In times of economic volatility, the benefits of buying gold can provide a safe investment. As inflation rises and interest rates remain uncertain, gold offers investors protection against unpredictable market conditions. Central banks are renowned for having vast reserves of gold to protect the wealth of their respective nations.
Geopolitical events like the war in Ukraine and the Middle East conflict also affect the global economy. The benefit of buying gold is the insurance it provides investors, preserving and increasing in value. If you’re considering a foray into the world of gold investment, then our article is packed full of handy information about the benefits of buying gold.
The advantages of a safe haven asset
One of the main benefits of buying gold is that it is considered to be a safe haven asset. But, what do we mean by the term ‘safe haven asset’? In the context of gold bullion, this means purchasing physical gold that will retain or increase in value amidst economic uncertainty – which is a valuable commodity to have in the current landscape!
Historically, gold has an intrinsic value which is partly owed to the production of the metal and delicate refinery. Physical gold is viewed as a canny investment by investors to preserve capital against more volatile investments like bonds, stocks and property. The stability of the precious metal in an increasingly uncertain market is an invaluable benefit of buying gold. Safe haven assets are considered to have multiple characteristics which include:
- Pristine condition – The properties of 24-carat gold and its 99.9% purity means that the asset won’t decay or deteriorate in condition
- Practicality – Gold is recognised as a safe haven asset, simply because of the value of the metal that provides a great use for long-term investment and ultimately demand.
- Liquidity – Gold is a liquid asset that can be quickly converted into cash.
Essentially, safe haven assets outperform traditional market lines in times of financial hardship, which is great if you’re considering starting or enhancing your gold collection.
Capital gains tax exemptions
Gold investors have many reasons for choosing to invest in gold, and the selections in weight, type of gold and frequency of purchase all tie into wider goals based on the aim of a portfolio. For savvy gold investors, having an awareness of the legislation and any loopholes surrounding gold ownership is essential to ensure maximum value for any investment.
The Capital Gains Tax for gold applies to profits made on any sales of your gold bullion. As an example, if you sell a gold bullion bar then you’ll be liable to pay tax on the profits. However, there is an alternative and a way to circumvent the Capital Gains Tax policy. HMRC rules state that any Gold Britannia coins are exempt from CGT if they are produced by The Royal Mint. This is because Britannia and sovereign coins are classified as legal British tender, so there is a benefit to buying gold coins.
To reap the rewards of CGT exemptions, we recommend selling smaller quantities of bullion, ensuring your profitability allowance is below the annual limit set for each financial year. Stay up to speed with Capital Gains Tax updates to ensure you’re aware of the amount of profit you can make before being charged tax on your gold portfolio.
Assurance of quality
It may seem a little obvious to those with experience in gold, but the stunning quality of the asset itself is a surefire guarantee that your investment will be worthwhile. Physical gold has several different attributes that exemplify both quality and luxury including:
- Purity – 24-carat gold offers 99.99% purity with hallmarking gold bars way of certifying gold bars This includes details like the manufacturer, the weight and the percentage of purity.
- Certification – The weight and purity of gold bars is displayed in the assay certificate that comes with the purchase of a brand new bar. Here at Bullion Giant, we provide authentication certificates, giving you confidence and peace of mind of the authencity of your asset.
- Serial Numbers – Tracing the purity of your purchase is simple. Most gold bars come stamped with a unique serial number for you to verify the purity and refinery details.
- Packaging – Gold bullion bars are delivered in secure, protective packaging that ensures the asset isn’t damaged.
The quality of gold assets enhances wealth preservation, hedges against inflation and provides a worthy investment opportunity that will elevate the value of your portfolio.
Gold as an insurance policy
The word ‘insurance’ is essentially another word for ‘protection’. We insure our homes, our cars, and our holidays with policies that protect us in the event of something happening. In the context of gold, one of the most undervalued benefits of owning gold is the insurance it provides you as an investor.
Gold will always hold its value and often outperforms alternate forms of investment like bonds and stocks. As inflation and financial crises engulf the market and contribute toward economic downturns, owning physical gold is an insurance policy like no other – it cannot be devalued amidst economic uncertainty and should you need to move or transfer it with ease – then you can simply take it with you wherever you need. Small units of gold can be easily traded for cash in times of economic hardship.
Reap the benefits of buying gold today with us
With so many benefits of buying gold, now you need a reputable online dealer to capitalise on this and enhance your gold portfolio! Here at Bullion Giant, you can buy gold bars online with a wide array of magnificent gold bullion bars to elevate your collection. Choose from LBMA-approved brands such as Metalor, Umicore, PAMP Suisse, Heraeus and Valcambi.
You can pay in a way that suits you thanks to our flexible payment options. You’ll also get free, insured delivery. Once you place your order, you’ll receive your gold product in 2-3 days. We only partner with the nation’s leading couriers to ensure all of our gold bars. Our delivery options provide our valued customers with peace of mind and security. Choose from smaller weights such as our 1g, 2g, 5g or 10 gram gold bars, or check out our larger weights like the 500g, 1kg gold bars and 12.5kg gold bar. Contact our friendly team today with any queries and we’ll be on hand to assist you.
