3. REASONS TO INVEST IN PHYSICAL GOLD SOVEREIGNS
n Gold has been the ultimate safe haven for thousands of years.
n No other investment has the wealth preserving power of gold.
n Physical Gold is the most secure way to invest in gold.
n Physical Gold Is NOT subject to VAT.
n UK Gold Sovereigns are NOT subject to Capital Gains Tax.
n The current U.S. and U.K. Quantitative Easing Programmes (creating more and more money out of thin air) will continue to push gold prices up as they debase the value of the currency.
n The current Euro Crisis will continue to push gold prices up.
n Gold is a tangible and liquid asset, gold is the only truly international currency.
n It maintains its value through political and social upheavals, wars & natural disasters.
n Unlike paper currency, stocks and bonds, gold will never lose its intrinsic value.
n Gold always keeps pace with price rises & is classed as an inflation-proof investment.
n Gold will always be in demand, and demand is increasing as more and more people realise that paper money and electronic money are a mere token and are not backed by gold or anything else.
n Coins are more affordable than ingots or bullion bars, you can invest regularly in smaller amounts, and can more easily realise just a small portion of your holding for cash should you need to.
Remember - if you donít hold it - you donít own it - Physical Gold offers you that layer of protection and security which "Paper Gold", and Gold "Exchange Traded Funds" do not. Our disreputable banks have now got in on this act too by offering to store any gold that you buy from them FREE - all you get is a potentially worthless piece of paper. With physical gold, any banking crisis would not affect you directly as you arenít relying on any third party individual or company to look after your wealth for you. With physical gold, you hold it, you have the responsibility, you are in control of your own wealth which is the ultimate way of preserving your assets and protecting yourself and your loved ones from financial ruin if the worst case scenario did happen.
SPECIAL NOTE: Gold Exchange Traded Funds (ETF) - The following details are taken from the "small print" in GLD's terms and conditions. GLD is the world's largest ETF - You don't actually own the gold. You own a piece of paper. If you cash it in they can only pay you out in paper money or electronic money. They don't insure its gold holding. Customer gold is not segregated from the custodians assets. If the custodian becomes insolvent its assets may not be adequate to satisfy a claim.
4. WHY YOU SHOULD BUY BRITISH GOLD SOVEREIGNS
Physical Gold bullion remains an essential diversification and essential financial insurance to have, either on its own or part of a diversified portfolio. Besides the ever more important factors of inflation hedging and financial insurance, many experts believe that gold is likely to continue to outperform other asset classes and will continue to provide significant returns to gold buyers, and surpass its inflation adjusted 1980 high of $2,400 per ounce in the next few years.
What is important, from an investment point of view, is the fact that gold bullion and older gold coins are not subject to VAT anywhere in Europe, due to the EU Gold Directive (EC) No.1998/80EC on 17th October 1998.
Even more important is the fact that, unlike other forms of gold investment, British Gold Sovereigns are also not subject to Capital Gains Tax (CGT). Thus all post 1837 British Gold Sovereigns - because they are legal tender and have a legal tender face value - are capital gains tax free, which is obviously a massive benefit to investors when compared to other gold investments.
The prices of these beautiful coins are only slightly higher than modern gold bullion, but they offer many other advantages, besides not having to pay CGT, including increasing scarcity, aesthetic value and historical significance. Gold coins are recognised by sophisticated investors as one of the most advantageous ways to invest in "bulk" Gold.
European, American and World Gold Coins are bought by both collectors and investors at a small premium to the price of bullion coins. Perhaps the most popular semi numismatic gold coins internationally are British Gold Sovereigns.
The British Gold Sovereign (originally the one pound coin) is the most widely traded semi numismatic gold coin in the world. There is constant and excellent liquidity in most countries in the world for these coins. Ideal for the investor looking for slight leverage to the gold price with the potential for the premium (numismatic value) to rise.
Whatever way you look at it British Gold Sovereigns are a good way to invest in gold. There are of course other options for investing in Gold as shown on Top Five Gold Investments