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Investing in Bullion: How to Get the Most Value for Your Money

Author: Connor Campbell - Bullion & Economics Editor

Published: 19 Jan 2023

Last Updated: 31 Jan 2023

Synopsis

Investing in bullion is a good strategy for portfolio diversification and inflation protection, but it's important to consider tax implications, such as Capital Gains Tax (CGT) in the UK. CGT-exempt options include gold sovereigns and Britannias from The Royal Mint. Keep an eye on bullion pricing and market trends and any changes to CGT laws. By doing research, one can make informed decisions and have confidence in their bullion investments.

What Are CGT-Exempt Options for UK Investors?

Investing in bullion is a prudent strategy for those seeking to diversify their portfolio and safeguard their wealth against inflation. However, it is imperative to ensure that one is obtaining the most value for their money, and that includes taking into account tax implications. In the UK, Capital Gains Tax (CGT) can have a considerable impact on bullion investments. Fortunately, there are options that are CGT-exempt.

One such option is investing in gold sovereigns, which are issued by The Royal Mint and exempt from CGT. Additionally, gold, silver, and platinum Britannias are also CGT-exempt. These coins are an excellent selection for investors looking to incorporate bullion into their portfolio without incurring additional taxes.

What Are the Types of Bullion Available?

When contemplating an investment in bullion, it is essential to comprehend the different types of bullion available. Gold, silver, and platinum are the most prevalent options, and each possesses its unique characteristics and advantages. For instance, gold is widely regarded as a safe haven during times of economic uncertainty, whereas silver is more accessible and affordable for many investors. Platinum, on the other hand, is rarer and is frequently utilised in industrial applications, making it more susceptible to supply and demand.

Who Are Reputable Dealers and Sellers?

To ensure that one is obtaining the most value for their money, it is crucial to source reputable dealers and sellers. At Chards Coin and Bullion Dealer we are one of the UK's premier online and retail bullion dealers, with a reputation for providing high-quality bullion products and outstanding customer service. We have over 58 years of experience, and boast over 2000+ 5-star reviews on Trustpilot. Additionally, we offer a comprehensive range of products, including gold bars, silver bars, gold coins, silver coins, platinum, and palladium precious metals products.

It is also essential to keep abreast of bullion pricing and market trends. The price of bullion is determined by various factors, including supply and demand, economic conditions, and political events. Monitoring current market trends can assist in making informed purchasing decisions.

What Are the Changes to CGT Laws?

Furthermore, the UK government announced their plan to raise £55 billion to restore Britain's economic crisis, with reducing spending cuts of £30 billion and £25 billion in tax hikes. James Hunt was at the forefront when speaking to Parliament about the new growth plan, which focuses on taxation and spending, whilst ensuring that the most vulnerable are protected. He announced that CGT will be lowered to £6,000 in April 2023 and potentially as low as £3,000 in April 2024. These changes will have a significant impact on individuals and businesses that possess assets that may be subject to CGT, so it is essential to consider this when making investment decisions.

Maximise Your Bullion Investments

In conclusion, investing in bullion is a judicious strategy for those looking to diversify their portfolio and safeguard their wealth against inflation. By considering CGT-exempt options such as gold sovereigns and Britannias, and investing with reputable dealers like Chards Coin and Bullion Dealer, one can make informed decisions and have confidence in their bullion investments. It is vital to research different types of bullion, understand bullion pricing and market trends, and keep abreast of any changes to CGT laws in order to obtain the most value for one's money. By taking the time to conduct thorough research, one can make informed decisions and have confidence in their bullion investments.

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