institutional positions were sold. By contrast, the demand for gold bars and coins surged to an all-time high, highlighting the importance of physical gold to consumers. With unprecedented consumer demand for gold bars and coins in the Far East, Middle East and South Asia and a very strong start to 2015 for the gold price, could it be an ideal time for you to buy physical gold?


How to Invest in Gold?

The guide provides essential reading for all investors. Whether a beginner in the world of gold investment or highly experienced, this guide is packed with must read information and advice on how to invest in gold coins and bars, including why buy gold , where to buy gold and storing gold . The guide also looks into bars vs coins , gold vs silver , capital gains tax on bullion and the benefits of owning physical gold over paper and electronic gold, plus much more.


Why Invest in Gold?

In order to know if gold is a good investment, it is important to understand why people buy gold. In times of economic uncertainty and instability, buying gold makes more sense than other assets. 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 .

Read more about the benefits of buying gold


Why Buy Physical Gold? Physical Gold Vs ETFs

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. How to Buy Gold - Buy Physical 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.

Read more about the benefits of owning physical 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 companies 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.

Read more about where to buy gold


When to Invest in 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. 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 to 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.

Read more about the best time to buy gold


Gold Bars Vs Gold Coins?

How to Invest in Gold Bullion - Gold Bars

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 several factors to consider including: the value of your investment and the product premiums, how long you plan on holding your gold, how you will store it, capital gains tax (CGT) and how you plan on realising the value of your investment.

Read more about gold bars versus coins


Should I Buy Gold & Silver?

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. It’s because of these differences that owning both gold and silver together can be of benefit.

Read more about the benefits of owning silver


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 £10,900 (2013/14) 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.

Read more about paying CGT on gold


Is Bullion Subject to VAT?

Gold & Silver 1oz Britannia Coins

The good news is investment grade gold is VAT free. This includes all the gold bullion bars and coins on our website. However, unlike gold, VAT is payable on silver at 20% making silver a more long term, speculative investment. However, due to the volatile nature of the silver price, returns are often quickly realised. If you are VAT registered and think you may be able to claim your VAT back, then we advise you speak to your Accountant.

Read more about paying VAT on silver


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 four different options; allocated storage, a bank safety deposit box, a home safe or be a bit more creative. Although allocated storage with BullionByPost is the most secure all four options offer a variety of pros and cons, these should be investigated before making a decision as to how to store your gold bars and gold coins.

Read more about storing your gold bullion


Why Buy Gold Online at BullionByPost?

LBMA Approved Refiners

BullionByPost is the largest and most trusted bullion dealer in the UK dispatching thousands of parcels for free fully insured next day delivery every month. BullionByPost is a fully authorised distributor of London Bullion Market Approved (LMBA) Umicore, Heraeus and Metalor bars as well as an authorised distributor for the British Royal Mint.


How to Buy Gold Online at BullionByPost?

Buying gold online at BullionByPost is quick, simple and secure. You can create and register your account online in as little as two minutes. Once your account is setup, 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 UK has never been so safe and easy.

How to Buy Gold Online at BullionByPost? 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

Related Links: If you have any questions about gold investment, please feel free to contact our knowledgeable and friendly team on 0121 634 8060 who will be happy to talk your through any queries you may have. Alternatively, you can e-mail us on: [email protected] and we will get back to you as soon as possible.

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