Frequently asked questions

Nothing delights us more than engaging with our clients. We invite you to arrange a visit to our offices in Grosvenor Gardens to meet with one of our Partners. They’d be more than happy to discuss our offerings and services with you. To schedule your appointment, dial (020) 703 18077 or send us an email at accounts@goldbullionpartners.co.uk. Please note that no merchandise can be directly purchased from the office as we do not keep stock onsite.

A question we frequently encounter is “when is the optimal period to invest in gold?” A retrospective glance at historical trends clearly marks 2005/06 as an advantageous period for procuring gold bullion as it stood at the low of £250oz . Similarly, during the banking crisis in the UK in 2007/08, another window of opportunity presented itself for individuals to invest in gold, with the gold price approximately £350 per troy ounce. A group of investors astutely observed these signs, utilised the opportunity, and consequently witnessed their gold investment triple in under 5 years. The worldwide pandemic and ensuing economic turmoil in 2020 also offered a fortuitous moment for investors to procure gold, jumping from £1,200 per ounce in April, to a new record high of £1,574.37 per ounce in August the same year. Gold has consistently presented favourable buying opportunities all through 2021 and into 2023, reaching above £1,800 in 2024.

The two most frequently asked questions currently are “have I missed my chance to buy gold?” and “for how much longer will the gold price continue to escalate?” Regrettably, there’s no precise methodology to ascertain the ideal time to purchase gold, but numerous successful investors employ tried-and-tested strategies and indicators which aid them in determining the best time to invest in gold.

When to Invest in Gold – Sustained Ascending Trend

As you contemplate investing in gold, you must acknowledge that gold has been on a sustained ascending trend, with prices rising almost every month for several years. While investing in gold, don’t panic if the gold price falls by 5% the subsequent month. Such fluctuations are typical and historical trends suggest a likely correction. The gold price is an aggregation of numerous small dips and rises; the hope is for the underlying trend to persist and for the rises to overshadow the dips, much like they have for the past decade. Hence, gold investment should not be viewed as a short-term venture. We recommend that you retain your gold for a minimum of a year, ideally much longer – spanning years or even decades in many instances. If you do reap a sizeable profit in a short duration, wonderful – it’s your right to sell and capitalise on that profit, perhaps reinvesting in gold when you perceive the next market opportunity.

If you view gold as a long-term investment, it essentially means any time is the best time to procure gold, thereby lessening the pressure to spot present buying opportunities.

Is it best to buy gold in times of uncertainty?

When you’re considering buying gold bullion, be alert to any significant news emerging from institutions like the stock exchange, banks, Wall Street, governments etc. Adverse economic and political announcements pertaining to stocks, credit, currency, debt, property, unemployment and quantitative easing conjure unrest, especially referencing the more prominent economies like US, China, and Eurozone.

Common wisdom suggests that when other investments like property and stocks are underperforming, gold and silver prices rise as several major investors and corporations utilise gold as an insurance cover to recoup these losses incurred elsewhere. This usually offers an opportune moment to include more gold bullion in your portfolio or enter the market for the first occasion.

Investing in Gold Over Time

So, when is the ideal time to invest in gold?

Many investors endorse the idea of simply procuring gold when they can, acquiring smaller quantities routinely.

The strategy of part purchasing, as opposed to investing in gold in a single large transaction, provides investors the advantage of purchasing at a lower average price. This same theory applies to part selling as a way of maximising your investment returns. Essentially, the best time to invest in gold is when it suits you – utilising surplus wealth that would otherwise remain in a savings account.

Monitor the Gold Price

Investing in gold can be partially about choosing your moment. It’s crucial to keep a close eye on the gold price. The gold price fluctuates every two minutes, so closely observing the latest trends online via your PC, smartphone, or tablet will aid in your decision to invest. Despite this market being characterised by seemingly constant rises in the gold price, it’s not unusual for the gold price to dip  up to 5% in a single morning. This could potentially represent an ideal time to make your initial investment in gold or augment your existing gold investment.

Identifying value in the gold price is quite subjective. Some investors are perfectly content to buy gold when the price is amidst a very strong period, some prefer to buy during a stable period or during a dip, but whichever your preference, you should aim to invest in gold bullion only when the gold price feels right for you.

The Assurance of Gold

It’s crucial to bear in mind that owning gold bullion is about owning a safe, secure and timeless asset. It isn’t primarily about reaping huge profits at the end of every month or year. If you happen to invest in gold at the correct times and you reap a substantial profit, that’s excellent; there is nothing erroneous in making a lot of profit on gold as several people have and will continue to do so.

Gold investment is fundamentally about preserving your wealth and shielding yourself against financial crisis by taking control of your wealth, or a portion of it, and not leaving it at the mercy of banks and ETFs.

There’s a popular adage: ‘if you don’t hold it, you don’t own it’. Obviously, it isn’t practical or wise to physically retain all your assets, but holding and storing a portion of your wealth in the form of gold bullion IS sensible.

Past gold price trends will demonstrate how gold is more likely to yield you a healthier return on investment than other assets or commodities in the past decade.

The concept of buying low and selling high is straightforward, but we do remind customers that gold typically isn’t a quick return on investment and usually requires 3-5 years to show profit. Don’t be apprehensive about short-term fluctuations, hold on and concentrate on the long-term stability and advantages of your gold investment.

The value of gold is fixed twice daily at 10.30 am and 3.00 pm. Originally fixed by the four primary Bullion Houses – HSBC, Barclays Capital, Societe Generale and Scotia Mocatta it has been electronically set from March 2015 by Goldman Sachs, UBS, HSBC, Nova Scotia & Barclays. The initial gold fix occurred on 12th September, 1919 and has continued since to offer a publicly quoted price for manufacturers and consumers to use as a benchmark. The Chairman declares an opening price, with each member, linked via a dedicated conference call system from their dealing rooms, professing to be purchasers or vendors of a number of bars at the given price.

In the past, these members would convene at Nathan Rothschild’s to establish the price with each delegate having a small flag on his desk, lifted whenever there was a shift in orders from his dealing room. If a flag was lifted, the price couldn’t be confirmed. The price is then adjusted until an optimum price is found to satisfy both buyers and sellers. Once the total buy and sell quantities from each dealing room are within a 25-bar margin from each other, then the gold price can be confirmed. The price starts to fluctuate again immediately after the price is fixed.

The LBMA, or London Bullion Market Association, serves as a worldwide trade federation, representing the London market in gold and silver bullion, catering to an international clientele. Its members include a majority of central banks holding gold, private sector investors, mining companies, manufacturers, refiners, and fabricators.

When you’re considering buying gold bullion, be alert to any significant news emerging from institutions like the stock exchange, banks, Wall Street, governments etc. Adverse economic and political announcements pertaining to stocks, credit, currency, debt, property, unemployment and quantitative easing conjure unrest, especially referencing the more prominent economies like US, China, and Eurozone.

Common wisdom suggests that when other investments like property and stocks are underperforming, gold and silver prices rise as several major investors and corporations utilise gold as an insurance cover to recoup these losses incurred elsewhere. This usually offers an opportune moment to include more gold bullion in your portfolio or enter the market for the first occasion.

Given the fragile and heavily indebted state of today’s markets in the aftermath of Lehman, coupled with escalating economic threats and constraints on funding, it’s crucial for any corporate CFO and Treasurer to evaluate the possible downsides to their balance sheet to safeguard the firm’s assets and shareholders. The argument for a proportionate allocation of physical Gold to secure a firm’s cash reserves has the potential to maintain and even boost a company’s assets, particularly when cash is more of a liability and risk rather than an asset.

Gold Bullion Partners extends its services to private clients, legal entities as well as foundations, trusts, pension funds, and other organizations pertaining to institutional investments. As such, our clientele encompasses private persons, institutional investors, corporations, and family offices.

Account opening is subject to U.K. regulations relating to anti-money laundering (AML) and client identification policies (KYC).

Please contact us so that we can advise and assist you during our highly personalised and user-friendly client onboarding process.

The procedure is surprisingly easy, encompassing basic ID confirmation, online delivery of documents, account set-up, fund transfer, followed by the selection of precious metal products and storage. All information is transferred via encrypted SSL (SHA-256 with RSA Encryption) channels and securely housed in our thoroughly safeguarded and monitored servers.

Upon conclusion of the client onboarding, customers will get an official documentation featuring their account specifics. Customers can then freely transfer additional funds for us to action subsequent orders via our Trading Desk without hassle.

It’s possible for bullion coins to exhibit slight surface imperfections , such as tiny scratches or scuffs. In fact, the majority of Mints nowadays produce bullion with a certain degree of flaw. This is especially the case for Silver Bullion, where some blemishes are obvious. However, rest assured, the intrinsic value of a bullion coin is derived from the grade of precious metal and its weight. Therefore, when you decide to resell your bullion to Gold Bullion Partners, the item’s quality won’t have any impact on its resale value.

An increasing number of our clients express their interest in travelling or relocating throughout their lifetime, and one query that frequently comes up is this: what quantity of gold can you bring along while travelling?

The response is not fixed, it depends on things like your targeted destination and the airline you are using. Therefore, we have compiled the basics below to help clarify the various considerations you should take. Please bear in mind this is not comprehensive and you should carry out your own comprehensive research before travelling with both your airline and customs at your landing destination.

Is international travel with gold permissible?

There are certain restrictions on transporting gold or other precious metals overseas. Nonetheless, you are generally free to carry your item to any country of your preference.

Certain countries necessitate the declaration of gold and silver, usually for customs duties or additional security measures. This typically applies when the gold is of significant value, however, some countries – like the USA – demand complete transparency.

We suggest exhaustively researching any countries you plan to visit in order to steer clear of any unpleasant surprises and the potential risk of confiscation if there’s non-compliance with any customs regulations.

Can I have gold in my possession during an international flight?

Yes, carrying gold on an international flight is permissible, but it is strongly advised to review the customs regulations of the country you are intending to visit.

We also advocate discussing with the airline you plan to use, regarding elements such as baggage security checks and baggage weight restrictions.

For security reasons, we propose carrying your gold bullion in your carry-on/hand luggage and also providing some kind of documentation (like an invoice or receipt) to confirm ownership if necessary.

Importing gold into the UK

The UK government necessitates that travellers declare any goods upon arrival that are:

• exceeding your duty-free allowance
• that are forbidden or limited
• that you plan to sell

If your gold is a gift or personal belonging and is within the UK’s regulations, there should be no problems in importing it into the country. If it’s obligatory to declare your items, then customs officers will decide if you need to pay any taxes or duties on your gold (or other precious metals).

For additional details, you can visit the UK customs website: https://www.gov.uk/duty-free-goods/declaring-goods.

What quantity of gold can you import into the US?

The official US customs regulations state that there is no duty on gold bullion – whether coins or bars – but the items must be declared to a Customs and Border Protection (CBP) Officer.

If you are importing gold or silver into the US exceeding $10,000, then you will be asked to fill a declaration form.

For additional details, visit the US customs website: https://help.cbp.gov/app/answers/detail/a_id/322/~/importing-gold-coins%2C-medals%2C-and-bullion.

Travelling with gold coins

The gold (or silver) you take overseas is valued based on the value of the precious metal involved.

For instance: 10 Gold Britannia coins have an approximate worth of £1,800 per coin, or £18,000 in total, but they bear a face value from the Royal Mint of £100 per coin, providing a considerably lower total value of £1,000 that’s more favourable to customs.

Passengers carrying coins should be aware that it’s the metal of the coin that holds the value, not the legal tender face value that mints frequently assign to their coins. The lower valuation would be discarded, as these coins aren’t circulating currency. They are gold bullion, housing their value in the metal, and would therefore be valued accordingly by customs agents.

The term ‘bullion’ applies to both bars and coins. Within the EU, Investment Bars must have a purity of 99.5%. They include the ‘good delivery’ bars used in the wholesale bullion market. Bullion coins must be at least 90% gold by law, though some have a fineness as high as .9999 gold, including some examples of the UK’s Britannia gold coin.

Key Points about Bullion:

Forms:

• Bars: Often called “gold bars” or “silver bars,” bullion bars come in various sizes and weights.
• Coins: Coins made primarily of precious metals, such as gold or silver, are also considered bullion if valued for their metal content.

Purity:

• Bullion is usually highly refined, often with a purity of 90% or higher for gold and silver.

Uses:

• Investment: People buy bullion to hedge against inflation or as a safe-haven asset.
• Reserves: Central banks and governments hold bullion as part of their monetary reserves.

Examples:

• Gold bullion bars from refineries such as Heraeus, Valcambi, PAMP, Suisse, Metalor,
• Gold coins from the Royal Mint
• Silver bullion coins like the 1 Oz Britannia

In the UK, there are no legal restrictions on the amount of gold you can purchase at one time. You can buy as much gold as you wish, whether in the form of coins, bars, or other bullion. However, there are several important considerations to keep in mind:

Identification Requirements:

• Cash Purchases: Due to anti-money laundering (AML) regulations, dealers may impose limits on cash transactions. For example, some dealers allow cash purchases up to £5000 per rolling year without requiring additional identification. Exceeding this limit may necessitate providing identification documents. (Many Dealers will not accept any cash at all)
• Non-Cash Purchases: When paying via bank transfer or other methods, higher purchase amounts are typically permitted. For instance, dealers allow an unlimited amount via Bank transfer purchases.

2. Value-Added Tax (VAT):

• Investment-grade gold (with a purity of not less than 995 thousandths) is generally exempt from VAT in the UK. This includes all gold bars and coins.

3. Dealer Policies:

• Individual dealers may have their own policies regarding maximum transaction amounts, payment methods, and required identification. It’s advisable to check with the specific dealer to understand their terms and conditions.

4. Reporting and Compliance:

• While there are no specific limits on gold purchases, large transactions may be subject to reporting requirements under AML regulations. Dealers are obligated to report suspicious activities and may require identification for substantial purchases to comply with legal standards.

Buying gold in the UK is straightforward and accessible for both small and large investments. Here’s how you can navigate the process 

Decide the Type of Gold:

·      Gold Coins: Popular in the UK, such as the Britannia and Sovereign coins, which are VAT-free and exempt from Capital Gains Tax (CGT) because they are legal tender.

·      Gold Bars: Available in various sizes from reputable dealers.

Purchase Process:

·      Call us or book a call – at a convenient time to speak with one of our Partners, We pride ourselves in being specialists in the field of buying physical gold. We are readily available for any inquiries you might have, aiming to steer you to the optimal purchase that fits your exact requirements. Get in touch today to schedule your complimentary consultation.

·      Complete Purchase Order – We will email you a straightforward purchase order to fill out and sign as soon as you’re satisfied and have determined how much gold you want to buy. This will only take you two minutes to complete.

·      Fund your Account – When you’ve decided on the amount of physical gold you want to buy, we’ll send you a simple Purchase Order to fill out and return. You are then ready to fund your account.

·      Voice Execution -The moment your account is funded, we’ll call to confirm and complete your selection using our comprehensive voice execution service. Here you have direct market access to select the products you desire using the live gold price. Any remaining balance will be promptly refunded to your account. We’ll be on hand to offer as much guidance as you need.

·      Online – Book an online appointment at a convenient time to run through the above