12
June
Should I buy Gold Bars and/or Coins?
A bullion coin is a coin that is of investment grade purity (over 900/1000 and normally 999/1000 fineness) and is valued by its weight in a specific precious metal. Unlike commemorative or numismatic coins valued by limited mintage, rarity, condition and age, bullion coins are purchased by investors seeking a simple and tangible means to invest in and actually own physical gold, silver, and platinum. Similarly a bullion bar is a bar (small or large) that is of investment grade purity (normally at least 995/1000 fineness) and that is valued by its specific weight of a precious metal.
Thus, there is little difference in buying government minted and issued legal tender bullion coins or buying well known refinery bullion bars. With both one is buying gold at very close to the intrinsic value or live market price of the metal. The EU Gold Directive means that all investment grade gold bullion is VAT and duty free – including bullion coins and bars. Some jurisdictions charge taxes on silver and platinum coins and bars but many do not apply taxes on legal tender bullion coins (gold, silver and platinum) as they are considered money or currency rather than simply a commodity.