Gold Bullion and Investment Guide

 

bullion-dealer-year-2018-badgeChard (1964) Ltd is a leading UK coin and bullion dealer (and jeweller) based in Blackpool, England. We have been dealing in coins and bullion for over 50 years and share this guide to help you make the most informed decisions about your investments.

Chard has been voted UK BULLION DEALER OF THE YEAR 4 years running! (2015, 2016, 2017 and 2018)

Gold is the Ultimate Store of Value

Gold has for millennia be a means of storing and displaying wealth. From ancient buildings clad in gold through to jewellery and artifacts, the world has always seen gold as something of value. Aside from this, gold has been used as the base metal for currencies since the first Lydia coins of circa 7th century BC. As currencies have developed and matured gold has maintained its purchasing power and over the centuries this has remained fairly constant. Currencies due to their nature and the economy are subject to fluctuations and can even devalue so if you hold a lot of wealth in currency alone the risk is rather high that at some point lose some purchasing power and wealth. Governments and banks control this through the processes of quantitative easing and interest rates (amongst others) leaving you somewhat out of control of what happens to your money; you may find the purchasing power of your "paper" money decreases significantly. We firmly believe that your money is safe with gold and that it should be used as an effective hedge against other investments - for example, gold often performs well during economic downturns or uncertainty. We only have to look at the financial crash of 2008 and the monstrous rise of the gold price up to its peak in 2011 to illustrate this. Rising political tensions, Brexit, and ongoing military campaigns often influence the price of gold as investors move away from stock, property and other investment tied too closely to a national economy. In conclusion, many people, including ourselves, see gold as the best way to safeguard your money and wealth.

Protecting Your Wealth with Gold

There does not seem to be a day that goes by without some negative political or economic headline in the news. Confidence in the finance and banking system is at an all-time low and many investors are turning to gold to protect and preserve their wealth. Gold should be seen as a low-risk security asset and a safe one at that. Gold does not traditionally make huge returns like some stocks and shares or even property at the time but it is a great preserver of wealth and hedge against inflation and economic downturns. Gold should be used to spread risk and should be used as a long-term investment for you and your family. If you have a range of existing investment which could be underperforming already or run the risk of given the current Eurozone instability etc. you may wish to diversify into gold. 

Security in Tough Political and Economic Times

Between the ever-present threat of recession, war, the collapse of banking systems and social unrest, you cannot begin to feel that your wealth wrapped up in such a system could be at risk. If you pay close attention to the media and market information you will notice that when tensions do rise that the more media articles on gold are published and the interest in such an asset increases. Often this interest leads to an increase in price which means investing before the proverbial hits the fan is usually a good idea.

Historical and Ongoing Gold Performance

Since 2007 gold has been on the increase rising steadily through the banking crisis to a peak in 2011 and it has remained fairly high since. The periodic political upheavals, such as but not limited to, Brexit and Donald Trumps presidency have an impact on gold price where we often see an increase and buyers rushing in or as was the case with Brexit we saw a lot of people selling gold. Often when there is a significant change in price both buyers and sellers rush to take advantage. Historical performance is not, however, a predictor for the future price of the yellow metal. We advise all of our customers to research their gold investment plan thoroughly and not use a single source of information. We publish all of our advice in our gold investment advice section on our blog, we also offer a live price graph with historical data back to the 19th century and offer a range of best value products for those intersted in buying gold right now. 

If you are a firm believer that political and economic uncertainty pushes the price of gold up it would appear that now is a good time to invest. Everywhere we look be it in the print media or online there appears to be no end in sight to political upheavals, wars and global financial crisis. With this said gold price looks likely to remain buoyant and should be a viable option for your investment portfolio.

Portability and Worldwide Value

You can't exactly take your house around the world with you and exchange it for other commodities in a far distant land. As physical gold is something you physically own, can take receipt of and transport with ease (as it is very compact and dense) it is very easy to take this with you across the world. Across the globe, gold is seen as a valuable and sought after item and as such regardless of where you are it will maintain its value. Cashing in gold elsewhere in the world means you can bypass a single currency and avoid dependency on those that are at high risk of devaluation and inflation. As gold comes in many forms and different sizes your investment can be broken up into much smaller pieces in the form of coins and smaller bars. This means you can even transport part of your investment around with you instead of the whole thing. 

Consumer and Industrial Demand

There appears to be no end in sight to the consumer demand for gold and with the world's reserves of gold lower than ever many predict the price will remain high for time to come. The World Gold Council commented on the highest demand ever recorded in 2015 as many took steps to preserve their wealth moving away from other traditional investments. China, India, and Russia are active in the worldwide gold rush and China sees the highest recorded private gold ownership. Europe is also active with France, Germany, and Switzerland reporting record increases with Germany topping the list with the highest gold ownership. 

Remain In Control Of Your Investment

As previously mentioned physical gold is something you actually own, you can see it, you can touch it and you can do what you want with it. It is not behind some bureaucratic wall or locked up in the traditional stocks and financial systems. There are no third parties involved, no hedge fund manager to advise you or financial advisers. This does, however, mean your investment is your own responsibility but we would argue armed with the right information and with some wits about you it is a very preferential place to be. 

We would also argue that owning physical gold is preferential to owning electronic gold in the form of EFT's. More often than not, you cannot withdraw your gold from these accounts without incurring significant fees and delivery charges and you are still at risk of a third party relying on their business being a success. 

We have written a full blog on why physical gold ownership is our preferred investment choice and hope you find it useful. Read more by clicking here. 

Gold as an Investment

We are not financial advisors and we would always recommend that you consult with one. We can only give advice on what the best deals are from Chard to match your budget and investment portfolio at the time you make enquiries. We try to keep our investment advice very simple. We cannot predict with any certainty what gold or any other commodity or currency will do over short, medium or long periods of time. Because of this, we tend to avoid giving any definite advice or strong opinion. There are some areas where we have considerable experience and feel we can safely give our thoughts. Some of it may appear obvious, but it is surprising how often we find ourselves repeating it.

Buy In The Cheapest Form - This is one of the most obvious pieces of advice we give. But we usually add "within reason".

Generally, the cheapest way to buy gold; are 1kg gold bars, Best Value Our Choice one ounce gold coins, Britannias or sovereigns.  Often, the bigger the size or quantity, the lower the premium. Of these three options, large gold bars can usually be bought for the lowest premium, followed by Our Choice 1 oz gold coins, Britannias and then gold sovereigns. In the past, we would have advised that most other gold coins are more expensive, and therefore better avoided but some mints, such as the Perth Mint, now produce coins for fairly low premiums. It is also worth keeping an eye on our website, as we usually have special offers on coins we have excess stock of.

Product Premium Price
Best Value 1kg Gold Bar 1.5% £31,921.41
Best Value 500g Gold Bar 2% £16,039.40
Best Value 100g Gold Bar 2.75% £3,236.41
Best Value Secondary Market 1 oz Gold Coins 2.5% From £992.87
Best Value Newly Minted 1 oz Gold Coins 3.5% From £1,002.65
Best Value Secondary Market Sovereigns 3.5% From £235.63
Best Value Newly Minted Sovereigns 4.75% From £238.16

 

* Premiums can change, please check the live premiums on our Gold Bar pages.

Best Value - Coins and bars are usually the lowest price. You can view all of our best priced products in our best value section. Please note you will be given our choice of date and mint (if applicable). You can achieve even lower premiums by buying larger gold bars in larger quantities.

Stocklists - We stock gold coins from mints from all over the world including the Krugerrand, the Maple, the American Eagle, the Australian Kangaroo, the Chinese Panda and of course, the Britannia.

Current years are often available at lower premiums compared to backdated years. This is because they are still being minted. Once a coin stops being minted they can be more difficult to source. This is not to say that you cannot get backdated coins at good bullion prices. If you sign up to our mailing list, we send out secret offers for dated coins when we have surplus stock.

You might think due to the above advice that we would advise gold bars, one ounce gold coins or bars and gold sovereigns as the best gold investments, in that order. We believe, however, that sovereigns are often worth paying a slight extra premium for, because of their smaller size, and the historic and aesthetic value which you get for next to nothing. Of course our tailored advice can differ with changes in the market and depending on the amount you are looking to invest. One of the main things to consider is whether or not you will need access to your investment.

Accessing Your Investment - If you are investing hundreds and thousands of pounds and have plenty in bank accounts, then the chances of you needing to sell some of your gold for an emergency is slim, however, if you are investing a few thousand pounds and only have limited funds available for emergencies, a repair to your car costing £500 may need you to dip into your investment. In this case, it is much better to sell two sovereigns than one 1oz coin or a bar and have surplus cash that you never wanted to access, leaving you with cash you may spend or have to re-invest. 

Physical Gold - Most of our customers prefer to physically hold their gold investment. If you are concerned about the security risks of keeping your gold at home, we also offer a storage facility at a fee of only 0.05% per month (excl. VAT).

Tax Free Gold - The majority of gold bars and gold coins are classed as investment gold and can now be bought free of VAT in the UK and the EU since January 1st 2000. As gold sovereigns, half sovereigns, and gold Britannias, gold Lunar and gold Queen’s Beast coins, are sterling, they are treated as exempt from Capital Gains Tax (C.G.T.).

I would like to buy gold now I hear you say - please find our best prices bullion options in our best value category. Our most popular products are the bullion sovereign, Krugerrand and one ounce secondary market gold coin

The Gold Market

Gold Demand & Supply - Gold is predominantly used in 4 major areas which are jewellery, investment, technology and within central banks. Since about 2008 the demand for gold has been increasing and if you view our live price charts you will recognise the upward trend into 2011 and how the price has not really dropped since. Many more people are worried about the state of the financial system and central banks causing a stir. These people are moving wealth into physical gold and silver and consumer demand has not really dropped since. Jewellery demand is often inversely related to gold price as rising prices can slow growth for example during 2016 - a result of weak economic performance and policy changes in India.  The World Gold Council provide good insight into how the market is evolving and how price and you can subscribe to their mailing list to receive updates. The take home message is that as we write this the price of gold is still high and there appears to be no short supply of political and economic instability in the future. If you believe the price of gold will rise in these scenarios then now could be the time to buy. 

Gold in Turbulent Times - Gold price is often a product of economic and political news and events. You can view the live price of gold here. With the events of Brexit and Donald Trump's presidency gold price has remained high and we can see no end in sight to political upheavels! If you are worried about the risks of wealth linked to a local economy you should consider investing in gold which has a more global value and is less affected by local economic downturns i.e. it is likely to hold its value even during financial ruin. With the plummeting value of the pound and the EU facing a crisis, gold has become an important hedge against currency devaluations.

Is There Any VAT on Gold?

Why buy gold now? Currently one of the biggest reasons to choose gold is the fact HMRC currently regard the precious metal as exempt from VAT. The answer is currently no there is not. VAT Notice 201/21A informs us that as of 1st January 2000, there is no value added tax payable on investment gold. This includes gold sovereigns, krugerrands, other bullion gold coins, and certain types of gold bars.This does include most gold coins which are normally sold at under 80% premium over their intrinsic metal value. This includes almost all modern gold coins, including all gold sovereigns and proof sovereigns. Click here to be taken to our product page where we have handpicked our best value tax free gold products. 

 

Here is a range of our top products that are exempt from VAT on gold. 

Product - All Bullion Grade  Premium Price
Secondary Market Sovereigns 3.5% From £235.63
Gold Britannia 1 Ounce Coins Newly Minted 3.5% From £1,008.04 
Gold Krugerrand Newly Minted 4.45% From £1,020.26 
Gold Maple Newly Minted 4.45% From £1,056.46  
1 Ounce Our Choice Gold Coin 3.5% From £1,002.65  

Read more about capital gains tax on our blog here

Gold is Tax Free

Gold investment bullion is already exempt from VAT and we explain why in this blog here. 

Silver is Taxable at 20%

Silver, on the other hand, is still subject to a 20% rate of VAT unless you buy on the special scheme. You can learn more about the special scheme by clicking here. 

It is hardly surprising, given how confusing HMRC's guidance can be, that many investors simply assume that silver, platinum and palladium are also VAT free. We try our best to educate where possible and answer any question you have either via live chat, email or on the telephone. 

VAT Free Silver

VAT free silver can be bought outside of the EU but you will end up paying VAT if you have it delivered. Please read our blog on why buying physical bullion that can be delivered is the most reliable way to invest in a precious metal. Relying on a third party to store silver in a country outside of the EU is not our preferred method. If you wish to take advantage of VAT free products simply invest in gold. 

Do We Advise Customers To Buy Silver?

We certainly do advise customers to buy silver. The first obvious piece of advice is if you have a means to reclaim the VAT via a business purchase then it makes no difference the rate of VAT - we do however advise you speak with an accountant before making a purchase as we cannot make any reassurances you will be able to claim the VAT back. Secondly, if you are taxed 20% you need to be mindful that prices need to go up in order for you to make a profit, with this said it is best to buy when silver price is low relative to gold. You can view our live ratio here or read more on our spot price blog here. Finally with the recent increases in silver prices since the mid 2000's  it would appear that you would quickly recover the VAT you paid and the relative increases of silver vs gold are in silver's favour. It could therefore be assumed that silver coins and bars could be a better investment than gold, which goes against the grain of most advice. We ourselves have bought and still hold a significant portion of our stock in silver and believe spreading risk across both metals is a good idea. 

CGT Exempt Status on Some Gold Coins

In short capital gains tax is the tax you pay on a profit made when you sell certain assets. Taken from HMRC's website (as of 20 April 2018):

  • most personal possessions worth £6,000 or more, apart from your car
  • property that isn’t your main home
  • your main home if you’ve let it out, used it for business or it’s very large
  • shares that aren’t in an ISA or PEP
  • business assets

Legal tender (currency) is exempt from capital gains tax so coins like sovereigns, Britannias, the British Lunar Series and UK coins are exempt. Therefore investing in these gold products is a way to pay less tax both in 

Read more on CGT on our blog

Ease of Storage

The compact nature of gold means it is very easy to store considering how much value is contained within. There are 3 main options as we see it - option 1 is to take receipt and have a personal safe in which to store it, option 2 is to use a safety deposit box and option 3 would be to let Chards store it in our on site strongrooms. Gold is highly valuable so it pays to have a robust and secure place to store your gold if your considering to store it in the home. 

Spot Price and Market Information

Live prices - If you’re thinking about investing in precious metals, or have already started building your portfolio, you should be keeping a close eye on the spot price and other market factors. We have the live spot prices available on our website for you to view. This allows you to see what is happening with the prices of precious metals and whether there is an upward trend of gold or a decrease in value. It is also worth following the financial markets, as this will often influence the live prices. You can find out the current gold price and silver price by following the links to our live price pages. You can see the gold price from the 18th century, view gold price through a recession such as the 2008 crisis and all the way up to current day rates. 

Quite often we’ll have conversations with customers who have been following certain political events or reading about financial issues in other countries. One customer, for example, told us that silver was going to go up in the next week, suddenly, within the week it had gone up by a few pounds. If we had the time then we would certainly try our best to get this information to you! But of course, it is not a science, and he could have invested all his money for silver to have dropped in price. How gold price is manipulated can be understood by studying the market, the large organisations buying and selling, the gold price fix and as many information sources as possible (we advise our customers not to use a single information source). It is important to remember though, that investment in precious metals is a long term game. Please do not expect to invest your money and weeks later have made a large profit. It is easy to panic when you see you have invested then gold has dropped by £10 an ounce, but fluctuations are normal. Of course, investment in precious metals (as with property, shares, etc.) is a gamble, but if you are planning it as a long term investment, then you have a better chance of seeing a return. 

Gold / Silver Ratio - The gold silver ratio is obtained simply by dividing the current gold price by the current silver price. What currency you price them in does not matter, as long as you use the same currency for each, and obviously for the same weight, so US dollars per troy ounce will work just as well as Euros per kilogram, or British pounds per ounce. When the gold to silver ratio is high it means that gold is expensive compared with silver, or the converse, that silver is cheap relative to gold. More information on the gold/silver ratio. 

History of Gold:Silver Ratio -  When the first coins were invented over 2,600 years ago in ancient Greece, the ratio of gold to silver was generally between 10:1 and 13.5:1, depending on the relative proximity of gold or silver mines. In the 1930's and 1940's the ratio reached 90:1 or higher, and in 1991 it peaked at about 98:1, although we have seen one source which claims over 100:1 peak. Other sources state that the gold silver ratio is no longer relevant in today's markets. We believe it is a worthwhile measure but would stress that it is difficult if not impossible to state what the ratio "should" be.

Gold Coins Versus Gold Bars

Quite often we are asked what the best way to invest in gold is. There is no right or wrong answer, just personal preference and the amount of risk you’re willing to take. There are several different ways to buy investment gold:

Gold Bars - Taking physical delivery of your gold is a very safe way of investing in gold. Gold bars are one method of achieving this. When purchasing gold bars, the main thing to think about is the size you would like. There are several sizes, and whilst most people will have the size of bar determined by budget, there are so many different sizes that there are always options. 

London good delivery bars - The only size bar normally used in major international markets is the London Good Delivery Bar, weighing 400 ounces or 12.5 kilograms. Most gold stored by central banks is in this form, although we don’t recommend them for most investors. 

Kilo bar - One kilo gold bars have a low premium due to their size but the price is not as easy to track as a one ounce gold bar. 

Smaller bars - Smaller bars, such as fractional kilo bars, and one ounce bars, combine convenient size with reasonably low premiums. These are the various different sizes of gold bars, some are more unusual, so we may not be able to provide all of these sizes. 

Gold coins  - Gold coins are often more convenient than bars, and can often be bought for lower premiums than bars, weight for weight. There is a large selection available. The first decision is often whether to buy older coins or new “bullion” coins. It is sensible to consider modern one ounce gold bullion coins as being one ounce circular bullion bars, guaranteed by a government rather than a refiner. As coins are mass produced, and very efficiently so, they are available at very competitive prices compared with similar size bars. Gold coins are almost universally recognised, so they are also easy to resell.

Which gold bullion coin should I buy? - The following coins all contain 1 troy ounce of fine gold. Some of these are "pure gold" also known as 24 carat gold, some are 22 carat, but all contain exactly the same amount of pure gold. 

* Britannias were struck in 22 carat gold until 2013 when the fineness was changed to 24 carat.

** Pandas were issued in imperial weights until 2016 when the weights were changed to metric grams.

Where to Buy and Why Buy From Chards?

We advise our customers to research both the products available, prices and the bullion dealers they are about to trade with prior to investing in gold. Research is essential to ensure you don't get ripped off by paying over the odds or end up in a trading dispute after receiving substandard or no products at all. 

There are many sources of information available to potential investors in the form of books, magazines and "experts" but the internet is probably the greatest source of information - be warned though, this can be both good and bad. Many bullion dealers have advice sections on their websites, there are many forums available and plenty of companies offering newsletters with commentary on the gold market. With any consumption of information, it pays to have a healthy scepticism when taking any advice and reading multiple sources is always recommended. 

As mentioned previously, many bullion dealers have information pages with one of our biggest competitors providing very good advice; much of which we respect and agree with. However, we believe there are more points to consider that have been omitted, these include dealing with a trusted and long established company, with physical premises you can visit without an appointment and fully published financial accounts. They seem to argue that "no hidden charges" extends to "free postage" which actually increases the cost for most buyers, something of which we educate our own customers on ensuring they are fully aware of exactly what they are paying for - we pride ourselves on offering honest and transparent trading practices. It is also essential to deal with a company offering a fully insured postal service and for those offering storage we believe it is best to store gold on site rather than outsourcing. They fail to mention that numismatic expertise is essential especially for dealers who also handle older coins, which are often better value and more collectable than new ones. With over 50 years numismatic experience we have amassed a huge collection of coins from classical antiquity all the way through to modern issues, including our extensive range of over 5,000 dated and graded sovereigns. 

Chard have been voted the UK Bullion Dealer of the Year for the last four years running. Against stiff competition amongst the biggest bullion dealers in Great Britain, we are the only UK dealer to be awarded the title of 'Bullion Dealer of the Year'. If you are looking to buy top quality products at highly competitive prices, we are very proud of our websites and beleive our new site www.chards.co.uk is the best website to buy gold. We offer some of the lowest prices on the market, provide a wealth of honest information and host a huge range of products - you will not be disappointed! We regularly compare prices on our leading products with our top competitors and we challenge you to find prices that are cheaper elsewhere! If you are looking for the best place in the UK to buy gold, come to Chard.

On a final note, another useful exercise to conduct is to use Google to search for commonly associated search terms such as gold bars and gold coins. Google has a clever technique which ranks websites relevant to the search phrase typed into the search box. By returning a website within the top 3 results of a search, it adds a touch of credibility; that this bullion dealer’s website is trusted and well visited by customers. However, we advise people that the first 3 places (even 5) on Google used to be reliable, but now it means that these are the businesses who have paid Google the highest adwords amount to be placed higher. Chances are companies advertising and paying for the privilege are charging customers more money for the products sold to cover this expense. Take our advice that it is best to look for the unpaid links, but Google has now made these difficult if not impossible to spot!

Sovereigns

British gold sovereigns - For Great Britain, a favourite choice of bullion coin is the gold sovereign.

The sovereign is popular with investors looking for flexibility and CGT exempt gold. Sovereigns weigh 7.9881 grams and are made of 22 carat gold or 91.66% fineness, and therefore contains 7.315 grams or 0.2353544 troy ounces of pure gold. The only disadvantage of the sovereign as a bullion coin, is that the alternative one ounce gold coins, such as the Krugerrand, make it easier to calculate their gold content.

The great advantage of sovereigns is that they are an attractive and much loved coin with a rich tradition and history. Single coins, particularly graded, low mintage, rare or proof sovereigns can command high premium. These sovereigns are ideal for serious coin collectors or as gifts for special occasions such as christenings, golden weddings, coming of age. Gold investors prefer bullion sovereigns which are sold at low premiums over the gold spot price. If you are looking for the lowest premiums, buy either Best Value Secondary Market Sovereigns or if you prefer new coins, Best Value Newly Minted Sovereigns

The more you buy, the lower the premiums. You can see the difference here:

Full Best Value Bullion Sovereigns Secondary Market

Quantity Premium % Price Per Coin Total
1 3.5 £238.28 £238.28
5 2.8 £236.67 £1,183.35
10 2.7 £236.44 £2,364.40
25 2.6 £236.21 £5,905.25
50 2.55 £236.09 £11,804.50
100 2.5 £235.98 £23,598.00
250 2.45 £235.86 £58,965.00
500 2.4 £235.75 £117,875.00
1000+ 2.35 £235.63 £235,630.00

Full Best Value Bullion Sovereigns Newly Minted

Quantity Premium % Price Per Coin Total
1 4.75 £241.16 £241.16
5 4.7 £241.04 £1,205.20
10 4.65 £240.93 £2,409.30
25 4.6 £240.81 £6,020.25
50 4.35 £240.23 £12,011.50
100 4.1 £239.66 £23,966.00
250 3.8 £238.97 £59,742.50
500 3.7 £238.74 £119,370.00
1000+ 3.45 £238.16 £238,160.00

Bullion sovereigns - Secondary Market sovereigns could range from Victorian to Elizabeth II. Newly Minted sovereigns are usually chosen from 2000 to present date.

Exonumia

Stamp replica and coins - Gold stamp replicas are a form of medal or medallion and are an alternative to buying physical gold. 

Collecting medallions and stamp replicas - A number of medallists have marketed replica stamps in gold, and other metals, in order to market them at stamp collectors (philatelists). Some will undoubtedly have been bought originally by stamp collectors, but others will have been purchased by non-philatelists. 

Medallions and stamp replicas for sale - We are always happy to buy and sell medallions including stamps replicas. Our buying and selling prices are usually related to
the intrinsic value of the precious metal content. We pay competitive prices and sell for a modest premium depending on
market factors such as aesthetic desirability, supply and demand, and our stocks.

Our range of medallions can be viewed on both the new website and old websites: Click here for our new site and here for the old site

Our range of stamp replicas can be found here (currently on our old site still): Click here for more information

Alternative Gold Investments - There are of course, other ways to invest in gold, these are gold accounts, gold futures, gold mining shares and more recently, the introduction of ‘e-gold’. Each of these methods have their own risks and for various reasons we do not participate in, promote, or offer recommendations on any of these methods. 

How to Protect Your Investments

We’re often contacted by new customers who are wary about investing and this is perfectly natural. They have their hard earned money, whether it is hundreds or thousands or hundreds of thousands, they want to make sure they are spending it wisely. If we get quizzed about why they should buy from us, we point them in the direction of our financial details and tell them about us, we’ve been around a long time (50 years) and have many repeat customers from around the world. We won’t try to convince them to purchase from us though. Only you can decide where you want to invest your money, and we won’t pressure you into purchasing from us. Here you can see a few of the issues that affect investors. This information should help you make your purchase with more knowledge about what to be wary of.

Fakes and forgeries - How do you know if the coin you’ve bought is a fake or forgery? After 50 years of dealing in numismatics we are always coming across people who believe their coin is genuine. Our advice? Use a reputable dealer, it’s that simple. Someone that has a good reputation and has been around a while so you can feel safe in the knowledge that you can always return back to the same dealer in the future. Various different metals and alloys are used to create fake or counterfeit gold coins, depending on the reason for, and nature of, the particular fake. We use a number of methods to detect a fake or forgery. The alloy we see most frequently used for fake gold coins is substandard gold, for example fake sovereigns are made in the middle east and marked 21ct (but in Arabic), as opposed to 22ct gold. We also see sovereigns which appear to be around 18 to 20 carat gold, as well as some made of copper or bronze.

New issues - We don’t recommend buying new commemorative coin issues as an investment, due to the high premiums added to the price. These are usually far better value when bought on the secondary market when they are bought and sold at their true intrinsic value. Our advice on
these is to wait a couple of years until demand has levelled off before buying them. 

Bait and switch - This is a boiler room style scam, that advertises bullion at competitive prices, then salespeople persuade callers to buy ‘collectable coins’ at a highly marked up price. They offer ‘advice’ such as “the coins are a better investment than bullion” or “Coins can’t be confiscated,
but bullion can”. Our advice? Buy from a reputable dealer, one who you can visit or get in touch with, one who has been around for a long time and will be there when you wish to sell back to them. If a dealer won’t purchase back then it may be that they are selling products
for over-inflated prices – not purchasing from you means they don’t have to deal with you when you realise your investment wasn’t so good after all, it’s left to the reputable dealers to disappoint.

Rare Coins

Many rare coin dealers will happily advise you to buy rare coins as a better investment than bullion coins. They usually cite a few examples of rare coins which have increased dramatically in price recently. These examples can be impressive, but what these dealers will usually not mention is the fact that they make far higher profit margins when they sell you individual “rare” coins, and will often only buy them back at a substantial discount to the current market price. Rare coins are harder to price accurately, or to find fair comparisons, so it is almost always harder for the investor buyer to know whether he is getting good advice and a fair deal, or getting ripped off. Our advice? For any potential investor in rare coins, read a few books first, learn about coins, study the market, make your own judgment on what to buy and what to avoid. This of course can take a lot of time and effort, but is well worth the enjoyable experience to learn about this fascinating area of numismatics.

Auction Sites

Our advice is to use a reputable dealer and not use an auction site unless you definitely know what you are buying or selling. When buying, do you know that the picture displayed is the coin you are buying? Or that the description is factually correct? Do your homework first and find out the current market price, maybe contact the seller directly and ask questions about the coin. Check you can get your money back or that you are protected if it turns out to be a fake or not what you expected. You know it yourself, ‘if it seems too good to be true, it probably is’. If a one ounce Krugerrand being offered on eBay for £199.99 including delivery when gold is at £950 an ounce, do you really think you’re going to either receive it, or receive what it claims? We know from experience that you need to be very careful and that they aren’t always the best deal you can get. Contact us if you are buying or selling, we will always give you a competitive price or offer.

Coin Collecting for Pleasure or Investment?

Are you collecting coins for pleasure and enjoyment or do you have an investment plan to sell them for a profit in the future? This is something you will need to ask yourself when researching your choice between coins or bars. Generally, coins have a more aesthetic appeal as well as educational value to them that cannot be given a value in the same way as a plain silver or gold bar. There are bars that are collected, which have a collectable design, may come in an unusual size, weight, shape or from a particular assayer or refinery. Our main advice as always, do your research. It’s a fairly obvious tip, but unfortunately there are companies and dealers out there who want to make the most money possible. Try searching our sites, for the coin you’re interested in and compare our prices with other dealers to know you are getting a good deal. You can compare the price with the one in a coin book such as the Spinks catalogue.

  • Jewellery as an investment - We are often asked about buying jewellery as an investment. Even more frequently we get customers telling us that jewellery is an investment, or so they have always believed. Old Wives' Tales What is likely is that their peers or relations at some time have given them some homely advice about how to spend their money. It was probably quite good advice within its context as consumer advice, but not accurate as investment advice. We have noticed that amongst people over a certain age, there is a general belief that jewellery is a
    good investment. At the risk of disappointing them, we inform them that, in our opinion, it is not correct to buy jewellery primarily as an investment. Read more about our thoughts on Jewellery as an Investment (on our old site) by clicking here

Payment Options

All online orders are limited to £100,000 per transaction. If you wish to invest more than a £100,000, please contact our showroom to place your order on 01253 343081. 

At Chard, we offer four payment options. You may wish to pay in either Sterling, US Dollars, CAD Dollars or Euros. If you wish to pay in a currency other than sterling, please contact our team for the current exchange rate. 

International customers may have longer payment clearing times than UK customers and may be subject to bank fees. 

Online 

We accept debit cards that have Mastercard SecureCode / Verified by Visa set up. If you do not have this facility, you will be re-directed to your bank on your first payment transaction. This is an extra security feature for both you and us which is necessary due to the nature of the business. 

Orders paid for by debit cards will only be dispatched to the registered billing address of the card. The order will only be accepted if the cardholder name matches the name on the order form. We may ask for additional confirmation, in the form of photographic identification, in order to prove your identity. 

If you wish to pay for your order online and collect from our showroom you MUST bring your payment card and two forms of identification; a passport and a photo driving license OR a passport or photo driving licence AND a recent utility bill with your current name and address, dated within the last three months. 

Showroom

You may pay by debit card in our showroom. We would advise contacting your bank prior to the payment to speed up the process of authorisation. 

If you wish to place a bullion order over the phone, you can speak to one of our friendly team members. You will receive a payment link which will then re-direct you to pay by debit card online. 

There are no charges for debit card payments. 

Bank Transfer

You may place your order online and opt to pay by bank transfer. Payment must be set up immediately to honour the price, using your full name or order number as the reference.  Alternatively, you may contact us by phone or visit our showroom to place an order.

Any payments not received within 24 hours of your order being placed may be cancelled/refunded/re-dealt and subject to an administration fee as per our Terms.

We will allow up to 3 working days for international payments. Please note that international payments will be subject to bank fees of £7 plus the bank's live exchange rate. 

We will allow 24 hours for any bank transfer payments to clear.

Orders paid for via bank transfer may be sent to an alternative delivery address. 

There are no charges for bank transfers if your bank account is a part of the faster payments scheme. 

CHAPS

All orders over £100,000 MUST be paid by CHAPS the same day. There is usually charge of approximately £30 and a cut off time of 2:30pm. Please check with your own branch for more information. 

Funds must be cleared before fixing a price. Any balance owed to you or us is payable before the order is dispatched. 

Cheque 

You can select the cheque payment method online once you have placed your order. You may also place an order over the phone or within our showroom and pay by cheque. 

Cheques MUST be sent the same day by 1st class post. Any cheques received after 24 hours of your order being placed (or with a post mark dated after your order) may be cancelled/refunded/re-dealt and subject to an administration fee. Orders for payment via cheque must therefore be placed before the days last post within your area. 

US Dollar, CAD Dollar and Euro cheques are subject to an approximate 6 week clearing period.

Please make cheques payable to "Chard 1964 Ltd"

There is no charge for cheque payments. 

Cash 

You may pay by cash up to the equivalent of €10,000 over a rolling 5 year period. This includes anybody connected to you such as a friend, spouse or other relation. 

Cash can be paid at our showroom or into our bank account at any Royal Bank of Scotland or National Westminster Bank.Unfortunately, there are no discounts for cash payments. 

If paying by cash, you may be asked to supply two forms of identification; a passport and a photo driving license OR one of these in addition to a recent utility bill with your current name and address, dated within the last three months. 

We would not recommend sending cash through the post.

There is no charge for this payment method. 

Credit Cards 

Unfortunately, we are no longer able to accept credit cards. For more information, please read our blog. 

Bank Account Details 

Royal Bank of Scotland : 87 Bond St, Blackpool, FY4 1BW

Sterling Account
Sort Code: 16-14-12 
Account Number: 10046146 
Account Name: Chard (1964) Ltd 
IBAN Number: GB67 RBOS 16 14 12 10046146
Swift Code / IBAN BIC NUMBER: RBOSGB2L 

Euro Account
Account Number: CHAR1964 EURA 
IBAN Number: GB29 RBOS 16 10 85 10037427 
Swift Code / IBAN BIC NUMBER: RBOSGB2L 

US Dollar Account
US Dollar Account Number: CHAR1964 USDA 
IBAN Number: GB39 RBOS 16 63 00 00041223 
Swift Code / IBAN BIC NUMBER: RBOSGB2L 

Canadian Dollar Account 
US Dollar Account Number: CHAR1964 CADC 
IBAN Number: GB82 RBOS 16 63 00 00450468 
Swift Code / IBAN BIC NUMBER: RBOSGB2L 

Selling to Chard 

If you wish to sell to us, you may visit our showroom or post your goods via fully insured delivery. We offer three payment options. We do not provide third party payments. 

Bank Transfer

This will be set up the same day and can take up to three working days to show in your account. We will need your account number and sort code which can be included on our "Sell to US" form. 

Occasionally circumstances beyond our control may result in your payment being delayed. You will be notified at the time of sale if this is the case. 

There is no charge.

CHAPS

This is a same day instant payment with a charge of £30. If you wish to have this payment method, please tick the relevant box on our "Sell to US" form. All prices must be confirmed before 2:30pm for CHAPS payments to be processed. 

Please note CHAPS payments may not always be available. 

Cash

Cash can be offered with no charge if we have the funds on the premises. However, cash transactions over £1000 may be subject to a 1% cash fee. 

All cash transactions require photo identification. Cash transactions around £5,000 or more will require two forms of identification, one of these being a photo ID and the other being a recent utility bill dated within the last 3 months with your current name and address. 

There is cash a limit of the equivalent of €10,000 over a rolling five year period. 

Identification  

All Orders

Over £5,000 and £10,000 in a 12 month rolling period. 

We will require two forms of identification; a passport and a photo driving license OR one of these in addition to a recent utility bill with your current name and address, dated within the last three months. We do not have to see the originals. Copies may be sent to info@chards.co.uk or via post.  

In some circumstances, ID may be requested on order below £5,000 and orders over a 48 hour period equating to £5,000 by you or anybody related to you. 

Collection

All gold investment bullion orders for collection require at least two forms of identification, one of which must be photographic. We will require two forms for all transactions over £5,000; a passport and a photo driving license OR one of these in addition to a recent utility bill with your current name and address, dated within the last three months. 

In addition; If you have placed your order online by debit card, you must bring the card that you pay with and photographic ID. 

If you wish for somebody to collect your items on behalf if yourself, please contact us on 01253343081.

Acceptable Forms of ID

One from each list may be required. For more information, visit HMRC.

Proof of name Proof of address
Current signed passport Utility bill (gas, electric, satellite television, landline phone bill) issued within the last three months
Original birth certificate (UK birth certificate issued within 12 months of the date of birth in full form including those issued by UK authorities overseas such as Embassies High Commissions and HM Forces) Local authority council tax bill for the current council tax year
EEA member state identity card (which can also be used as evidence of address if it carries this) Current UK driving licence (but only if not used for the name evidence)
Current UK or EEA photocard driving licence Bank, Building Society or Credit Union statement or passbook dated within the last three months
Full old-style driving licence Original mortgage statement from a recognised lender issued for the last full year
Photographic registration cards for self-employed individuals in the construction industry -CIS4 Solicitors letter within the last three months confirming recent house purchase or land registry confirmation of address
Benefit book or original notification letter from Benefits Agency Council or housing association rent card or tenancy agreement for the current year
Firearms or shotgun certificate Benefit book or original notification letter from Benefits Agency (but not if used as proof of name)
Residence permit issued by the Home Office to EEA nationals on sight of own country passport HMRC self-assessment letters or tax demand dated within the current financial year
National identity card bearing a photograph of the applicant Electoral Register entry
  NHS Medical card or letter of confirmation from GP’s practice of registration with the surgery

Data Protection 

We may require to keep a copy of your identification inline with HMRC Money Laundering regulations. Copies are usually kept for the following transactions;

  • Gold Bullion for Collection 
  • Orders over £5,000 
  • Orders over £10,000 in a rolling 12 month period 

For more information, please read our Privacy Policy.

Delivery information 

Firstly if you are worried about taking delivery of your recent bullion purchase why not store your bullion with us in our on site dedicated strongrooms. Read more here

We aim to dispatch orders within 48 hours of receiving cleared funds. Our standard delivery methods are as follows

Orders over £60 - Fully Insured Delivery.

Within the UK and BFPO - Royal Mail Special Delivery. Items sent via this method will normally arrive by 1pm the next working day. Delivery starts from £9. 

International - Royal Mail International Signed / Royal Mail International Tracked / Royal Mail International Tracked and Signed For. Items sent via this method will normally arrive within 3-7 working days. Delivery starts from £15.

Orders under £60

Within the UK and BFPO - Royal Mail 2nd Class. Your order will normally arrive within 2-3 working days. Delivery starts from £3.50.

International - Royal Mail International Standard. Your order will normally arrive within 3-7 working days. Delivery starts from £6.

Optional Special Delivery  - Special delivery can be selected on any order. See information above for details. 

If you wish to have your order sent by an alternative method (e.g., Saturday Guaranteed) please contact 01253 530581 for more information. Please note, we will not dispatch high value orders over a bank holiday weekend.

For international delivery, please check with your local customs office for more information on customs duty and taxes.

How We Calculate Postage

In order to calculate a final postage we have our actual transit costs to cover plus additional insurance costs

UK 

Standard Delivery (Royal Mail 2nd Class) is only available for orders with a value below £60:  

<1000 grams = £3.50 

1000-2000 grams = £6.00 

2000-10000 grams = £15 

10000-20000 grams = £22 

Special Delivery (before 1pm next day) 

<1000 grams = £9 

1000-2000 grams = £11 

2000-10000 grams = £26.6 

10000-20000 grams = £41.2 

International 

We only ship international parcels that weight less than 2kg and below £15,000. We will split your order down into separate parcels to fulfil your order.  

 Order up to £15,000 

<1000 grams = £15 

1000-2000 grams = £20       

Orders over £15,000 will be split down into a number of 2kg parcels or a number of parcels worth less than £15,000. The calculation which results in the fewest number of parcels will be used.  

Postage Insurance

We offer fully insured delivery on all special delivery options. We do need to pass on the cost of this insurance as it soon adds up shipping high value gold and silver products. 

Orders < £1000 there is no additional fee

Orders > £1000 we charge a fee in order to cover the increasing costs of insurance. For every £1000 we apply a £1 fee. 

Example Orders with Postage

Gold products worth £2350 and weighing 125 grams with packaging

Postage = £9

Insurance = £2

Total = £11

Silver products worth £1500 and weighing 2500 grams with packaging

Postage = £26.6

Insurance = £1

Total = £27.6

Countries We Ship To

We ship to most countries in the world with the following exceptions:

France

Malaysia - we will ship if you as the customer takes responsibility for it and signed a declaration

Saudi Arabia - requires a declaration 

Do you want to take the next step?

We hope you have found our guide interesting and informative. We really do hope that we have helped increase your knowledge about investing in precious metals. We currently have four main websites that are full of useful information, which you can visit to learn more about all the various aspects of investment.

Where to find us?

We have a working showroom and you’re more than welcome to visit us whenever you like! You can find us at our showroom at 32-36 Harrowside, Blackpool, Lancashire FY4 1RJ. We are open 9am-5pm Monday to Friday and the first Saturday of the month. Our websites are open 24/7 and you can purchase most products from our websites (subject to availability). As long as you bring the correct ID with you, you can take anything away with you.

Contacting us?

Tel: 0044 (0) 1253 343081
Fax: 0044 (0) 1253 408058
Email: info@chards.co.uk

Our Websites

www.chards.co.uk – Our new site in progress

www.taxfreegold.co.uk – Our gold website

www.24carat.co.uk – Our silver, platinum, palladium and jewellery website

www.goldsovereigns.co.uk – Our Sovereign website

Terminology

AGW - Actual Gold Weight In line with Krause, we usually quote the actual fine gold content of most coins in troy ounces. The price per troy ounce is the most widely quoted price for precious metals. To convert gross weight in grams to actual intrinsic gold content: Gross weight in grams /
31.1035 = Gross weight in troy ounces. Gross weight in troy ounces x Fineness (alloy) = actual fine content in troy ounces.

Au - Au is the chemical symbol for gold, a yellow metallic element, and comes from the Latin word aurum meaning gold.

Bullion - This is a term used to describe precious metals, bought or sold, at or close to the intrinsic metal value.

Coin - An object, usually a piece of metal, often a flat disc, used as money.

Investment Gold  - According to HM Customs & Excise:- Investment gold (other than investment gold coins) is defined as “gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets”.

Intrinsic Value - The value of the metal contained within the coin.

Margin - The difference between the spot price and the buying or selling price, usually expressed as a percentage.

Premium - The percentage over and above the current gold value at which an item trades.

Spread - The difference between the buying price and the selling price.

XAU - XAU is the ISO 4217 currency code for gold, denoting one troy ounce of gold.

This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2017. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following:

  • you may print or download this guide for your personal and non-commercial use only
  • you may copy the content to individual third parties for their personal use, but only if you acknowledge Chard(1964)Ltd as the source of the material

You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system.

This guide is for information only and we do not offer any tax or investment advice. The information contained within is there to help you reach your own decisions when investing. If you need more detailed advice we refer you to experts in that field.