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Tips To Buy Gold Bullion

Physical gold is considered one of the top investments, especially if you are thinking of creating a diversified portfolio. Gold is still the universal finite currency and hence is held by the central banks of countries across the world. If you are planning to buy gold bullion, here are a few tips to help you in your investment endeavour:

Identify the type of gold bullion: It is extremely important to identify whether you want to buy gold bars or invest in gold coins. Because of the weight, gold bars are normally a popular investment option, although you can invest in gold coins as well. Gold coins are easy to store as compared to the bars.

10gGOLDApplicable taxes: There are two types of taxes applicable on gold in the UK – the Capital Gains Tax (CGT) and Value Added Tax (VAT). If you are planning to buy gold bullion, you need to be aware of the amount of CGT applicable. You have to pay CGT only when selling gold and that too if you make a profit above £10,000. VAT is not applicable when you buy gold bullion in the UK.

Gold dealer: It is important to choose the right gold bullion company. There are several dealers in the UK, but choose a dealer on the basis of the quality of gold offered by them, type of delivery, and insurance of gold.

Investment grade gold: Most dealers in the UK will sell their gold bullion at 24 Carat gold, but you need to speak with the said gold bullion company and find out the grade of gold offered by them. Ideally, the fineness varies from 0.90 to 0.9999.

Delivery: You should buy from a gold bullion company that offers a fast-insured next day delivery. Always make it a point to ask the dealer if they are offering complete insurance cover that will protect your bullion against any loss or damage. Find out about the postal service delivering the bullion, like Royal Mail Special Delivery. The shipment should be packed in unmarked padded bags.

Price: Before you decide to buy gold bullion, check the current or live price of gold. Gold prices can fluctuate within a single day or in an hour. It is important to monitor the price performance over a week or a month prior to taking an investment decision.