Posts tagged invest

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

 

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

What are you doing with your cash?

Have you ever wondered why diamonds vary in price from shop to shop?

Since 1949, statistics have shown that diamonds are the only commodity that has increased year on year 15-20%. And in years of a recession, even more than that. Provided of course they are purchased at the right level, wholesale!

There have been years, when diamonds have been increasing in value by up to 40%. It is the only commodity that is not listed on the stock exchange. It is still very much an item that is ruled by big diamond house’s around the world. Most famously DeBeers who used to own and control more than 95% of the worlds diamonds. That has since been reduced to around the 35% mark.

It’s very much a supply and demand process with diamonds, and with emerging countries like India and China demanding huge amounts of diamonds each year for new found wealth, the demand is far exceeding the supply. Did you know there has to be around 250 tons of earth mined for each 1 carat commercial quality diamond found. 

Jewellery retailers are known to put huge mark-ups on their stock, and this is done for various reasons, and it’s an accepted part of the culture we live in. So buying an investment diamonds from a retailer would take many years to see any return on your investment. 

This is where Joseph Sterling are able to help. We offer a service that from as little as £2000,  you can open a diamond portfolio. I’m not talking about buying a share of a diamond, but actually owning and having the physical goods in your possession to marvel over whenever you want. As a member of the London Diamond Bourse, we have access to all the diamonds which come into the country before they are distributed to wholesalers, manufacturers and retailers, so logically we should be your wholesaler to come to.

Compare this to purchasing a luxury holiday, some Christian Louboutin shoes, or even putting your money in a savings account, and this will guarantee you a better return in years to come. And if you are looking at natural fancy colour diamonds, such as the ones in the ring above, your return could be even greater.

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