Category: Buy Gold

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Gold Investment Tips For Beginners

If you are looking to start investing in Gold, there are a few points to consider before you make your first investment. Gold is a brilliant way of preserving wealth from one generation to another as it has a history of holding its wealth. Its natural scarcity and high production cost are the main reasons it holds value. 

Keeping an eye on the price of Gold 

Keeping an eye on the price of Gold is key. Gold prices are continuously updating; when you are looking to buy Gold, keep an eye out on what is happening in the property and stock exchange markets. Generally, if the other markets are underperforming, then the price of Gold will rise, and many companies and investors will use Gold as their insurance backup. 

With Gold, you have to look at it as a long-term investment. Ideally, you will keep your Gold for many years. Therefore, people buy Gold to have a timeless asset and preserve their wealth to protect them during any financial crisis. 

Different types of Gold investments 

Throughout history, Gold ownership has been reserved for the rich, but we at J Blundell & Sons want to make the ownership of precious metals accessible to everyone. 

There are three main options if you are looking to invest in physical Gold. You can either buy Gold bullion, coins or jewellery. 

In one of our recent blogs, how to invest in Gold, we went into detail about each option and why people choose each option. 

How to keep your Gold investments safe 

Our last blog talked about the three main options for keeping your Gold investments safe and secure. You can either store it at home, in a bullion bank vault or in a safe deposit box/consumer bank. Of course, it is always important to take our appropriate insurance to protect your Gold. 

If you are at the start of your Gold investment journey and would like any advice, you can always give us a call or drop by and see us in Hatton Garden, London.

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How to store your Gold securely. 

In our previous blog, we discussed how to invest in Gold and briefly discussed how to store and insure it. This week we will delve a little deeper into the various ways you can store your Gold securely once you have invested in it. 

There are three main ways you can store your Gold. At home, at the bank or in a secure vault. There are pros and cons for each option which we will discuss below. 

Storing Gold at home

Storing your Gold at home is the cheapest option, but it does come with its risks. If you plan to store at home, you need a home storage plan. It is always a good idea to tell one trusted person where you keep your Gold in your house. 

If you are investing in Gold to protect and preserve your family’s wealth, it is a good idea to tell a trusted family member or friend where you are storing your Gold at home. If you become unwell or have a major accident, you have a trusted person who can get your Gold for you. If more than one person knows where your Gold is stored, then the risk of theft is increased, so it is essential to keep the storage place top secret. 

If you are storing your Gold at home, keeping your Gold investment activity secret would be beneficial, so you don’t become a target. Don’t talk to your friends about your investments or post about investing in Gold on social media. If you have kids, avoid talking to them about your Gold investments, as you don’t know who they are talking to. If you own a large home, drive an expensive car and wear valuable jewellery, you could already be a target for thieves, so it would be better to look at other options for storing your Gold securely. 

If you are storing your Gold at home, it’s essential to take out insurance to cover your Gold in case someone did attempt to steal it. 

Storing Gold in a bullion bank vault 

Storing your Gold in a bullion bank vault is a highly secure option for safekeeping. If you have it in a vault, it remains in your full ownership, and you can keep all of your valuables in one place. You also have the flexibility to sell your Gold or have it delivered to you. Most people who look at storing Gold in vaults are owners of large amounts of Gold; most vaults only accept a minimum of 1,000 oz. 

It costs money to store your Gold inside secure vaults, so that is something to bear in mind when looking for storage options. Also, vault storage usually comes with insurance, so always enquire about it when looking for vaults to store your Gold. 

Bullion bank vaults are usually located in major cities, so this option may not work for you if you live outside a major city. 

Storing Gold in a safe deposit box/consumer bank 

Storing your Gold in a safe deposit box at a local bank is one of the most common storage options. This type of storage is convenient and secure; however, you have to take out your insurance, and you can only access your Gold during the bank’s opening hours. 

A bank like Halifax has three options for safe deposit boxes. The smallest option at £200 per year is perfect for jewellery and Gold coins. The second size, at £325 per year, is ideal for collections of valuables or important documents. Finally, the largest size is £475 per year and is used for single large items such as a valuable Gold bullion bar. 

If you want to invest in Gold, it is crucial to have a well-thought-out storage plan to keep your investment safe and secure. As mentioned above, there are three main ways to store your Gold, it will be down to you to determine which option works best for you, but we can always advise you if you have any further questions. 

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 How To Invest In Gold

Gold has been around for as long as we can remember and has always been a symbol of wealth. People have been investing in Gold since 550BC when Gold was first used as a form of currency. One of the reasons that people invest in Gold is because it is a way of preserving and protecting wealth. 

There are three main options if you are looking to invest in physical Gold. You can either buy Gold bullion, coins or jewellery. Investing in physical Gold has many benefits; it is timeless and offers a safeguard against any turbulence in the financial market. This blog will discuss the three types of physical Gold options in more detail. 

Gold Bullion:

Gold bullion is pure Gold formed into bars or oblong blocks so they can be stored in vaults easily. In the UK, if you buy a Gold Bullion bar with a purity of at least 99.5% (we only sell 99,999% purity bars which are 24ct) then they are investment-grade Gold and VAT-free. If you are buying Gold bullion and storing it at home, you should ensure that you have included it in your home and contents insurance to cover you in case of theft. 

To get protected, you must provide proof of purchase and all relevant documents to validate the insurance. It could be a good idea to store your Gold in a safe deposit box at the bank or with us; it is a much safer way to protect your Gold. 

Gold Coins

Many people decide to invest in Gold coins as they are smaller and, most of the time, more affordable. Gold coins have had a very long history as a currency and hold a lot of value. It can sometimes be better to invest in ten 1oz Gold coins instead of one 10oz Bullion bar so that if you need to sell some of your Gold, you can sell a portion of it and keep the rest rather than having to sell a whole bar. 

The beautiful and intricate designs of the Gold coins are another reason why people invest and collect them. Different coins are available, including The Sovereign and The Britannia. These two coins, in particular, are leger tender in the UK, which means they are exempt from Capital Gains Tax and VAT.

Gold Jewellery 

Buying Gold jewellery is another way for people to invest. People have been buying Gold jewellery for centuries, it is always in high demand. A Gold bracelet can be re-sold quickly for cash and can be transformed into coins or a bar if needed. If you purchase jewellery, it’s essential to make sure that it is authentic and bought from a reliable supplier. Some people accidentally purchase costume Gold jewellery that is being passed off as the real deal and end up getting stung when they find out their investment isn’t worth anything. If you are buying Gold jewellery online, always check that it is Assay Assured verified; you can check here. It is also important to remember that the cost of jewellery is made up of gold cost and the making/manufacturing cost. This cost can be up to 50% of the total price of the jewellery.

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What are the different mint marks on sovereign Gold coins?

The Royal Mint in London has always been the main mint required to produce the British sovereign. However, with the expanding British Empire, Gold coins started to be produced in other cities and countries, so it made sense to mark the Gold coins to distinguish them from each other.

In 1851 Gold was discovered in Australia, so The Royal Mint decided to start minting Gold Sovereigns there to save shipping costs. Sydney was the first city to have its own mint mark In 1855. During 1855-1926 they used the letter S to show the coins were from Sydney.

Melbourne was next and used the letter M from 1872-1931. Finally, Perth was distinguished with the letter P between 1899-1931.

After establishing branches in Australia, others were formed in Ottawa (Canada), Bombay (India) and South Africa. 

On St George and the dragon Sovereign coins, the mint marks can be found on the ground below the horses’ hoof just above the date. In the one below you can see the M for Melbourne so we know this one was minted in Melbourne in 1911.

On older coins, you can see the mint mark just below Queen Victoria’s neck. The one below was also minted in Melbourne. 

If there is no mark present on the coin it indicates that the coin was minted by The Royal Mint in London.

In 1914 banknotes were introduced. During WW1, Britain requested for all British citizens to give up their Gold Sovereigns to help with funding the war. The production of Sovereigns was halted by the Royal Mint in 1917. Some of these Gold coins are now quite rare so they can be worth a lot of money.  The Gold sovereign is still one of the world’s most collectable coins. 

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How many Gold Sovereign coins have Queen Elizabeth II’s face on?

Our late Queen Elizabeth II was the longest-reigning monarch in British history. As a result, her face is currently featured on approximately 27 billion coins circulating in the UK. 

In 1953, a year after Queen Elizabeth II took the throne, five different versions of her portrait were created by The Royal Mint for UK  coins. Below we discuss the five different portraits of the Gold Sovereign coins which were created during her reign. 

The First Coin

The sculptor Mary Gillick engraved the first coin portrait, which depicts The Queen at 26 years old. This coin represented a fresh start following the Second World War and announced a new Elizabethan era. This coin was used up until decimalisation in 1970. 

The Second Coin

In 1968, Arnold Machin designed the Second Coin, and her portrait was released at the same time as the introduction of the new five and ten-pence coins. This coin pictures Queen Elizabeth II wearing a tiara instead of a wreath. This portrait was used until 1984. 

The Third Coin 

In 1985 the third definitive UK coin portrait was released, and it featured on coins up until 1997. The sculptor Raphael Maklouf designed this coin, and it depicts Queen Elizabeth II wearing the royal diadem. 

The Fourth Coin

The fourth portrait was created by the sculptor Ian Rank-Broadley FRBS. in 1966; he was invited to participate in a competition to design the new royal portrait. This coin was released in 1998 and was quite overdue.

The Fifth Coin

In 2015 the fifth and final definitive UK coin portrait was released. Royal Mint engraver Jody Clark designed it; this coin is still used today. In this portrait, the Queen was 88 years old, and King George IV State Diadem is sitting on her head. She is wearing her Diamond Jubilee drop pear earrings. 

The Royal Mint saw a massive surge in website traffic during the 24 hours after the Queen passed away. Website visitors were coming to their site to purchase the last coins featuring the Queen’s portrait. In just a few hours, the final coins had sold out. 

The Royal Mint has confirmed that the 2023 Britannia coins will feature Elizabeth II for the remainder of 2022 and will switch to Charles III in the new year.

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The difference between a Gold Britannia coin and a Gold Krugerrand

If you want to invest in Gold bullion coins, it’s important to understand the difference between the different coins. Almost all first-world countries mint their own Gold coins so it can be a bit confusing to know which ones to buy.

In this blog, we will start by discussing the difference between the two most well-known coins, the Gold Britannia coin and the Gold Krugerrand coin. 

The Gold Britannia Coin

The Gold Britannia coin is the most well-known gold coin in the UK. It was first minted in 1987 with a face value of £100. It is one of the most popular coins amongst British investors. The Britannia coin was originally created as a 22-carat coin, but in 2013 it was switched to a 24-carat coin. It became a bigger coin with a diameter of 38.61mm. A year later in 2014, it was changed back to its original size of 32.69mm and 31.1grams but remained a 24-carat Gold coin. Both the 24-carat and 22-carat Gold Britannia coins have the same value. 

On the head of the Gold Britannia coin, you will see Queen Elizabeth II. On the back of the coin is a portrait of Brittania, a Roman goddess of battle and guardian of the seas. Britannia is recognised worldwide as a trusted symbol of British National pride and the quality of British minting. 

Buying physical gold like the Britannia Gold coin has tax benefits in the UK; it is exempt from capital gains tax and VAT. In addition, Gold bullion coins can be exchanged for cash, goods and services all over the world.

Every October we see a shortage of Brittania Gold coins as the Royal Mint create the next year’s coin during the month of October. So at the moment, they are printing the 2023 coin. 

The crrent value of the Gold Britannia Coin is: 

The Gold Krugerrand Coin

The Gold Krugerrand coin was the world’s first bullion coin, minted in South Africa. It was first produced in 1967 and since then has remained the most traded Gold coin globally. 

It is 22-carat Gold and has a purity of 91.67%; the remaining percentage is made up of copper, which makes the coin highly durable. This means that the coin has fewer wear and tear marks than other coins of a certain age. 

On the head of the coin, you will find the 3rd President of The South African Republic, Paul Kruger. This is why the coin was named the Gold Krugerrand, a combination of Kruger and the South African currency “the rand.” The reverse of the coins features the Springbok, South Africa’s national animal.

The Krugerrand is a popular choice for UK investors as it is VAT free. In addition, it has a consistently low price, making it a great choice for first-time investors. 

Both the Britainna and the Krugerrand coins are equal to 1oz of gold. In terms of the value of Gold, they both have the same amount of Gold but they are priced differently. The Britannia is usually cheaper because it is made in the UK and the Krugerrand is coming from South Africa. Nevertheless, right now The Britannia is more expensive because of the current changes happening within the Royal Family. 

If you have more in-depth questions about the different types of Gold coins, you can drop us an email or even come and see us in London.

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I have £50k budget, how should I invest in gold?

One of the frequent questions we get asked is which gold bar should a customer buy? Well, it really depends on your investment budget and individual needs. However, usually people are looking to invest in gold over a longer term than bitcoin or shares or safeguard against inflation and such, what that means is you don’t want a temptation to sell gold too early or get locked into selling a kilo bar worth £40-£50k to release say, just £5k worth of cash!

If you have a investment budget of say £40- £50k you could easily buy 1KG bar, however it might be good to buy a 500gm bar that you wouldn’t easily be tempted to sell and buy a 250gm with 2X100gm and a 50gm bar. Tip is to diversify in terms of weight, so if you have a short term cash deficit then you don’t have to break a big bar of 1kg, you could just sell a 100gm or 250gm bar to get through a short term situation.

You could buy 10X100gm bars, however there smaller the bar more it costs per gram and also it could make it a little too convenient to sell something that you wanted to keep over a longer term. Again it depends on what your individual needs are, there are plenty of customers who choose this option as well and they do get a volume discount when bulk buying.

Another option is to get a secured loan against a gold bar, you should get 70% to 80% LTV ratio and may be the interest spent is worth not loosing an investment asset. J blundell and Sons offers both, we buy your gold and we give out loans against gold, please check out the ‘Borrow’ which covers loans in detail.

Hope this was helpful.

Advice above is generic and you should consult a financial advisor who can advise you about your individual needs.

  • 1kg gold bar best value LBMA Approved
  • 100gm gold bar best value LBMA Approved