Are you planning to buy gold bullion or any other precious metals? As a novice investor, one needs to know the answers to all frequently asked questions before you get started so that you understand everything about the market.
Buying physical metal (gold, silver or any other precious metal) is considered the safest way to invest. A smart investor would evaluate the spot price and premium and go with the lowest price. So price is one concern but many other factors that need to be taken care of.
When one plans to invest in precious metals, many questions pop up in the mind. And these questions need to be answered to clear any doubts before you buy gold bullion bars or coins. So without further ado, let’s get started!
Which precious metal should I buy: Gold or Silver?
This is one of the most important questions that confuse newbies. The answer to this question will depend on a lot many factors including your budget.
Most investors prefer gold over silver though both the metals have their charm and profit generating potential. Both silver and gold have a liquid market due to their demand in the jewellery industry and as investment options but gold’s share is more than that of silver.
The gold price is less volatile compared to the price of the white metal and this is the reason why savvy investors prefer the yellow metal. On the other hand, silver is considered more speculative. The white metal has a closer relation with the economic conditions. And the reason for this is that silver has numerous industrial uses.
Silver is considered more lucrative when its price goes down. Also, it costs much less than gold and hence is more accessible, especially to small investors.
What should I buy: bullion bars or coins?
The next question that normally beginners ask is what should they buy- bullion bars or coins? Which one is a better investment option? The answer to this question will also depend on various factors.
If your budget is low, you can buy smaller gold or silver bullion bars.
And if your budget is high, the best option is to invest in larger gold bullion bars as they have lower premiums. Finding a buyer can be the only issue that one can face at the time of selling larger bars as they are a little difficult to liquidate as compared to the small size bars and coins.
You can consider to buy gold bullion coins as they are more recognisable and hence easy to liquidate. Finding buyers for them is easier and they can fetch you higher premiums at the time of selling.
How does VAT & CGT impact my investment?
In the UK, gold investment bullion is VAT free and for the Capital Gain Tax (CGT), any British legal currency is CGT exempt. Coins produced by the Royal Mint are CGT exempt and hence many investors prefer Silver and Gold Britannia and Gold Sovereigns.
Gold coins have higher premiums and may be available at a little high price as compared to bigger bars. But being CGT free, they can give higher returns when selling. This is the reason why most investors diversify their portfolios with gold coins.
Which is the best online platform to buy silver or gold bullion?
If you are planning to buy precious metals bars or coins, you can consider Central Bullion, a trustworthy investment bullion marketplace. You can find the best deal for gold and silver bullion bars and coins on this portal.
This is the place where you can confidently buy gold and silver bullion. They offer secure global payment options in 18 currencies and 80 countries.
Key Takeaway
During times of an uncertain global economy, it becomes crucial to diversify one’s portfolio. As an investor, one needs to allocate a portion of their portfolio to gold, silver or any other precious metals. And depending on your requirements and budget, devise a strategy. Your smart investment strategy can be your first step toward a financially secure future.
