With the recent significant reduction in Signature Gold premiums, we thought we would look at the difference between buying Signature Gold and bars and coins.
Buying a gold bar is an alluring prospect. But with larger gold bars costing upwards of £300,000, that’s not an option for all. That’s why Signature Gold can be an attractive alternative to purchasing bars and coins.
What is Signature Gold?
Signature Gold allows buyers to own gold based on value rather than weight. That means you buy as much or as little to suit your budget – from just £20.
But will I still own the gold I buy?
Absolutely. It’s your gold, allocated to you. You own it and nobody else is able to purchase the gold. Unlike many unallocated gold bullion accounts, where you are ‘owed’ the gold, Signature Gold is real, physical and fully allocated to you.
What’s the difference between buying bars, coins and Signature Gold?
Gold bars and coins can be sent to you at home or stored for a fee at The Vault™- The Royal Mint’s onsite storage facility guarded 24/7/365 by trained security staff. Signature Gold is automatically stored at The Vault™ and you simply pay a management fee of 0.5% + VAT per annum based on the average daily value of your total gold holding that is stored with us.
The pricing of the gold is transparent and easy to understand. With premiums of just 0.5%, The Royal Mint allows you to buy bullion by price rather than by weight, so finding out what you have to pay is quick and straightforward.
The Royal Mint establishes that trust is made easier when the seller is one of the oldest organisations in the UK with a history stretching back more than 1,000 years. Royal Mint Bullion Signature Gold has proved popular precisely because buyers can have absolute trust that their gold is safely under lock and key.
Economies of scale
There are also the economies of scale that arise from the fact that Signature Gold is backed by large bullion bars weighing 400 oz each which do not need to be physically divided or cast into smaller bars.
Treasure for life. And future generations too
Buyers of Signature Gold can take ownership of gold bullion, the bedrock asset that has been the foundation of monetary systems for millennia. This makes Signature Gold a uniquely low-cost route into bullion ownership, and one that is quick and simple to access online.
That is not to say there aren’t good reasons for preferring to take physical delivery of gold coins or bars, but for many buyers, the benefits of Signature Gold are considerable.
What about bars and coins?
With all that said, there will always be those to whom a gold bar ought to be more than an asset in a vault, however safely guarded and however secure the owner’s title to it. Indeed, it is to say that the allure of physical gold is one of the unchanging features of humanity’s interaction with the financial world.
This attraction is not merely sentimental. Physical gold, close at hand, is the ultimate in liquidity, able to be transported at a moment’s notice and accepted anywhere in the world. It remains a truly global currency, as seen by the fact that central banks and the International Monetary Fund continue to hold large quantities.
Capital gains tax
Some coins also offer a tax advantage. Provided they are legal tender – that includes coins such as The Sovereign, Britannia, Queen’s Beasts and Lunar series – any profit made on their sale will not be liable for Capital Gains Tax.
How do I buy Signature Gold?
Signature Gold can be bought on the Royal Mint Bullion website. Simply follow the link below to register for an account.