Buying, Storing Gold, Silver, Platinum Bullion for UK Investors
FAQs – Frequently Asked Questions
While BMG professionals are always ready to personally answer any questions you may have, below is a list of responses to Frequently Asked Questions about the advantages of buying and storing gold, silver and platinum in Canada for UK investors. If you find your questions have not been addressed, or you would like more detailed information, contact us and we will be happy to help!
Click on a specific question to view the answer.
What are the advantages of buying, storing gold, silver, platinum bullion in Canada for a UK investor?
There are many advantages for the UK investor who is buying and storing gold, silver and platinum bullion in Canada. The first advantage is price, as silver and platinum bullion purchased through BMG and held in Canada will be without VAT. There is also the security Canada offers. Holding bullion outside of one’s national borders often makes your bullion more secure, especially in times of economic turmoil.
Are there any sales or Value Added Taxes (VAT) payable when I buy or sell the bullion?
An important advantage for the UK investor who buys and stores gold, silver and platinum in Canada is there are no taxes payable on the purchase of bullion. Harmonised Sales Tax of 13 % does apply to the ongoing storage fee. You may have to pay a sales tax if you take delivery or transport the bullion to a jurisdiction that requires such tax to be paid. You will be responsible for any sales or VAT payable in your jurisdiction. Please contact your tax advisor for definitive answers within your area.
What size of bullion products can be purchased from BMG?
- Gold in kilogramme (31.15 ounces);
- Gold in 100 ounce bar;
- Gold in 400 ounce bars;
- Gold in 10 – 1 ounce Canadian Maple Leaf coins;
- Silver in 1,000 ounce bars;
- Silver in 500 – 1 ounce Canadian Maple Leaf coins; and
- Platinum in 50 ounce bars.
How do I purchase BMG bullion?
Contact us by telephone at +44 (0) 203 207 9419 or by email at firstname.lastname@example.org to start the purchasing process. Take advantage of buying and storing gold, silver and platinum in Canada.
Why should I buy precious metals through BMG instead of going to the bank?
Typically, banks are quite happy to sell you gold, silver or platinum certificates, but these are only proxies for true titled bullion ownership and represent unsecured liabilities of the bank.
How can I prove that I own the BMG products I just purchased?
You will receive an email from us as soon as you have transacted your purchase. This email will provide you with details of the cost of your purchased gold, silver and platinum bullion and the balance (if any) in your BMG account.
Within a week of your purchase, you will be issued a BullionDeed that identifies your specific products(s) by client name, serial number, assayer, weight, and purity (or fineness). Our products each have their own unique BullionDeed that serves as proof of ownership for your allocated bullion.
How can I be assured that my precious metals are really in the vault?
Our bullion is stored on an allocated and insured basis under a Custodial Services Agreement with LBMA certified vaults. The BullionDeed Number Confirmation Report, updated monthly, includes details of the refiner, exact weight, purity (or fineness) and serial number for each product. The vault(s) issue a monthly report to BMG with a record of all stored serial numbers. Clients can crosscheck the monthly reports with their BullionDeed for added security and absolute certainty with respect to the ownership of their bullion. Our auditors, BDO Canada LLP , review all bar lists and annually reconcile the vault holdings.
Does my BMG bullion depend on the solvency of Bullion Custodial Services Inc., or the vault(s) in which my bullion is stored?
Absolutely not! An advantage for the UK investor is that you have clear title to your BMG bullion as evidenced by your BullionDeed, and you have the unfettered right to take delivery of your gold, silver and platinum product(s) at any time.
Would a creditor of BMG or the vault(s) have any hold on my gold, silver or platinum?
No. Your BMG bullion is your property and is allocated to you only and without any lien. Your bullion is not the property of BMG, the vault (s) or the custodian, nor are they vulnerable to creditors of either.
Where do you keep the personal information I send to you?
Before you send in your application, Bullion Custodian Services (“BCS”) signs a mutual confidentiality agreement with you. Your information is kept at our administrative office. An electronic copy of your documents is made and held encrypted on our secure servers. These servers are physically isolated and cannot be accessed over the internet. Redundant encrypted backups are stored offsite in a secure facility, and all original hard copies are shredded.
Who has access to my personal information?
Should I be purchasing certificates instead of bullion?
No. Bullion certificates are very common today; however, most people don’t realise that the certificate is not actual bullion but a proxy for bullion. All you will own is someone else’s promise to pay the value of the bullion to you. This is the basic nature of a certificate. You cannot convert certificates directly into bullion without first paying charges or fees, and most certificates allow the issuing bank to pay you the cash value of the bullion certificate instead of issuing actual bullion.
Paper certificates defeat the purpose of owning the actual bullion, as there is no guarantee that there will be bullion available when you need it most. If the issuer of the certificate becomes insolvent, holders of certificates will be treated as unsecured creditors. The bullion will be distributed to all creditors in priority of other claims and not to the certificate holders.
In order for bullion to work as an effective hedge, it must be:
- Physical bullion legally transferred to your name.
- Stored on an allocated and insured basis in LBMA member vaults.
BMG BullionBars™ products offer you direct ownership of fully allocated gold, silver and platinum bullion.
Why do we still value precious metals?
- Historical Precedent: for nearly four thousand years, gold and silver have been universally considered money. Generations of the world’s wealthiest families have preserved their fortunes using gold, silver and platinum.
- Ultimate Safe Haven: preserves wealth in times of inflation, financial crisis, and paper currency destruction.
- Balance: precious metals are negatively correlated to other asset classes. Gold, silver, and platinum often perform best when other components of your portfolio are performing poorly.
Of the three metals we offer at BMG, silver is the least expensive and serves as both a monetary metal and an indispensable industrial metal. Silver is a superior conductor of heat and electricity, and also contains unique antibacterial properties suited for multiple applications.
What are the benefits for adding coins to my portfolio?
- Liquidity: the box of 500 1-ounce Silver Maple Leaf coins can be broken up into smaller denominations for sale and are not required to be assayed before a resale.
- Tax Efficiency: coins can be sold in smaller denominations, allowing UK investors to pay a lesser capital gains tax when compared to selling an entire silver bullion bar.
- Allocated and Secure: the box of 500 1-ounce Silver Maple Leaf coins is assigned a BullionDeed, ensuring titled ownership. Each box of coins can be stored in our LBMA member vaults on an allocated and insured basis for your peace of mind.
Are there risks involved in purchasing bullion?
All investments involve an element of risk, bullion included. The value of bullion is affected by many economic factors; current market price denominated in your currency, perceived scarcity of the precious metal, current demand and general market sentiment. Other factors, such as the bullion futures market, can affect the price of physical bullion, sometimes significantly. Because bullion can decrease as well as increase in value, an investment in bullion may not be suitable for everyone. All investments, including bullion, can decline in value, so it is important to have a good understanding of the precious metals markets and adequate cash reserves before considering an investment in physical bullion. Understanding the advantages of buying gold, silver and platinum in Canada for UK investors is a important part of your decision to own bullion.
How do I know that BMG purchases pure gold, silver and platinum and that BMG bullion is not filled with other metals like tungsten?
We are an associate member of the London Bullion Market Association (“LBMA”). BMG and its partners follow strict guidelines for selling, purchasing and storing physical bullion in accordance with the ‘Good Delivery’ standards set out by the LBMA. We only source ‘Good Delivery’ bars that remain within the LBMA chain of integrity for pure and uncompromised bullion.
BMG BullionCoins there purity is guaranteed by the Royal Canadian Mint, and therefore, do not require a Good Delivery classification.
Recently there have been a number of articles on the Internet about tungsten-filled gold bars, as well as rumours that there are more fake and counterfeit coins than real ones. For a complete answer read our Information Bulletin.
What is Good Delivery bullion?
Good Delivery bullion conforms to the Good Delivery standards set out by the London Bullion Market Association (“LBMA”). The specifications include specific requirements regarding the fineness, weight, dimensions, appearance, marks and production of gold and silver bars. It also sets out the procedures for weighing, packing and delivering bullion. A similar standard is set for platinum and palladium bullion through the London Platinum and Palladium Market (“LPPM”).
Good Delivery bullion is cast by a selective group of metal refiners who have been accredited by professional bullion communities: the London Bullion Market Association; the New York Commodities Exchange (“COMEX”); and the London Platinum and Palladium Market.
Bullion bars cannot be removed from the LBMA chain of integrity in order to maintain Good Delivery status
For more detailed information on Good Delivery, contact us.
Socially Responsible Investing
Established in 2002, BMG has spent a decade building uniquely transparent, secure and allocated bullion solutions for the most discerning buyers. State-of-the-art records encryption, deeded ownership, London Bullion Market Association (LBMA) Associate Membership and absolute liquidity are all hallmarks of our meticulous attention to every detail. BMG is an associate member of the Responsible Investment Association (RIA) as well as a signatory to the Principles of Responsible Investment (PRI). To learn more about socially responsible investing.
What is the ‘LBMA’?
The London Bullion Market Association (“LBMA”) is the international trade association that represents the market for gold and silver bullion. The LBMA is centred in London, England but has a global client base, including the majority of the central banks that hold gold, private sector investors, mining companies, producers, refiners and fabricators. The current membership stands at 139 companies.
What is ‘Responsible Gold Guidance’?
The LBMA has set up a Responsible Gold Guidance for Good Delivery Refiners in order to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering and to combat terrorist financing practices. This Guidance formalises and consolidates existing high standards of due diligence amongst all LBMA Good Delivery Refiners.
How do I know that Bullion Management Group Inc. secures socially responsible precious metals?
We are an associate member of The London Bullion Market Association (“LBMA”) and only purchase ‘Good Delivery’ bars for our BullionBars™ programme. (See LBMA Guidance)
The LBMA ‘Good Delivery’ List is now widely recognized as representing the de facto standard for the quality of gold and silver bars. The assaying capabilities for refiners on the ‘Good Delivery List’ are periodically checked by the LBMA’s Proactive Monitoring programme to ensure the stringent assaying and quality criteria continue to be satisfied.