Are 1 gram gold bars worth buying?

[CazLikesCoins]

With gold getting more and more expensive, and what with CGT allowance soon being lowered to £3000, are 1 gram bars a worthy investment?

Thoughts please. 

[Petra]

Any gold that you can afford and looks reasonably cheap compared to 1ozs when it comes to selling is well worth buying!🤔😮

[James32]

13 minutes ago, CazLikesCoins said:

With gold getting more and more expensive, and what with CGT allowance soon being lowered to £3000, are 1 gram bars a worthy investment?

Thoughts please. 

Well you could currently sell 48 1g bars a year ( £62 each ) before worrying about the CGT threshold. 

But you could also sell multiple sovereigns/other CGT free coins without worrying at all.

Just remember if a sovereign becomes more expensive, then so does a 1g bar ( infact the 1g bar becomes even more expensive due to higher premium out the gate)

TLDR: just buy whatever your budget allows and worry about selling when the time comes.

[ZRPMs]

In my limited and humble opinion. The only problem with the 1g bars is the premium. Myself. I'd save up to get a lower premium sovereign or half. However I suppose some of them look nice.

[Spyder]

6 minutes ago, ZRPMs said:

 However I suppose some of them look nice.

Under a microscope.  

The only time a 1g bar is worth it is when it no more than 5% above spot, as that is unlikely to happened, the answer from me is NO.

[BackyardBullion]

50 minutes ago, James32 said:

Well you could currently sell 48 1g bars a year ( £62 each ) before worrying about the CGT threshold. 

But you could also sell multiple sovereigns/other CGT free coins without worrying at all.

Just remember if a sovereign becomes more expensive, then so does a 1g bar ( infact the 1g bar becomes even more expensive due to higher premium out the gate)

TLDR: just buy whatever your budget allows and worry about selling when the time comes.

THE FOLLOWING IS NOT FORMAL TAX ADVICE, but my own interpretation of the rules. 

Thats assuming you make that much profit per bar.

Its the profit on the capital not the total value that makes a difference. 

If you bought 100x 1g bars at £55 each and sold them all for £65 each you make £1000 profit and do not have to even declare the gain as it is below the threshold.

If you had 100x 1g bars bought for £35 a few years ago and sold them for £75 each then that would be a £4000 gain. You would need to declare it and you would pay tax on the £1000 above the allowance. 

[James32]

4 minutes ago, BackyardBullion said:

THE FOLLOWING IS NOT FORMAL TAX ADVICE, but my own interpretation of the rules. 

Thats assuming you make that much profit per bar.

Its the profit on the capital not the total value that makes a difference. 

If you bought 100x 1g bars at £55 each and sold them all for £65 each you make £1000 profit and do not have to even declare the gain as it is below the threshold.

If you had 100x 1g bars bought for £35 a few years ago and sold them for £75 each then that would be a £4000 gain. You would need to declare it and you would pay tax on the £1000 above the allowance. 

Ohh that's even better then.

[Minted]

I'm afraid it's a no from me too...

Too small to see any detail with the naked eye.  Too light to feel like they're worth anything.  Too much premium to make them worth flipping any time soon.

[HonestMoneyGoldSilver]

I'm not a fan of fractional gold. The smallest pieces I own are 5g and RM twisted my arm with their pricing error to buy those (£256/5g)

Having said that I'm reluctantly willing to consider 1g bars. My logic is this. Nobody cares about what I think or the premium above spot (assuming it's not extreme). The market has spoken and while the market might be dumb as rocks, the market for 1g is booming. It's the entry level gold, 99% of people still don't own any gold bullion in the UK so I guess this is where some people start. The Royal Mint said 1g bars and 1/10th coins were their most popular items in 2023 alongside the ever popular sovereign. I dislike both 1g and 1/10th due to the premiums and needing a microscope to see what you've bought, but the premium doesn't matter if 1) you can get the premium back when you sell and 2) the spot price of gold keeps going up

IDK if I'll actually buy 1g or 1/10th but if I saw them for within 1% of the premium of a sovereign then maybe

 

[JamesH]

I’ve recently started adding 5g bars that I like the look of. Adds a little variety to what is being stacked and just makes the whole thing a bit more interesting. If any gold retains it’s bought for premium when selling, there’s no issue as far as I’m concerned. Good luck and enjoy

[Upsidedown]

You'd be better off saving for a half sov and avoid the CGT.

Easy to shift, very little premium

[CazLikesCoins]

Thanks to all for the comments.

I've got no idea why I've suddenly got a bee in my bonnet about 1 gram bars, but I have and it's stuck lol. Then again I'm also fancying quarter ounce silver Brits, so at least my tastes are affordable. 😆

[ZRPMs]

CGT is accumulative though. Lets say you only have the 1 gram gold bar and decide to sell. You make £10 profit after selling fees. Great no need to inform HMRC. However, you found the gold bar after selling your antique furniture in the dining room. Time has been good to you and you pull your full allowance (£3,000) In profit from the sale. CGT would then be due on your gold bar. 

I'll caveat that with. I'm no tax expert and that's my understanding. Always bet to have it in mind as you never know what will happen in the future. We may loose all allowance or the CGT free status of the sovereign. Who knows what'll happen. You may be involved in a boating accident and your poor 1 grammer may be lost to Davey Joneses locker.

[CazLikesCoins]

20 minutes ago, ZRPMs said:

CGT is accumulative though. Lets say you only have the 1 gram gold bar and decide to sell. You make £10 profit after selling fees. Great no need to inform HMRC. However, you found the gold bar after selling your antique furniture in the dining room. Time has been good to you and you pull your full allowance (£3,000) In profit from the sale. CGT would then be due on your gold bar. 

I'll caveat that with. I'm no tax expert and that's my understanding. Always bet to have it in mind as you never know what will happen in the future. We may loose all allowance or the CGT free status of the sovereign. Who knows what'll happen. You may be involved in a boating accident and your poor 1 grammer may be lost to Davey Joneses locker.

Only the finest flat pack from Argos in my diner. No profit there, unless I can flog it to some retro who wants 1980's mdf in their time bubble. I did think about putting a couple of 1 gram bars away for pension day but the way the buggers are going up I'll be paying enough tax on the profits to cover Gary Lineker for a year by the time I retire, which isn't that far. I thought about half sovs but same thing, who needs enough liquidation in a half sov to buy a fully staffed mansion on a private island 20 years down the line. Maybe not 20 years, maybe 2 the way things are collapsing.  Maybe I should be looking at microns 🤨

[ZRPMs]

8 minutes ago, CazLikesCoins said:

Only the finest flat pack from Argos in my diner. No profit there, unless I can flog it to some retro who wants 1980's mdf in their time bubble. I did think about putting a couple of 1 gram bars away for pension day but the way the buggers are going up I'll be paying enough tax on the profits to cover Gary Lineker for a year by the time I retire, which isn't that far. I thought about half sovs but same thing, who needs enough liquidation in a half sov to buy a fully staffed mansion on a private island 20 years down the line. Maybe not 20 years, maybe 2 the way things are collapsing.  Maybe I should be looking at microns 🤨

Get yourself a handful of sovereigns. @James32 will treat you kindly.

[CazLikesCoins]

15 minutes ago, ZRPMs said:

Get yourself a handful of sovereigns. @James32 will treat you kindly.

Sovereigns! Sov ... you mean the one ring to rule them all???!!!??? THE British full sovereign chased by generations through millennia as the pinnacle of stacking, wealth, and financial fortitude through good times and the bad? 

No 😆

I want a piss poor one grammar. It's my lot in life. 😇

Edited April 2 by CazLikesCoins
stuff

[27carrots]

On 02/04/2024 at 13:59, BackyardBullion said:

THE FOLLOWING IS NOT FORMAL TAX ADVICE, but my own interpretation of the rules. 

Thats assuming you make that much profit per bar.

Its the profit on the capital not the total value that makes a difference. 

If you bought 100x 1g bars at £55 each and sold them all for £65 each you make £1000 profit and do not have to even declare the gain as it is below the threshold.

If you had 100x 1g bars bought for £35 a few years ago and sold them for £75 each then that would be a £4000 gain. You would need to declare it and you would pay tax on the £1000 above the allowance. 

Does anyone know what happens with non exempt coins when you die?
Let’s say you buy a krug for £1000.

Then you die and leave it to someone when it is worth £2000.

Then they sell it when it is worth £3000.

How much “gain” is taxable here?

[Upsidedown]

2 minutes ago, 27carrots said:

Does anyone know what happens with non exempt coins when you die?
Let’s say you buy a krug for £1000.

Then you die and leave it to someone when it is worth £2000.

Then they sell it when it is worth £3000.

How much “gain” is taxable here?

First you'll have to pay inheritance tax, then that becomes your acquired value, anything above that is taxable for CGT

[27carrots]

Ah of course.

Thanks

[Upsidedown]

1 minute ago, 27carrots said:

Ah of course.

Thanks

That's my understanding

I'm sure someone will be along to correct me!

[James32]

8 minutes ago, 27carrots said:

Does anyone know what happens with non exempt coins when you die?
Let’s say you buy a krug for £1000.

Then you die and leave it to someone when it is worth £2000.

Then they sell it when it is worth £3000.

How much “gain” is taxable here?

Sell it before you pop your clogs and go out in style. 

[Petra]

Nice to see you all worrying about problems like this … 🤣 obviously got too much £/gold etc.🤔😮😮😁

[Roy]

I like 1g bars!

I collect and stack; I collect bars in assay cards and stack loose gram bars.

I 'weighed in' quite a few loose bars @ HGM over the New Year and made a tidy profit.

Should've kept them eh? But number go down too 😉

[Tn21]

1g bars are sweet, provided you are a long term holder I would definitely buy some as your cost price will eventually become spot price. 

 

Short term or medium term hold then I would say avoid 

[Roy]

Spot on @Tn21 😊

I'd been buying them since 2017 and my average cost was £43.2 a gram, so you can see that even at spot price in Jan, there was a shilling to be made.

I'll keep buying 👍