What's the diffidence between collecting gold and investment gold and the impact on benefits?

williewonder

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

Northern_Wanderer

Yes it would affect benefits, this is capital.

teaselMay

It's the same as collecting pound coins, 1000 pound coins is £1000 whether you've collected them as a collection or as savings

Keep_pedalling

Nobody ‘collects’ krugerrands, their value is entirely based on their gold content.

If you must have physical gold you would be better off with sovereigns which unlike  krugerrands are not subject to capital gains tax.

Muttleythefrog

williewonder said:

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

Yes you need to declare your savings and investments including gold which is capital. It's up to you whether you call it collecting or investment... the DWP won't care. Time to talk to those who help you manage your affairs!

kaMelo

williewonder said:

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

Possibly. You say they are not investments but what other reason is there to hold them if not investment? 
Leaving that aside, for benefit purposes personal possessions are not classed as capital. Are the Krugerrands capital or a personal possession?
That's a debate that could go on forever but ultimately it would be for DWP  to convince a tribunal that they were not a personal possession, something I think they would struggle with.

LightFlare

williewonder said:

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

If the are modern coins then I wouldn’t see them being classed as a “collection”

Collecting would normally signify some historic importance and or scarcity which enhances their base value

Just bog standard,modern,mass produced coins wouldnt class as a collection imo

At current prices - more than 3 would need to be declared (on top of any other savings) and from the way you have phrased it - I think it sounds as if you have more than that

Northern_Wanderer

a 1 oz gold Krugerannd costs £2 233 at present to buy at least, I really don't see how these would be classed as anything other than investments/ assets/ capital. I imagine that if you were to get a benefit review and your bank statements were inspected, they are going to ask questions about these purchases. If somehow you can purchase them with cash, most likely there is a paper trail unless you have a lot of cash under the mattress or something. I doubt there is a loophole here or many would be doing this. Maybe you could ask the DWP?

Northern_Wanderer

I found this: https://www.whatdotheyknow.com/request/are_bullion_coins_regarded_as_sa

it links to this document https://www.whatdotheyknow.com/request/are_bullion_coins_regarded_as_sa/response/900007/attach/3/WDTK%204240.pdf?cookie_passthrough=1

So I think you have your answer. It should be declared as "other savings" and a decision maker will decide.....

Grumpy_chap

williewonder said:

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

I would expect a DM to assess this asset as capital (whether you consider it personal possessions or not).
More than £6k in value would therefore impact any means tested benefits you receive.
Some benefits are not means tested so would be unaffected.

EnPointe

kaMelo said:

williewonder said:

I collect gold coins... one ounce krugerrands. Would more than 6k affect my benefits? They are collecting not investments?

Possibly. You say they are not investments but what other reason is there to hold them if not investment? 
Leaving that aside, for benefit purposes personal possessions are not classed as capital. Are the Krugerrands capital or a personal possession?
That's a debate that could go on forever but ultimately it would be for DWP  to convince a tribunal that they were not a personal possession, something I think they would struggle with.

 Modern coin sold  primarily on the basis of  being a given weight on Gold of a known Purity , it's  entirely an investment vehicle  , it;s not as though they are demanding you  scrap  Grandma's  Rings  and necklace .,..