Gold Investments - Comparison of UK prices

johnsmith25

I want to invest around £3000 to buy gold bullion bar 24CT. A friend advised that I can get a better price in Dubai, compared to that in UK, where it is tax free.

Anyone with an idea, of how UK gold bullion prices compare with the rest of the world. If there is a website for this kind of information, it will be very useful.

lvader

It's tax free in the UK as well.

I bought 100g from https://www.ukbullion.co.uk/gold a couple of weeks ago.

DiggerUK

johnsmith25 wrote: »

......Anyone with an idea, of how UK gold bullion prices compare with the rest of the world. If there is a website for this kind of information, it will be very useful.

Try here, there is a sovereign thread and a UK thread on Gold Forum.
Posters from all over globe.
http://www.kitco.com/

Some more price sites.
http://www.coininvestdirect.com/en/
http://www.elminvestments.co.uk/gold-coins.html
http://www.hattongardenmetals.com/
http://atkinsonsthejewellers.com/special-offers.php
http://www.bullionbypost.co.uk/

Up to date prices here.
http://goldprice.org/gold-price-uk.html
http://www.lbma.org.uk/pages/index.cfm?page_id=1
http://www.gold.org/

johnsmith25

Many thanks for such a good collection of links.

Just wondering, how encashable gold bullion is? Is it easy to sell gold bars / coins

DiggerUK

The CID and HGM link give details of buy back.
I've never sold so can't comment further.
If gold is anything, it is totally liquid, you will find a buyer anywhere on the planet.
Never heard of a problem selling. If you do ebay, try there, people pay silly rates.

ps. If it is 3K you are looking to spend go for Sovereigns or Britannias. They are CGT free when you sell. That ammount will get you p&p free delivery as well.
Check out local coin dealers and pawn shops as well.
http://www.numis.co.uk/

sabretoothtigger

When you sell the gold they'll be a spread on it. Like an exchange rate when you go on holiday, what you pay is a seperate rate to what you can sell at.

The difference is like 10%? Maybe 20% with some of these coins Im not sure. So you have to be buying long term or you wont make enough to cover that

I got mine when sovereigns were £120 and I noticed its gone up to £200 now which must be near whats going to be the high for this year surely.
Still I will keep holding as I think the time frame to hold is about 5 years, I'll sell when I find something else good to hold for 5 years


From an old MSE thread:

2004 wrote:

deemy2004 wrote: »

I would not say its 'excellant time' to buy gold. Excellant time would have been 3-4 years ago when it was trading at 260, and not 450 its current price.

What's wrong with futures markets ? Afterall they determine the price of gold, without their liquidity gold would be trading at $35 !

And remember gold is priced and traded in dollars so a fall in the $ will devalue the sterling value of your gold by an equal amount, thiis it would need to rise substantially.

Gold Analysis -
the Gold bull market is now going into its 5th year, with little sign that the market is peaking, yet, so does suggest higher prices, thus likely targeting 500, which represents some 11%, now if you bought gold and if the dollar did not fall, then your profit after costs such as commission and storage would be what ? !4 or 5% ? Thats IF you got out at the peak.

For there is one thing to take note of, and that is gold is a volatile commodity its not going to say get to 500 and then stick there for several years. Once the buying stops the sellign will start and it will likely trend over several years back towards $300, but thats for AFTER the peak.

Now if you want to buy a metal, look at palladium

cgnao wrote: »

Best coins are sovereigns, then britannias, as they are UK legal tender and as such exempt from capital gain tax. Effectively they are UK cash. Non-UK coins (as krugerrands or american eagles) and gold bars are not UK legal tender and as such they are liable to capital gain tax.

At the current spot price of £226/ounce,

9 off gold sovereigns will cost you (considering an average dealer's margin of 10%) around £535. The intrinsic gold content would be £478.

2 off 1 ounce britannias would cost you £524. The intrinsic gold value would be £452.

If you bought 100 sovereigns (in excess of £5000) you would probably be able to negotiate the dealer's margin down to around 5%.

However, given that you only intend to invest such a small amount, you might be better off using https://www.goldmoney.com, which is the ONLY, I repeat the ONLY, and I repeat again the ONLY way to invest safely in gold online. I have had an account with them for the last year and are very satisfied. They charge 3% buying commission and 0.1 gold grams (about 70p) monthly storage fee.

Remember gold is a safe haven asset. Its price goes to the moon in financial crises, which is when institutions are likely to go into trouble (debt bubble, does this ring a bell?) and may fail. Therefore stay away, I repeat STAY AWAY, from gold futures, exchange traded funds, unallocated gold accounts and certificates. They are paper gold: you give up your cash and become a gold creditor. If the institution is insolvent, you lose your money AND receive no gold.

As a side note, it is an excellent time to buy gold. It will outperform any other asset class in the financially turbulent years to come. Protect yourself.

If you had got 100 sovereigns for 6k like he said, they'd be 20k now So the top argument might apply, its overbought and price too high but inflation is likely still underestimated overall so I think its not due a fall yet (ie. its not spiked)