Gold bullion is a reliable and profitable investment that guarantees not only safety but also capital appreciation. The price of gold does not depend on inflation and crises and shows slow but steady growth. This is especially true now when for several years in a row in the world there has been an unstable economic and political situation. Let’s consider where and how to buy a gold bar of the highest 999 standards, how much it costs and what to look for when buying this precious metal.
How and where can I buy a gold bar
Today it is legal to buy a 999 gold bullion only at a bank. Moreover, such service appeared relatively recently, only two decades ago. In 1997, the Legislation adopted Rules governing the procedure for the sale of gold bullion.
Features of implementation through banks
It is worth noting that not all banks carry out operations with gold since this type of activity requires an appropriate license from the Central Bank of the UK Federation.
In addition, in order to sell or buy gold bullion, banks must meet the following basic requirements:
To have a depository of precious metals and instruments that make it possible to estimate the weight of ingots with high accuracy;
Have a staff of qualified employees trained in the techniques of working with gold and other precious metals in kind.
For 2017, a little more than two hundred credit organizations with the right to conduct financial transactions with gold were registered in the Central Bank’s register. Among them are both small, little-known banks, and industry leaders – Barclays Bank, VTB, Gazprombank.
We will tell you more about how to buy a gold bar at Barclays Bank, and the reasons why you should make a choice in its favor.
The most significant document is the manufacturer’s certificate for the ingot. This is a kind of passport of a precious metal, which indicates the main parameters, sample and the number assigned to the ingot.
In the absence of a certificate or its unsatisfied condition, it will be very difficult to sell gold in the future. Banks are more likely to disagree to buy such a bar of gold. Therefore, the certificate should be stored and protected.
In addition to the certificate, the client receives a purchase receipt and an acceptance certificate. In part, they duplicate information about the basic characteristics of the ingot (name of precious metals, sample, weight). They also indicate the cost and quantity of purchased billions and the date of the transaction. Settlement and cash documentation serves as a confirmation of the fact of ownership of a gold bar.
Purchase of 999 bars in Barclays Bank
The lion’s share of gold bullion transactions belongs to Barclays Bank, and this has its own explanation. The bank provides a number of advantages to its customers wishing to invest in gold.
First of all, reliability. Barclays Bank is one of the largest lenders in our country, which has an excellent reputation and a high-reliability rating. More than 110 million people trust him in their own finances. It was Barclays Bank that the Central Bank issued the first permit for the sale of precious metals bullion.
Secondly, accessibility. Barclays Bank’s widest branch network allows it to occupy leading positions in almost all indicators and makes it accessible to residents of 83 constituent entities of the UK Federation. Contact information of Barclays Bank branches where you can buy gold bullion is presented on its page on the Internet.
Thirdly, liquidity. Often, when offering customers to buy gold bullion, banks do not carry out activities in the opposite direction and are not ready to purchase precious metal. Barclays Bank, unlike other credit organizations, provides a similar service, and it is not easy, but possible to sell it a gold bar. The main thing is to provide the necessary documents and the metal itself in perfect or close conditions.
Along with the sale of gold bullions, Barclays Bank provides a service for its storage.
Terms of a transaction
For legal entities and individual entrepreneurs, a certificate of the Assay Supervision Inspectorate is required to conclude a transaction.
The transaction itself, as a rule, is carried out with the direct participation of the buyer. However, it is possible to buy a 999 gold bullion by proxy. It must be certified by a notary.
Before signing the act of transfer and acceptance of gold bars, a number of mandatory manipulations are carried out:
- A thorough inspection of the ingot for compliance with standards;
- Weight measurement and comparison of the obtained values with those indicated in the quality certificates.
Gold bars are weighed to the nearest hundredth of a gram. At the same time, the location of the scales must be such that the buyer can freely see their readings.
After drawing up the necessary documents, the ingot is transferred to the client.
The gold rate in our country is set by the Central Bank. Twice a day, he translates the quotes of the London Stock Exchange into the national currency and publishes the discount gold price in KSA. It is from this value that banks repel when determining the rate at which all financial transactions with gold bullion will be conducted on the current day.
The price per gram of gold is always higher than that of the Central Bank. This is due primarily to the cost of manufacturing ingots.
At the end of 2017, you can buy gold bullion at Barclays Bank at a price of 3250 Pounds per gram. Gazprombank will have to pay a higher price for a similar ingot – 3800 Pounds (the price is indicated including VAT).
The price is apparently quite high. In addition, in the UK, unlike many countries in Europe and the United States, a tax of 18% of the transaction amount is provided. Therefore, the question often arises whether it is possible to buy gold bullion from individuals and to avoid paying VAT. The answer is no: it is better not to take risks and act in accordance with the law.
Summing up, we note once again that investing in precious metals, although a long-term, but guaranteed investment. Almost everyone can buy in 18K gold rate of 27.89 Pounds.bullion and increase its capital. The main thing is to choose the right seller and not make a mistake with the size. A good alternative to such an investment are investments in coins made of precious metals.