Investing in gold and silver isn’t always straight forward. It’s so important to do your research and ensure you are corresponding with a reputable bullion broker such as Sharps Pixley who will guide you into making the right decisions for you and your personal finances. Gold and Silver offer a reliable hedge against the volatility of investment markets long term.

What Makes Gold and Silver a Good Investment?

One of the main reasons for investing, particularly in gold bullion is that the investment in the UK is VAT free, therefore there are no VAT costs unlike silver which attracts a VAT rate of 20% in the UK. Investing in these precious metals is a fantastic opportunity to secure your finances for the future, with a hedge against inflation your commodity will never suffer at the hands of inflation rates, permanently making your precious metal profitable, even if the price is considered low. Essentially, you will never lose money, unless you lose your commodity.

How Stable is the Commodity?

Gold and Silver as a commodity is a very stable investment. Typically, you will never lose your money when investing in these precious metals as there is no risk to a drop in price due to fluctuations in inflation rates. Being a universal currency, your gold and silver is worth the same across the globe, therefore, wherever you are in the world you can easily liquidate your bullion without losing money due to the currency rates.

Can I Lose Value?

The exemption of VAT on gold means that gold is officially treated the same as other investments, i.e. stocks and shares. The difference however between the two, as explained previously is that you cannot lose money on your gold and silver. Additionally, you can add value to your metal commodities by timing the sale of your gold and silver perfectly. The market prices can shift very quicky so it is important to be in touch with a reputable bullion broker so they can offer you the best advice on when to sell. Believe it or not, due to industrial needs, silver is more volatile than gold in terms of price fluctuations, meaning the price is more likely to increase or decrease in short periods of time.

How Can I Store My Commodity?

Storing your gold and silver is the most important consideration. Whilst they can’t lose value, if you lose your commodity, you’ve lost your money all together. Unlike stocks and shares, you don’t have any administration certificates to prove your money is secure, so keeping your precious metal safe is the number one priority.

Here are some storage options:

  • With your bank
  • With your bullion broker in a safe deposit box
  • At home

How Do I Do this Online?

You can invest in gold and silver online with reputable brokers. Ideally, you’d like to find a broker that can guide you start to finish, allowing you to check on your investment performance 24 hours a day from anywhere in the world.