UK Gold Bullion Dealers

July 8, 2011 - by mosesbet · Filed Under Gold Bullion Dealers Leave a Comment

There are dozens of reasons to be investing in gold right now. Thankfully, the UK bullion market has a rich history of dealers and bullion markets from which to buy from in 2011.

There are a number of reasons why UK customers may be interested in buying gold. Asides from the obvious points of hedging against uncertainty and economic risk, Britain actually has a rich tradition and marketplace for numismatic gold coins. Collectible gold coins as the Gold Sovereign, Britannia, 2012 Olympics and old commemorative/military coins not only retain their value, but they also provide a nice, pleasurable hobby for investors. Whether you’re purchasing the old George V and Edward VII Sovereigns or the newer Elizabeth II, you’re bound to find them at a reputable UK gold dealer.

Best UK Bullion Dealers

1) Bullion Vault (Gold Bullion)

Bullion Vault is arguably the best choice for customers and already has more than 25,000 customers. They were also noted in the Queen’s Enterprise award as one of the UK’s fastest growing companies. You can buy/sell gold at Bullion Vault at the latest live spot prices.

Bullion Vault offers the lowest margins (minimum commission of 0.8% for orders under $30,000) for gold buyers and they even store the physical gold in safe houses in London, New York and Zurich on your behalf. Storage fees are minimal (just 0.14% per annum). You also have the option to withdraw your allocated physical gold at any time. New customers will receive 1g of free gold (worth approx $50) when they open an account.

2) The London Mint Office (Gold Coins, Sovereigns and Numismatics)

The London Mint Office is one of the oldest and most trusted gold coin dealers in the UK. Started in 1997, their partners include the official British Royal Mint and Mint Offices around the world. They offer a huge range of Gold Sovereigns, Commemorative, Silver, 2012 Olympics, Military and other British Silver/Gold coins for reasonable prices starting from around £25. The London Mint Office provides a dedicated support team. All orders include a useful 14 day money back guarantee.

Why Buy From a UK Bullion Dealer?

Although the advent of the internet has led to hundred of bullion dealers launching internet stores, a lot of these are pointless unless you can find British gold coins and have them delivered for a reasonable price. Because gold coins weight so much it can make them awfully expensive to transport or buy overseas.

For example, APMEX is by far one of the largest dealers on the internet. However, many of their customers and coins are US orientated. Although they offer a huge range of American Eagles, Canadian Maple Leads and even Israeli coins, if you’re looking for specific British coins than you might be better off looking at a place such as the London Mint Office.

History of Gold Bullion in the UK

Regardless of what has happened to gold bullion prices in the rest of the world, Britain has its own unique history, law and marketplace in terms of buying and selling old gold coins.

Prior to 1966, the British public were free to buy and sell any gold coins. However, then Exchange Control Act of 1966-1971 restricted the number of gold coins that anyone could own to just four. This was in anticipation of the decimalisation in 1971 – it unfortunately abated growth in the burgeoning gold dealers market. In order to own more gold coins you had to apply for a special dealer’s license just like Rothschilds, Sharps Pixley, NatWest had done.

The Exchange Control Act amendment was removed in 1971 and gold coin trading continued as normal. Note that at this time the gold sovereign was by far the most popular gold coin in the UK and made up approximately 95% of the market. It wasn’t until international coins such as the South African Gold Krugerrand were introduced (now the most popular gold coin in circulation) that the superiority of the Sovereign and Half-Sovereign diminished.

The government’s decision to include VAT on gold coins in 1973 reduced the gold coin market in the UK. It wasn’t until 2000 that gold coins and bars were reclassified by UK and EU law as VAT tax-free investment gold. This led to many bullion dealers expanding their business and more international coins such as the Chinese Panda and Australian Kangaroo made their way into British dealers and homes.

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