Tag: gold investment

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Why Is My Jewellery not 24 Carat Gold?

fine gold for jewellery

Understanding the Properties of Gold

Gold, in its purest form, is known as 24 carat gold. It’s highly valued for its bright yellow lustre and its resistance to tarnish. However, one of the most distinguishing properties of gold is its softness. The incredible malleability and ductility of gold allow it to be shaped and stretched without breaking. These properties make it ideal for various uses. For instance, in electronics, manufacturers shape thin gold wires as needed, and in dentistry, dentists precisely shape gold fillings to fit a patient’s tooth.

Why is 24 Carat Gold not used for Jewellery?

fine gold, gold bars, fine gold

Despite these useful properties, the softness of 24 carat gold makes it less suitable for crafting durable jewellery. Jewellery needs to withstand daily wear and tear, and a piece made from pure gold could easily lose its shape or let a precious stone slip out. That’s why jewellers often use gold alloys, which are mixtures of gold and other metals, for making jewellery.

Understanding Gold Carats and Alloys

We use the term ‘carat’ to denote the purity of gold, with 24 carats representing pure gold. When we mix other metals with gold, the carat value decreases. Here’s a simple breakdown:

Carat% of Fine Gold
2499.999%
2291.6%
1875%
1458.5%
0937.5%
Common fineness used in Gold Jewellery

For example, 22 k gold is an alloy that’s 91.7% gold and 8.3% other metals like copper or silver. These additional metals give the alloy a hardness that pure gold lacks, making it more suitable for crafting durable jewellery.

Turning Your Gold into Cash

Whether you have 24 carat gold or a lower carat alloy, you can turn your unwanted gold into cash at J Blundell & Sons Ltd. We offer competitive scrap gold prices and same-day payments, making it easy to sell your gold. As a trusted gold buyer and pawnbroker, we also provide loans against gold, offering a secure way to access funds without selling your precious metals.

In the world of gold, understanding the difference between carats and the properties of gold can help you make informed decisions, whether you’re buying, selling, or securing a loan against gold.

External Links:

  1. Gold and its properties
  2. Understanding Gold Purity
  3. How to sell your gold
  4. Understanding the value of gold
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Physical Gold Investment Options: A Guide to Understanding Your Choices

investment gold, gold bar, gold coin, bullion, uk

Investing in physical gold can be a smart way to diversify your investment portfolio and protect your wealth from market volatility. In this blog post, we’ll discuss some of the most popular physical gold investment options available to you. We’ll cover topics such as gold bars, gold coins, gold IRAs, VAT exemption on gold, and CGT-free gold coins.

Gold Bars

Gold bars are one of the most popular physical gold investment options available. They come in various sizes, from small bars weighing just a few grams to larger bars weighing several kilograms. When buying gold bars, it’s important to consider factors such as the purity of the gold, the brand, and the dealer’s reputation. Keep in mind that larger bars can be more difficult to sell and may require an assay certificate.

Gold Coins

Gold coins are another popular physical gold investment option. Some of the most well-known gold coins include the American Eagle, Canadian Maple Leaf, and South African Krugerrand. Gold coins are generally more expensive than gold bars due to their numismatic value. When buying gold coins, it’s important to consider factors such as the coin’s condition, rarity, and authenticity.

Gold IRAs

A gold IRA is a self-directed IRA that allows you to invest in physical gold as a part of your retirement savings. This option can be attractive to investors who are looking to diversify their retirement portfolio beyond traditional stocks and bonds. However, it’s important to understand the fees and requirements associated with gold IRAs before investing.

VAT Exemption on Gold

In the UK, investment gold is VAT exempt, which means you won’t have to pay VAT on your gold investment. This exemption applies to gold bars and coins that meet certain purity and weight requirements. Keep in mind that collectible coins, such as numismatic coins, are not eligible for VAT exemption.

CGT-Free Gold Coins

Certain gold coins, such as Sovereigns and Britannia coins, are also exempt from Capital Gains Tax (CGT). This means that you won’t have to pay tax on any gains you make when selling these coins. However, it’s important to understand the CGT-free threshold and other rules associated with these coins before investing.

Conclusion

Investing in physical gold can be a smart way to diversify your investment portfolio and protect your wealth from market volatility. By understanding the different physical gold investment options available to you, including gold bars, gold coins, gold IRAs, VAT exemption on gold, and CGT-free gold coins, you can make informed decisions about how to invest your money. At J Blundell & Sons Ltd, we offer a wide range of physical gold investment options, including gold bars and coins, to help our customers make the most of their investment.

investment gold, gold bar, gold coin, bullion, uk
ash@jblundells.co.uk.com
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Investing in Gold to offest Inflation in UK

cost of living crisis, inflation in UK

As an investor, it’s important to protect your wealth against inflation. Inflation can erode the value of your investments, making it difficult to achieve your long-term financial goals. One way to hedge against inflation is to invest in gold, a safe haven asset that has historically performed well during times of economic uncertainty. Here’s what you need to know about protecting against inflation with gold in the UK.

The Impact of Inflation on the UK Economy

Inflation is a measure of how much the prices of goods and services in an economy are rising over time. In the UK, inflation is measured using the Consumer Prices Index (CPI), which tracks the price changes of a basket of goods and services commonly purchased by households. Over the last 10 years, the UK has experienced an average inflation rate of 2.16% per year, with the highest inflation rate recorded in 2011 at 4.50%.

The Relationship Between Gold and Inflation

Gold has long been considered a hedge against inflation. When the value of currency declines due to inflation, gold tends to maintain its value or even increase in value. This is because gold is a tangible asset that is not affected by the same economic factors as paper currency. In fact, the price of gold has historically increased during times of high inflation.

The Price of Gold and Inflation in the UK

Over the last 10 years, the price of gold in GBP has increased by 131.81%, while the average inflation rate in the UK was 2.16%. This means that the real value of gold has increased significantly over the last decade, making it a popular choice for investors looking to protect their wealth against inflation.

Investing in Gold as a Safe Haven Asset

Gold is often referred to as a safe haven asset because it tends to hold its value during times of economic uncertainty. When stock markets decline or geopolitical tensions rise, investors often flock to gold as a way to protect their wealth. This makes gold an attractive investment option for those looking for a hedge against inflation and a way to diversify their portfolio.

Buying Gold as a Hedge Against Inflation in the UK

There are several ways to invest in gold, including buying physical gold bullion or investing in gold exchange-traded funds (ETFs). Physical gold can be purchased in the form of coins, bars, or jewellery, and can be stored at home or in a secure vault. Gold ETFs, on the other hand, are traded on stock exchanges and provide exposure to the price of gold without the need for physical ownership.

Protecting your wealth against inflation is important for achieving your long-term financial goals. By investing in gold, you can hedge against inflation and diversify your portfolio with a safe haven asset. If you’re considering investing in gold, contact J Blundell & Sons Ltd for expert advice and guidance on buying gold in the UK.

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3 reasons why you should consider investing in Gold

When it comes to investing, there are many options available. However, one option that has stood the test of time is investing in Gold.

After all, the value of Gold has historically been stable and even increased during times of economic hardship. Gold is also a valuable resource used in various industries, so there will always be a demand for it.

There are many reasons why investing in Gold can be a wise choice. Here are three of our top reasons why it could be a good option for you. 

  1. Gold is a good hedge against inflation. 

Inflation is when prices of goods and services rise over time. This results in your money-losing purchasing power. When inflation goes up, Gold usually goes up as well. This is because Gold is not affected by paper money printing, which can lead to inflation. Gold also holds its value better than other assets, such as stocks, during periods of economic turmoil. For example, during the 2008 financial crisis, the stock market crashed but Gold prices actually increased. 

  1. Gold is easy to trade. 

If you need to sell your Gold quickly, it’s easy to find buyers who are willing to pay for it. This is because there is high demand for Gold worldwide. You can also buy and sell Gold quickly without worrying about storage or transportation costs like you would with other investments, such as paintings. 

  1. Gold is rare, and it’s a limited resource. 

There is a limited amount of Gold in the world, and miners can only extract a certain amount each year. This makes gold valuable, and it’s unlikely that its value will drop anytime soon. In fact, some experts predict that Gold prices will continue to rise in the coming years. 

These are just some reasons why Gold is a valuable investment. If you’re considering investing in Gold, give us a call, and we can discuss it further. 

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Do I have to pay Capital Gains Tax on Gold in the UK ?

Gold is considered a “tax-free” investment in the United Kingdom. This means you don’t have to pay capital gains tax (CGT) on any profits you make from buying and selling Gold. There are some exceptions to this rule, which we will discuss in more detail below. 

When CGT is Applicable 

There are two main situations when CGT becomes applicable to gold investments in the UK. The first is when you sell gold coins that are considered to be “collectable.” These coins are worth more than their intrinsic value because of their rarity, condition, or history. For example, some old gold coins may be considered collectable because of their age or because they were once used as currency. 

The second situation when CGT may be applicable is if you use your Gold as collateral for a loan. If you default on the loan and the lender sells your gold to recoup their losses, any profits they make from the sale will be subject to CGT. 

Capital Gains Tax is exempt on all British legal currency, including Gold Sovereigns and Gold Britannia coins. 

How Much CGT Do I Pay? 

The amount of CGT you pay depends on your income tax bracket. You can work out your Capital Gains Tax Rates here. In the UK, there are two rates of CGT: 18% and 28%. You will pay 18% CGT on your profits if you are a basic rate taxpayer. You will pay 28% CGT on your profits if you are a higher-rate taxpayer. It’s important to note that CGT is only payable on profits above the annual exempt amount, which is currently £12,300 per year. This means that if your total profits from asset sales do not exceed this amount, you will not have to pay any CGT. 


It is the responsibility of the individual investor to declare any Capital Gains Tax that might be due. In most cases, you will not have to pay capital gains tax on your Gold investments in the UK.

If you are looking to purchase Gold coins and aren’t sure if you will have to pay CGT, call us, and we can advise you further. 

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When is the Best Time to Buy Gold?

Many people view Gold as a safe investment, especially during economic uncertainty. This precious metal has been used as a form of currency for centuries; its value has only increased over time. So, when is the best time to buy Gold?

There are a few things to consider before making any investments, including the current state of the economy and your personal financial goals. In addition, Gold prices can be affected by various factors, including central bank policy, inflation, geopolitical events, and demand from jewellers and other industries. 

Let’s take a closer look at some of the events that can impact the price of Gold.

Central Bank Policy 

One of the most important factors that can impact the price of Gold is central bank policy. In recent years, central banks worldwide have increasingly turned to Gold as a reserve asset. This means they are buying more Gold to hold onto their balance sheets. 

The central banks’ demand for Gold affects the supply and demand in the market, which in turn impacts the price. When central banks buy Gold, it takes it off the market and increases the cost. On the other hand, when they sell Gold, it adds to the supply and puts downward pressure on prices. 

Inflation 

Another factor that can impact gold prices is inflation. When inflation goes up, so does the price of Gold because it retains its value better than other assets such as stocks or bonds. So investors turn to assets like Gold that will hold their value better over time.

Geopolitical Events 

Geopolitical events can also have an impact on gold prices. For example, tensions in North Korea or trade disputes between the U.S. and China can cause investors to flock to safe-haven assets like Gold. When there is uncertainty in the markets, investors tend to move their money into assets that are seen as being more stable. 

Covid 19

The pandemic caused Gold prices to increase by more than 25%. In the past, Gold prices had been relatively stable, but the outbreak of Covid-19 led to a sharp increase in demand for the metal. Investment banks and hedge funds bought Gold as a safe haven asset, and central banks also increased their Gold reserves. The increased demand led to a shortage of Gold, and prices continued to rise in the short term. In the long term, however, Gold prices started to return to their pre-pandemic levels as the pandemic subsided and economic activity picked up.

Demand from Jewelers and Other Industries 

Another factor that affects gold prices is demand from jewellers and other industries that use Gold in their products. For example, if there is an increase in demand for wedding rings or cell phones, this will lead to higher prices for Gold because more businesses will be competing for limited supplies of the precious metal. 

In summary, Gold prices are affected by various factors. Therefore, when considering whether or not to invest in Gold, it’s essential to consider all of these factors before making any decisions.

We are always happy to advise you when you are looking to make your first investment. 

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Gold Investment Tips For Beginners

If you are looking to start investing in Gold, there are a few points to consider before you make your first investment. Gold is a brilliant way of preserving wealth from one generation to another as it has a history of holding its wealth. Its natural scarcity and high production cost are the main reasons it holds value. 

Keeping an eye on the price of Gold 

Keeping an eye on the price of Gold is key. Gold prices are continuously updating; when you are looking to buy Gold, keep an eye out on what is happening in the property and stock exchange markets. Generally, if the other markets are underperforming, then the price of Gold will rise, and many companies and investors will use Gold as their insurance backup. 

With Gold, you have to look at it as a long-term investment. Ideally, you will keep your Gold for many years. Therefore, people buy Gold to have a timeless asset and preserve their wealth to protect them during any financial crisis. 

Different types of Gold investments 

Throughout history, Gold ownership has been reserved for the rich, but we at J Blundell & Sons want to make the ownership of precious metals accessible to everyone. 

There are three main options if you are looking to invest in physical Gold. You can either buy Gold bullion, coins or jewellery. 

In one of our recent blogs, how to invest in Gold, we went into detail about each option and why people choose each option. 

How to keep your Gold investments safe 

Our last blog talked about the three main options for keeping your Gold investments safe and secure. You can either store it at home, in a bullion bank vault or in a safe deposit box/consumer bank. Of course, it is always important to take our appropriate insurance to protect your Gold. 

If you are at the start of your Gold investment journey and would like any advice, you can always give us a call or drop by and see us in Hatton Garden, London.

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How to store your Gold securely. 

In our previous blog, we discussed how to invest in Gold and briefly discussed how to store and insure it. This week we will delve a little deeper into the various ways you can store your Gold securely once you have invested in it. 

There are three main ways you can store your Gold. At home, at the bank or in a secure vault. There are pros and cons for each option which we will discuss below. 

Storing Gold at home

Storing your Gold at home is the cheapest option, but it does come with its risks. If you plan to store at home, you need a home storage plan. It is always a good idea to tell one trusted person where you keep your Gold in your house. 

If you are investing in Gold to protect and preserve your family’s wealth, it is a good idea to tell a trusted family member or friend where you are storing your Gold at home. If you become unwell or have a major accident, you have a trusted person who can get your Gold for you. If more than one person knows where your Gold is stored, then the risk of theft is increased, so it is essential to keep the storage place top secret. 

If you are storing your Gold at home, keeping your Gold investment activity secret would be beneficial, so you don’t become a target. Don’t talk to your friends about your investments or post about investing in Gold on social media. If you have kids, avoid talking to them about your Gold investments, as you don’t know who they are talking to. If you own a large home, drive an expensive car and wear valuable jewellery, you could already be a target for thieves, so it would be better to look at other options for storing your Gold securely. 

If you are storing your Gold at home, it’s essential to take out insurance to cover your Gold in case someone did attempt to steal it. 

Storing Gold in a bullion bank vault 

Storing your Gold in a bullion bank vault is a highly secure option for safekeeping. If you have it in a vault, it remains in your full ownership, and you can keep all of your valuables in one place. You also have the flexibility to sell your Gold or have it delivered to you. Most people who look at storing Gold in vaults are owners of large amounts of Gold; most vaults only accept a minimum of 1,000 oz. 

It costs money to store your Gold inside secure vaults, so that is something to bear in mind when looking for storage options. Also, vault storage usually comes with insurance, so always enquire about it when looking for vaults to store your Gold. 

Bullion bank vaults are usually located in major cities, so this option may not work for you if you live outside a major city. 

Storing Gold in a safe deposit box/consumer bank 

Storing your Gold in a safe deposit box at a local bank is one of the most common storage options. This type of storage is convenient and secure; however, you have to take out your insurance, and you can only access your Gold during the bank’s opening hours. 

A bank like Halifax has three options for safe deposit boxes. The smallest option at £200 per year is perfect for jewellery and Gold coins. The second size, at £325 per year, is ideal for collections of valuables or important documents. Finally, the largest size is £475 per year and is used for single large items such as a valuable Gold bullion bar. 

If you want to invest in Gold, it is crucial to have a well-thought-out storage plan to keep your investment safe and secure. As mentioned above, there are three main ways to store your Gold, it will be down to you to determine which option works best for you, but we can always advise you if you have any further questions.