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electroweak

1 oz Gold Buffalos 2009

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Thanks for your replies. What I take from the answers above, which works for coins but not for bars is that they are recognised anywhere and therefore easy to trade (and possibly with a similar premium to the one you paid to buy them. I appreciate that one, a lot actually.

 

How does the fact that gold is easily divisible come into play? I presume that this is true for both coin and bar. I think we see gold in different light to each other, serving a variety of purposes, from investment and trading through to insurance, and that may affect our decision of shape (and sometimes colour ;)).

 

Your question nudged something in my mind.

 

Here is a blast from the past. The great CGNAO speaks hear: http://forums.moneysavingexpert.com/showpo...amp;postcount=5

 

CGNAO Quote:

Best coins are sovereigns, then britannias, as they are UK legal tender and as such exempt from capital gain tax. Effectively they are UK cash. Non-UK coins (as krugerrands or american eagles) and gold bars are not UK legal tender and as such they are liable to capital gain tax.

 

At the current spot price of £226/ounce,

 

9 off gold sovereigns will cost you (considering an average dealer's margin of 10%) around £535. The intrinsic gold content would be £478.

 

2 off 1 ounce britannias would cost you £524. The intrinsic gold value would be £452.

 

If you bought 100 sovereigns (in excess of £5000) you would probably be able to negotiate the dealer's margin down to around 5%.

 

However, given that you only intend to invest such a small amount, you might be better off using www.goldmoney.com, which is the ONLY, I repeat the ONLY, and I repeat again the ONLY way to invest safely in gold online. I have had an account with them for the last year and are very satisfied. They charge 3% buying commission and 0.1 gold grams (about 70p) monthly storage fee.

 

Remember gold is a safe haven asset. Its price goes to the moon in financial crises, which is when institutions are likely to go into trouble (debt bubble, does this ring a bell?) and may fail. Therefore stay away, I repeat STAY AWAY, from gold futures, exchange traded funds, unallocated gold accounts and certificates. They are paper gold: you give up your cash and become a gold creditor. If the institution is insolvent, you lose your money AND receive no gold.

 

As a side note, it is an excellent time to buy gold. It will outperform any other asset class in the financially turbulent years to come. Protect yourself.

 

Emphasis mine - posted 11-12-2004, 1:25 AM

 

If you want to learn more from CGNAO then read the entire thread: http://forums.moneysavingexpert.com/showthread.html?t=14783

 

 

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For info, it seems CID are out of the 2009 buffalos now.

Probably can still get them elsewhere, and mintage will probably be higher than last year, but still interesting that they're all gone.

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For info, it seems CID are out of the 2009 buffalos now.

Probably can still get them elsewhere, and mintage will probably be higher than last year, but still interesting that they're all gone.

I must've got the last one then! That'll make up for the 700+ expense...grumble grumble.

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