So you are new to buying gold and don’t know where to start. You want to avoid making amateur mistakes well here we are with a few tips to send you on your way to owning gold.
Where do I start?
Easy question, do your research. Find a recommended dealer and work with them directly, don’t be tempted by promises of cheap gold from less reputable suppliers.
Can I keep my gold at home?
Yes! Or… No! It really depends on how much you buy and how comfortable you are with home security.
It goes without saying that you shouldn’t keep stacks of gold bullion lying around at home for any visitors to stumble across. Except perhaps if you have a cracking good safe behind that Klimt print you’ve had since uni, or maybe a vintage Goldfinger poster for the irony. Either way if you’re going to store your gold at home we’re talking more Fort Knox than shoe box. Make sure to declare it on your contents insurance as well…
Alternatively, you should consider a safety deposit box, or can you store it with the dealer you purchased from? Give some thought to where you store is safe from prying eyes as we only want you to benefit from buying your bullion.
How much gold should I buy?
That depends entirely on you. You should be comfortable with the amount you are spending on your gold. You don’t want to overspend and be forced into selling before you’ve made any decent profit.
You should also consider they type of gold you want. It’s easier to move coins than bars. You don’t pay capital gains tax on the gold sovereign in the UK as it’s considered legal tender. Your profits may fall under £13,500 based on the volume you’ve bought so you don’t need to worry about capital gains.
Or… You might be looking to kit out a Rolls Royce Phantom 3, in which case I shouldn’t worry.
Do I pay commission on gold?
Let’s assume that you aren’t starting a coin collection, but you want to make money through selling your gold in the future when the price is higher than you paid for it, easy, simple. Your gold dealer doesn’t want that risk, rather they make their money by charging you a price higher than the spot price of gold when you come to buy it. Knowing this, you may want to shop around for the best price you can find.
What are the mistakes that amateurs make when buying gold?
Looking at it as a short-term investment to make a quick buck, may not be the best way. If you look at every drop in gold price over the past 50 years it has recovered. If you had a time machine and bought in 2003 to sell in pre-crash 2008 you’d be laughing. But keep in mind today’s price is both below the 2008 peak but above the 2003 price, so if you hadn’t sold at the right time but kept hold of your bullion, you’d still be better off today.
I am an entrepreneurial retailer and wholesaler with a strong track record of achievement and success in E-Commerce within a B2C environment.
For over 30 years I have successfully founded, created and operated businesses within Men’s High St retail and online optical. I’ve built successful, high-performing teams – both technical and non-technical and always enjoyed developing profitable, long-term relationships with clients.
It hasn’t all been plain sailing. I’ve learnt some hard lessons along the way that have shaped my ‘people first’ approach. I have a laser focus when it comes to margin, I believe profit tops turnover, cash is king and putting the customer first builds the right reputation. I’ve worked extensively with clients and suppliers all across the globe – giving me a truly international perspective in understanding cultural nuance and sensitivity.
By the very nature of my career to date, I have a very broad business experience and perspective. From developing international supply chains, merchandising and store design to raising VC funding, negotiating with banks and property agents and building high performance E-commerce sites – I believe I can bring value and insight to solve a broad range of business challenges.
Throughout my business career hindsight would have been a wonderful thing. I feel that I’m now able to share my knowledge and experience with others and help them avoid pitfalls and overcome the challenges that I’ve faced over a thirty-year career. In addition I believe my e-commerce knowledge and experience is very much at the cutting edge – enabling me to not only support ‘traditional’ small business – but also add value to those looking to establish themselves in the digital economy.
E-commerce business seeding and transformation
I am also a Director of London Gold Bullion.