Brexit: Effects of EU referendum on PM trade for Brits

[oohshiny]

This topic is about the effects that Britain's referendum on staying in or leaving the EU might have on precious metal trade from within the UK. I'm particularly interested in the effects of 'uncertanty' during the run up to the referendum, and the effects of either outcome after the vote has taken place. Anyone from anywhere is welcome to discuss their thoughts on this .

There are rumours of the EU referendum happening earlier, in 2016 now (instead of 2017). See http://www.telegraph.co.uk/news/newstopics/eureferendum/11687517/EU-referendum-to-be-held-in-October-2016-sources-say.html.

I was wondering, what do you think the effect of this will be on buying gold and silver for us Brits, before and after the referendum, either staying or leaving?  Should I divert funds away from buying gold so I can pick up extra reduced VAT silver from Germany in case import tax rears it's head in the future? Will 'market uncertainty' give way to commodity price rises or will the world shrug off our attempt to 're-position' ourselves outside of Europe and carry on 'business as usual'?

Cheers, Dan (oohshiny).

 

[BaldyBob]

2 minutes ago, oohshiny said:

I can pick up extra VAT free silver from Germany

Just to clarify, as I think there is some confusion regarding VAT, and it has also occurred in other threads.

It is not VAT free from Germany, they just have a much lower rate, and some exemptions for bullion coins issued by Government Mints, which is why we don't buy bars from STG.

You have still paid VAT within the EU.

[Stu]

If we do leave the EU, in order for the UK to benefit from trade within European rules we would have to pay  dearly to continue to benefit from the European Economic Area, EEA, such as Norway and Iceland currently do, we will not get a free lunch. I do not believe the UK would pay for this right, likewise I do not think either way, it will have the slightest bearing on PM prices. It will perhaps make London even more attractive though,  to launder drugs and criminal monies with even less regulation, if this is possible. 

 

[oohshiny]

7 hours ago, BaldyBob said:

Just to clarify, as I think there is some confusion regarding VAT, and it has also occurred in other threads.

It is not VAT free from Germany, they just have a much lower rate, and some exemptions for bullion coins issued by Government Mints, which is why we don't buy bars from STG.

You have still paid VAT within the EU.

Ahhh I see. I'll update my post to reflect that .

[oohshiny]

7 hours ago, Stu said:

If we do leave the EU, in order for the UK to benefit from trade within European rules we would have to pay  dearly to continue to benefit from the European Economic Area, EEA, such as Norway and Iceland currently do, we will not get a free lunch. I do not believe the UK would pay for this right, likewise I do not think either way, it will have the slightest bearing on PM prices. It will perhaps make London even more attractive though,  to launder drugs and criminal monies with even less regulation, if this is possible. 

 

Interesting thoughts. My main area of concern which I'll be following during the referendum is the price we face of purchasing PM within the UK from elsewhere, and any extra cost we might need to pay from new or increased taxation like duty and so on. Hopefully we won't see any of that regardless of the outcome.

[Danny-boy]

I don't worry about the prospect of the margin scheme being cancelled / being unable to buy almost vat free from Europe.

If it happens, the value of my stack increases over night as nobody will be able to buy at current prices.

[sovereignsteve]

Personally I don't care what effect it has on me buyimg PMs. I just want out and as quickly as possible.

It might be prudent to save up cash and have a good splurge on cheap (almost)VAT free silver before we leave but as Danny says, we will be in a different market afterwards.

In general though, a Brexit won't have the slightest effect on world PM prices other than the effect on the value of the GBP. this is certain but which way it will go is anyone's guess?

[morezone]

Unless we have an agreement to maintain free movement of goods, then expect to pay full VAT on silver.

Technically we don't actually pay any VAT on legal tender bullion coins from Germany.  We do however pay VAT on the profit whereas with any normal purchase, we would pay VAT on the whole sale.  The actual silver element itself is VAT free.

German VAT is 19%.  They did used to have a special rate for bullion but that was abolished not so long ago and this is when everyone moved to the margin scheme instead.  Some of the long time stackers can elaborate as it was before my time.