Posts Tagged ‘gold’
Last autumn the Royal Mint launched its new online bullion service, allowing ordinary folks like you and me to invest in the glamorous world of gold. But still, back then, you still had to buy at least one coin, with a minimum price dependent on the gold content and the current price of gold. Now, Royal Mint’s new signature service allows you to own proper gold bullion for as little as £20.
The Mint said its new “signature” gold service will allow customers to buy gold in “quantities to suit all budgets”, meaning you can now purchase and own a fractional sliver of an actual 400oz gold bullion bar, which currently sells for around $475,000 (£311,000) on the international market if you were to buy the whole thing.
The Royal Mint said customers will hold full legal title over every ounce of gold they purchase (so the Mint won’t have a “direct claim” on your gold, and you can buy and sell it back to the Mint as they choose. However, as the Mint aren’t in the business of actually shaving off tiny bitys of gold bars, you will have to store your gold as part of a larger bar inside the trademarked VaultTM for which privilege the Mint will charge you a “management fee” of 0.5 per cent (plus VAT) per year based on the value of the customer’s gold holding being stored.
You will also pay a premium on the gold you purchase depending on the value of your proposed holding. Purchases of up to £5,000 will attract a premium of 2.5% on the market price, purchases between £5,000 and £250,000 a 2% charge, and those of £250,000 plus a 1.75% additional cost.
But is gold a good investment?It has become a popular investment in recent years, as a hedge against inflation and stock market movement as gold prices tend to move independently of other markets. However, the price is still nowhere near the 2011 high for gold prices, currently selling for around $1,190/oz, lower than the $1,220/oz when the online bullion service launched in September last year.
However, remember that the tax advantages to buying gold coins over other, more traditional types of investment do not apply to tiny bits of a bullion bar. Gold bullion coins are exempted from VAT and coins are also not liable to pay transfer taxes such as Stamp Duties which are liable when buying some company shares. Crucially, Britannia, Sovereign and Lunar bullion coins are only exempted from capital gains tax at 18%/28% on any gain on disposal as they are actually considered legal tender. And while it is possible (if inadvisable) to spend a sovereign in the local chip shop, you can’t go out and spend any amount of a bullion bar.
Martin McDade, the Royal Mint’s director of bullion, said: “The launch of our online bullion platform last September opened up gold trading to an audience that may previously have been put off by the perceived complexities of the market.” He added: “With the introduction of signature gold, we hope to expand this audience even further.”
You know what’s missing from your savings and investment portfolio? Gold. The Gold rush of 2011 saw gold prices rise to a record high of $1,883/ounce in August 2011, and now, three years later, The Royal Mint is encouraging the less wealthy public to become bullion holders with the launch of an online bullion trading service that lets people buy and sell gold coins.
From today, the Mint’s vault service will allow anyone to trade gold and silver coins via its website. The aim is, of course, to prevent the elitism that meant only the fabulously wealthy could afford to benefit from the upturn/subsequent dip in gold prices, and the Mint reckons their shiny new website makes investing in gold as easy as putting money in a deposit account. But more exciting.
The Mint’s website streams live prices for gold and silver so customers can buy at the best possible price “quickly, and securely, 24 hours a day, 365 days a year”. If you have stored your stash in The Vault (which the Royal Mint appear to have trademarked- has anyone told The National Lottery?) the Mint will also give customers a ‘competitive’ quote to buy back coins bought from its website..
Although there is no minimum investment- customers can buy a single silver Britannia coin, worth about £19.50- but those who want their gold kept under 24 hour Minsistry of Defence guard in The Vault™ will have to cough up a little bit more. Entry to The Vault™ requires a minimum purchase of at least 25 22-carat gold sovereigns – worth about £4,700. The Mint then will charge 1% +VAT of the value of the stored gold per year in storage costs. Otherwise they post the coins to you, with limited time free delivery, for you to keep under your own mattress.
But is it a good investment? If you bought and sold at the right time around the 2011 high, you could have made a fortune, but since 2011, the price has dropped to $1220/ounce, a drop of almost a third. Pundits who had previously said you couldn’t lose on gold were forced to eat their words. Any investment is, of course, bound by its own risks and rewards and you have to weigh up whether you want to keep your wealth in chunks of useless metal, or in intangible electronic numbers somewhere instead.
However, there are two advantages to buying gold coins over some other types of investment, or long-term purchase. Firstly, gold bullion coins were exempted from VAT, which unsurprisingly increased their popularity over other non-financial investment items; coins are also not liable to pay transfer taxes such as Stamp Duties which are liable when buying some company shares.
Secondly, and more importantly, particularly if planning to make an investment killing, Britannia, Sovereign and Lunar bullion coins are actually considered legal tender. Not that you should take one out with you and use it to buy toilet roll or anything (a Lunar coin, for example, is a £100 coin, but costs around £780), but the distinction is important as UK currency is specifically exempt from capital gains tax. Meaning you keep an extra 18%/28% of your profit and don’t have to share it with the taxman.
Shane Bissett, the Mint’s director of commemorative coin and bullion, said: “We want to help expand the bullion market in the UK, particularly as coins offer a relatively affordable introduction. The Royal Mint is responsible for manufacturing all UK coinage and has long been trusted with the currencies of other countries too, supplying to more than 60 worldwide. The quality of our bullion coins is of an extremely high standard which cannot be rivalled. We have been a highly respected and trusted source of coins for kings, queens and governments for over 1,000 years, and this proud heritage is means that we are globally recognised as a reliable source for bullion coins.”
ARE YOU FEELIN GANGSTA? If you really want to jazz up your sad, miserable life of driving to work and coming back again, and you’d rather be cavorting in a swimming pool with some sad-eyed ‘hos’, then stick with Vodaphone and they’ll reward you with a gold Samsung Galaxy S5.
Ok, so Vodaphone may come bottom of the table for 4G and general reliability, but LOOK! SHINY THINGS! If you preorder by March 28th you can get the limited edition Samsung Galaxy exclusive to Vodaphone.
Actually, although it looks gold, it’s actually described by Samsung as ‘copper.’ Hmm.
Still, as long as you don’t tell your homies that it’s a cheap fake gold coloured phone that might actually be copper, it’ll be fine. It will show your pals that you are on top of your green like a motherf***** tractor. Just wave it around VERY QUICKLY so nobody can see it isn’t actually gold, and you could be the king of the corner.
The corner outside Costcutters in Penge.
They say that gold is a good bet if you’re looking for a safe and steady investment but we poo-pooh that. Anyone can get their hands on stupid old gold. The REALLY hyper-desirable investment these days is an ACTUAL PIECE OF MARS.
It’s been confirmed by boffins at NASA that 15 pounds of Mars rock fell to Earth six months ago, with the bits landing in Morocco. It’s only the fifth time that pieces of the red planet have made it here and collectors have gone gaga for it, with the stuff selling for up to $22,500 an ounce.
If you were in Morocco in July, check your pockets – you might be a MILLIONAIRE!
But that was the grand plan of Paul Moran of Enniskillen, Northern Ireland. Sadly, his big dream turned to, erm, shit, when his amateur alchemy led to a fire that caused over £3,000 worth of damage to the block of flats where he resided.
A court heard that Moran left his own poo, along with other waste products such as fertilizer on a heater as part of an attempt to turn them into gold. Let’s be honest – we’ve ALL wondered if it was possible, but not many of us have had the wherewithal to actually have a stab at it.
Moran has been jailed for three months after admitting charges of arson and endangering the lives of others. His barrister described him a man of ‘considerable intellectual ability’ but added that he had problems battling drug abuse. “Shit for brains” might have been more appropriate.
No-one’s a winner at the moment. Loan finance is hard to get, the interest return on investments practically non-existent.But if you are of an investing bent, there is a market player that has consistently performed, and now gold has hit a new record price of $1,610 an ounce (almost £1,000).
Of course, this would be better news if you had taken our non-financial advice and trotted down to Harrods and bought your bullion back in 2009, as that would mean you were sitting on, um, a pile of gold. However, despite Monday’s bonanza price, the general consensus is that the price will continue to rise, with some experts predicting a price topping $2,000 an ounce in the coming years.
But is gold for you? Although it is normally considered a fairly safe investment, and one that rides a recession well, there are always winners and losers. After all, that savvy old Chancellor of the Exchequer, Gordon Brown, sold off more than half of the UK’s gold reserves, about 395 tonnes, between 1999 and 2002, when the price of bullion averaged $275 an ounce. Ouch.
Everyone knows that Gold is, well, a big lump of metal, normally found in slightly smaller quantities* around people’s necks and fingers. So how do you actually invest in it?
Well, you can invest in actual gold. Either in bullion form or in coins, the most widely known of which are gold Sovereigns and Krugerrands. Sovereigns normally cost slightly more (because they are prettier) but post-1837 coins have the huge advantage of being exempt from Capital Gains Tax, owing to the fact that they are actually legal tender. (In case you are interested, their legal value is £1. But whatever you do, do not go and spend them in Poundland. Please.)
But what if you can’t get to Harrods to pick up your bullion or you can’t quite manage a whole bar? You can even buy gold online these days, and on GoldMadeSimple.com you can even buy your gold by the gram as a fraction of an actual bar. On the downside you can’t actually hold your (partial) bar of gold, but neither do you have to pay for storage.
Before you go handing over wodges of cash to bloke in the pub, make sure you are dealing with someone reputable- check on the World Gold Councils – ‘Where to buy directory’ which can be found on its website at gold.org and the London Bullion Market Association members list which can also be located online at lbma.org.uk.
Other ways of investing in Gold could be to invest in gold-mining companies, which is the riskiest method of gold investment as you are also exposed to fluctuations in the stock market, or through exchange traded funds (ETFs), which works in a similar way to a unit trust, but the fund then invests in actual gold on your behalf.
Whoa. Back up. Tax?
Just like any other investment, any gain made on gold will be subject to UK capital gains tax, unless you hold legal tender coins (as above). Gold does not, in itself, produce an income, but if you invested in gold-mining shares for example, any dividends paid would also be subject to UK income tax.
However, if you are the canny sort and are wondering about tax-free wrappers, there is good and bad news. You cannot invest in actual gold (bars, bullion or coins) through an ISA, but you can hold gold-mining or ETF shares and benefit from tax free growth. Also, if you have a SIPP, you can invest in gold however you like, if that’s what you fancy, and get income tax relief up front and over time within the fund.
Well, while we’re looking at alternative investments, why limit yourself to gold? Why not look at investing in wine, provided you can be sure your mother-in-law won’t drink it all. A number of specialists now focus on wine as an investment. Or what about art and antiques? Bet the chap who bought Jane Austen’s unfinished manuscript back in 1988 for £90,000 was chuckling into his sleeve when it sold at Christie’s last week for almost £1million…
*Or, in the case of certain ‘bling’ celebrities, not that much smaller a quantity at all.
Today’s Deals Of The Day is all about the finer things in life – we refer of course, to champagne, gold and a set of computer speakers with plenty of oomph!
As ever, the bargains come to you via HotUKDeals – you’d be mad to go anywhere else…
Tesco have recently sidled their way into the gold-trading market – a lucrative market in these times of extreme skintness, and as such, are trying to lure in customers with a tidy little offer.
They’ll give you £10 for every gram of 9 carat gold that you bung in an envelope and send to them. It’s a price that is better than many on the market – but not quite all. Check out the thread on the HotUKDeals forum for some ‘golden’ advice.
Once you’ve got the cash in your hand, you might want to celebrate your good fortune by immediately swapping it for a bottle of bubbly, or champagne as non-idiots call it. After all, you can get some for just £9.00.
There are whole range of varieties, styles and types of varieties of champagne on offer, from Moet to Mumm to Hanson and some others that we’ve never ever heard of because fuck knows, we don’t drink champagne round these parts.
Finally, some Logitech X210 2.1 speakers, perfect for transferring noise from your noise output device into your ears without chafing, burning or long-term scarring.
Still reading? Of course you are. You’ll be wowed to learn that you can nab yourselves a set of these magnificent animals for only £19.98 delivered.
(deals found by HUKD members mywife, offhistrolley and kzee)
The retailing behemoth that is Tesco has announced that it’s about to dig its claws into another piece of the revenue-generating flan (and make no mistake, it IS a flan).
They’re looking to muscle in on the thriving cash-for-gold market, as prices of the shiny, wonderful metal continue to rise. They’ll be trialling their ‘Gold Exchange’ service online and in about 15 of their stores, immediately threatening other postal services such as Cash4Gold and CashMyGold by following their business model.
Tesco are pledging to pay £7.81 per gram of nine carat gold and will take examine all kinds of gold jewellery, paying the dosh straight into the seller’s bank account, with the obvious Clubcard link-up hanging in the air as well.
Would the introduction of a ‘big-name’ player tempt you to part with your precious shiny objects are you hanging on to them whatever happens? Tell us you fools!
There’s something wrong with the world right now. Actually, there’s quite a lot wrong with the world and there aren’t enough years left of civilisation to list it all. But here’s another example to stick on that list; an ATM machine that doesn’t pay out cash, but gold bars. Gold bars. From a cash machine. We shit you not:
Yes, residents in Las Vegas and Florida will be able to punch in their PIN and scoop up their 1, 5, 10 and 28 gram (1 ounce) bars, with the machine checking the international price of gold six times an hour. We can’t wait for these Gold To Go machines to reach the UK – when the revolution comes, we’ll be snug in the Bitterwallet bunker with our assets secure in gold and tins of rice pudding.
It may not be as wrong as this, but that doesn’t make it right.
Today’s ad (for Guinness) was shoved under our noses by avid Bitterwallet reader A. Gainsborough – it’s one we’ve never seen before, even though over a million other people already have.
So with that in mind, it’s the first in a new spin-off series called Commercial Break GOLD that we’ve just made up, in an attempt to head off any smart arses who are thinking about filling the comment section with toss like ‘Ugh. 2008 called – it wants its advert back’
Screw that bunch – this ad made us laugh, and if you’ve been in a coma for the past couple of years (there’s another one that you can’t use), it might make you laugh too.
I bet virtually no-one noticed the incredibly subtle punning in the headline of ‘gold’ and ‘fish’. Those that did probably thought it was a rubbish pun. You can’t win with you sneering gits.
Anyway, what’s all this about golf and the Office of Fair Trading (OFT)?
It concerns those TV commercials you will have invariably seen that ask you to send in your unwanted gold in exchange for cash. The OFT have requested information from some of these companies because they have a hunch that they might not be complying with consumer protection legislation.
What the OFT are particularly interested in is their business practices and want them to explain some of the claims they’ve made in their advertising and on their websites. One thing that sticks out like a sore golden glans is whether consumers’ rights to reject an offer for their gold and receive it back are being honoured.
The folks from The OFT have said: “No assumption should be made that any companies involved in gold buying have broken the law”.
Juliet Young, a Director in the OFT’s Consumer Market Group said: “Buying gold using the postal service is a relatively new business model, and while innovation often brings benefits for consumers, we want to check that the market and businesses operating in it are developing in a way that treats customers fairly.”
This move comes on the back of a Which? report which stated that these firms are offering terrible value. One firm offered a paltry £38.57 for the three pieces of new jewellery purchased for £729.
Which? found the TV gold buyers consistently offered the lowest prices, with CashMyGold offering just £38.57 for all three pieces of jewellery, including quoting just £9.64 for a 9 carat bangle that had been bought for £215, and for which an independent jeweller offered £54. In another case, Money4Gold told the Which? researcher that a £399 carat gold necklace was not gold and demanded they paid £10.95 to have it returned.
Basically, these new companies that are advertising on TV are making offers much lower than what is being offered by pawnbrokers and high street jewellers, who paid an average of 25% of the items’ retail price.
Peter Vicary-Smith, Which? chief executive, said: “The poor value for money that these TV gold buyers are providing is simply shocking. The cash for gold market is unregulated, and this investigation has raised some serious concerns about the fair treatment of consumers. People should be wary of buyers’ adverts as they could almost certainly get more money for their gold elsewhere.”
Yesterday we warned you of the perils of flogging your unwanted gold off to shifty online nugget-buying nuggets. Today, the other end of the precious metal market has reared its proud head like an ecstacy-fuelled ox – Harrods have started selling gold bars.
Britain’s most glamorous corner-shop proprietor Big Mo Al Fayed has linked up with Produits Artistiques Metaux Precieux (whoever the hell they are) to pedal shiny gold bullion and coins over the counter.
But the move comes just as gold prices reach a record high (£662 an ounce), thanks to a weak American dollar. No doubt there’ll still be hordes of rich idiots queuing up for a nugget of their own.