INVESTING IN BULLION

Investors bar size preference

Some investors choose to purchase the heaviest Bullion Bars available, which in general carry the lower premiums.

Whereas other investors may choose to purchase small bars and accumulate their Bullion investment over time. This step by step accumulation also retains the investors capacity to sell/cash-in their Bullion investment in small amounts in the future as and when they want/need to.

100g example 1: An investor may buy a 100g (gram) Gold Bar.

If the investor needs £1,000 to pay a bill, they must sell/cash-in the whole bar at the best current buy-in price. At that time the buy-in price may be lower than they would have preferred, but they still have to sell the whole bar at that price.

100g example 2: An investor may buy 10 X 10g (gram) Gold Bars.

If the investor needs £1,000 to pay a bill, they only need to sell/cash-in some of their bars. At the time the buy-in price may be lower than they would have preferred, but they are able to retain most of their gold to sell/cash-in, in the future at a preferably good buy-in price.  


Types of Investment Bullion Bars

There are 46 categories of standard and unusual shaped Bars used as Investment Bars around the world. (see Categories of investment bars)

There are 2 Bullion Bar production Types:

1. Cast Bullion Bars

Cast Bullion Bars are produced by melting the material (Silver or Gold) in a Crucible and pouring it into a Mould, or by adding the material in grain form into moulds and heating the grain until it melts in the Mould.

The Cast Bullion Bars are imprinted using dies in a press on the top surface with the Refiners Logo and other appropriate markings. (see *Markings on Bullion Bars

The serial numbers are added via one of the following methods:

(a) dot peen machine, (b) engraving, (c) stamping using dies in a press, (d) lazer.

Cast Bullion Bars can, but normally do not, have markings on the bottom surface.

2. Minted Bullion Bars

Minted Bullion Bars are produced from a cast (Silver or Gold) bar that has been rolled to a uniform thickness into a strip. The strip is then cut using a die in a powerful press into 'shaped' blanks.

The Minted Bullion Bars are imprinted using dies in a press on the top (or top and bottom) surface with the Refiners Logo and other appropriate markings. (see *Markings on Bullion Bars)

Minted Bars are often imprinted with the markings and a pattern. 

The serial numbers are added via one of the following methods:

(a) dot peen machine, (b) engraving, (c) stamping using dies in a press, (d) lazer.


Central Bullion Investment Bullion Bars are produced using the Minting Process as described in (2.) above.


Premium on Spot Price explained

When you buy Bullion you pay a % more than the Market Spot Prices which is called the Premium.

PREMIUM = The difference between how much you pay for your Bullion and the amount of the Spot Price of that metal.

The lower the Premium, the better the deal you are getting on your Bullion purchase at that time.


Central Bullion consistently offers Silver and Gold Investment Bars at the lowest premium on the Global Market Spot Prices.

Central Bullion has a huge consumer database of more than 1.4 billion people, businesses and companies.

Our premiums remain consistently low due to our volume sourcing of precious metals from directly from LBMA Accredited Refiners.


General Tax Information

When investing in bullion it is important to consider the Tax implications. We cannot offer Tax or Personal Investment advice or recommendations.

As we are a UK company, we offer some general information (not advise or recommendation) applicable to bullion investments in the UK with regards to VAT and CGT (Capital Gains Tax).

Other Countries, States and Principalities have their own individual Tax laws and requirements.

Before investing in bullion you should seek your own independent advice from an appropriately qualified adviser.

 

VAT

GOLD

Currently, investment Gold, including bullion bars and coins that are purchased in the UK and EU is exempt from VAT.
Since the 1st January 2000 investment Gold has been exempt from VAT, to fall in line with the EC Council Directive 98/80 EC, harmonising regulations between the UK and the rest of the EU.

Investment gold is either:

(a) gold of a purity not less than 995 thousandths that is in the form of a bar or wafer of a weight accepted by the bullion markets.

(b) a gold coin minted after 1800 that is:

(c) an investment gold coin as specified in

https://www.gov.uk/guidance/gold-acquisitions-imports-investments-and-vat-notice-70121

SILVER

Investment Silver is not currently exempt and is subject to 20% VAT.


Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is a Tax that you pay on profit when you sell, or give away, an asset that has increased in value since buying, acquiring it.

CGT is applicable to a wide range of assets including Shares, Bullion and Second Homes.

Individuals in the UK have a CGT allowance where any gains/profits realised in a single year will go towards the individuals own CGT allowance.

Profits that are below the individuals allowance limit are exempt from CGT and any gains over your allowance limit are subject to Tax in line with the appropriate HMRC rates.

Note: The CGT allowance for the 2019/20 financial year is £12,000, however, you should consult a financial advisor or HMRC for up to date information.

CGT Exempt GOLD and SILVER

Sovereign Coins minted from 1837 onwards and Britannia Gold Coins are classed as currency, therefore (like sterling currency) they are both exempt form CGT because of TCGA92/S21 (1) (b); this states that sterling is not an asset for capital gains purposes.

CGT Exempt Coins include: Britannia Gold Coins, Silver Britannia Coins, Gold Sovereigns, Gold Lunar Coins and Gold Royal Arms Coins.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg12602

Declaring CGT.

Please be aware that we do not give any information, advise or recommendation on our website shop listings, or on invoices as to what purchases are subject to CGT and this is the responsibility of the buyer.

Before investing in bullion you should seek your own independent advice from an appropriately qualified adviser.