Gold UK Coins Query - CGT and Dealers Margin

mark99

Have I got this right?

If one wanted to avoid CGT on buying/selling gold.

If you buy a UK 1oz gold coin (UK coins to avoid CGT) at £950 you can sell back at £888 which is about 7% dealers margin.

(Spot price is £880. A 1 oz coin is then about 8% above spot).

So you have to hope gold rises by 7% just to break even between buying and selling?

Or is there a better way of buying/selling to reduce the 7%?

TIA

Mark

lvader

You already use your 10K annual CGT allowance?

WaltD

mark99 wrote: »

So you have to hope gold rises by 7% just to break even between buying and selling?

Or is there a better way of buying/selling to reduce the 7%?

Basically, yes. But this applies to almost any type of investment, e.g. shares, funds, etc. The middle man has to make a profit, after all!

It's probably stating the obvious, but you should try to buy on a dip in the spot price, and sell on a peak!

You could try to find a dealer who will buy at a more favourable price, or even try selling through one of the auction sites such as eBay. You never know ...

WaltD
:rotfl:

mark99

lvader wrote: »

You already use your 10K annual CGT allowance?

The sums being considered will blow this into the weeds.

Mark