This web page comes in 4 parts:
– Gold Overview & My Commentary
– Continually Updated Article & Analysis Feed
– Viewer Q&A
– All My Videos On The Subjects Of: Gold, Hard Money, Finance, Economics etc
Gold – Some Questions Answered
Gold has been money for 5000 years. Quite a provenance. The reason is that it does not decay physically or monetarily.
As I always point out to undergraduates: a gold sovereign would buy you bed & breakfast in a good London, Paris or New York hotel 150 years ago – and it would buy the same today, and will in another 150 years.
Historically paper money is a new invention, with a very sorry provenance.
In 1971 the United States came off the gold standard (currency backed by gold) to fund the Vietnam war with printed currency. The result was a fall in the purchasing power of the dollar against gold by 94%.
Similarly this has happened to all other global paper currencies.
Paper money is simply a credit note by a bank – underwritten by politicians. It’s value degrades with corruption. Just remember what you paid for a pint of beer or family car 20 years ago.
But remember gold is not an investment. It is a preserver of wealth as the hotel analogy shows. Thus gold coins are for people who want to seal in the spending power of their savings for the long term.
It is not a reasonable or recommended move to buy & sell Gold coins over the short term (trading). Buying & selling fees at most dealers, especially for smaller amounts, make this an unviable option – you will just lose money.
It helps when dealing to know what coins or bullion you need & an idea of the amount you want to spend.
Remember: Gold Sovereigns (Coins) in the UK are Capital Gains Tax & VAT Exempt. They are classed as Coin Of The Realm.
Silver coins are not treated the same – with silver coins, VAT is charged at 20% if you take delivery. So you have to hope for a 20% upward movement just to break even (not including potential selling fees or spread)!
When buying Gold Coins remember the golden rules:
- Find a reputable dealer.
- Check the buy/sell price on offer.
- Take delivery if you can. If you cannot, use a reputable safe deposit house. There will be one in your nearest big town.
- Buy coins for bullion value & tax benefits, not collectability.
- Don’t trade (buy/sell in the short term), they are for the long haul, be patient.
Buying & selling gold is very easy.
Different dealers have different minimum buy requirements.
In general, bigger purchases give a better overall price.
Larger purchases require ID protocols, a regulatory requirement, but are standard practice and nothing to worry about.
Due to recent unprecedented Gold demand; Gold deliveries from all dealers may be slightly delayed, this does not affect the buying/strike price.
See my videos on the topic for more information below.
Comments as always are welcome. Please use my contact page to reach me if you have any questions and I will add to the Q&A Section below.
Cutting Edge & Important Articles
- THE GREAT & THE GOOD CATCH UP WITH ME!
- Safe Haven Gold Demand To Disrupt The FED’s Risky $1.784 Trillion Lifeline (Nov 3 2023)
- Simon Hunt: Global Weather: Why it will help Define the Coming Economic Cycle (Oct 2023)
- Basel III Breakdown (Oct 20 2023)
Heavy going, my breakdown:
Supporting Articles & Material
- Goldmoney Research Homepage – Alasdair MacLeod
Gold Switzerland Homepage – Egon Von Greyerz
Precious Metal Advisory In Switzerland – Claudio Grass
- The Fed Will Revalue Gold In 2024 (Nov 17 2023)
- Dutch Central Bank Admits It Has Prepared For a New Gold Standard (Nov 19 2023)
- Gold Demand Trends Q3 2023 (Oct 31 2023)
- A Brief History Of The Gold Standard – Alasdair Macleod (Sept 2023)
- Gold Is Exposing The Myth Of Deflation In Japan
- The Swiss Franc’s “Phenomenal” Bull Run (Sept 2023)
- Constructive & Destructive Roles Of Credit
- Don’t Rely On GDP
- Central Bank Gold Buying Continued To Sizzle In August
- Unwinding The Financial System
- The End Of The Road For The Dollar
- There’s A Herd Of Elephants In The Room
- Say’s Law Says It All
Heavy going but the fundamental point is that fiat currency is international policy.
- Dollar Hegemony Ending Due To Geopolitical Changes
- Biden Retiring The Dollar?
- German Central Bank Gold Revaluation Account
- China Buys 23 Tons Of Gold In 9th Straight Month Of Purchases – Total: 2137 Tons
- Keeping Your Head Amidst Debt Blind Madness
- Inflation Will Return
- The People’s Bank Of China Manipulates The Shanghai Gold Exchange Gold Price
- Which Assets Perform Well In Recessions
- Despite Declining Price – Gold Is Strengthening
- Geopolitical Evolution
- BRICS: The West Tries Playing Catch Up But It Is Too Late
- Updating Say’s Law For Modern Times
- The Commercial Real Estate Tsunami Just Shifted Into Another Gear
- Become Smarter Than The Policy Makers – Become Your Own Gold-Backed Bank
- Inflation Is Not An Act Of God – Godfrey Bloom & Claudio Grass
- Front Running The Fed: How Gold & Chess Players Beat a Rigged Market
- Winston Churchill’s Gold Standard Folly
- Sterling Crisis Ahead!
- The Dangerous Direction Of Fed-Speak & Fed-Policy
- Gold’s Key Indicator
- Death Of The US Dollar & The Rise Of Gold
- Dollar Woes & Debt Denial – The USA Is Screwed
- Why Are ?Banks Buying Up All Of The Gold?
- Insights On The Rotten State Of The Banking System – Egon Von Greyerz & Alasdair MacLeod
- De-Dollarisation Kicks Into High Gear
- Forecasting The Gold Price Is A Mug’s Game
- US Bank Trouble Heralds The End Of The Dollar Reserve System
- A Bank is a Bank, is a Bank – Parts 1 & 2 – Claudio Grass
- How Quickly Will The Dollar Collapse? – Alasdair MacLeod
- The Great Credit Unwind Pivot – Alasdair MacLeod
Important Technical Briefing
- Banking Crisis: The New Bailout Strategy
- In The End, The $ Goes To 0 And The US Defaults – Egon Von Greyerz
- The Lost World Of The Barbarous Relic
- The Debate Between Gold & Bitcoin In 2023
Needs reading twice, even for the professional.
- Gold In 2023 – Alasdair MacLeod
- The Benefits Of A Savings Culture – Alasdair MacLeod
- As West Debts & Stocks Implode, East Gold & Oil Explode – Egon Von Greyerz
- Goldmoney Insight: A Tale Of 2 Worlds – Alasdair Macleod
The West’s Monetary Decline – While China & Russia Accumulate Enough Gold To Implement A Gold Standard
- Goldmoney Insight: Money & Recession – Alasdair Macleod
- Legal Definitions Of Money & Credit – Alasdair Macleod
Definitive History Of Gold – Straight Off The Shelf
- Gold’s Climb Amidst Wisdom’s Decline – Egon Von Greyerz
- Why Gold Has Out Performed The S&P 500 Over The Past 20 Years
- The $2.5 Quadrillion Disaster Waiting To Happen – Egon Von Greyerz
- Gold & Silver Charts
- The Upside Down World Of Currency – Alasdair Macleod
Technical – Needs reading twice for the layman.
- Top 3 Outcomes As The Elites Try To Reset The World Monetary System (Caution: Speculative)
- Goldmoney Insight: Imploding Credit – The Consequences
A very comprehensive historical guide to gold – by Alasdair Macleod, Head of Gold Money Research. Well worth the time to read it before buying gold.
- There Is Going To Be A New World Disorder – Egon Von Greyerz
- Credit Suisse & USD Policy: Signposts of Systemic Implosion to Gold Explosion – Egon Von Greyerz
- World Dollar Hegemony Is Ending – Patrick Barron
- Inflation – The Hidden Tax
- Gold About To Make New Highs In GBP Terms
- The Economy Had To Be Shut Down – Inflation Rates By Country
Q & A Section
- Premium Bonds:
Premium Bonds are a loan to the UK government. In place of a coupon (interest) they put the yield into a reserve & distribute that reserve in prizes.
The current yield is circa 4% (10 years).
Are they safe? Safer than banks yes.
But with inflation at circa 11% your investment must drop by 11%-4%=7% year on year.
So a premium bond holder in the medium long term must lose.
A bit like the casino roulette wheel, eventually the house wins.
Remember, Gordon Brown sold your gold holdings in the late 1990s at $250 per ounce – I was buying.
I hold plenty but it is an industrial as well as monetary metal.
The ride is bumpy therefore, it looks cheap today, but I thought it was a steal at $25 per ounce! Ouch !
Given VAT at 20% if you take delivery – and a current 10%-15% premium, it is simply an unrealistic choice for investment – you will need a 35% move upward to simply break even. Scrap Silver or buying coins peer-to-peer could be options, but its a buy only for the brave – and you must do your due diligence on the latter matters. Gold first.
My Videos On Gold, Inflation, Currency & More
Regulated Gold Dealers
This page only recommends institutions after a due diligence procedure & encourages all subscribers to perform as much personal research on all aspects of Gold Purchase as they can.