Gold Bars For Pensions? Bad or Good?

Jun 10, 2016 |

The UK’s Royal Mint has about 99.9 per cent purity in their gold. To qualify for use in an SIPP, gold must reach about 99.5 per cent purity. But gold does not have a great fanfare as before; gold had once dropped to $269 and had only increased lately at $1,253 per 100 grams.

Should you consider investing in gold?

Self-Invested Personal Pensions consider gold as a qualified item. Gold is also exempted from Capital Gains Tax in the United Kingdom. Despite such, you will pay taxes as soon as you withdraw your pensions.

Experts are warning mostly about gold having not its “one-way bet” strategy that made it famous as an inflation shield during its heydays.

“Gold is notoriously difficult to value, subject to seasonal demand, and unlike shares and bonds, it provides no income for investors.”

This means gold’s income may be unpredictable and pension expectations are more volatile than bonds or stocks.

But some analysts argue that gold is seeing more followers with its drastic rise in prices lately. According to investment platform Hargreaves Lansdown’s Danny Cox, unless economies turn tails, gold’s value will continue to rise. He speculated that soon, gold could reach its own stability.

He advises investors to at least have about 5 per cent of gold in their portfolios and always look for more affordable means to invest in gold.

Balance is the key. Gold is not a safety blanket anymore than it is.

Posted in: General Consultation

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