Contents:

  • Gold Overview & My Commentary, with Continually Updated Article & Analysis Feed
  • All My Videos On The Subjects Of: Gold, Hard Money, Finance, Economics – along with my Q&A Playlist.
  • Regulated & Recommended Bullion Dealers

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Gold – Some Questions Answered
https://godfreybloom.uk/wp-content/uploads/2023/10/Gold-Some-Questions-Answered.pdf

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. Its 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 premiums, selling fees or spread)!

When buying Gold Coins remember the Golden Rules:

  • Find a reputable dealer, perform your own due diligence after comparing many dealers.
  • Don’t always aim to chase the cheapest buy price – building holistic, long term relationships with your dealer & custodian is important. (Why worry about the price of Gold when it changes by a couple of dollars every 15 minutes?)
  • 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.

  • Stick to WHOLE SOVEREIGNS, HALF SOVEREIGNS, or BRITANNIAS no others.

  • No dealer can guarantee a buy-back price, this is simply not possible technically.

  • Contact me if you have any questions.

Buying & selling gold is very easy.

Different dealers have different minimum buy requirements.
In general, bigger purchases give a better overall price – Do Your Own Research on which dealer provides the best deal for your situation.

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

Supporting Articles & Material

2024

2023

2022 & Earlier

Experts Claudio Grass & Alasdair Macleod

Claudio Grass runs precious metals advisory in Switzerland and has been a good friend of mine for many years.

You can contact him here for personally recommended large holding precious metal advisory.

claudiograss.ch

Alasdair has been a chum of mine for many, many years and I look to him for top notch expert analysis on anything Gold.

You can find his Substack here, and other work below.

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Pointers On: Dealers, Prices & Fees

REMEMBER Sovereigns, Half-Sovereigns & Brittanias ONLY
Always discuss custody on Silver with your dealer.

Gold Bullion Partners
Minimum £5,000 Deals. Speak to my personal broker Nick Ward.

R C Baird & Co

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