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Gold Investment Q&A

Gold Investment Guide

Gold is not just one of the rarest metals on the planet but also the most sought after since the time it was discovered. It has been used for creating physical currency and has been in use in the form of gold coins. It has played an important role in defining the monetary system of different civilisations and countries across the world. Gold is made available primarily through mining and over the years, the demand for gold has led to an increase in the gold price.

Among the different types of investable assets available, gold is considered as one of the most reliable. Investment in physical gold can be done in the form of gold coins and gold bars and it provides insurance and protection during periods of financial instability caused by economic downturns. As a result physical gold is sought after by investors who understand its importance related to diversification of wealth, the financial power it provides, and role it plays in creating a balanced portfolio. Even though gold price has been on the rise for several years, it is one of the few investments that have always outperformed any other investment. The question is how to start investing in physical gold?


Investing in Gold Bullion

Investment in physical gold is in the form of gold bullion bars or coins. It is always recommended to invest in gold when the prices have become stabilised or have dropped like it happened during the great recession of 2008. Normally the price of gold bullion is controlled by different factors like inflation, demand in gold investment, investment behaviour of governments and central banks, and new gold discovery.

According to the World Gold Council, there was a sharp increase in the global gold investment ownership by almost 33% in November 2011. The growing economies of the world like India and China posted an increase in gold bullion investments. China recorded an increase of 69.5% while India recorded an increase of 34%. This is opened the doors towards investment in gold bullionbars and coins across Asia and the world. The World Gold Council has also stated that this unprecedented rise is demand for gold bullion has also been experienced in the UK, Germany, Turkey, Switzerland, and France among others. In the UK, there has been an increase in ownership of gold coins and gold bars. It seems as if investment in gold bullion has never seen a better period with individuals opting for physical gold as a safe financial asset.

The big question for those who want to invest in gold and are new to this market is how to invest in physical gold? This ultimate guide by Postal Bullion  offers an informative insight into how new investors can create a balanced portfolio with gold bullion investment. It offers an insight into how to invest, what are the important taxes applicable in the UK, what type of bullion to invest in, where to buy from and where to store gold and much more.

  1. Why Should You Buy Gold?  Are you an investor with an existing portfolio consisting of different types of investments? Are you a new investor? We are living in turbulent times surrounded by an uncertainty that translates into political, social, and economic instability. The world has re-emerged from the great recession of 2008 that brought to the forefront huge financial losses to some of the biggest organisations, banks, and even governments. Such a situation can arise again and at that time would you want to be face to face with financial losses or do you want to remain protected from the instability? The only way to find protection is to find gold and keep it. Yes! Gold unlike any other investment is the one thing that can provide you with financial security even in the worst of times. You can check out the various options available in gold bullion at PostalBullion.com.
    Learn more about why you should buy gold.
  2. Why Should You Invest in Physical Gold and not ETFs? Why is physical gold preferred to gold exchange-traded funds (ETF)? The biggest difference lies in the fact that you are in control of the physical gold bullion that you invest in and with ETF’s that is not the case. When you invest in an ETF, it is controlled by the company owning ETF’s and the market. It performs like any other share in a stock market and if the owner of the ETF faces major losses then you lose all your gold. The only way to invest in gold is by owning it and bolding it. This is where physical gold in the form of gold bars and gold coins becomes an important investment. You not only own it but you have the power to decide when to sell or how long to keep it. The longer you hold on to the gold, the better its performance will be and the higher the profit. Gold coins and bars offer the kind of financial security and insurance that the risky ETF’s don’t.
  3. Know more about the various benefits of investing in gold bullion.gold coins
  4. Where Can You Buy Gold? If you are new to gold investment then you need to be extremely cautious when buying gold. It is not easy to determine the best dealers in gold. Even though dealers may promise you 24 carat gold in the form of gold bars bullion, it can never be more than 23.988 carats, which stands for 99.99% purity. Hence, it is important that you should research well over the internet and also check out what customers have to say regarding their gold investment experience with a particular dealer. The internet is the place to start because it offers not only websites of gold dealers, but also various information related to gold prices, gold bars, gold coins, recommendations for gold bullion bars, customer feedback, opinions of investment experts, dealer opinions, and much more. These factors will help you to make an informed choice regarding gold investment. Buy 99.99% gold today from PostalBullion.com and enjoy the many benefits!
  5. Learn more about where you can buy gold.
  6. When Can You Buy Gold? Is there a need to consider a specific economical or socio-political period for investing in gold bullion bars? Should you buy gold when the prices are high or low? Should you invest in gold bars or gold coins? Investing in physical gold is a process where you need to take into account the historical performance of gold including its performance during recession and in the recent times. If you look back, you will find that 2005-06 was considered as one of the best periods for investing in gold bullion and gold price during this period was stable at £250 T/OZ. After this period, recession crippled most of the economies including the UK. The bank crisis in the UK further ensured a downward spiral of the market. During this period from 2007-08, gold price became stable at £350 T/OZ and was seen as a crucial moment for investment in gold bullion. Those who made investments in gold bars and coins saw the gold price rise by 250% almost 3 years later in December 2011. Of course, there is no exact method to predict the rise and fall in price of gold nor is there a way to find out about periods of economic instability in the near future. The truth is that in order to reap the benefits of gold investment, you need to gain complete knowledge of the performance of gold over the years and learn to comprehend the various market indicators. Check out the best prices for gold at PostalBullion.com today!
  7. Find more about when you can buy gold.
  8. What Are the Ways to Invest in Gold Bullion? The important question to ask is whether you should invest in gold bars or gold coins? Whether you are a new
  9. Investor or a seasoned professional, you need to first understand the importance of gold bullion bars and coins and realise their potential value in the market. In order to gain this knowledge, you need to consider various factors that play an important role including capital gains tax (CGT), Value Added Tax (VAT), how long you want to keep your gold, where you can hold your gold, how much investment are you planning to make etc. Gold bullion bars and gold coins are valued differently and have their set of advantages and disadvantages as well.
  10. Learn more about various ways of buying gold bullion bars and coins.
  11. Should You Invest In Gold as well as Silver? Gold has been known to outperform other assets but did you know silver has also been outperforming other traded commodities? Just like gold, silver bullion also exists in the form of silver bars and silver coins. Even though the price of silver is lower than the price of gold, it is nevertheless a valuable investment for future. Silver just like gold offers insurance and financial security although it comes with an initial VAT outlay. In order to attain a highly balanced investment portfolio, it is recommended to buy silver along with gold so that the value of your investment doubles. Check out the various silver bars and coins available at PostalBullion.com!
  12. Learn more about the benefits of silver investment.
  13. Will Capital Gains Tax be Applicable on Your Gold Investment? One of the common questions asked by most investors is whether Capital Gains Tax (CGT) is applicable on gold investment or on the profit earned by selling gold. CGT is applicable in the UK when you make profit through selling, disposing or offering something. You will be required to pay Capital Gains Tax only if you make a profit of more than £10,600 through selling gold in the current financial year. There are several ways to avoid paying this tax and the most preferred being investing in tax free British gold sovereigns. Check out special offers like REDUCED MARGIN gold and silver bullion for investment at PostalBullion.com!
  14. Know more about how to avoid Capital Gains Tax by investing in gold.
  15. Is your Gold and Silver Bullion investment subject to VAT? Do you need to pay VAT for buying gold or silver bullion? Are there any exemptions in VAT? This is one of the important areas that need to be considered when investing in gold and silver bars or coins. VAT stands for value added tax and are applicable on a range of commodities in the UK. Gold bullion in the UK is exempt from VAT but there is a 20% VAT applicable on silver bars and coins. Since silver is not exempt from VAT, it makes this precious metal a more speculative investment as compared to gold. In spite of the VAT, it is the price volatility of silver that ensures quick returns. In fact, the price of silver has risen by 212% in December 2011 since the recession of 2008. It is always recommended to discuss the tax details with your accountant prior to making an investment decision. Invest in VAT free gold from PostalBullion.com!

    silver bars

  16. Find more about VAT applicable on silver bullion.
  17. Where Can You Store Gold Bullion? If you have bought gold then you need a safe storage space to hold it. Investing in gold and being unable to hold it will not help in realising the profits. Whether you have invested in gold bars or gold coins, it is important to store them in a secure place. There are several options available like banks, private storage, and eve home storage. The truth is that each storage option has its limitations and benefits. You need to conduct research on different gold storage options and then make an informed choice. You can even check customer
  18. feedbacks and experience related to safety lockers in banks and check with various banks to find out details of their locker facilities.
  19. Know more about various gold storage options.