When income is not a requirement but long term stability and growth is the aim, Gold is an attractive and simple investment tool that has a strong reputation for building a consistent foundation on which to build a portfolio of investments.
Gold is the basis of our entire financial structure and provides a safe haven, whether Governments or retail investors. When the stock market is particularly turbulent and economies are faltering, Gold is the investment of choice.
As a limited commodity, Gold is continuously in high demand, creating a value to the commodity which is forecast for growth both in the short and long term.
Stability Of Investment
As the global reserve currency, Gold is always going to have an inherent value which means that any direct investment in the physical product will create a tangible commodity that maintains its structural worth and creates a viable safe-haven for those that continue to choose to invest in it.
As we move into times of economic uncertainty, investment in such a stable commodity acts as a buffer against the ravages of inflation and global market events to create a more certain opportunity for growth than a high proportion of other more liquid forms of venture.
Tax Relief
When investing in certain gold coins, there is no demand to pay either VAT on the purchase or Capital Gains Tax (CGT) on any growth within the portfolio.
This offers significant savings for tax payers, especially those that are liable for a higher rate in the UK, and makes the investment in Gold even more attractive.
Though coins are ineligible for pension investment which means pension holders cannot take advantage of VAT and CGT benefits, the up to 40% tax relief that is available within a pension acquisition does ensure a discounted rate for the gold purchased or enable a greater quantity of gold to be bought for the same price.
Direct Ownership
Whether coins or gold bars are chosen, when capital is placed into physical gold the investor himself becomes the legal owner of the asset.
The gold can then be stored on the owner's behalf or alternatively cash investors are able to take physical ownership of their asset whenever they so wish.
This creates a certainty of wealth in the investment that is simply not possible with so many other alternative ventures.
Infinite Term
The term of any investment in gold is also purely down to the financial decisions made by the investor himself.
The asset can be sold at any point in time either privately or back to the gold broker in question. This means that any cash investor can place their wealth into gold when interest rates are low and then liquidate their asset when they so wish or at a point in time when they feel their investment has reached an expected level of growth.
Flexible Investment
An investment of this type requires no minimum level of capital and can be extended to a substantial level. Furthermore, cash investments can be made directly into gold, or gold bars can be bought within both a SIPP and SASS pension to create wealth for retirement and stable growth for the future.
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