Why You Should Buy Physical Gold & Silver Bullion

Written by Lawrence Chard - Company Director and Expert Numismatist • Last updated 21 Aug 2019

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Why You Should Buy Physical Gold & Silver Bullion?

Whilst we would always suggest that you spread your investment portfolio, we strongly recommend that you should invest in gold and silver. Like most commodities, the price can go up and down but when you physically own gold and silver bullion you have an asset which will always have a material value.

Gold and Silver Britannias

Throughout history, in times of economic crisis, gold and silver have been used as a payment method which has traversed continents and is acceptable for both small and large debt settlement. You could in theory settle debts with these Britannia coins as they carry a denomination. Be warned though that the metal content is far more valuable so it would be foolish to do so! Gold and silver Britannia coins are very popular with UK investors as they carry the benefit of being capital gains tax exempt

British Economy

Although the UK is performing better than many other countries, national debt is currently £1.8 trillion and increases at the rate of over £5,100 per second. Sterling continues to fluctuate against the US dollar, euro and yen. On one hand analysts are forecasting 1.30 against the dollar if a swift transitional deal is agreed in the Brexit negotiations but on the other, this could drop to 1.10 if the agony is prolonged. This would be the ideal time for the government to encourage British manufacturing and an increase of agricultural sustainability. As the cost of imports increase, Britain should take advantage of our ability to produce goods of the highest quality which would be attractive to overseas buyers. 

Brexit

Whether you were for or against Brexit, the die is cast and soon the withdrawal will start in earnest. Like a rotten tooth, no doubt there will be a great deal of pain before the eventual release from the European Union. There are many advantages to being a part of the largest club in the world but the price we, the United Kingdom, pay has become to many, unsustainable. Strategies that will be used to undertake the most significant foreign policy since 1970 have yet to be unveiled. No doubt there will be plenty of opposition along every step of the way and the negotiators will have their work cut out to ensure that Britain doesn't end up with the biggest divorce bill in history.

Europe

The Central European Bank continues to print money in a desperate plan to save the euro and the economy of the European Union but as the UK's Brexit plan takes shape, the realisation that one of the EU's strongest members is closing its wallet is causing many of the remaining member states to revert to childish behaviour in the hope that the UK will pay dearly to leave. The collapse of the euro is a matter of when it happens, not if.

European Politics

It appears that the right wing factions within Europe are taking advantage of the confusion of Brexit, failing economies and the increasing fear of terrorism. 

  • Netherlands - Whilst Prime Minister Ruttecampaigns to remain in power for a third term, Geert Wilders' pledges to de-Islamise the Netherlands. This destabilises one of the most free thinking and prosperous countries in Europe. It is unlikely that Wilders will succeed but if he wins a substantial number of votes, a coalition would be necessary which could trigger a Nexit referendum.
  • France - If far right Marine Le Pen is voted into power in the French elections in April, France will vote upon a Frexit referendum. Creating yet another fracture in the already precarious European Union.
  • Germany - Angela Merkel's strong grip as the country's favourite leader starts to loosen as Germany starts to realise the cost of bailing out struggling EU member states whilst struggling with the influx of refugees. 
  • Greece - Sticking plasters continue to be applied to the cracks of the struggling economy of Greece but the country's debt is unsustainable. A once prosperous Greece is crumbling under the weight of the debt, the crisis of youth unemployment and the cost of the influx of immigrants on a broken social system.  

Trump - Will He Succeed In Making America Great Again?

It's early days for Trump at the White House. His travel ban has been overturned and he has recently issued threats to impose huge import duties to encourage Americans to buy US goods. Will his plans to make America great again using bullish tactics backfire and incite more instability and friction? The US Federal Reserve increased interest rates today in a show of confidence that America is no longer in crisis mode. One cannot help but think that with a national debt approaching US$20 trillion it may be too optimistic to think that their economy is out of danger yet.  

Terrorism

The threat of terrorism makes us tense and wary. We shouldn't live in fear but we should be aware that cyber-terrorism is more likely to affect us than physical attacks.

We believe owning physical gold is the "real" investment rather than digital gold for example as you have total control of the coins or bars once they are delivered. There is no reliance on third party systems, security or financial advisors and you are in total control of your personal wealth in terms of how you store and trade it.  

Physical gold is ideal for a mid to long term investor looking to protect their wealth from economic uncertainty and downturns. Suitable for both the individual new to investing and to those with established mainstream portfolios - the major point is that precious metal investing, particularly gold, is unlikely to make you short term profits (though it has been known - view our live price graph to see the rise and fall of gold price. Economic prosperity is often inversely correlated to gold value and as such gold tends to favour the investor with this in mind.

Which leads us back to why we believe you should buy physical gold and silver bullion to manage your own financial security. 

Investment Gold

Investment gold is VAT exempt and offers an excellent opportunity to buy large or small amounts of gold bullion at low premiums.

Time Your Gold Purchase

We always suggest that you watch the live gold price, do some research as to the amount of money that you want to invest and choose a product that suits your needs. Try and buy when prices are low or before you conclude an impending upswing of price. We stock a wide range of gold bullion coins and bars from major mints around the world. 

Low Premium Gold Products Are The Cheapest Form You Can Buy

1 Oz Bullion Gold Coins - Pre Owned

You will receive coins of our choice, often selected from Krugerrands, Nuggets, Lunars, Philharmonicas, Eagles, Pandas and Britannias but could be any other recognised one ounce bullion coin.

1 Oz Bullion Gold Coins - Newly Minted 

These Best Value newly minted one ounce our choice coins are selected from a variety of bullion coins from the last 5 years including Nuggets, Lunars and Krugerrands.

Gold Britannia Bullion Coins

Our newly minted option will be issued from the last 5 years. These are our lowest priced newly minted capital gains tax exempt coins, struck in 24 carat, 999.9 fineness gold and containing one troy ounce of gold. 

Newly Minted Sovereign Coins

These particular bullion gold sovereigns are sold as newly minted. They could be any recent date from the last 5 years. These sovereigns are struck in 22ct gold and are British legal tender therefore exempt from capital gains tax

Pre-owned Sovereign Coins

Our lowest priced bullion sovereigns are our lowest premium gold sovereign coins. These 22 carat gold British sovereigns are capital gains tax free and are popular with investors looking for gold bullion at highly competitive premiums. 

Gold Bars 

Buy gold bars in the UK from a dealer with over 50 years trading experience! We often have the best prices so why buy gold from anywhere else!

Another popular way to purchase gold is buying numismatic collectables at bullion prices. Please note the £1 pattern set below is not technically investment gold and as such is sold on the special scheme. We often have a selection of commemorative coins and coin sets which are sold at low premiums, these include:

Investment Silver

Silver attracts VAT, at 20%, to some this may not seem like the most cost effective investment.

However, whilst the price of silver is so low, investors see this as a long term investment. It is an ideal time to purchase silver coins and bars. There are ways to reduce your VAT implications. One way is to buy through a VAT registered company where you can reclaim the Vat, the other is to buy silver via the special scheme where you only pay VAT on the dealer's premium.

Capital Gains Tax

You may need to consider whether or not to buy coins which are subject to Capital Gains Tax. Profits realised on disposals of investment gold is normally subject to CGT, although there are annual allowances before CGT becomes chargeable, so that most private investors would probably have no tax to pay. Read our blog to find out more about Capital Gains Tax

Gold Silver Ratio

The gold silver ratio refers to how many ounces of silver can be used to buy one ounce of gold. As the live prices vary, so does the proportional relationship between the live price of gold and silver. For example, if the gold silver ratio is 71:1 you would be able to buy 71 ounces of silver for the same price as one ounce of gold. The ratio fluctuates with the live metal prices.

Gold and Silver Live Prices

At Chard, we use the live price so you aren't reliant on the AM / PM fix. You can decide how much to invest and when the time is right for you to buy and sell.

What is Investment Gold?

For the purpose of the VAT exemption, Investment Gold exempt as per HMRC Notice 701/21. Please follow this link to our what is investment gold page.

VAT Exemption

As from 1st January 2000, investment gold became exempt throughout the entire EU.

We're not saying it's time to panic, we aim to remain neutral and are constantly watching the markets, the news and keeping our ear to the ground. Sign up to our Mailing List and receive our latest updates on how world news and market conditions affect bullion.

Further Reading

You may wish to view all of our articles on our gold guide

You may wish to view all of our articles on our silver guide

This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2019. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.

We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.

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