Gold Bars or allocated gold?

el_gaucho

Can anyone advise of the advantages of buying individual gold bars over allocated gold? ie, allocated gold but without owning a reserved bar.

Goldcore sell bars as small as one ounce, but commission charges are high (5%).
Goldmoney is cheaper (about 2.7%) commission. They are also cheaper for storage, but you can't buy individual bars less than 400oz. therefore you own shares in the gold rather than owning an individual bar or coin.
Bullionvault's minimum size is also 400oz.

any suggestions appreciated.

WildBoots

el_gaucho wrote: »

Can anyone advise of the advantages of buying individual gold bars over allocated gold? ie, allocated gold but without owning a reserved bar.

Goldcore sell bars as small as one ounce, but commission charges are high (5%).
Goldmoney is cheaper (about 2.7%) commission. They are also cheaper for storage, but you can't buy individual bars less than 400oz. therefore you own shares in the gold rather than owning an individual bar or coin.
Bullionvault's minimum size is also 400oz.

any suggestions appreciated.

You can also buy fractional gold coins, their weight range from 1/2 oz to 1/10th oz. If you don't want to have the gold "in your hand" as they say, bullionvault is a good alternative. Reasonable commission charges too.

The advantage of taking delivery of your gold is that you know exactly where it is, simple as that. You're also less likely to sell physical gold in a moment of madness, if you are using something like bullionvault all it takes is 2 minutes on your computer!

MrMatisse

Look at buying gold sovereigns on EBay, British Gold sovereigns can be bought at the spot price of gold and if you want to get rid, are easily sold on EBay. There is also a big market in Krugerrands (South African Gold Coins).

Its an easy and cheap way to hold gold and get rid of it quick if needs be.

heno55

as far as i know if you take physical ownership of gold bars then its certification becomes worthless and you loose some value

irishh_bob

forgive my ignorance but were someone to buy around 5000 euros of gold coins , if it increases in value , do you have to pay any kind of tax on it like you do with savings in a bank

also , if you decide to sell it at some point , do you have to pay any capital gains on it like you do with property

again , please excuse my lack of knowledge on this subject

Raskolnikov

irishh_bob wrote: »

forgive my ignorance but were someone to buy around 5000 euros of gold coins , if it increases in value , do you have to pay any kind of tax on it like you do with savings in a bank

also , if you decide to sell it at some point , do you have to pay any capital gains on it like you do with property

again , please excuse my lack of knowledge on this subject

Yes.

irishh_bob

Raskolnikov wrote: »

Yes.

so you pay capital gains on it like any other assett but dont pay any dirt on it like cash savings

on an related topic , is thier any difference between buying australia kangaroo coins or south african krugerand , canadian maple leaf etc , are they all baschically the same

MrMatisse

For some reason there are more buyers for krugerrand.

irishh_bob

Really-Stressed wrote: »

For some reason there are more buyers for krugerrand.

interesting , krugerand is slighly dearer than australian kangaroo

btw , i spoke with gold core today , i pointed to the fact that many commentators ( albeit online ones mostly ) seem to believe that buying physical gold and storing it at home is a much safer bet than simply buying certs , guy at goldcore claimed this was only an issue when ( in his words ) buying from private companys who deal in gold , according to this guy , goldcore only buy and sell goverment backed gold so the ( perth mint ) certs are always fully covered by actual stocks , he explained how thier is a third option where you can buy actual gold but have it stored in a vault in switzerland , this obviously costs more