This is something to consider. Unfortunately, I'm not sure it will ever be that big a concern for me for the amount that I will ever own. Also, unless you're extremely honest, I'm not sure how it works with selling physical precious metals i.e, in 20 years, the Gold I have today I bought from someone on Facebook yesterday.Need to keep an eye upon CGT also.
Bullion & Capital Gains Tax (CGT) | The Royal Mint
Discover more on capital gains tax and how it applies to bullion investments.www.royalmint.com
Thoughts on Premium Bonds
- Thread starter William_Montgomery
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It would be my dream to live somewhere near the lochs or highlands
I think we're conflating two types of 'safety' here. Having Premium Bonds means that the raw money that you invest is about as safe as it gets, as in it can't get stolen and won't be reduced by market activity.
They aren't a safe way of beating inflation, but they are a very safe place to store some money for relatively easy access, without risk of losing it. The same safety cannot be said of gold bullion - it is still exposed to the wider market, but also subject to CGT as TeeDee said, as well as it not being hugely simple to convert back into money when you need it. Plus keeping it physically secure is a consideration, as a home burglary won't see you lose a Premium Bond.
I'd agree with the odd sov changing hands via a pawnbroker.
But difficult to see how the future plans out.
Need to stop myself from spinning off on a BRICs , Basel III , UK 1947 Exchange Control Act ,USA Executive Order 6102 tangent feeding my fertile imagination.
The way it's supposed to work is if you make a taxable capital gain, you have to declare it to the Revenue, either on your tax return if you do self assessment, or via the real time CGT reporting service otherwise.
Failing to declare a gain, or misrepresenting the purchase price, would be tax evasion, so if you're planning to do that, you might want to think twice about discussing it on a public forum!
Lucky you, our PBs are averaging out at 2.4% for the last 5 years. Think our fixed rate isa is 4. something.
I appreciate your concern but I'm sure they have bigger fish to chase than me. I wouldn't declare it out of principle. I don't actually buy precious metals as an investment but a hedge. A hedge against the printing (counterfeiting) of currency money by the central banks, or to protect my family/future generations of my family against events such as hyperinflation. Hopefully I will never have to sell it in my lifetime in which case it will no longer be my problem, anyway.
And fees, always look at and factor in the fees to purchase and to sell even down to shipping and insurance. If you hold valuable gold, silver you also need to inform your insurer who will levy an increase in your policy which will repeat every year. Fail to declare and if they are stollen you lose everything.
Other than physical Gold and Silver, my investments in Gold are in Gold miners and a Gold ETF which don't attract brokerage fee's (with fee free brokers), more easily traded and are bought within an ISA so no CGT. Other commodities investments I have are copper, zinc, silver miners and a graphite miner which currently isn't doing so well mostly down to African bureaucracy.
It's a large resource of high grade natural flake graphite in Tanzania. The economics are extraordinary but the company is small. The resource is literally next door to a much larger company who are basically front running the region. They have offtakes with Posco, the largest supplier of Graphite in Korea, and have just appointed a Posco non exec director so things are moving forward slowly it would appear.
The company I am invested in cannot move forward until our next door neighbour does. Basically, they will build/upgrade road and rail and services such as electric, water, hydro etc. that we will then use. We're simply too small a company to build/upgrade a regions roads, rail and services. The delay is coming from the Tanzanian government. You'd think they'd want the investment, free carry, upgraded roads, rail and services, jobs for local people etc. etc. asap but they are dragging their feet to say the least (mine build was expected to begin like 4 or 5 years ago).
With China being the largest exporter of Graphite, the West are desperate for their own supplies. Any trade wars will amplify this but because of the jurisdiction, this is a very speculative investment with the potential of huge rewards. Only time will tell.
From the horses mouth:
Bullion coins from The Royal Mint are exempt from Capital Gains Tax for UK residents due to their status as legal British currency. In fact, all gold, silver and platinum bullion coins produced by The Royal Mint are classed as CGT-free investments; this includes gold and silver Britannia coins, Sovereigns and the popular Queen’s Beasts range.
www.royalmint.com
Bullion coins from The Royal Mint are exempt from Capital Gains Tax for UK residents due to their status as legal British currency. In fact, all gold, silver and platinum bullion coins produced by The Royal Mint are classed as CGT-free investments; this includes gold and silver Britannia coins, Sovereigns and the popular Queen’s Beasts range.
Bullion & Capital Gains Tax (CGT) | The Royal Mint
Discover more on capital gains tax and how it applies to bullion investments.
www.royalmint.com
Have you ever taken a Royal Mint coin to somewhere that you could turn it into usable money, and seen how much it's really worth?
I know on paper bullion and precious metals have a specific value, but I'd be quite surprised if you can actually get that value returned to you on demand, like you can with Premium Bonds.
I know on paper bullion and precious metals have a specific value, but I'd be quite surprised if you can actually get that value returned to you on demand, like you can with Premium Bonds.
Congrats! I did get a win this month, though not quite the thousand.Just won another thousand
£275 for me. Bought a half sovereign with it,Just won another thousand
You actually can easily get the days spot price on gold and silver. Sometimes over that if you go to Hatton Garden or the Jewellery Quarter where there are many dealers that need gold to turn into saleable jewellery. So it’s a very good investment, especially since 2008. A year ago an ounce of gold could be bought at £1500 or below. You can sell it now for £2200
