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.
