Capital Gains Tax: The 'really valuable bonus' available from investing in gold

Gold can be seen as a valuable asset as it is a tangible thing. If things are going wrong in stock markets or in currency markets, gold can be seen as a ‘store of wealth’ that is difficult to get rid of and melt.

“So, if you do sell one of your gold coins for a profit, you don’t have to pay any tax on that which is good.”

Investing into gold comes in many different forms.

People can invest into physical gold which includes jewellery, coins, and bars.

Additionally, one may opt to invest in an Exchange Traded Commodity.


Mr Shaw said: “One of the ways people commonly do this is buying shares in gold mining companies.

“That gives you access to some of the movements in the gold market without actually purchasing the metal.

“You can do this through a fund which pulls your money with other investors mainly invested in goldmining shares.

“The entry point for that can as little as £10 a month when you’re buying units in a fund.”

These can be seen as a hybrid of shares and funds which are traded on the stock markets, but they can issue an unlimited number of shares.

When discussing how people can use them, Mr Shaw said: “They are complex products.

“When you buy shares in exchange traded commodity, they are backed by physical gold that the fund has bought and then the share price of what you own will track the price of the gold that’s been purchased.

“They are what’s known as passive funds, they just tracked the price of the assets so the relatively cheap to hold but gold doesn’t pay out anything there are no dividends.”

Owning shares in these funds are not the same as owning shares in company. They are not covered by the financial services compensation scheme.

He explained that if the institution which backs the fund fails, people will be exposed to high risk.

When considering whether to invest, Britons should take great care and seek advice from a qualified financial expert.

Roy Walsh

Roy Walsh

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