Your Questions About Invest In Gold Bullion

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George asks…

How to invest in silver in UK without VAT?

So bullion silver in the UK is not tax exempt unlike gold bullion, gold coins or silver coins is. Sites like bullionvault offer tax free silver because you can invest in international vaults but you don’t physically own the product. I found who offer good bullion prices, but paying £600 in VAT per order is not fun. Some people have suggested taking a trip to Switzerland to buy it over the counter at banks, then post it home.

What are your experiences in investing in the UK as its much cheaper to do it in other countries.

Also i’m not interested in gold bullion, does not have as great future potential in the long run with the way the global economy is going and the amounts of silver being used in industry.

Thanks, Dave.

financi4 answers:

Why the need to hold it? Why not just invest in silver certificates or in funds that mimic silver bullion. You’ll pay a larger spread to hold as the silver will no longer be in registered vaults so there’s the risk of re-assaying. The argument for VAT on silver is that it has a myriad of industrial uses and hence value added is intrinsic to it’s trade. I would agree that silver is much better as an investment then gold but it’s hardly the best investment and clearly you’re not buying it solely for investment if you wish to hold it.

Maybe use a social network to friend someone who will buy it over the counter and post it to you. Of course, if it gets found in the post, you may lose the bullion. The UK is a great place to not have an income as they only tax on domestic income so the trick is to arrange for all your sources of income to be offshore and have the UK as your taxation residence. Such an approach to avoid taxes can work for Canadians but not Americans as the US taxes on citizenship regardless of your residence.

James asks…

Could someone suggest a place to buy Bullion?

I’ve been searching around and most places charge up to $75 over spot per ounce plus tax and s&h or have a huge minimum purchase. I was thinking about purchasing from Ampex, they seem rather cheaper with no minimums. I noticed they sell pure gold shot ant silver grain/shot. Would that be a better route to go, it is a lot cheaper than purchasing bars but then again it doesn’t look at nice! lol. I always hear people suggest to invest in gold and silver, but what about Platinum?

financi4 answers:

Ampex is good to deal with. The shot is cheaper per ounce and is ok for a bullion position but i like the older half dollars and quarters better. You can get what they call a junk bag for a very low premium.

Platinum is more volatile than gold or silver and does not have the advantage of being universally recognized as money. However it is a precious metal and has real value in that sense. It’s just not my thing.

Richard asks…

I have several questions regarding investing in silver and gold.?

Me and my family recently got into investing in silver, and plan on investing in gold when funds allow. We have 4 American Silver Eagle coins, and plan on buying more, and I have enough money for a 10 ounce bar of silver. My investment intentions are buying silver and gold to keep as insurance for whatever may happen. I’m not worried about an apocalypse as much as my own well being (my main reason for investing), but also wanting silver if I’m left homeless, the dollar dies, the American system collapses, profiting at a later date when silver and gold are higher than today, etc. so I mostly plan on keeping the silver. My questions are:

I know there are 90% silver coins (junk silver) and people recommend you buy those for things like survival, but the inconvenience of the coins not having the silver printed or being exactly 1 ounce bothers me. Should I consider buying these coins?

I plan on moving up from bullion coins to bullion bars, and I have the cash for a 10 ounce bar of silver as of right now. Should I bite the bar, and continue on buying bars as well as coins, or should I buy bars whenever I can to avoid premiums on smaller 1 ounce coins (such as the American Eagles I have, even though I have acquired them for almost exactly spot on prices)?

My current plan is buying bullion silver coins (mainly American silver eagles, unless nice suggestions are given) until these coins are enough for gold American eagle coins then enough for gold bars (mainly 10 and 100 ounces bars). Is this a smart choice, or should I work my way to gold bars by buying silver bars exclusively or a combination of silver bars/coins?

Basically I am asking how should I move up to 10 ounce and 100 ounce (maybe even 1000 ounce) gold bar and avoiding premiums. Should I get silver coins/bars exclusively, gold coins exclusively, or through a combination of these 3 options?

All help is appreciated.
I don’t know if this was clear at first, but this is a (very) long term investment. I don’t really expect to sell my gold or silver unless profits are amazing (like an earlier post mentioned, it would take many decades). My main reason for investing is security, and my ultimate goal is to store gold and silver bars. However, at the light of what a poster said, I’m considering collecting coins more now. My concerns with junk silver have not been addressed, but all help is appreciated and welcomed.

financi4 answers:

I think – either form of silver or gold is fine. I personally do not like bars because it is hard to verify whether it is real and not fake. So many manufacturers make those bars and there are so many more of those who will fake them. If you buy bullion, – buy rounds – they have known size/diameter and it is easy to check their weight, so you may figure their density and make sure it is gold or silver or what have you. I am collecting coins, so for me it is easier to keep silver in coins. There are several advantages. 1. Silver coins are relatively cheap, therefore it is unlikely someone will waste time to fake them; 2. Numismats will find a lot of “criteria” which are specific for certain coin and will not be in fake. 3. It is liquid – bars will take more money to buy and if you must sell it – it is easier to find the person who will pay for several coins than for one bar. So it is really up to you. 4. The numismatic value of your coins will rarely go down just as much as silver may. Historically silver once fell from 80 to 2, but good coins are always good coins. Howerver they should be in good shape, like AU-55 or hight to be attractive for the buyer and to bring higher primium. Downside – silver take volume and perhaps not as easy to hide or control and gold or platinuim.
With Gold – generally same rule, except it will cost you more. Unlike silver and platinum – gold is not used in industry as much, but still can be very attractive investment. It was for couple of thousand years.
Regarding whether or not you are late for the gold and silver party – hard to say. I think if you have a very long term goal and do not want to invest more than 10-20% of whta you have in them, you will be fine. Last time gold bubble 1980 – gold went form 60 to 800 and then never went to 60, but instead stayed around 300 and with minor fluctuation rached what it is now. So, generally it took 30 years for those people who jumped in 1980 to double their money. For those people who permanently invested from 60 to 800 and continued after it dropped to 300, they have perhaps 300-400% profit if they sell now. You never know when is the ceiling and when is the bottom. Hope this helps.

Joseph asks…

If the price of gold is constantly going up why do companies sell gold bullions instead of keep them?

Companies will let you invest in gold and precious metals and you can even buy bullions from them, but what I don’t understand is if the price of their gold is constantly going up (especially in a financial crisis) then why do these companies decide to sell the gold instead of keep it until its worth even more, could somebody please explain?

financi4 answers:

The price of Gold does’t always go up. Gold lost 50% back in the early 1980’s & took over 2 decades to recover. Gold over long periods of time hasn’t even kept up with inflation. The companies that sell gold have terrific markups in the spread + commissions. They make a great profit. The business of selling the gold is almost always profitable…… Keeping it is simply way too risky for them.

John asks…

Is buying gold worth it?

I was looking at this link:

is it worth investing in gold? And is this website trustworthy?

financi4 answers:

For a good investment you buy low, sell high. Gold price is currently high, and eventually will crash back to normal. Do some research on historic prices, and see what happened in the 80s.

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