Best Global Destinations For Gold Shopping

Gold is a precious metal that is highly valued worldwide, and it is common for bullion investors to travel internationally. If you are planning to travel with gold, it is important to be aware of the regulations and restrictions of your destination country. Most countries have rules in place regarding the amount of gold individuals can carry and the declaration of high-value items to prevent illegal activities such as money laundering or tax evasion. While there is generally no limit to the amount of gold you can travel with, you may be required to fill out declaration forms and pay customs or import fees, depending on your destination. For instance, the United States requires travellers carrying gold worth more than $10,000 to declare it to Customs and Border Protection (CBP) and fill out a FinCEN 105 form, while India imposes a 12.5% import tax on gold coins and bars and has a 1kg weight limit for gold. To avoid any issues, it is recommended to research the specific customs regulations of your destination country and consult with the relevant authorities.

Buying gold in the USA

Buying Gold Bullion in the USA

Gold bullion is a good way to invest in gold. Gold bullion bars are an effective method to acquire physical gold at a relatively low cost per troy ounce. They are available in a variety of sizes ranging from a standard 1 troy ounce to 400 ounces. Gold ingots are generally pure gold, with an industry-standard minimum fineness of .995 fine, ensuring the highest quality, purity, and clarity.

Gold bullion coins are another popular alternative. They are easy to buy, hold, divide, and trade. Issued by government mints, they are legal tender in the country in which they are produced, so the coins' face value, metal purity, and content are guaranteed. Most modern gold bullion coins contain exactly one ounce, half-ounce, quarter-ounce, or a tenth-ounce of pure gold, while older issues contain other fractional amounts.

Where to Buy Gold Bullion in the USA

There are several online dealers where you can buy gold bullion in the USA, such as APMEX, JM Bullion, and Monex. You can also buy from local dealers, collectors, or even pawn shops.

What to Consider When Buying Gold Bullion in the USA

When buying gold bullion, it is important to research the background and legitimacy of the gold dealer. Established dealers offer gold bars produced by recognized manufacturers and refiners. However, investors should expect to pay an assay fee when buying or selling gold bullion through a dealer to ensure the purity and authenticity of the asset.

Buying Gold Jewellery in the USA

Gold jewellery is another way to invest in gold. When buying gold jewellery, it is important to consider the purity of the gold, as higher karat gold is more valuable. It is also worth noting that gold jewellery often includes other costs, such as craftsmanship and design, which can affect the overall price.

Where to Buy Gold Jewellery in the USA

You can buy gold jewellery from a variety of sources in the USA, including online retailers, local jewellery stores, and department stores. It is important to research the reputation and reviews of the seller to ensure the quality and authenticity of the gold jewellery.

Considerations for Buying Gold Jewellery in the USA

When buying gold jewellery, it is advisable to look for hallmarks or stamps that indicate the purity of the gold. Additionally, it is recommended to get an independent appraisal to verify the quality and value of the gold jewellery.

Buying Gold Coins in the USA

Gold coins are a popular way to invest in gold. They are produced by government mints and are often considered legal tender. Gold coins come in a variety of sizes and designs, and their value is based on their gold content and rarity.

Where to Buy Gold Coins in the USA

Gold coins can be purchased from online dealers, local coin shops, auction houses, and even banks in the USA. It is important to research the reputation and reliability of the seller before making a purchase.

Considerations for Buying Gold Coins in the USA

When buying gold coins, it is essential to authenticate their legitimacy and condition. Reputable dealers will provide a certificate of authenticity and a detailed description of the coin's condition. Additionally, it is advisable to compare prices from multiple sources to ensure you are getting a fair deal.

Travelling with Gold into the USA

When travelling into the USA with gold, it is important to declare gold coins, medals, or bullion to Customs and Border Protection (CBP) officers, regardless of their value. However, if the value of the gold exceeds $10,000, a FinCEN 105 declaration form must be completed. It is also prohibited to import any gold produced in Iran, Sudan, or Cuba into the USA.

Buying gold in the UK

The UK offers several options for purchasing gold, ranging from online platforms to authorised distributors and dealers. Here is a guide to help you navigate the process of buying gold in the UK.

Online Platforms

The Royal Mint is the official mint of the United Kingdom and offers a secure platform for buying gold online. They offer a comprehensive range of gold bullion, including gold bars and coins, with the assurance of their hallmark of quality: 999.9 fine gold. The Royal Mint provides live price charts, investment calculators, and online academy courses to assist investors in making informed decisions. Their platform enables seamless navigation, allowing investors to manage their gold investments with ease.

Other online platforms, such as GOLD.co.uk and BullionByPost, also offer gold bullion investment and vaulting services. These platforms provide investors with the opportunity to buy gold bullion online and choose between secure allocated storage or free, fully insured, discreet home delivery.

Authorised Distributors and Dealers

The Royal Mint has authorised distributors, such as BullionByPost, who supply gold bullion bars approved by the London Bullion Market Association (LBMA). These bars are supplied brand new and direct from LBMA-approved refiners, ensuring the highest quality of precious metals.

Additionally, GOLD.co.uk is a leading gold bullion dealer, supplying gold, silver, platinum, and palladium bars and coins from world-leading refiners and mints. They offer real-time spot-based pricing, updated every 2 minutes, and investors can also purchase physical gold through their SIPP or SASS pensions.

Considerations

When buying gold in the UK, it is important to consider factors such as price alerts, storage options, and customer reviews. Many platforms offer price alerts to help investors plan their investments, and some provide free secure storage for a specified period. Checking customer reviews can provide insights into the reliability and satisfaction associated with a particular platform or dealer.

Additionally, it is worth noting that certain gold coins, such as the Gold Sovereign and Britannia, are classified as CGT-free investments in the UK, which can be a tax-efficient consideration for investors.

In summary, buying gold in the UK offers a range of options, from the renowned Royal Mint to specialised online platforms and authorised distributors. Investors can benefit from the convenience of online purchasing, secure storage options, and the availability of high-quality gold bullion bars and coins.

Buying gold in India

India has a long-standing tradition of investing in gold, especially in the form of jewellery. If you're looking to buy gold in India, here are some things you should know:

Gold Jewellery

Gold jewellery is widely available across India, with almost all jewellers selling gold pieces. When buying gold jewellery, it is important to consider the credibility of the jeweller and ensure that you purchase hallmarked jewellery. This verification of purity is crucial, especially if you plan to resell the jewellery in the future. The cost of gold jewellery includes the cost of the gold itself, as well as a manufacturing cost that can range from 5% to 20% above the gold price. Additionally, you will need to factor in locker rental and insurance costs for secure storage.

Gold Coins and Bars

Gold coins and bars are another popular option for those looking to invest in gold. These are available in 22 and 24 carats, with the Indian government and MMTC-PAMP offering "India Gold Coin" (IGC) coins that are Bureau of Indian Standards (BIS) hallmarked, assuring 24-carat purity. Gold coins and bars can be purchased from government sources, as well as non-government sources such as jewellers and bullion traders. Similar to jewellery, it is important to buy hallmarked coins and bars and obtain a purity certificate. The making charges for gold coins are typically between 2% and 10% over the cost of gold, while manufacturing costs for bars are usually less than 0.5%.

Digital Gold

For those seeking convenience and safety, digital gold is an option offered by companies like Tanishq. This method allows you to buy 24-karat pure gold online with a minimum investment of INR 100. Digital gold eliminates the need to worry about theft or locker fees, as your gold is stored securely. You can sell or convert your digital gold into physical gold jewellery at any time.

Taxes and Duties

When purchasing gold in India, it is important to be mindful of the applicable taxes and duties. For gold jewellery and coins/bars, you will need to pay a 3% goods and services tax (GST). Additionally, when reselling gold jewellery, you will be subject to a capital gains tax on the profits, which can vary depending on the holding period. India also imposes an import tax of 12.5% on gold coins and bars, with a 1kg weight limit for importing gold.

Buying gold in China

China has been on a gold-buying spree for over a year now, adding to its reserves for 16 consecutive months as of February 2024. This has contributed to a surge in the precious metal's price, reaching a record high. The country's central bank, the People's Bank of China, has been key to this trend, with total holdings of approximately 2,257 tons of gold.

Gold is a popular investment choice in China, especially during times of economic uncertainty. It is seen as a safe-haven asset, and its price can rise during periods of stock market or property sector volatility. The demand for gold in China is also influenced by cultural factors, such as the Chinese New Year and the Year of the Dragon, when gold-themed products are considered auspicious gifts.

When purchasing gold in China, it is important to be aware of the local regulations and the broader context of the gold market. Here are some key considerations:

Market Dynamics:

• Seasonal Demand: Local gold demand in China often increases during the Spring Festival and the Chinese New Year, which is a traditional sales boom period.
• Economic Diversification: China has been actively diversifying its financial reserves and central bank holdings to reduce its dependence on the US dollar. This has contributed to the country's sustained interest in gold.
• Gold as a Hedge: Historically, investors in China and worldwide view gold as a hedge against economic instability and inflation.

Practical Considerations:

• Gold Availability: Gold is readily available in China, with a range of options, including gold bars, coins, and jewellery.
• Price Fluctuations: The price of gold in China can vary and is influenced by various factors, including the performance of the RMB and the demand-supply dynamics in the local market.
• Storage and Transport: If you are a foreign national, consider the regulations around storing and transporting gold within China and when travelling internationally with your gold purchases.

Overall, buying gold in China can be a viable option, especially if you are interested in diversifying your financial portfolio or acquiring gold-themed gifts for cultural celebrations. However, it is important to stay informed about the dynamic nature of the gold market and any applicable regulations.

Buying gold in Australia

Gold is a popular investment option in Australia, with many investors viewing it as a way to diversify their portfolios and protect their wealth during economic uncertainty. When buying gold in Australia, you have a few different options, including purchasing physical gold or investing in gold indirectly through stocks, ETFs, or the futures market.

Buying Physical Gold in Australia

If you want to own physical gold, you can buy it from a bullion dealer, a mint, a precious metal dealer, or a bank. Gold is available in various forms, including bullion bars and coins, as well as jewellery.

Bullion Bars

Bullion bars are a traditional way to invest in physical gold. They come in a range of sizes, from 1 gram to over 10 kilograms, and are stamped with their purity level and weight. When buying bullion, you'll want to consider the following:

• Location: There are gold dealers and mints located throughout Australia, so you can choose to buy in person or online.
• Online options: In addition to specialist dealers, you can buy gold online through marketplaces like eBay or precious metal forums. However, it's important to research the seller's reputation and legitimacy.
• Gold source: Find out where the dealer gets their gold. Is it refined and produced by a recognised manufacturer?
• Premiums and commissions: Be sure to read the fine print and compare prices, as dealers may charge various fees, including commissions and assay fees to check the purity of the gold.
• Delivery: Inquire about how and when the gold will be delivered to you or transported to a storage facility. Is it insured during transit?
• Storage: Physical gold requires secure storage. You can store it at home, but this may not be the safest option. Other options include renting a safety deposit box at a bank or using a specialised vault company, although these options will incur additional fees.

Gold Coins

Gold coins, such as the Australian Kangaroo, are typically smaller and less valuable than bullion bars, making them a more convenient option for investors who may need to liquidate their investment. They are also considered legal tender in the country where they are made.

When buying gold coins, it's important to remember that their value is based on their gold content, not the face value assigned by the mint. This is especially important to keep in mind if you plan to travel with your gold coins.

Jewellery

Jewellery is another option for buying gold, but it usually comes with a significant mark-up relative to the content of the gold to cover labour costs and retailer margins. This mark-up can be upwards of 20%, and the gold may also be of a lower carat, making it less pure. If you choose to invest in jewellery, be sure to keep any sales documentation and proof of value, as this will make it easier to resell in the future.

Investing in Gold Indirectly

If you're looking for a more hands-off approach to investing in gold, you can consider the following options:

• Gold stocks: You can invest in gold by buying shares in companies with exposure to gold, such as gold mining companies like BHP Group, Rio Tinto, and Newcrest Mining.
• Gold ETFs: Exchange-traded funds (ETFs) that track the price of gold or focus on gold-related companies are another way to gain exposure to the gold market without owning physical gold. Examples include the BetaShares Gold Bullion ETF and the VanEck Vectors Gold Miners ETF.
• Futures market: CFD investing in the futures market allows you to speculate on gold price movements without owning the physical asset.

Final Thoughts

When buying gold in Australia, it's important to remember that gold prices can be volatile, and it may not offer the same potential for high returns as other investments. Additionally, there are fees and taxes associated with buying and selling gold that should be factored into your calculations. Overall, gold can be a valuable addition to a diversified investment portfolio, especially during volatile economic periods.

Frequently asked questions