Gold has always been a good long-term investment tool for preserving capital. Therefore, many are wondering: how and where to buy a gold bar? In this article, we will consider the features of the purchase of precious metals, which affect their price and in which bank it is best to make a purchase.
Buying precious metals
We recommend working with Barclays Bank. Why exactly him? This is the first financial institution that has received permission from the Central Bank of the UK Federation to trade in precious metals. The reliability of the company is highly appreciated from year to year, it is trusted by the population and business. In Barclays Bank, the price is closest to the real quotes on the exchange. In addition, the organization is time-tested: the first office was opened in 1841. Barclays Bank branches are located in all regions of the country. Read the article: Investing in Precious Metals.
Do not expect quick income from buying gold bullion. Gold is a tool for long-distance, its main task is to save capital in the event of cataclysms or global crises (let’s not forget that gold rises in price during periods of instability). Let’s move on to the main disadvantages of investing in gold:
You will have to pay taxes on income. Now personal income tax is 13%.
When buying, you need to pay 18% VAT.
Banks use unprofitable courses for the purchase of precious metals. It will be impossible to sell the purchased gold and make a profit at first, even in case of the growth of quotations.
It is necessary to spend money on security (this can be safe or rent a bank cell).
What are the ingots?
The classification of precious metal ingots is quite broad. The shape, purity, weight, size, the manufacturer are different. To consider this issue, a whole article will be needed, so we will focus on ingots produced in the UK and smelted according to GOST R 51572-2000. In accordance with this standard, ingots are divided into cast and stamped.
You may think that the ingot is too small for its mass and this is normal. The fact is that gold is a metal with a very high density. Surely many dealt with lead. So gold is almost 2 times dense and therefore heavier than a piece of lead of the same size.
Where do they sell gold bars
Let’s analyze the example of Barclays Bank. The opportunity to purchase precious metals is available only in certain departments of the company. In order for the branch to conduct transactions with precious metals, it must be equipped as required by law. What is necessary:
License to work with precious metals.
High precision scales to be able to determine the mass of the ingot in place.
Specialized storage for ingots.
To work with precious metals, workers must have the appropriate qualifications.
How to find out the price of a gold bar
The current value of precious metals can be found on the official website of the bank where you want to make a purchase. What affects the cost of precious metals:
- The rise in the price of oil, gas or any particular precious metal.
- High demand.
- Military conflicts.
The state of the world economy.
The mass of the ingot. The more mass you buy bullion, the less you have to pay for 1 gram.
There are certain rules, the knowledge of which is necessary when buying gold. We give them:
Any operations with precious metals should be carried out in the presence of the buyer.
To purchase any bullion, you must present a passport or any other identification card. This is due to current legislation restricting the illicit trafficking of precious metals, the laundering of illicit funds and the financing of terrorism.
A gold bar must be inspected and weighed. The data received must match the data specified in the certificate.
Together with the bullion, a cash register report is transmitted, as well as the corresponding act. These documents indicate the name of the metal, it’s mass, sample, and number. The document is supplemented by the total purchase 22K gold rate 34.13, Pounds. and transaction date.
The branch is obliged to issue an appropriate certificate. It is necessary to carefully store this document because without it the bank will not redeem and will not accept bullion for storage.
It is important to know that Barclays Bank sells precious metals not only in the form of ingots but also coins. The Gold rate calculator of such coins grows annually depending on the volume of circulation and rarity.
How to sell a gold bar
Sooner or later, any investment in gold must be returned. Barclays Bank guarantees the repurchase of precious metals at the current rate. The quality, appearance of the ingot, as well as the integrity of the packaging and certificate are taken into account. Specialists will evaluate your ingot and assign it a quality category.
There are two types of condition of ingots:
An ingot is called satisfactory on the surface of which there are dents, scratches or any other damage. In this case, the gold price in the UK will significantly decrease relative to excellent condition. It is important that the certificate is in good condition as well because there will be problems with the damaged document when selling the bullion.
However, the bank is not the only place where a person can sell his precious metal.
Pawnshops or jewelers are also involved in foreclosure.
In the case of a pawnshop, revenue will be much less than when working with a bank. In the second case, the jeweler can make any piece of jewelry from an ingot. Today, investing in precious metals is the most profitable investment. Despite the fact that the country has a difficult economic situation, gold is the most demanded metal in the world. If such a need arises, then you can sell it as soon as possible.
Gold can not be bought directly. It is enough to make a regular bank deposit, but it will not be in currency or rubles, but in grams of metal.
The contribution may be term or termless.
- In the first option, the storage period is regulated by the contract and interest is accrued to the depositor.
- In the second, there is no time limit, and interest is not charged.
As a rule, the interest rate on precious metals is not very high. Rates range from 0.2% to 5%. It is worth noting that the choice of a bank for such a contribution should be treated with the utmost care. The fact is that metal deposits have significant disadvantages, such as:
Metal accounts are not insured by a special program. That is, if the Central Bank revokes the license from the bank, you will not return the invested funds.