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About Us Bullion House like to keep things simple, specialising in the supply of LBMA approved Gold and Silver bars and coins from only the most established mints around the world. With direct access to refiners Bullion House offers everyone the chance to purchase and own their own physical gold at the lowest premiums. As well as live prices online for fast and easy purchases, Bullion House offers a fully personalised buying service to assist customers in building a gold portfolio that meets their needs. With experienced in-house industry specialists available over the phone or in person via appointment at their London office, they can assist with regular price updates, growth reports and when the time comes to sell, Bullion House are always there to help.
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Why Invest in Gold? For centuries gold has been seen as a timeless asset and today it remains a world-renowned safe haven with savvy investors understanding the importance of gold in a well-balanced portfolio. Cash loses real value and conventional investments diminish in worth because they are primarily paper assets with no intrinsic value. In contrast tangible assets like precious metals have more than doubled in value in the past five years alone.
Major reasons why gold and silver prices will rise in years ahead Low interest rates:
Limited supply:
Whenever interest rates are low, investors look to move their money away from the banks in search for a better return, like gold and silver which benefit from the increased purchasing.
Unlike the GBP savers old in the banking system, the supply of gold and silver is limited. This helps the precious metals hold their value over the long term.
Central bank demand: Central banks around the world, hold tens of thousands of tonnes of physical gold. With building uncertainty banks continue to buy hundreds of millions of pounds of gold every year, which facilitates the increasing demand and price.
The “Insurance” effect: Whenever there is growing uncertainty surrounding the economy, or an increase in volatility in the financial markets, investors gravitate towards safe havens such as gold and silver. This is because precious metals have always been considered as form of wealth insurance.
Strong long-term returns: Gold prices have risen more than any other mainstream asset class in the past decade. These strong returns for precious metals are leading an increasing number of investors to put money to gold and silver. Gold demand: The worlds most populated nations China and India already buy over 2,000 tonnes of gold every year, and this number is set to increase throughout the next decade.
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Gold Prices GOLD PRICE PERFORMANCE: 15 YEAR TREND GBP/oz 1,375 1,250 1,125 1,000 875 750 625 500 375 250 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
GOLD PRICE PERFORMANCE: % ANNUAL CHANGE
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Average
GBP
+34.3%
+10.5%
+2.2%
-29.4%
+5.0%
-5.2%
+30.2%
+3.2%
+3.8%
+14.2%
+21.3%
+13.5%
USD
+29.5%
+10.1%
+7.0%
-28.3%
-1.5%
-10.4%
+9.1%
+13.6%
-2.1%
+18.9%
+13.6%
+10.2%
EUR
+38.8%
+14.2%
+4.9%
-31.2%
+12.1%
-0.3%
+12.4%
-1.0%
-2.7%
+22.7%
+17.6%
+11.9%
“The desire for gold is not for gold. It is for the means of freedom and benefit.“ Ralph Waldo Emerson
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Gold Bars Bullion House stock a complete range of sizes in bullion bars from 1g up to 12.5kg market bars. All our gold bars are 24k gold with a fineness of 999.9, manufactured by London Bullion Market Association (LBMA) approved refiners. Gold bars or “ingots” are produced by private mints and whilst 1g, 2.5g & 5g bars make wonderful gifts, larger bars generally offer the lowest premium over spot price. However, bars not only attract capital gains tax but the larger unit size bars can cause a lack of flexibility on the resale too, not necessarily representing the best value when it comes to selling your gold at a later date. While bars maybe favoured by those wanting to just own as much precious metal as possible, bars do not rise in value as much as graded or loose coins do. This is because they do not hold the collectability factor and are not limited in production numbers like coins.
Advantages for investing in gold bars: • • • • •
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Low premiums VAT free Easy to store Flexibility to sell Universally recognised
“Holding physical gold bars provides the ultimate control and insurance for your wealth“
BULLION HOUSE
2.5g gold bar Baird
10g gold bar Heraeus
50g gold bar PAMP
1oz gold bar PAMP Fortuna Veriscan
250g cast gold bar Baird
1 OZ GOLD BAR 2010
£768
2020
£1387
% GROWTH – 80% AVERAGE % PER ANNUM – 8%
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Loose Coins Gold coins offer greater flexibility and are a very popular option for new and experienced investors alike, particularly those who anticipate selling part or their entire portfolio at sometime in the future. All gold coins sold by Bullion House are produced by a sovereign government’s mint and carry the status of legal tender. This is particularly attractive in the case of U.K. legal tender coins as they are given status free from capital gains tax. Coins are dated and limited in mintage each year, adding to their collectability and although this can add a premium above the spot price, over time the premiums often increase too. This means coins can provide a far greater return on investment, firstly from the rise in gold price and secondly from an increase in the premium.
Advantages of investing in gold bullion coins: • • • • •
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VAT free U.K. coins are capital gains tax-free Liquidity; more flexibility when you sell Easy to store Highly collectable
“Coins are dated and limited in mintage each year, adding to their collectability“
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2020 gold British Sovereign
2021 1oz gold British Britannia
2018 30g gold Chinese Panda
2016 1oz gold UK Lunar “Year of the Monkey”
2021 1oz gold Queen’s Beast White Greyhound of Richmond
2015 1oz gold South African Krugerrand
1 OZ GOLD BRITANNIA 2010
£788
2020
£1633
% GROWTH – 107% AVERAGE % PER ANNUM – 10.7%
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Graded Gold Coins As collecting coins became increasingly popular during the 1900’s the condition of a coin along with its rarity, became essential in determining the coins value, as is still very much the case today among investors. Graded coins are nearly always more valuable than ungraded coins, especially unprotected coins vulnerable to the elements. Ungraded coins have no guarantee of grade, condition and even authenticity. Graded coins are certified by a professional grading company and assigned a grade between 1 and 70, 1 being poor, barely identifiable through 70, mint state perfect with no microscopic flaws. Although ungraded coins can certainly be cheaper, many consider them a riskier investment, as the true value of a coin above its spot price relies on it being minted by an established mint and certified by a recognised grading service. The PCGS (Professional Coin Grading Service) represent the industry standard and are recognised as the world leaders in coin certification. Bullion House are proud to be an authorised dealer of the PCGS.
Benefits of owning graded coins: • Graded coins almost always increase in value more than loose coins or bars • Guarantee of authenticity and condition • Gold coins are VAT free • U.K. Gold coins are capital gains tax-free
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• Graded coins have been shown to be less susceptible to market volatility • Higher resale price than loose coins • More collectable than loose coins and bars • Easy to store and stack
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2020 1oz Gold British Britannia PCGS Certified MS70
2017 1oz Gold Krugerrand PCGS Certified MS70
2016 1oz Gold Queen’s Beast ‘Lion’ PCGS Certified MS69
2019 1oz Gold Royal Coat of Arms PCGS Certified MS68
2018 1oz Gold Canadian Maple Leaf PCGS Certified MS67
2019 1oz Gold Britannia Oriental Border PCGS Certified MS66
1 OZ GRADED GOLD QUEEN‘S BEAST BULL 2017
£1190
2020
£2695
% GROWTH – 126% AVERAGE % PER ANNUM – 42%
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Gold v Other Assets Gold V ISA‘s While ISA’s and gold share several benefits when it comes to Income Tax and Capital Gains Tax, ISA’s and gold have shown quite a difference for their investors. Whilst low interest rates and rises in inflation having continued to hurt savings accounts like ISA’s, political uncertainty and economic volatility have caused an increase in the demand for gold along with it’s value. Gold is an asset that has consistently been used as a safe haven in the event of recessions and other economic uncertainty by providing a hedge against inflation. Even governments use this as a way of safeguarding their national reserves in the event of turbulence, with recent years showing central bank buying at its highest in over 50 years. Gold is frequently used as a way of storing wealth outside of the banks offering its owner greater control over their money with no reliance on banks or other financial institutions. With physical ownership of gold bullion, investors have flexibility to buy and sell at any time of their choosing, with no fixed time frame or annual limit that comes with an ISA.
“If you don‘t hold it, you don‘t own it“ While savers turn to ISA’s for their tax efficiency, gold equally offers UK investors tax free investment options. All Investment gold bullion is VAT free (since 2000 in the UK and Europe) while British legal tender coins also make the investment exempt from capital gains tax. Given that there is no limit on gold, customers can invest much larger funds into gold bullion to take advantage of a favourable market when they choose.
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ISA - £10K IN 2000 (fixed at 2.5% / annum)
£16,478 in 2020
£76,438 in 2020 GOLD - £10K IN 2000
Gold V Property Rental property has for many years been seen as a safe and reliable way to make large investments. A physical tangible asset with a steady monthly income and potential large profit upon sale. However in recent years with major changes in regulations and economic uncertainty have seen potential returns for buy-to-let properties significantly shrink. Gold offers a real tangible asset just like the benefit of buying property, however has a very notable difference in entry level. Bullion House offers investments starting from as little as £50 that can be purchased within a few minutes, allowing new investors to safely test the market. Not only is gold undoubtedly easier to purchase than property, but when it comes to needing to release the investment; an owner can’t just sell part of a property, but they can sell part of a gold collection simply and quickly. Bullion House by back at up to 98% of the market value on the day.
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Gold V Bitcoin For centuries investors have moved savings into gold to protect and control their wealth from centralised banking institutions. In recent years cryptocurrencies such as Bitcoin have seen a significant rise in popularity due to their decentralised status away from banks. Bitcoin has certainly seen its fair share of excitement in the past fews years and at its market peak, cryptocurrencies have generated small fortunes for some investors. While everyone loves a bit of hype and jumping on the bandwagon for the ride, with great gains comes the risk of great falls.
“While the value of Bitcoin is currently that much higher than gold, it’s the volatility of cryptocurrencies that should worry potential investors.“ While gold may not be as exciting as Bitcoin, gold has certainly stood the test of time. Whether it is held in person or stored securely, gold gives physical access to a source of true value. Bitcoin on the other hand in its modern digital world has fallen prey to hacking and theft. For this very reason gold is still considered the ultimate safe haven. For investors looking for long term safety gold is certainly the preferred choice. During times when inflation is higher than the interest set by the Bank of England, it creates a position of negative real interest rates. This means that fiat currencies such as the GBP devalue while the cost of living continues to rise.
Gold V Stocks Stocks and shares have long been the main rival to gold as an investment. While the potential for sizable gains lies in the bull markets when strong economies support the markets, gold‘s popularity benefits from the bear markets, when share prices fall, often reflected by economic slowdown or even recession. During these times of uncertainty, gold protects investors and their wealth against the devaluation caused by inflation, but gold is traditionally a long-term investment. Investors may be able to see quicker profits in some cases with stocks, and it’s that allure that makes stock markets the big rival. One of the reasons stocks are so popular is that they can offer it’s investors an income in the form of a dividend. However in recent years dividend yields have continued to be suppressed and when it comes to the capital gains, gold has enjoyed far superior growth when compared with the FTSE 100 average over the past couple of decades. To help highlight the potential benefits of buying British gold coins, a gold investment of £100,000 in October 2018 would be worth over £150,000 in just 18 months to April 2020.
FTSE100
GOLD
Value in 2000 -
Value in 2000 -
6175.10 points
£175.98/oz
Value in 2020 -
Value in 2020 -
7604.30 points
£1151.36/oz
= increase in value by
= increase in value by
23.14%
554.26%
Gold bullion is the ideal escape from this because its value increases in line with inflation. While the value of Bitcoin is currently that much higher than gold, it’s the volatility of cryptocurrencies that should worry potential investors.
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Tax on Gold Tax Free Investing All gold bars and coins sold by Bullion House are VAT free. This is because all investment grade gold above 90% purity does not attract VAT. While gold bars and coins are exempt from VAT, gold and silver British legal tender coins carry the additional benefit of being capital gains tax free. This means that you can invest in coins such as gold Sovereign’s and British Britannia’s and make unlimited tax-free profit on investments of any size and value on all British legal currency bullion coins. Although British silver coins are CGT free, all silver should be viewed like any other product and therefore VAT will apply to the purchase. This will usually be included in the price but it is something to bear in mind when selecting your investment. However recent history shows that silver is still a very profitable way of buying bullion. During the last rally the price of silver increased by 308% in the five years between April 2006 and 2011. And once again since the price has come back down and we face fresh uncertainty silver is back on the move increasing 23% in the 12 months from April 2019.
“Since 1st January 2000, VAT has been abolished on all investment grade gold by HMRC“
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Browse the collection Bullion House stocks only the highest quality and sought after investment grade bullion bars and coins from the leading mints around the world. All gold bars are 24ct and supplied brand new direct from London Bullion Market Association (LBMA) approved refiners. All gold coins available for purchase at Bullion House are investment grade, including the best selling British Sovereigns and Britannias - free from capital gains tax! A selection of investment grade silver bars and coins can also be purchased, all at low premiums above the global spot price. At www.bullionhouse.co.uk you can keep up to date with the latest live prices, important precious metal and economic news. Secure payments can be made online and account access will allow you to keep track of your latest purchases.
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Silver Gold is often considered the big brother of silver stealing the limelight when it comes to investing. However there are plenty of reasons why silver should be seriously considered when it comes to creating a diverse portfolio. Demand
Consumption
Silver and gold are used in jewelry and electronics (they are great conductors), but silver has far more uses in photography, silverware, solar energy, water purification, medical applications and industrial uses such as batteries, brazing and catalysts.
Further to silver being in limited supply, it is estimated that of the 46 billion ounces of silver ever mined only around 1 billion ounces remain in bullion form today, compared to 2 billion ounces of bullion gold. This is due to silver being consumed when used in many of its applications and inevitably ends up residing in tiny amounts in landfill.
Banks Banks hold no real reserves of silver, which means in a crisis there is no risk of banks dumping silver in large quantities to depress the price since they have nothing to dump. This means silver is for the most part out of the control of the banking system. Supply Silver is extremely limited globally and unlike gold that is mined as a primary product, silver is a bi-product of other mines, mostly zinc. This means that supply cannot be simply increased by opening up new mines; it is only if zinc production significantly increases will silver increase.
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Price Due to the lower cost, silver is historically more mobile than gold in price, in that it can move rapidly. So during unstable market conditions or the coming economic collapse, gold is expected to rise, but silver prices are likely to rise even more. During the economic crisis in the 1970’s, while the price of gold rose 2,500% the price of silver rose 3,800%. And because silver is significantly more affordable than gold per ounce, this means anyone can start investing in bullion with Bullion House from as little as £20.
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“During unstable market conditions or the coming economic collapse, gold is expected to rise, but silver prices are likely to rise even more. During the economic crisis in the 1970’s, while the price of gold rose 2,500% the price of silver rose 3,800%.“
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Source, Supply, Demand Gold’s diverse uses, in jewellery, technology and by central banks and investors, mean different sectors of the gold market rise to prominence at different points in the global economic cycle. This diversity of demand and self- balancing nature of the gold market underpin gold’s robust qualities as an investment asset. Supply Factors Unlike oil or coffee, gold isn‘t consumed. Almost all the gold ever mined is still around and more gold is being mined each day. If so, one would expect the price of gold to drop over time, since there is more and more of it around. So, why doesn‘t it? Countries like India and China treat gold as a store of value, the people who buy it there don‘t regularly trade it. When prices are high, the demand for gold falls relative to investor demand. In 2019, jewellery accounted for approximately half of gold demand, which totalled more than 4,400 tonnes, according to the World Gold Council. India, China, and the United States are large consumers of gold for jewellery in terms of volume. Another 7.5% of demand is attributed to technology and industrial uses for gold, where it is used in the manufacturing of medical devices like stents and precision electronics like GPS units. Therefore, gold prices can be affected by the basic theory of supply and demand; as demand for consumer good such as jewellery and electronics increases, the cost of gold can rise. Gold Production Major players in worldwide gold mining include China, South Africa, the United States, Australia, Russia, and Peru. The worlds gold production affects the price of gold, another example of supply meeting demand. Despite the increased demand over the last ten years, gold mining production has not changed significantly. One reason is that the easy gold has already been mined; miners now have to dig deeper to access quality gold reserves. The fact that gold is more challenging to access raises additional problems: miners are exposed to additional hazards, and the environmental impact is heightened. In short, it costs more to get less gold. These add to the costs of gold mine production, sometimes resulting in higher gold prices.
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Central Banks In times when foreign exchange reserves are large, and the economy is humming along, a central bank will want to reduce the amount of gold it holds. Thats because the gold is a dead asset—unlike bonds or even money in a deposit account, it generates no return. The problem for central banks is that this is precisely when the other investors out there aren‘t that interested in gold. Thus, a central bank is always on the wrong side of the trade, even though selling that gold is precisely what the bank is supposed to do. As a result, the price of gold falls. Central banks have tried to manage their gold sales in a cartel-like fashion, to avoid disrupting the market too much. Countries worldwide have established agreements with Central banks to ensure limits are set on the amount of gold sold off each year. It‘s not binding, as it‘s not a treaty; rather, it‘s more of a gentleman‘s agreement—but one that is in the interests of central banks, since unloading too much gold on the market at once would negatively affect their portfolios.
KEY TAKEAWAYS • • • •
Supply, demand, and investor behaviour are key drivers of gold prices. Gold is often used to hedge inflation because, unlike paper money, since its supply doesn‘t change much year to year. Studies show that gold prices have positive price elasticity, meaning the value increases along with demand. Since gold often moves higher when economic conditions worsen, it is viewed as an efficient tool for diversifying a portfolio.
The Bottom Line Under a free market system, gold should be viewed as a currency like the pound, the euro, and the U.S. dollar. Gold has a long-standing relationship with the U.S. dollar, and it generally moves in the opposite direction in the long run. When there is instability in the stock market, it is common to hear talk of creating another gold standard. Unfortunately, a gold standard isn‘t a flawless system. Viewing gold as a currency and trading it as such can mitigate risks to paper currency and the economy. However, investors should be aware that gold is forwardlooking. If one waits until disaster strikes, the gold price may already have risen too high to offer protection.
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Reviews Bullion House are passionate about delivering a great customer service and are very proud to share their customer reviews. eKomi allow customers to directly share their experience with you, so you can buy with confidence.
“Excellent service and support. Everything was explained going through every step from my purchase, the coin(s) themselves, right up to delivery.” Ivor Holden “Very helpful sales guy. Prompt service, although my second order was out of stock, a new delivery was quickly received and my order still arrived only 7 days from ordering.” David Keep
“I have dealt with Bullion House on 5 occasions and I have at all times found them responsive and professional. I cannot recommend them highly enough for their advice and follow up after sales service. I am seeing good growth as a result of their advice and therefore have no hesitation in recommending them to anyone who wishes to invest in gold.” John Crooks “Friendly staff and professional service, I would recommend to anyone looking to buy physical precious metals at a fair price.” Peter “Polite and helpful hope to get the same service when I need to sell.” Joyce Greeves
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How to get started How Can You Buy? Phone
How to2889 get started Call 0207 117 and speak with one of Bullion House’s experienced team members. They will help you walk through each step of the buying process and answer any questions you might have to assist you in personalising your purchase around your interests and what you are looking to achieve. Order
Call
Bullion House offers live prices updated every 30 seconds inline with the global spot price to ensure the most competitive prices. Once you are happy with your choices, prices can be locked in and your order can be taken over the phone. An account will be opened, where you will be able to supply proof of identity to comply with anti-money laundering and fraud legislations and strict internal security checks, along with keeping track of any future orders.
Discuss
Delivery
Delivery
Bullion House offers free insured delivery on all orders so you can take ownership and admire your gold from your own home. Your order will be discreetly packed and require a signature on delivery. Watch your portfolio grow
Watch your portfolio grow
Whilst you hold and own your gold, Bullion House can provide regular updates on live prices, growth trends and important economic news.
Bullion House
Order Sell
Delivery Growth
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FAQs Q: HOW DOES DELIVERY WORK?
Q: DO I GET A CERTIFICATE WITH MY PURCHASE?
A: If you choose to take delivery yourself, Bullion House will notify you of the intended delivery date and provide you with a tracking number. Your order will be fully insured and arrive in discreet packaging. If your items are being shipped to a secure storage facility you will be notified once delivery has taken place.
A: Bullion House only sells coins from the world‘s leading mints, however loose bullion coins do not come with a certificate from the manufacturer. This is why many investors will choose to buy graded coins that are certified and guarantee authenticity.
Q: CAN I SELL MY GOLD TO YOU? Q: WHY AM I PAYING MORE THAN THE SPOT PRICE? A: The current global market value or ‘spot price’ is given in troy ounces and is based on contracts between members of the London Bullion Market at which bars weigh 12.5kg each! Unfortunately, this price doesn’t include additional costs of producing and testing smaller bars, along with brokerage fees, transportation, storage or insurance.
Q: HOW DO I KNOW THE GOLD IS REAL?
A: Bullion House offers a competitive live price for all bullion bars and coins when the time comes for you to sell.
Q: CAN I STORE MY GOLD WITH YOU? A: Bullion House offers the option to store your precious metals with one of their recommended third party fully insured storage vaults at a small yearly fee. Alternatively Bullion House supplies a range of home storage options from small discrete storage containers to the highest certified home installed safes and vaults.
A: All bullion bars sold by Bullion House are manufactured by LBMA approved refiners and are sealed in tamper proof packaging direct from the refiner. All bars are brand new and are 24kt and like many coins will carry a fineness mark indicating the purity of the gold.
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Disclaimer The information in this guide should be considered as general information only and not used as investment advice or taken as a recommendation for your personal needs. You should conduct your own independent research to assist in your purchase. We have taken significant effort to ensure information in this guide is accurate, but cannot in any way be held accountable for any loss caused by inaccuracies, omissions or changes in legislation. We do not provide tax or investment advice. If you feel you need these, we advise you consult an independent financial or tax advisor. Precious metals can go down as well as up in value. We reserve the right to change our premiums and charges at any time in response to supply and demand changes in the precious metals markets. The contents of this brochure are based on our own experience of the precious metals market, economics and current UK legislation. No responsibility can be accepted by Bullion House Group Ltd for any loss caused by acting on the information we provide.
Bullion House is a trading name of Bullion House Group Ltd incorporated in England and Wales, company number 09963715. Registered address The Old Barn, Off Wood Street, Swanley Village, Kent, BR8 7PA. Telephone: 0207 117 2889 Email: info@bullionhouse.co.uk.
0800 048 5700 www.bullionhouse.co.uk