Gold, the ultimate asset for diversification, the go to metal to protect yourself from inflation, a safe haven against market turmoil, but what is the best way to invest in this shiny metal?
Buy Physical Gold
Owning physical gold is the most common means of buying gold, whether it’s a gold bar or coin you still have the security of a tangible asset along with its fantastic tax advantages. Gold is free from VAT and British legal tender is free from VAT and Capital Gains Tax (CGT). Most gold coins with come with the stamp from the relevant refinery and bars over a certain weight will carry their own serial number.
Buying physical gold is not the hardship it used to be and now you have various options of where to buy, how to buy and when to buy being all your choice.
The only additional consideration is storage, you can of course choose to storage your gold at home in a secure safe which is what many do but you can also if you wish choose to store the metal in secure storage – some bullion dealers offer this service as an additional cost.
Own – Gold Ingot
You can now own part of the gold good delivery bars from bullion specialists. These companies can arrange storage and handling fees on your behalf charging you a commission fee.
Invest in an Exchange Traded Fund
Here you can gain exposure to gold without actually holding it physically, although the downside is you will not have a tangible asset. ETF’s are bought and sold similar to shares on the stock market, therefore you will require the services of a broker. Although it must be noted ETF are not classed as a fund under the European regulator diversification rules.
Have you considered gold miners?
The highs are when gold is rising often this amounts to a leverage effect on the shares the risk are when gold falls the share value can plummet. 2013 was not the best year for gold mine shares as miners were hit with the falling gold price and tightened margins, and although many investment managers are unlikely to recommend mining shares, share prices have re bounded thus far in 2014 along with the picked up gold price.