Observing high premium on gold bars online

Messiah9

Hi,

I'm planning to buy more gold bars from a reputed online UK-based bullion dealer such as BullionByPost

I did some calculations and observed that they are charging a premium of 7% and above on a 1 oz gold bar

As an example, at the time of writing this post, the spot price of 1 oz gold is 1448.83 GBP and the bullion dealer selling price of gold bar is 1557 GBP. So, that is a 7.46% premium

I know that the premium fluctuates based on many factors but are there other options to buy gold at a lower premium?

Also, I've heard that you will pay a lower premium if you are buying gold in a larger quantity. That doesn't seem to be the case with the online bullion dealer as per my calculations.

Adyinvestment

I find BullionByPost to be expensive (usually the closest price to the Royal Mint in my research)

Chards 1oz Royal Mint Bar at this time is £1511 (4.5% premium) - Atkinsons are also usually competitive

I prefer the Brittania's though as don't want to faff with CGT, but the premiums are slightly higher at the moment due to a higher demand in physical at this time - Chards are paying over spot to buy back Brittania's/Sovereigns at this time (Atkinsons were too a few weeks ago, not sure now)

Adyinvestment

To add to the above, they both will have lower premiums for larger quantities

plumb1_2

Buy sovereigns either new or used, gold is gold. And no cgt . Plus easier to sell or barter with.

Messiah9

plumb1_2 said:

Buy sovereigns either new or used, gold is gold. And no cgt . Plus easier to sell or barter with.

Okay. Britannia would be considered sovereign right?

I think I'll go for 1 oz gold Britannia coins to save on the CGT

I believe with gold bars, you can only save on VAT but not on CGT

Messiah9

Adyinvestment said:

I find BullionByPost to be expensive (usually the closest price to the Royal Mint in my research)

Chards 1oz Royal Mint Bar at this time is £1511 (4.5% premium) - Atkinsons are also usually competitive

Nice. I just checked out Atkinsons. I compared the price of 1 oz Gold Britannia 2023 coin on Atkinsons with BBP. There is a 35 GBP difference between the two sites

I'm surprised why one would charge so much more than the other when effectively they are delivering the same coin from the same location

From business perspective, BBP would lose competition

lohr500

This post got me thinking about adding an amount of gold to my portfolio. 

Today, I registered with the Royal Mint and used their online DigiGold system to buy just under 3oz of gold.
The service fees might make it a little more expensive than physically holding coins, but it removes the worry of keeping coins safe and the costs of secure postage when it comes to selling time. CGT isn't currently a concern.

Nurse2047

Can I ask as trying to understand for my own learning, can anyone explain the difference in buying digital gold say via Royal Mint or buying Gold on your investing platform? 

Thanks 

phillw

Messiah9 said:
I'm surprised why one would charge so much more than the other when effectively they are delivering the same coin from the same location

From business perspective, BBP would lose competition

You were planning to buy more from them, so their price doesn't seem to be a huge barrier to sales.

They also get the extra money.

bostonerimus

I bought some bullion the other day and all I got was stock cubes..."o" what a mistake.

phillw

bostonerimus said:

I bought some bullion the other day and all I got was stock cubes..."o" what a mistake.

I buy gold bouillon in a tub.

https://www.hollandandbarrett.com/shop/product/marigold-swiss-vegetable-vegan-bouillon-powder-60070273