How Do You Hold Yours?
5 December 2013 Breakfast Seminar in Guernsey
HOW DO YOU HOLD YOURS?
Investors have greater choice
Four main ways of investing into precious metals
Do they know? Should they know?
Do they care? Should they care?
PHYSICAL BULLION FROM REFINERY
What is investment gold?
(from HMRC) Investment gold is:
gold of a purity not less than 995 thousandths that is in the form of a
bar, or a wafer, of a weight accepted by the bullion markets;
a gold coin minted after 1800 that:
is of a purity of not less than 900 thousandths;
is, or has been, legal tender in its country of origin; and
is a coin that is normally sold at a price that does not exceed 180%
of the open market value of the gold contained in the coin
INVESTMENT GRADE BULLION
Why is this important?
Investment gold is exempt from VAT, subject to an option to tax.
How will I know?
It’s written on the bars! More importantly, it is all we sell.
THE GOLD BRITANNIA COIN
1oz Gold Britannia made from 999.9 fine gold
UK government assurance of weight and purity
Exempt from UK Capital Gains Tax (‘CGT’)
Exempt from Value Added Tax (‘VAT’) as an investment gold coin
UK legal tender (£100 face value)
When you buy unallocated precious metals through our nominee
you will become a creditor of Metalor - they will owe you the
precious metal that you have paid for. However, you must be aware
that you will not own the asset whilst it remains in Metalor's Metal
Account. Metalor remains the owner of the actual precious metal
and is free to use your money, whilst also adding your unallocated
metal holding to its own reserves.
The underlying metal might be physically stored in an audited vault but this is not guaranteed.
Furthermore, in the extremely unlikely event that Metalor became
insolvent, then you might, as a creditor, receive back only, at best, a
proportionate share of whatever was raised from the sale of
Fractional ownership schemes offer exposure to precious metals held,
on a collective basis, for the clients of the scheme
Investors should ensure that the scheme is backed, in full, by physical
bullion of investment grade standard and that the bullion is
Headline purchase, sale and storage costs may look attractive but
investors should be aware that should they wish to withdraw physical
bullion from the scheme, costs can be nothing short of exorbitant
7.5% for a 1kg gold bar or 10% for silver in the small print of one of the
world’s leading .com scheme providers
The regular, physically-backed, Exchange Traded Commodities (ETCs)
are designed to be simple and transparent open-ended securities
that trade on the well-regulated London Stock Exchange.
These ETCs have been designed to enable you to gain exposure to
the commodities in question without your having to trade in futures
or take physical delivery of the underlying.
They are secured, undated, limited recourse debt securities that are
designed to track underlying commodity price movements.
THE BULLIONROCK GOLD FUND
Will allow investors, in a manner familiar to them, access to physical
precious metals in the form of CGT-exempt and VAT-exempt gold
Will offer weekly liquidity with transparent fees, pricing and charging
Will offer a physical redemption process that will allow underlying
investors to collect the bullion coins *
investors will be required to have an active account open with BULLIONROCK Invest in order to redeem in this way