Physical Gold Responds to Royal Mint Increasing Gold Content in its Bullion Coins
Leading UK gold dealer, Physical Gold, has responded to news that the Royal Mint is to increase the gold content in its bullion coins.
(PRWEB UK) 5 November 2012
The Royal Mint is to increase the gold content in its bullion coins, taking the gold content from 22 karat gold of around 92% purity, to 24 karat of around 99.99% purity.
The move comes in advance of a major push to sell more precious metal directly to small investors.
The higher quality gold also comes in response to demand from the far-east, where gold investors favour a higher purity coin, which in some countries attracts lower taxes.
Investment grade gold of at least 22 karat in purity, in the form of a coin or bar, is excluded from VAT in the UK.
Physical Gold specialise in buying and selling Royal Mint gold bullion coins and have responded to the news with interest.
A spokesperson from Physical Gold said:
“The decision by The Royal Mint to increase the gold content in their bullion coins is an interesting move. The news will be a welcome change to some investors, who like the idea of higher purity coins. However, one issue that could arise with upping the gold content is that 24 karat gold is very soft and scratches more easily than the existing coin purity of 22 karat, which can cause gold assets to fall in value.”
“We would argue that 22 karat gold is better for investment as it has worked for many years, which is why the majority of investment coins are not pure gold. It will be interesting to see if a dual or tiered pricing system develops for 24 and 22 karat versions of the coins.”
Physical Gold Ltd is a leading UK gold dealer, helping investors diversify their portfolios with innovative investment solutions. Renowned for their ground breaking products such as the Sipp gold and Gold Accumulation Account, the firm specialise in providing customers with tailored assistance in sourcing the best gold for their personal requirements. Based in London, the team are BNTA accredited and have an unrivalled knowledge of the gold market as well as an exceptional understanding of the general financial markets.
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