The Value of Physical Gold

Many people start thinking about their retirement plan when it’s already too late. The later you start saving, the less time you have to contribute money and the less time there is for that money to grow. But setting up a pension and investments when you’re young isn’t the only important ingredient to a comfortable future. The balance of those investments is also key. Diversifying by investing in precious metals such as physical gold, means your portfolio is more balanced to cope with an uncertain global economy. Gold has been known as the world’s safe haven asset as it tends to rise in value when other assets fall.

There’s nothing new about buying gold as a form of investment. As a matter of fact, people have been doing it for years. Today more people than ever are adding gold and silver to their portfolio. And it’s not just retail investors who like the safety of precious metals. Central banks are the world are switching large portions of their reserves into gold as they recognise its ability to protect from uncertain markets and devaluing currencies. While stocks, bonds, or mutual funds can be a great starting point when it comes to investments, investing in tangible assets such as gold provides something different. Unlike these common paper assets, the value of physical gold bars and coins can never fall to zero due to their intrinsic value. There’s always the chance that a stock you own can go bust or the bank you deposit cash with requires a government bail-out. There’s no such counterparty risk with physical gold and silver.

There are also potential tax benefits when investing in physical gold. All investment grade gold is VAT-exempt in the UK. Meanwhile there’s no Capital Gains Tax to pay if you profit from certain UK gold coins due to their legal tender status. By seeking the guidance from a reputable gold dealer, they can guide you to ensure you select the most tax efficient gold bars and coins. Gold Bullion also qualifies for certain personal pensions in the UK. This means you can essentially balance your pension with gold bars, whose growth is completely tax free. Even better, with tax relief on your contribution, you can essentially buy these bars at up to 45% discount.

Before making your decision about where to buy your gold, make sure to check gold prices. If you choose to buy some gold and choose gold investing over other ways of investing, you can reduce the volatility of your retirement portfolio. Gold has always been a safe way to invest money. Try to read something on the Internet about buying gold and see how other people benefited from investing in gold.

Leave a Reply

Security Code: