Buy gold because it’s beautiful. Because it never fades away. Because gold coins are historic. One can’t ‘print’ gold. Gold is tangible, lasting and precious. Whatever your reason for buying gold, Rosland makes it simple and safe.
There are many reasons people find gold attractive – one of them is connected to inflation. Sometimes we don’t even notice that inflation is chipping away at the purchasing power of the pound, but it’s a fact of life.
If you look at the pound over the last decade, it now buys much less than it did, but gold has held its value over the same period. If you combine inflation with the very low level of interest paid on savings, gold becomes very attractive.
Gold is a finite resource – there’s only so much of it that’s ever been dug up, or ever will be. The cost of extracting new gold from the ground is now estimated to be close to or above the current trading price for 98% of mines, so it’s hard for supply to keep pace with demand.
The emerging markets of India and China have enormous impact on the world gold trade – they account for 60% of global world jewellery demand, and over 50% of the world’s gold coins. As those markets grow, so will demand.
Because we’re dealing with such a complex resource, no-one can offer certainties about quite how the price of gold coins will move.
Gold is currently down from its all-time high price, but what we can say with confidence, based on thousands of years of experience, is that gold will continue to hold significant value, even in uncertain times.
There’s also the simple fact that gold coins are an asset that’s tangible. Your house is tangible, as is your gold. You can hold it in your hands, and many people are delighted by the very idea of touching gold.
It’s an asset they can touch, that they can keep or sell, that they can pass on to the next generation. And after all, gold is a beautiful thing. People have always treasured it and admired it. It’s in museums, jewellery stores, palaces and private homes round the world.
At Rosland we’re happy to be playing a part in making it more accessible to our customers – let us show you what we can do.
Tax on Gold: VAT and CGT FREE
Gold coins have a unique advantage for collectors concerned about value and tax. From 1st January 2000, VAT was abolished on gold of a certain purity by Her Majesty’s Revenue and Customs. And for British legal tender gold and silver coins, they are exempt from Capital Gains Tax entirely.
The rules can appear complex and, of course, as is often the case with issues around taxation, are littered with a fair smattering of legalese. But as a simple rule of thumb, if a gold coin is 90% pure gold or above, then it should normally be exempt from VAT. And don’t forget, these days, VAT adds a hefty 20% to the cost of many items, making them considerably more expensive to buy.
Capital Gains Tax (CGT)
Everyone has an annual exemption of £11,300 (as from 6th April 2017). But if you make a gain above that, you must declare that profit and you will pay tax at the rate of 18% or 28% of the profit above that allowance (based on current HMRC rules). Yet CGT does not apply on British Legal Tender. Gold and silver Britannias, as well as gold Sovereigns are legal tender, though the gold value far exceeds their face value. Essentially, any legal tender British coin is CGT free. Any gain when you sell can legally remain outside of your CGT calculation, no matter how great it is.