Buying Gold Sovereigns
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dboswell
Posts: 309 Forumite
I want to purchase about 5k-10k of gold sovereigns as part of my investments.
Any advice of what to buy e.g in terms of liquidity and where?
I understand that they CGT free or is it a certain category?
Do you have to declare any gain on a tax return?
Any advice of what to buy e.g in terms of liquidity and where?
I understand that they CGT free or is it a certain category?
Do you have to declare any gain on a tax return?
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Comments
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You've already answered the 'what to buy' if you are looking to get gold sovereigns? Presumably you only want them for their gold value and not as collectors' items so one coin is generally as good as another.I want to purchase about 5k-10k of gold sovereigns as part of my investments.
Any advice of what to buy e.g in terms of liquidity and where?
Other options include the 1oz coins like Britannias, Krugerrands etc which give you fewer bits of metal to look after and cost more each ; or investing in some virtual gold account or into a bullion fund / ETF. With the latter options you replace the risk of someone burgling your house or your postman with counterparty risk, as your investment is all paper/digital whether the underlying assets are physical gold or derivatives contracts.
If you're in London, ATS by the Savoy are reputable (or at least they were years ago and still exist) but there are various postal/ mailorder services if you don't have a dealer in your own town.
Sovereigns minted after 1837 will be sterling currency (not that you would spend them in a shop for their face value, but they technically are, just like gold and silver britannias).I understand that they CGT free or is it a certain category?
Do you have to declare any gain on a tax return?
As such, they are not subject to gains taxes because they're sterling currency.
And so there is nothing to put in a tax return because there can't be any chargeable gain. Of course, you might get losses instead of gains and as they're outside the scope of CGT you can't net such losses off your taxable gains on other 'real' investments.
http://www.legislation.gov.uk/ukpga/1992/12/enacted#section-21-1-b0 -
Hatton Garden metals is the place to buy sovereigns.
Just grab the "Best value gold sovereigns"
http://www.hattongardenmetals.com/buy/0 -
Sovereigns are VAT and CGT free. These are cheapest companies, I have used both..._
http://www.elminvestments.co.uk/gold-coins.html
https://atkinsonsbullion.com/gold/gold-coins0 -
Once one has purchased such item, where would you keep them? At home or would you pay a bank to keep them?
I am also thinking of buying some gold but dont know where to start,0 -
I buy one kuggerand per year and keep them in my sock drawer, last one was purchased through Bullion by post. Theres not much difference in price between the online sellers as the price should be determined by weight, market price and small % for the seller.0
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How many do you want? You could pop a sovereign into a bag of flour (just don't throw it away). You can fit several, including acrylic hard cases, into a space not much bigger than a packet of Polos. Uncased circulated ones are even more compact. Gold is dense and takes up little space, use your imagination. Few banks provide safety deposit boxes now, Metro Bank will but the costs can be prohibitive. Non sets/collections are generally not insurablehenryandmay wrote: »Once one has purchased such item, where would you keep them? At home or would you pay a bank to keep them?0 -
Better to hide them in a can of Lyle's Golden Syrup. Then every so often you can have so much fun licking them clean.How many do you want? You could pop a sovereign into a bag of flour (just don't throw it away).
At least, that's what I imagine people do for sport once they have retired with more gold than they need to spend.0 -
Is this true, and is it workable? I have heard old wrinkly's at the local legion discussing this.
So if your four years out from state retirement. Have circa 110k in the bank. Savings. You do not want more than 10k in the bank as this would lead to less state benefits, .i.e pension credits and council tax credits.
You buy 25k of gold coins per year for four years. Hide them away. At retirement age you are holding 100k of gold coins which you can then sell at the local gold/pawn shop to support your income? For cash to be spent.
Selling 12.5k of gold coins per year for eight years boosts your retirement income all hidden from the authorities?
I know gold could fall in value, also inflation is not your friend. Do people actually do this?0 -
I want to purchase about 5k-10k of gold sovereigns as part of my investments.
Any advice of what to buy e.g in terms of liquidity and where?
When one wants to invest in businesses and industry, one usually buys tradable securities, which have great liquidity, as well as the chance to diversify, rather than buying entire small local businesses.
I apply the same concept to gold-based investments, preferring to hold securities which derive their value from holdings of the metal, rather than directly possessing physical gold myself. That way, I enjoy high liquidity in my investments. Such securities can also be held in a tax-protection wrapper, such as an ISA or a personal pension.
While it is easy to buy gold coins, selling them quickly for a good price can be tricky.
Holding physical gold coins is an insurance strategy, not an investment strategy.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
It doesn't boost your 'income' because you are just paying yourself with your own money.Selling 12.5k of gold coins per year for eight years boosts your retirement income all hidden from the authorities?
But yes, the result is you would obtain extra means-tested benefits if you were to illegally under-declare your liquid assets - hiding your cash to obtain benefits designed for people with less wealth. You could have a good laugh with your mates down the local legion about how you're sticking it to the man - and then live in perpetual fear of one of them dobbing you in.
Gold may or may not hold its value against inflation in future - over some periods it has, and others it hasn't. I am sure some people would try the wheeze.I know gold could fall in value, also inflation is not your friend. Do people actually do this?
What is clear is that if you are a relative pauper with a pension income level below the council tax credit / pension credit cut off points, £100k will be a lot of money to you. It would be a shame if it went missing in a casual burglary, or got lost in the aftermath of a house fire.
Or maybe someone followed you home from the pawnbroker one month, forced his way through your front door behind you, and threatened you with a baseball bat until you told him which cookie jar the coins were in. Then after finding them, beat you to death so you wouldn't report him to the police. No paper trail that anything was ever stolen, because as far as anyone knows, you didn't have a secret 100k of gold stashed in the cookie jar; all your benefit claims show you have minimal assets. Sounds pretty nasty, but some of the public who had been defrauded by your benefit cheating would probably clap and say you had it coming, live by the sword die by the sword etc.0
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