“Gold prices climbed half a per cent to $1,301.59, after rallying 1.5 per cent on Tuesday. Since a four-and-a-half-year low in November, they’ve rebounded 14 per cent.” (Financial Times) “Are the inflationistas back? Hardly. Yet gold prices just rose above $1,300 per ounce – a peak last seen in August. The move comes just a day ahead of a hotly anticipated European Central Bank meeting (21 January 2015), when it’s expected to launch an aggressive package of buying sovereign bonds. The ECB would act to stave off deflation across Europe, but some investors have been worrying since the financial crisis that unorthodox monetary policy will result in uncontrollable inflation. However, you don’t have to be an inflationista to see some new reasons for buying gold. When the Swiss National Bank abruptly took away the franc’s ceiling against the euro last week, it caused confusion and some currency market chaos. The move damaged central bank credibility, sending some investors away from fiat currencies and back into the perceived safety of the precious metal. As the FT’s John Plender argues, gold isn’t just a bet on inflation – it is more of “a hedge against central bank incompetence and monetary dysfunction, which includes deflation.”
Yesterday’s “MoneyMorning” from MoneyWeek strongly reiterated this two-way advantage of holding Gold: “Both inflation and deflation can be good for gold. Let’s start with some positives. First, the economic environment. Gold likes outright inflation – when prices, as well as the supply of money and credit, rise apparently uncontrollably, such as in the 1970’s. But contrary to popular belief, gold can also do well during periods of deflation – when prices are falling and the supply of money and credit is contracting. We saw this in the 1930’s. Whether we get inflation or deflation, both are forms of monetary stress, and gold’s role as money of the last resort becomes important.” (Dominic Frisby, MoneyWeek)
So which Gold products will work best for you? Points to consider:
1) How much flexibility would you like in your Physical Gold? For example, do you need to release a set amount each term for adult children’s college fees? Or are you able to save and hold the bulk of your investment long? Many of our clients mix their holdings in several different bar sizes – because you cannot shave a few thousand off of a large bar or you would lose a small percentage on selling and re-buying.
2) Is a potential savings in Capital Gains Tax an advantage you are looking for? All our investment Gold is VAT free. But a few of our products are also C.G.T. free. This includes all Gold Britannias and Gold Sovereigns. Again, many of our clients hold a combination of both bars and these particular coins, to maintain a high level of control over which products to release in which tax year, without being hit by a C.G.T. bill.
3) Would you like to hold your own Physical Gold or would you like Bleyer to securely store your Gold for you? We can store your Bullion in an allocated account either within Mainland England or off-shore. And we can offer a variety of Home Safes if you would prefer to keep your Gold closer to home.
4) Would you like to own your Gold in your pension? We have experts on hand to advise you on using gold as part of your pension, if you have any questions about starting a golden SIPP or SSAS then please use the website live chat or phone our friendly team on 01769 618 618 during office hours: Monday – Friday, 9.00 – 5.00 pm. If you are a UK citizen, you can invest in Gold Bullion through your Self-Invested Personal Pensions (SIPPS). SIPPS are personal pension schemes containing a basket of investments of your choosing until you retire and start to draw a pension income. SIPPs can hold tangible investments, which can now include Physical Gold. Investments made in gold bullion are topped up in the form of tax relief, meaning individuals can claim back the tax on the money they put in. The amount varies depending on the income tax band into which they fall, so if you are a higher rate tax payer you can get up to 40% back. So, for example, a £10,000 investment will only cost you £6,000. Physical Gold is allowed in a SIPP providing it is investment gold, as defined above. The bullion must be stored at ‘arm’s length’ with a secure third party. It cannot be taken possession of and used as a “pride in possession” article. It can, like any other investment, be sold within the pension wrapper and then the cash re-employed within the normal rules of a SIPP pension. Thus Physical Gold is allowed in your SIPP when we store it for you. Please call one of the Bleyer Team to find out more. We maintain the gold in your SIPP Gold account, while you are in complete control in instructing an Independent Financial Advisor (I.F.A.) and a Trustee Company will manage your SIPP Pension as a whole. You will instruct us to either communicate directly with you or with your I.F.A. / Trustee, whichever you would like. Call one of the team to find out more.
5) Is is a good time to buy within the Physical Gold (and Silver) price cycle? Although the price has been consolidating, the current price is still above support in the correct upward channel. We firmly believe this elongated period of price correction offers our clients a lengthier buying opportunity. There is much talk within Precious Metals commentators of price manipulation of Physical through the sale of paper GLD/SLV and other mechanisms of fixing the price in a way that does not seem to relate to the ounces of Physical actually being ordered. Although we have explored this, here it is suffice to conclude that the end result is the same – a buying opportunity. If you would like to explore where Physical Gold and Silver sit in their historical “Wealth Cycle” in relationship to currency, you may find this video by Mike Maloney of interest.
6) Can you ring or visit your Bullion Dealer to build trust? We pride ourselves on serving a large client base in the South West of England, with many clients visiting our premises in person. (Please note all visits are by prior appointment only – call the office on 01769 618618 to arrange a time and day that is convenient to you. Please also note we do not keep stock on the premises). In addition, although we have an online basket, we also encourage our clients to ring one of our team to talk through their purchase beforehand. Many clients highly value this interaction before entering into owning Physical Gold and Silver and we believe ‘no question is too silly’. We appreciate it can feel like a big leap when entering into owning Physical Gold and Silver, so we take the time you need to answer your questions and give full information about the different Gold (and Silver) bullion products we offer.
Physical Gold is allowed in a SIPP providing it is investment gold, as defined above. The bullion must be stored at ‘arm’s length’ with a secure third party. It cannot be taken possession of and used as a “pride in possession” article. It can, like any other investment, be sold within the pension wrapper and then the cash re-employed within the normal rules of a SIPP pension. Thus Physical Gold is allowed in your SIPP when we store it for you. Please call one of the Bleyer Team to find out more. We maintain the gold in your SIPP Gold account, while you are in complete control in instructing an Independent Financial Advisor (I.F.A.) and a Trustee Company will manage your SIPP Pension as a whole. You will instruct us to either communicate directly with you or with your I.F.A. / Trustee, whichever you would like.
We are currently offering Special Offers on two of our Gold Products:
- 1g Hereus Gold Bars at 5% discount off the website price. (Only 8 left) Please browse our Special Offer section for more details.
- Sign up to our Email Subscriber list and enjoy 3% off 1oz Krugerrands. If you’ve already signed up you will have received our special promotion discount code* Please enter this on our website checkout or quote this code to us over the phone. *Valid for use before 1st February 2015.
Finally, a very current thought from MoneyWeek’s Dominic Frisby: “Something else to consider along these lines is the many countries that have pegged their currency to the US dollar. Hong Kong is one, of course. But I’m also thinking of Venezuela and seven nations across the Middle East that have suddenly had their oil revenues slashed. As the dollar gets stronger, how many will consider decoupling? In short, the currency wars are hotting up and gold should benefit.”
Call the Bleyer Team now on 01769 618618 to talk through getting Physical Gold and Silver into your hands.