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Gold Bullion Coins & BarsModern day bullion coins make it possible for investors to own investment grade gold, of somewhere between 0.9 and 0.9999 fineness, in legal tender form at a minimal premium above the spot price of gold as is quoted by the numerous gold markets of the globe. The value of fine gold bullion coins is almost solely determined by the market price of gold, meaning that this type of gold investment follows and increases with the bullion price. Larger bars, in excess of 1KG, are not usually taken delivery of due to the often considerably high cost of insuring the delivery of these bars as well as the security implications and the additional cost they are likely to warrant. A London Good Delivery Bar weight in at close to 400 troy ounces and costs in the region of $400,000 USD, £270,000 GBP and €300,000 EUR (prices correct as of 20/11/09), make it extremely rare for a private individual to purchase or trade in this size of bullion, rendering them the reserve of institutions, companies and central banks. Gold, Platinum and Silver are all available in both bullion coin and bar form, often minted in the UK, US, Canada, South Africa, Australia, China and many other gold producing nations. The majority of these coins are minted in 1/10oz, 1/4oz, 1/2oz and 1oz weights, making them more suitable for private investment than their larger counterparts. By far the most popular form of this investment are one ounce bullion coins, such as the Krugerrands or the Britannias coins. Buying investment grade fine gold for investment in this way is free from both stamp duty and VAT in the UK and EU-wide, as a result of the EU Gold Directive of 2000. |
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