The materials in this series are aimed at beginning investors, but more advanced investors can also benefit from this information. The purpose of these articles is to serve as a starting point for making informed choices in the diverse world of gold and to give an accurate idea of what the various gold related tools look like and how they can be used.
Learn About Dealing In Gold
Investing in gold is purchasing physical gold coins or bars from a dealer, sometimes called a gold dealer. With the transaction, the buyer takes ownership and full possession of them. The purchase can be made either online or at a physical location.
Currently sells investment gold and silver only through online orders (with delivery to an address or our headquarters) or our physical branches . “Buy” and “Sell” prices are available on our website and are updated every 20 minutes to keep them current with global gold prices. We buy both investment gold and non-investment gold, including jewelry, lockets and various types of gold scrap. You can see more about this process in the ” Redemption ” category.
Although physical gold for investment can be bought on the Internet, it is not digital gold . With digital gold, the consumer does not receive gold bars or coins, at least until they claim them and pay a fee plus shipping costs. We’ll learn more about the different types of investments covered by the broad term “digital gold” in the next article in this series.
What Is Gold For Investment?
Not all gold is investment gold either. To qualify as such, it must be a gold bar or coin that meets certain legally defined criteria. A gold bar is investment gold if it has a purity of at least 0.995 (23.88 carats). The weight, purity, manufacturer and serial number must be indicated on the surface of the ingot.
A gold coin is investment gold when:
- It is minted (ie manufactured) after 1800;
- It is or was a legal means of payment in the country of origin;
- Has a purity of at least 0.900 (21.6 carats);
- It is sold at a price that does not exceed by more than 80% the spot price of the gold it contains.
No value added tax (VAT) is charged on investment gold . Bullion and investment coins can also be of other metals. They are not exempt from paying VAT.
VAT & Other Things To Keep In Mind
This analysis focuses only on gold bars and coins that qualify as investment gold. Other gold products do not have the same characteristics. For example, their price premium can be very high and they are subject to VAT, which undermines their profitability as an investment asset. Historical numismatic coins also have a different pricing pattern. In separate articles we will look at the differences and details between gold bars and coins and whether jewelery is a suitable investment vehicle.
