How to Buy Gold Bullion: Guide for beginners

Buy Gold Bullion

Planning to buy gold bullion bars? Wondering where to start? Have several queries? Fret not. You will be getting answers to all your questions in this guide.

Why Gold Bullion Bars?

Why buy gold bullion? As a beginner, this must be the first question that popped up in your mind!

The yellow metal is considered a lucrative investment option in the long run. During financial market crises, investors turn to gold as it has proved to be a safe haven in the past.

When it is present in your portfolio mix, it can help you decrease the impact of high risk assets. It has gained lustre as a hedge asset as it is likely to insure against inflation and protect you in an unstable economy.

A lesson from the history

Post recession (2007-2008), the price per troy ounce of gold became two-folds by 2011. The gold price had reached its peak at £1,178.92 in 2011. Numerous investors capitalised on the opportunity and made high profits.

No doubt about the fact that gold is volatile but compared to other investment assets, one can rest assured that it can be sold sooner or later.

What does the term bullion mean?

Bullion refers to gold or silver in the form of bars in their highest purity. One can buy or sell bullion bars based on their intrinsic value or the value of metal content.

Central Bullion is a reliable and secure platform to buy silver bullion and gold bullion. It offers the best gold and silver bullion prices.

The process is hassle free and you can easily buy bullion bars from your PC, laptop or mobile in your local currency from trusted local Bullion Dealers. And get that delivered to your doorsteps safely within 24 hours.

The global marketplace on this portal lets you to buy bullion bars at the lowest bullion price from hundreds of dealers around the world.

What is the premium on investment bullion?

When we buy silver or gold bullion, we have to pay a percentage extra than the market spot prices, it is known as the Premium. In simple terms, it is the difference between how much one pays for their investment bullion and the amount of the Spot Price of that metal.

Buying on the lower premium is considered a better deal. On the Central Bullion platform, you can buy gold bullion bars at the lowest prices.

The premium is low on gold bars and depends on the size of the bar. Bigger the size of the bar, the lower the premium.

Is there any VAT on the gold bullion?

The investment gold bullion bars and coins that are purchased in the UK and EU are exempt from VAT.

Since the 1st January 2000, gold investment bullion has been exempt from VAT, to fall in line with the EC Council Directive 98/80 EC.

Do I have to pay Capital Gains Tax on Gold Bullion that I sell?

Capital Gains Tax (CGT) is a tax that needs to be paid when one sells an asset on the profit that they make. This tax applies to numerous other assets including bullion, such as shares and second homes.

Being a resident of the UK, one gets a CGT allowance where any profit realised in a single year will go towards the individuals own CGT allowance. The profit which is below the individual’s allowance limit is exempt from CGT. But if it is over one’s allowance limit, then it is subject to tax in line with the appropriate HMRC rates.

What is Spot Price?

The spot price of gold is the current market price per troy ounce on which it can be purchased or sold and delivered immediately.

Investors refer to the spot prices of gold and silver before making the buying or selling decision. Most precious metals trading platforms have a Live Spot Price Feed on their website.

Hope after reading this gold bullion buying guide, you must have got all the answers to your queries. So it’s time to buy gold and silver bullion bars to secure your future!