Posts tagged Gold Bars

I believe this is the right time to invest in physical gold bullion

Wow!! What a rocky few weeks we’ve had at the start of 2013.

What with currency doing a song and dance, and gold going up and down, I believe this is the perfect time to boost your physical gold holdings.

Are you nervous? Are you worried? Do you think that possibly the currency we use today may soon come to an end? Well you aren’t alone. Now I’m not saying this is the case, but looking at the habits of some of my clients, it seems they are stock pilling physical gold. They are taking the view that now the UK has been downgraded from a AAA to a Aa1 rated economy (I think thats correct), that the safest form of currency, one which can easily been transported internationally, and one that can be kept secure in a locked safety deposit box in a bank for a relatively small annual fee, and still the safest way to keep “cash”, is to buy gold investment ingots, coins and/or bars.

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Now I am not a financial advisor, however looking at the facts, and having spoken to Sarah Bowles, who is a highly regarded IFA (independent financial advisor) for MAC financial in London, We can see that there is a trend happening and we would recommend people buy physical gold now. Look at the facts. It seems we are a nation of sheep. When one person shouts to do something we all follow. Back in the summer of 2011 our economy was doing terribly and the price of gold was rising. People panicked and started buying gold. This led to the price increasing and as a result we hit an all time high. As I mentioned, we have been downgraded, gold is priced lower at the moment, I believe the price can only increase medium to long term. Do I believe gold is a bargain? Yes. Do I recommend you should buy some and put it away? Yes.

I have written in the past a few blogs on the topic of gold, here they are should you want to dip your toe in. Topics include making gold investment simpleThe benefits of gold and why buy it, and another is what are typical gold bullion bars? As always should you want to purchase any physical gold, then please contact me. And should you want any financial advice from a registered IFA, then please contact Sarah, she would be delighted to meet up with you and assist. Of course let’s not forget that one of the main attractions of physical investment gold bullion bars is the fact there is no VAT to pay. 

This image is of a client’s purchase last week. In case you didn’t know, there is no VAT on investment bullion. image

Facts

  • The size of the ingots for its worth is very small. 
  • You are purchasing a weight of gold, not a size of ingot. Different manufacurers shape their ingots differently. 
  • All bars weighing 250 grams and over have an individual serial number.
  • All ingots are in a sealed plastic casing to avoid the bar being rubbed down and thus lose weight. 
  • You only need the smallest safe deposit box for storing these. 
  • The purity of an investment ingot bullion bar is 999.9% gold. 
Lewis Malka is a recognised expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit 
his website. 
For more information and to have a chat with Lewis, please call him on 020 7404 4022

 

Owning physical gold should be a consideration for all levels of investors

Why is physical gold not held in every investment portfolio?

The price of gold over the last 10 years, and most notably since the start of the current financial crisis, has outperformed virtually every other available asset class with average (real) returns of over 25% per annum. Despite this performance, gold is still seen as a luxury good and one that is out of reach for the run of the mill investor.

A recent survey of 1,000 investors undertaken by the US based precious metals provider Gold Bullion International LLC (GBI) identified the types of assets investors hold as part of their investment portfolio. The survey looked at the investments currently held and their attitude towards investing in physical assets such as gold. As well as being essential market research for physical gold suppliers, the results of this survey also highlight the lack of understanding many investors have for investing in physical gold and the role it can play in their portfolio.

Survey Results:

The survey highlighted increasingly strong demand for investment in gold, be it through physically held assets or pooled investment vehicles. More than half of respondents (63%) saying that they would like to own a physical asset like gold coins or bullion as part of their investment portfolio. A further 29% said they would prefer to invest in the gold market through pooled, non-physical assets like gold stocks and mutual funds.

In contrast only 2% of those questioned currently own investment grade gold. This in itself represents a huge gap between those who believe in gold as an asset class and would like to invest, and those who have taken the steps to hold physical gold in their portfolio. A large number of investors (44%) felt that they did not know enough about physical gold as an investment asset and therefore had not seriously considered including it in their portfolio. Investors felt that gold is too difficult to purchase (37%) with 22% of respondents not knowing how or where they can purchase gold.

With the correct marketing and support there is huge potential in the market for physical gold companies, with more than half of those questioned in the survey (51%) saying that they would own physical gold bars or coins if recommended to them.

If you would like to own some physical gold in your portfolio, then please contact me on 020 7404 4022 to make an appointment. I am able to source and supply it for you at very competitive rates and also recommend where and how to store it. Thank you.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

With thanks to Luke Jackson on behalf of Intelligent Partnership Ltd http://bit.ly/Q3K5ga

What Are Typical Gold Bullion Bars

Most people imagine large brick-like bars when they think of gold. In fact the gold bars used on most bank heist films weigh 12.5kg and are worth nearly £1/2million!

Luckily for the average investor bullion bars are available in many sizes to suit even the most modest pocket. Bar weights come in both imperial and metric denominations. The common weights you’ll see are 1g, 2.5g, 5g, 10g, 20g, 1oz, 50g, 100g, 5oz, 250g, 10oz, 500g, 1kg, and 12.5kg.

There are thousands of different producers of bars and many of the top refiners are members of the London Bullion Market Association (LBMA) which provides accreditation and guarantee of quality. Some of the best known manufacturers are Credit Suisse, Johnson Matthey, Pamp Suisse and Umicore. Each may produce bars of equal gold content and weight, but with varying dimensions and shape. All will be regarded as 24 karat which is virtually pure gold and is often quoted as 99.99% pure. Some bar refiners will offer certification and serial numbers on some of the smallest bars, while others only provide documentation for bars of 250g or larger.

The main advantage of investing into gold bars is that you will more often than not receive the most actual gold for your money as their value solely consists of their gold content. However a popular misconception is that bars can be bought exactly at the gold spot price. This is never true unless you are a large central bank dealing in tonnes of gold! In practise, the spot gold price is the benchmark from which all types of investment gold are priced. Gold bars will generally trade at a narrower premium to coins and this premium falls as the size of the bar increases. Obviously when selling back a 1oz gold bar, you will no doubt receive a lower price from a dealer than its equivalent sized coin.

While a gold bar is the most efficient purchase for someone looking to melt down the gold for jewellery, it can present some obstacles for other investors. The very fact that it’s 24 karat gold means that unless the bars are kept in a specialist depository, it can scratch and tarnish. This can affect the price you’ll receive when selling the bar.

Ease in selling your bars can be affected by two other factors. Firstly make sure that you buy a well known manufacturer, as there are many obscure producers whose bars may be more difficult to sell. Secondly, while purchasing larger bars may save a couple of percent off the buy price, you cannot break this bar up if you only want to cash-in some of your investment. You may find a 1kg bar may be more difficult to sell than a 1oz bar as there are fewer buyers.

Finally, unless bought as part of a pension, the profit made on the bullion bars is taxable. If you’re keen to own gold bullion as part of your pension, then bullion bars are the only type of gold that qualifies. Gold coins of any type are not currently permitted into UK pensions. The advantages of Pension gold are that you receive up to 40% discount off the price of bars through tax relief, the bars are in 1oz denominations offering full flexibility and are stored in a licensed gold depository – maintaining the integrity of the bars.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Benefits of Gold, Why Buy Gold

Why buy gold?

Gold has endured centuries as a mark of wealth, it is indestructible, relatively scarce and cannot be manufactured. It provides a refreshing departure from the complex investment products in the headlines today.

Gold provides a portfolio balance.

There is a finite supply of gold in the market, which creates exponential price rises when demand increases. When demand increases, production cannot simply rise to match demand, so the supply/demand dynamic naturally pushes prices higher. This also reduces the risk of devaluation as lower prices quickly attract new demand, which will once again fuel price increases.

No counter party risk.

In its physical form, the holder has no risk to any counter party. This is particularly relevant in today’s new financial world, where money is no longer even safe simply in a bank account. It also avoids the counter party exposure that investors in gold stocks, futures and options have.

Great Heirloom

More than just a valuable investment, gold coins are part of the nation’s historical heritage, and can be both beautiful and collectible. In fact, many gold investors and collectors take great pride in their coin portfolios, often preserving them within their families for several generations. Note, this also contributes to a decline in the market supply of gold, once again increasing gold’s value!

Cash is not King!!

Investors worldwide are nervous about the global financial crisis, with Governments committing to huge bank bailout packages, which will inevitably have to be funded by the tax payer.

The very fundamentals of banking have changed forever, with the perception of strength and safety now a thing of the past.

In Europe we’ve witnessed countries such as Portugal, Greece and Spain struggling to repay debts within the constraints of the single currency. In the US, we’ve seen the Dollar continue to depreciate, and many no longer regard it as the world’s reserve currency.

We have not escaped this in the UK, and a majority of our large high street banks are now partially nationalised. We have the first coalition Government since 1945 – inevitably meaning indecision on major policies. With interest rates, and therefore savings rates, at all time lows, returns on bank deposits are negligible. In fact, with the pound depreciating, and the threat of hyper-inflation as the central bank considers printing more money supply, returns can actually be negative. Simply parking money in deposits is no longer the safe haven it once was.

The fact is that faith in numerous major world currencies is at an all time low. Concerned savers and investors are seeking a new, more reliable store of wealth, and many have turned to gold. Simply leaving your savings in the bank and burying your head in the sand will not safeguard the value of your money. It is the proactive saver who is now moving some of that money sideways into gold to reduce their exposure to traditional currencies.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Making Gold Investment Simple

Pensions Gold: Legislation.

In April 2006, the UK Government updated pension parameters to allow for the investment of physical gold into pensions, supporting the notion of a more balanced, and therefore protected retirement wealth. Relaxed rules also mean a more flexible lifetime limit for contributions, so you can save more when you can afford it. 

SIPP.

The type of pension required to house gold is called a Self Invested Personal Pension (SIPP). These benefit from the flexibility of the updated legislation and can house a mix of traditional paper assets with tangible assets such as commercial property and now investment grade gold.

This can be achieved if you have no current pension provision but want to open a SIPP, or if you have an existing pension which you wish to transfer into the more flexible structure. A SIPP can even be opened alongside existing personal or company schemes to allow versatility.

Investments are chosen by you, and the SIPP provider acts as a fund trustee. When retirement comes, the capital provides an income which can be drawn either directly from the SIPP (subject to limits) or via an annuity purchased from an insurer. The SIPP trustee takes care of wrapping all these investments into one portfolio, while assuring that reporting and legal obligations are met.

You can establish a SIPP either directly or by using an Independent Financial Advisor (IFA) of your own to guide you through the risks and rewards of the various asset classes on offer, before you make any decisions.

Good Deliver Bars.

The type of gold required for a gold Sipp has to be of purity not less than 995 thousandths, and in the form of a bar. These ‘Good Delivery Bars’ are recognised by the bullion market and the high purity levels mean you own more gold content for your money.

Gold is the only physical commodity you can currently hold directly in a SIPP.

I recommend your gold should be in the form of small 100 gram bullion bars, providing you the flexibility to sell any part of your gold holding at any time. These bars are fully allocated to yourselves and segregated from other holders.

No VAT!!

Like other forms of investment gold, there is no VAT applicable to gold bars.

Efficient Investment.

The low cost of purchasing gold into a pension is illustrated by two factors.

Gold receives the same tax relief as other qualifying assets when bought as part of a pension. So for top rate tax payers, that means a whopping 40% off the price of gold.

Secondly, for many of the securities products which dominate pension portfolios, management costs have steadily escalated, eating away at their tax efficiency. Investing in physical gold attracts far lower management fees, less than one tenth of the charge applied to a typical unit trust.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

Gold - How much higher will it go?

Gold prices hit a new high above $1620 on Monday (July 25th 2011) as a result of a powerful cocktail of economic uncertainty, difficult US deficit ceiling negotiations, European Union sovereign debt concerns and the threat to the banking sector.

There are a lot of reasons why people turn to gold investments. One of these reasons is that the value of gold has a tendency to go the opposite direction in times of economic crisis, when the stock market takes a dip. Gold is considered to be the perfect hedge against the problems that arise with falling prices of the stock shares, and another reason is that gold is also a fine inflation hedge. With the current problems that the economy is facing, high inflation means higher value for gold, thus investing on it secures your financial assets.

In spite of the fact that the price of current precious metal bullion gold coins has tripled since its cost in the year 2000, there are no doubts to the fact that even today, precious metal bullion coins are priced attractively enough and can nevertheless prove to be a great investment. Only if you are advised properly and know what you are doing. 

One of the more common ways people buy gold is by investing in gold coins. However, most people do not know how to buy gold coins and as a result rarely make much return on their investment (or worse – take a loss) simply because they do not know what they are doing when they purchase the coin.

Personally, I think investing in gold coins is an oxymoron. You might collect gold coins or invest in gold, but you do not invest in gold coins (at least not very profitably). Although gold bullion often comes in the form of coins, coins just are not profitable for investors just learning when compared to other methods of buying gold.

The problem with buying a gold coin is that there are a group of people who value it as a collectible (coin collectors) and people who value it as being made out of gold (investors). Both of these factors drive the price of gold coins.

The thing is that these values peak at opposite points of the market. Collectors like to buy things when the economy is good, because that is both when they have the money to afford collectibles. Coin markets suffer terribly in recessions.

However, the exact opposite is true with gold. The price of gold soars in a recession and drops when the economy is strong. As a result, when gold is a highest, collectibles are at their lowest.

Before investing in gold, please take some advice from your IFA. If you want to proceed and purchase, I can point you in the right direction. 

Lewis Malka is a recognized expert in making diamond rings as well as being famous for being a jeweller to the stars. All his blogs are his own opinions. You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com