Buying gold bullion is no more difficult than buying any other items in the store. However, as with any other thing, there are various nuances of this operation. In the UK, gold bullion officially began to be sold relatively recently, in 1997. It was this year that the Central Bank of the UK Federation approved the rules of transactions for the sale of precious metal bullions by decree N 772. Sberbank was one of the first to receive a license to conduct transactions with precious metals. For 2014, more than two hundred banks in the UK have this license, however, the vast majority of transactions with precious metals, in particular, with gold bullion, occur in Sberbank.
Does it make sense to look at other banks when buying gold bullion?
What features should be considered when purchasing precious metals? What is the procedure, what documents are needed and what are you required to give out upon purchase? We will try to answer these and other questions in this article. VAT ON PRECIOUS METAL BULLION Gold bullion has all the advantages of investing in physical gold. The main drawback of investing in gold bullion in UK is the mandatory payment of VAT tax. And, despite the fact that the definition contains the phrase “value-added”, the tax is paid on the whole value. VAT on bars is charged on a par with ordinary goods and services to which these bars are equal. It is interesting that this tax does not apply to coins made of precious metals in accordance with paragraph 11 of paragraph 2 of Article 149 of the Tax Code of the UK Federation. The cost of a precious metal ingot consists of the price for this precious metal taken at the exchange rate, a bank premium, and 18% VAT. Thus, when buying gold bullion, you immediately lose 18% of its value in addition to the spread (the difference in purchase and sale rates).
IS IT POSSIBLE TO AVOID VAT WHEN BUYING GOLD BULLION?
There are two options to avoid VAT, and they all have their drawbacks. We will not give advice to use one way or another, as in our opinion, the disadvantages outweigh the dignity of owning physical gold. However, it is obvious that the situation is different for everyone, and one of the methods presented below may be suitable for someone. Acquisition of gold bullion with their subsequent storage on metal accounts of custody of Sberbank. The account data is not a compulsory medical insurance, as it might seem at first, however, de facto these accounts are not much different from them, since you still do not see physical gold. Buying gold bullion abroad. In most countries, a tax on the purchase of gold bullion is not levied, and it would seem that this is an excellent way out of the situation. This is only partly true, the main problems are customs at the border and the difficulty of selling gold bars bought in other countries. There is another scheme for acquiring gold bullion without VAT, however, firstly, for its implementation, you must be a jeweler (individual entrepreneur or legal entity with special permission from the Assay Chamber of the UK Federation), and secondly, its legality is disputed in the courts. More details here and here.
WHO CAN BUY AND SELL GOLD BULLION?
Unlike coins made of precious metals, the law of the UK Federation prohibits the purchase and sale of gold bullion between individuals. Of course, there is a loophole in the form of mutual endowment – the seller of the bullion “presented” the bullion to the buyer, and the buyer “gifted” the seller a certain amount of money. In the event of such one-time operations, you are unlikely to be interested but do not forget that when buying a bar of gold from a stranger, the risk of being cheated increases greatly. Certificates, checks, and the ingot itself can be faked, and in case of fraud, the law will not help you, because you, having bought the ingot “by hand”, have already violated it. In fact, the gold bullion market between individuals is a black market where laws do not apply. We strongly advise against such transactions. Thus, an individual can conduct operations with bullion only if his counterparty is an individual entrepreneur or a legal entity carrying out operations with precious metals, which must have a certificate of special registration with the state inspection of assay supervision of the Assay Chamber of the UK Federation. There is no reason to doubt the availability of such documents at banks engaged in the sale and purchase of precious metals, as they are regularly checked. But to ask such a certificate from jewelers or pawnshops during operations with gold will be most welcome.
WHERE IS THE BEST WAY TO BUY GOLD BULLION?
Despite the relatively high commission of Sberbank, we recommend buying gold bars from this bank. Considering that you will have to pay an 18% tax in any case, an additional 1-3% commission will not greatly affect the final price. The 18K gold rate in UK Is 28.28 Pounds.The advantages of this option more than block the unnecessarily high commission. An ingot bought at Sberbank is more likely to be sold at any other bank. At the same time, an ingot bought at another bank will be more difficult to sell at Sberbank. It often happens that small banks selling gold bullion do not buy them back. Thus, the purchase and sale of gold bullion in Sberbank is a more liquid option than in other organizations. Given the huge tax, buying bullion makes sense only for a long time, at the end of which it would be nice to be able to sell this bullion. HOW TO BUY GOLD BARS IN SBERBANK To get started, you need to find out the address of the nearest Sberbank branch conducting operations with precious metals. As a rule, these are the central offices of large cities or district centers. At the same time, it would be nice to know the addresses of Sberbank branches that buy precious metals from the population. It happens that the department only sells gold, but does not buyback. Pre-call the department found and clarify whether they have available bullion of the desired weight. In the case of a positive answer, you need to bring along a passport (or other identification document) and money (or a plastic card on which there is the necessary amount).
You will be given a gold bar in a plastic container. It can be opened, but it is recommended to do this as little as possible because each “feeling” of soft yellow metal will affect its appearance. If the damage is quite severe – scratches, dents, color changes – during the sale you will be offered a discount price for such an ingot. In addition to the bullion itself, you will be given a certificate confirming, firstly, the fact of purchase (this is in addition to the check), secondly, the authenticity of gold, and thirdly, its test. Compliance of the certificate and the ingot is carried out through its number. On the certificate it is indicated in the header (the number is smeared on the photo), on the bullion the license plate is engraved on the front side. In addition to the number, there should be the name of the metal (gold), the country in which this ingot was cast (UK), the mass fraction of gold in the samples (999.9), Separately, it should be said about the certificate. It should be stored no less carefully than the ingot itself. The loss of the certificate is almost guaranteed to lead to the refusal of the buyback of the gold bar by the bank. Of course, it can still be sold, but only at a pawnshop and at the price Gold calculator. Problems with the implementation of the ingot can be obtained if the certificate is in poor condition – torn, it will contain extraneous inscriptions, stains, stains. In this case, the ingot is recognized as satisfactory (and not excellent) quality, the price of which will be lower.
TYPES OF GOLD BARS
You need to understand that in the world there are a huge number of ingots of completely different shapes, sizes, weight, purity, and manufacturer. We will not consider all this diversity, and this is not necessary. It will be about ingots that are produced. UK tola gold rate 395.25 Pounds. and which are subject to GOST R 51572-2000. In accordance with this GOST, ingots are divided into stamped and cast can have a nominal weight in grams of the following sequence: 1, 5, 10, 20, 50, 100, 250, 500, 1000. At present, in UK, ingots are produced with only one breakdown – 999.9, which means the presence of impurities of not more than 0.01%. The dimensions of the ingots from the first try may seem small. This is normal since yellow metal has a very high density. If you ever held lead in your hands and felt its weight, you can roughly imagine the weight of gold – it is almost two times denser and, therefore, heavier than a similar piece of lead in volume. It is not surprising, therefore, that a kilogram bar of gold is a parallelepiped with dimensions of 5 by 10 centimeters and a thickness of 1 centimeter. If you compare it with iPhone 4, then the latter will be more than about 10%. In the photo on the left, the largest ingot is just a kilogram. And the smallest one, at the tip of the index finger, is an ingot of one gram. In the photo on the left, the largest ingot is just a kilogram. And the smallest one, at the tip of the index finger, is an ingot of one gram. In the photo on the left, the largest ingot is just a kilogram. And the smallest one, at the tip of the index finger, is an ingot of one gram.