The Benefits of Buying Preowned Gold and Silver in the UK

Investing in gold and silver is an excellent way to diversify your portfolio, protect your wealth, and enjoy tangible assets that hold long-term value. While many buyers tend to focus on brand-new coins and bars, the preowned market offers significant advantages, particularly in the UK. Let’s explore why buying preowned gold and silver might be the right choice for you, and the specific benefits it offers.

1. Significant Savings on VAT

One of the standout benefits of buying preowned gold and silver in the UK is the VAT savings. While new silver coins and bars are typically subject to 20% VAT, preowned gold is VAT-free in the UK under the current investment gold scheme, and preowned silver often benefits from VAT exemption if purchased from specific sellers operating under the margin scheme. This means that investors can acquire silver at a lower cost compared to purchasing brand-new items.

2. Popular Preowned Coins in the UK

Some of the most sought-after preowned coins in the UK include well-known pieces from established mints. These coins have a strong track record and tend to retain their value:

• Britannia Coins: The Royal Mint’s Britannia series, including both gold and silver coins, is highly regarded. Preowned versions of these coins can often be found at more competitive prices than new issues.

• Sovereign Coins: The UK’s Gold Sovereign coins, which have a rich history, are another popular choice among investors. These coins are especially attractive in the preowned market due to their legal tender status and exemption from Capital Gains Tax (CGT).

• Krugerrand: The South African Krugerrand is an international favourite, and preowned versions are available in the UK, often at lower premiums than their new counterparts.

3. Well-Known Preowned Gold and Silver Bars

Alongside coins, preowned gold and silver bars from top mints are a great option for investors looking for larger quantities of precious metals at reduced costs. Popular preowned bars include:

• PAMP Suisse Bars: Renowned for their quality and design, PAMP Suisse bars, including the famous Lady Fortuna series, are highly desirable. Preowned options give investors the opportunity to buy this premium brand at a more accessible price.

• Metalor and Umicore Bars: These reputable mints offer gold and silver bars with exceptional purity. Preowned bars from these brands are a great way to increase your holdings without paying full retail prices for new bars.

4. Lower Premiums

Preowned coins and bars often come with lower premiums compared to brand-new items. This makes them a more cost-effective way of investing in precious metals. You still get the same gold or silver content, but without the extra markup associated with freshly minted items. For long-term investors, this can mean significant savings over time.

5. A Sustainable Choice

Choosing preowned gold and silver is also a more sustainable option. By buying existing coins and bars, you reduce the demand for new mining and production processes, which can have significant environmental impacts. This eco-friendly aspect of investing in preowned metals is an added benefit for those conscious of their carbon footprint.

6. Adding Historical Value to Your Collection

Many preowned gold and silver coins come with a rich history. For collectors, buying preowned can mean acquiring pieces with unique backstories, limited mintages, or older designs that are no longer in production. This not only adds to the financial value of your collection but also its cultural and historical significance.

7. Liquidity and Flexibility

Preowned gold and silver are just as liquid as their new counterparts. Coins like the Britannia, Sovereign, and Krugerrand are globally recognized, and selling preowned bars from brands like PAMP Suisse or Metalor is straightforward due to their widespread acceptance. This liquidity makes preowned gold and silver a flexible investment option for those who may want to trade or sell in the future.

Final Thoughts

Buying preowned gold and silver in the UK offers a host of benefits, from VAT savings and lower premiums to sustainability and historical value. Whether you’re looking to expand your portfolio with renowned coins like the Britannia and Sovereign or want to save on bars from trusted mints like Metalor, preowned options provide an excellent opportunity to acquire high-quality precious metals at a more affordable price.

Investors who are seeking to maximise their value while enjoying the same benefits of new metals will find that preowned gold and silver can be a smart and cost-effective option.