Jargon Buster
A guide we have put together to help understand – gold jargon, gold lingo, gold terminology, gold terms, gold definitions, investing jargon, silver jargon, silver terminology and silver terms. As an investor keen on investing in gold or silver, it’s important to be up to date with silver and gold terminology. The precious metals market has several such terms, which it would seem are known only to savvy investors. When trading in gold and silver, we need to be aware of these terms as parties we deal with, such as gold investment brokers, financial advisors, numismatists, all use these terms in one way or the other when dealing with clients. There are key terms to be aware of, for example, gold and silver are measured in troy ounces. The troy ounce is not the same as a regular ounce. A troy ounce is 31.103 gms. This means a troy ounce is 1.09 regular ounces. This is an interesting example. Often, investors buy a 100-ounce gold bar. They would expect that it weighs 6.25lbs on the scale, but when it shows 6.85lbs, it often leaves them confused.
Gold craftsmen and traders often use industry jargon to communicate
Similarly, there is a difference between sterling silver and pure silver. Pure silver, otherwise known as ‘fine silver’ is the purest form of the white metal available in the industry, which has a purity of 99.9%. However, the problem with using fine silver to manufacture jewellery or silverware is that it’s way too soft and malleable. These items, which enjoy high demand from customers require a much harder version of silver that can hold shape, as well as provide a durable, shiny exterior. After all, the lure of silver is in its shine and sparkle. So, manufacturers use another form of silver, called sterling silver, which is, in fact, an alloy. It’s only 92.5% pure silver, while the other 7.5% consists of base metals.
Decoding the jargon
Every trade has its own technical language that we often call lingo or jargon. Have you ever heard two doctors having a conversation? They usually use a lot of words which are a part of medical terminology, and they look like they perfectly understand each other. However, it can be frustrating for a layperson, to whom it all sounds like double Dutch. Now, as an investor, you need to learn the precious metals business first. How else are you going to make money out of it if you don’t understand it in the first place? So, you need to learn the language of the trade. The minute you do that and go have a conversation with a gold trader, you will be taken seriously right away. Now that you speak the language, you’re one of them and you won’t be treated like a novice. Gold and silver terminology also comes in handy when doing your own research. All investors do their research on the market before making purchase decisions. Familiarity with investment-related jargon is essential for you, especially if you’re new to investing in precious metals.Learn all about jargon by watching, “Gold & silver investment jargon explained”
Call our team of consultants to learn more
At Physical Gold, our team of consultants are ever ready to guide investors just like you in learning more about the market. We believe that savvy investors are important in creating a balanced marketplace. Call us on 020 7060 9992 or contact us via email to connect with one of our consultants. We will try our best to avoid unnecessary investing jargon!
An A-Z Glossary of Terms for Gold and Silver
Listed below is an A-Z of many gold and silver terms you will find in the gold and silver industry. These are arranged in ascending alphabetical order.
A – B
Alloy
A mixture of two or more metals. Metals such as silver, nickel, copper and zinc are frequently mixed with gold to improve its hardness and/or change its colour.
Allocated Gold
When an investor buys gold outright and stores it in a professional bullion vault with a safekeeping agreement in the custody of a bank, it is commonly known as allocated gold. This gold is not the property of the bank but is owned by the investor. In the event of the bank becoming insolvent, allocated gold is not lost. However, the investor may require paying certain storage charges to the bank which needs to be factored into the cost of the transaction.
American Eagle
The American Eagle is a type of official bullion coin which is produced by the United States Mint. First released in 1986, the coin is predominantly minted in gold but has on occasions also been minted in both Silver and Platinum.
Assay
An analysis of a metal used to determine its purity. A series of assays can be run to determine the alloys in the metal as well.
AG
The chemical symbol for silver with atomic number 47.
AU
The chemical symbol for gold which is derived from “aurum”, the Latin word for gold.
BNTA
British Numismatic Trade Association
Britannia coin
The Britannia is the British one-ounce gold or silver coin, first produced in 1987.
BU
Brilliant Uncirculated used to describe a coin in new condition. The same pristine condition as when it left the mint.
Buffalo
The Buffalo is the American one ounce 24 karat gold coin, first produced in 2006.
Bull Market
A market in which the primary trend is up.
Bullion
Precious metals in bulk form which are traded are known as bullion. Bullion can come in the form of bars or minted into coins.
Bullion Coin
A coin with a symbolic face value whose market value is determined only by its inherent precious metal content.
C – G
Capital Gains Tax (CGT)
A capital gains tax (CGT) is a tax charged on the profit realised on the sale of certain assets that were purchased at a lower price. The most common capital gains are realized from the sale of bonds, stocks, and property. There is no Capital Gains Tax (CGT) to pay when a UK resident sells British legal tender coins at a profit. This contrasts with many alternative investments that attract income or capital gains tax. Therefore, an investor gets to keep all their profit, which further enhances returns.
Carat
See Karat
Certified Gold
A “certified” gold coin is encapsulated in a tamper-proof, sonically-sealed, high-security hard plastic holder, with a unique certification number and bar-code permanently sealed inside each coin capsule for the protection of the investor.
Chinese Lunar Coins
These are coins minted for each Chinese New Year by the Shanghai Mint. These have been minted each year since 1981 and are available in gold, platinum and silver. The reverse of each lunar coin depicts the zodiac animal for that lunar year, whereas the obverse reflects an image of cultural significance in China.
Commodity
A useful physical asset whose value is based on its commercial use and scarcity.
Counterfeit
Counterfeiting of precious metals is where imitations are created to deceive or defraud the buyer. They look genuine to the naked eye but when tested are counterfeit. Always buy gold and silver from a reputable dealer such as Physical Gold.
Device
A design found on a coin. Frequently it is the bust or profile of a person who symbolizes a particular country at a particular time in history or a country’s coat of arms or insignia.
Die
An engraved metal tool used to strike or stamp the design on a coin.
Divisibility
How many individual elements a precious metals allocation consists of. It is deemed to have more divisibility to hold 10 x 1 ounce gold bars than 1 x 10 ounce bar.
Electrum
This is a naturally occurring gold and silver alloy, which also contains trace elements of other metals (e.g. copper).
ETFs
Exchange-traded funds or ETF’s are another way to buy gold without physically owning them. The funds are managed by fund managers who have proven expertise in the gold market, so the assumption is that they would know better about trading in gold than an ordinary individual. When buying an ETF, you buy units in an exchange-traded fund, and as the fund performs better, the value of your units goes up. However, it’s important to research the fund before putting your money into it. Many funds have different expense structures and it’s important to understand these properly. The liquidity of the fund is also important, as many funds sell their units without backing them properly buy gold. This can cause problems later on if several investors start selling their units, the fund may not have enough assets to back themselves up.
Face Value
The legal monetary value stamped on a coin.
Field
The open area or background on a coin.
Fineness
The purity of a precious metal measured in 1,000 parts of an alloy: a gold bar of .995 fineness contains 995 parts gold and 5 parts of another metal.
Fine Weight
The metallic weight of a coin, ingot, or bar, as opposed to the item’s gross weight which includes the weight of the alloying metal.
Gold Eagle
The Eagle is the American one ounce 22 karat gold coin, first issued in 1986.
Gold Futures
A future is a financial product where you take a product position now, and the settlement date is a pre-decided date in the future. This means that you don’t have to pay for the entire amount at this point in time and the seller also doesn’t need to deliver any gold to you. Many investors speculate on gold future trades, in an attempt to buy and sell before the delivery date and simply pay out their gains and losses. You need to pay a margin when buying a gold future. A margin is a down payment that locks you into the deal, reassuring the seller that you will not walk away. One needs to be aware that if the price of gold falls during that period, the margin needs to be topped up.
Gold Reserves
These are reserves of gold held by the central banks of governments for numerous purposes such as currency protection and managing balance of payments deficits, etc. Governments often top-up gold reserves in times of economic uncertainty
Gold:Silver ratio
The amount of silver you can buy with the same money it costs to buy one ounce of gold at any given point in time based on their spot prices. So, a ratio of 85 would mean that 1 ounce of gold would buy 85 ounces of silver.
Gold SIPP
A SIPP is a self-invested personal pension plan . Gold can be part of this plan as an investment and SIPP options are available with physical gold. SIPP plans in the UK are capital gains tax-free in addition to which the government might pay up to 45% of the cost of your gold investments . The important thing to note is that the gold will not come to you physically and will be held by your pension fund. There are also certain administration fees that you may need to pay to your pension fund when you invest in such a scheme.
Gold Standard
A monetary system based on convertibility into gold; paper money backed and interchangeable with gold.
C – G
Ingot
An ingot is a form of gold bar, which gets its name from the mould in which the bar is cast
Intrinsic Value
The value of a coin’s metal content, based on its spot price .
Junk Silver
A piece of silver with a purity of less than 90%.
Karat (also spelled carat)
From the Greek word “keration”, meaning carob bean, the term karat is now used to indicate the proportion of gold relative to other substances within a metallic material. One carat is equivalent to a fraction of one twenty-fourth. Gold purity can also be quoted in thousandths, with 24-Karat gold referring to around 999 thousandths. The typical gold bar will have a minimum of 23.88 Karats (or 995 thousandths), and the minimum gold content required to mint any marketable gold coin is 21.6 carats or 900 thousandths.
Krugerrand
The Krugerrand is the South African one ounce 22 karat gold coin, first produced in 1967.
LBMA (London Bullion Market Association)
This is a wholesale market trading in gold and silver, which is over the counter. Members of the LBMA are usually refiners are bullion dealers, activities are overseen by the Bank of England
Legal Tender
Currency in specified denominations which you could use as payment. Legal tender coins have a face value (i.e. Britannia £100) but the gold content is far more valuable than the amount written on it.
Liquidity
The ease in which an asset can be turned into cash.
London Fix
Twice daily bidding sessions in London of five major gold firms, at which the price of gold is “fixed” or set.
Lustre
A shiny appearance on the surface of a coin, usually an uncirculated coin.
Maple Leaf
The Maple Leaf is the Canadian one ounce 24 karat gold coin, first produced in 1979.
Market Value
The price at which a coin or bullion item trades.
Mintmark
The mintmark is a letter or symbol on a coin that identifies where that particular coin was produced.
C – G
Nugget (or Kangaroo)
The Nugget is the Australian one ounce 24 karat gold coin, first produced in 1986. A gold nugget is also a form of naturally occurring gold in its non-refined state, e.g. as found in a gold mine.
Numismatic Coins
Coins whose prices depend more on their rarity, condition, dates, and mint marks than on their gold content alone.
Numismatist
A collector and student of money, especially coins. Numismatic refers to coins of a more historical and collectable nature.
Obverse / Reverse
The obverse is the front of a coin, usually consisting of the image of one or more people. The reverse is the rear of the coin which often features a picture or design.
Paper gold / Paper silver
Ownership of gold or silver which isn’t tangible. Examples are Electronic Traded Funds (ETFs), mining shares, precious metals funds.
Philharmonic
The Philharmonic is the Austrian one ounce 24 karat gold coin, first produced in 1989.
Physical gold / Physical silver
Real gold and silver which can be touched and held. Common forms are bars, coins and jewellery.
Pooled silver / Pooled gold
An arrangement whereby the investor’s precious metals are held by a third party and mixed in with those of other investors. It is common practice for pooled accounts to actually contain less precious metals than it should.
Premium
The additional cost of a gold or silver coin or bullion over and above the spot gold/silver price, including the costs of fabrication, and distribution. Rare coins carry an additional premium called numismatic value which is based on scarcity, quality, demand and intangible factors.
Proof Gold
Each Proof coin is carefully inspected throughout the manufacturing process to make sure that only perfect specimens are issued. Proof coins are usually of a limited issue and often have employed different minting techniques to produce a highly polished mirror finish to the field (background) and a matt finish to the raised features.
Raw Gold
Bullion coins that have not been certified or encapsulated
Safe Haven Asset
A safe haven asset is where people typically invest in times of political turbulence or uncertainty. Gold is known as the ultimate safe haven.
Segregated Storage
Your gold/silver coins or bars are kept apart from other investor’s precious metals. Just as importantly the gold/silver does not fall onto the balance sheet of either the dealer or the storage facility. This means that in the event of either another investor, the dealer, or indeed the storage company itself going bankrupt, your precious metals are fully protected and cannot be touched by creditors.
SIPP
A Self Invested Personal Pension (SIPP) is a UK retirement plan offering the investor the widest possible choice of investments. Investors are able to obtain a discount of up to 50% through tax relief as gold bullion is the only commodity to qualify for a SIPP.
Sovereign
The Sovereign is a British coin weighing 0.2354 oz and was first produced in 1489.
Spread
The difference between the bid and ask price (i.e. the price where we would buy or sell the gold/silver).
Sterling Silver
A standard of silver defined by law as 925 parts pure silver per 1000 parts overall. Sterling silver is the principal standard in the UK and USA.
Tangible Assets
An asset which is tangible i.e. is capable of being felt or touched, something which has real substance and is not imaginary. Hence the name of our Company, Physical Gold.
Troy Ounce
The standard weight in which gold and silver are quoted in the international market, weighing 31.1035g.
VAT
A tax added to certain products and services at sale. The percentage is currently 20%. There is no VAT to pay when you buy investment grade gold coins or bars. This is a great advantage over silver and platinum, both of which generally attract VAT. You’re now able to also buy physical silver through Physical Gold Ltd without being charged VAT.
Best gold and silver apps
The all penetrating world of apps has ensured that today there’s an app for almost anything. Sure enough, it’s no different for investors and enthusiasts of gold and silver. From price trends to authenticity testing, there’s a range of apps out there for precious metals. Let’s take a quick look at some of the best smartphone apps related to gold and silver.
1. Gold and metal detector
The app is targeted at users who want to look for their gold or silver jewellery lost inside the home. The app actually works for most metals, however, users tend to use it to mainly look for their lost gold rings or silver bracelets and the like. Basically, the app uses a magnetic sensor built into most mobile phones to look for metals. Like most metal detector apps, the app measures magnetic field values and detects metals by identifying them when they are within range.
2. Gold price live
Gold price live is an app created by goldprice.org. It provides investors with silver and prices in the form of charts and graphs on a real-time basis. Investors can also view historical data, which helps them track the value of their investments over time. These are available to view through charts that display data on a monthly, half-yearly and yearly basis. Data is also available for 5 and 16 year periods in most national currencies. The prices are available to view in most fiat currencies across the world. The app updates global prices of precious metals every ten seconds, so it’s pretty current when it comes to accurate pricing. The app is available free for both Android and iOS platforms.
Download our FREE Cheatsheet to Investing in Gold and Silver HERE
3. Moneycontrol market
Another snazzy app for you, if you’re a blackberry user is money control market. Although aimed primarily at Blackberry users, which is a bit out of date, the app posts real-time updates on commodities like gold and silver, as well as global stock markets. The app is downloadable from the blackberry app world and gives investors a complete bird’s eye view, not just on gold and silver, but debt and equity investments as well.
Smartphone apps for gold and silver investors are using innovative technologies
4. The CoinTrust app
The CoinTrust app is an app that detects counterfeit gold coins and silver coins. It does this by cleverly using a bit of science. Basically, the app records a sonic signal that comes from your gold/silver coin. In order to do this, a user needs to find the relevant coin on the app, switch on the recording and then spin the coin. The app records the sound spectrum of the coin as it clatters against a hard surface and then analyses and compares the sound spectrum with the original recording of the coin stored within the app. Currently, the app has free patterns for the Gold Krugerrand and the Silver Maple Leaf. More patterns are being released soon.
5. Auracle
Yet another gold and platinum tester on the market is Auracle. The app is more advanced as it uses pen probe technology to detect the purity of gold and platinum. It also displays the karat value of the metal on the screen, with a range between 6 to 24 karats.
Call us for advice regarding your gold investment plans
Apps may be a handy tool to have when detecting a fake at home, but to get real expert advice about buying gold or checking genuine coinage, talk to our team of precious metals and numismatics experts. Call Physical Gold now on 020 7060 9992 or email us to get in touch with a member of the team. We’d love to hear from you and our experts can give you some great tips on gold and silver investing. Call us now.
Image credit: Pxhere
One of the most important considerations when investing in gold or silver is the purity of the metal you’re buying. Due to gold and silver being relatively soft metals, they are normally mixed with other metals to make them harder. Just a small difference in purity can have a massive impact on the overall value of the goods so It’s important to understand what the different figures used for measuring purity mean.
Millesimal Fineness
The purity of gold and silver bars/coins is normally referred to as “the millesimal fineness”. This measures the overall purity of precious metals based on parts per thousand. For example, if a gold bar has a fineness of 999 then it is made up of 999 parts gold to 1-part other metals. Because no form of gold available on the market is 100% pure, the purest gold bullion bars and coins, normally have a millesimal fineness of 999 or 999.9. The finer the purity of the metal, the higher its value.
“Buying gold – 5 reasons to invest”, a must-watch video for gold investors.
Insiders Guide to Gold & Silver Investment. Download our FREE guide here
Measuring the purity of silver
Like gold, silver is often measured using millesimal fineness, with the purest form of silver measuring .999. When investing in silver, however, you may come across terms such as “Sterling silver or “Britannia silver”. These hallmarks are direct references to the metal’s purity and can be found stamped on the metal itself. Both Britannia silver and Sterling silver is slightly less pure than fine silver with Britannia silver measuring 95.8 and sterling silver 92.5 on the millesimal fineness scale. Some silver bars are made in Sterling silver as are certain collectables and antiques. Britannia silver was a standard first introduced by the 1696 Coinage Act. No coins are currently minted in Britannia Silver, the last being the 2012 edition Silver Britannia.
999.9 fine gold bars
Karats
When buying gold or silver in various forms, you will sometimes find that its purity is measured in “karats”. Gold jewellery, for example, is often measured in karats. The purest form of gold is 24 karats; however, it only needs to have a millesimal fineness of 990 to obtain this status. The reason why karats are not used to measure the purity of gold and silver bullion is that they are not a fine enough measure, however, you can work out the “fineness” of precious metals measured by dividing the karat by 24 and multiplying the value by 1000. For example, a 12-karat gold necklace has a purity of 50% – 12 divided by 24 x 1000. Different countries also have different rules on the minimum purity levels required for gold and silver. Therefore, when trading in gold and silver abroad, you should be aware that what classifies as 24/18 karat gold in one country might not necessarily be the same in the UK.
Verifying the purity of precious metals
Currently, there are only two-real methods of verifying the marked fineness of precious metals and one of these methods requires destroying it completely in order to separate the different metals within it. This is known as assaying the metal. The other method uses x-ray fluorescence to determine the metal content. However, this method isn’t 100% accurate as it only measures the outermost section of the metal and therefore might get fooled by thick plating. Due to the difficulty in being able to determine the true purity of precious metals, it is always advised that you buy gold or silver from a reputable broker or dealer so as you can be assured that you’re getting what you’re paying for.
999.9 silver Queen’s Beasts coin
Invest in gold & silver through physical gold
If you’re looking to invest in gold or silver, then the best way to do so is by purchasing bullion. Bullion is the highest purity form of gold and silver and can be purchased in the form of bars (such as our 1KG silver bar) or bullion coins. Here at Physical Gold, we stock a wide range of gold and silver bullion including legal tender coins produced by the Royal Mint and gold bars in various sizes including 1oz, 100g right up to 1kilo bars. For more information on measures for gold and silver purity or to ask our advisers any questions on the best way to invest, please give us call on 020 7060 9992.
Image Credits: Hamilton Leen and Eric Golub
Rewarding employees is a great way to improve morale and increase motivation within the workplace. Whilst many companies offer money-based bonuses, physical gifts can also sometimes be awarded to employees. In the past, employees were often rewarded with gifts such as carriage clocks or gold watches for their performance, whilst today employees are more likely to be gifted items such as tv’s iPhones or tablets.
Bonuses of gold and silver are also sometimes gifted to employees. This is usually given in the form of bars or coins. For employers looking for a more creative way to reward their staff, gold and silver may represent the perfect option.
Reasons why you should consider rewarding staff with bonuses of gold and silver
There are now many companies which award their staff some form of monetary bonus. It has reached the point where it has become almost expected by many employees. Staff have to wait until the end of the year to receive any sort of financial bonus and they are not always enough of an incentive on their own to keep your workforce fully motivated. Bonuses of gold and silver are a much more personal reward idea. They hold their value over long periods of time and make for a timeless, unique bonus. Not only are they something that can appreciate in value, but they are also less likely to be frittered away, in the same way, that an end of year bonus might.
7 Crucial Considerations before you buy gold or silver. Download our FREE cheat sheet
Gold and silver are available in a wide range of forms
Gold and silver bullion is available in both coin and bar form, offering a wide range of possibilities for employers in terms of bonuses. Whatever value you’re looking to gift as a bonus, you will find something that fits your requirements. A gold bar, for example, might make for a great retirement bonus. You could even have it engraved with a personalised message thanking your employee for their contributions over the years, making it a very special and personal bonus gift.
Bars are just one form in which gold can be supplied
Tax advantages
PAYE tax and National Insurance contributions must still be deducted from bonuses of gold and silver using the employer’s usual payroll procedures, however, gold and silver bullion often comes with certain tax advantages. For example, all legal tender coins in the UK are completely free of Capital Gains Tax whilst coins such as gold sovereigns are free from VAT.
Gold and silver coins
Coins make an ideal bonus gift. They are quite small and can be easily presented in a nice case or sleeve. There is an element of mystique surrounding coins, gold coins in particular, and they are seen as something precious and valuable. Presenting an employee with a gold coin can make them feel valued and special. It’s not something that would find at your local department store or everyday retailer unlike bonus gifts such as TVs or the latest iPhone. Here are some great examples of bullion coins that would make a very special bonus gift.
Gold Sovereigns
Gold sovereigns will probably go down in history as one of the finest ever examples of British coinage. First minted in 1489 on the orders of King Henry VII, it was the largest gold coin ever minted in Britain at the time. Today gold sovereigns are no longer in general circulation; however, they are still are still classed as legal tender along with British Bullion coins such as Britannia’s and Queen’s Beasts coins.
Gold sovereigns are stunning examples of British design and craftsmanship. They are often given as special gifts on important occasions and are a perfect reward bonus for a hard-working employee. Steeped in history there are many examples of gold sovereigns in the UK including those that have been in circulation as well as bullion coins. Browse Physical Gold’s selection of gold sovereign’s here.
Queen’s Beasts coins
Queen’s Beasts coins are a stunning collection of coins made up of 10 different coins each featuring one of the 10 heraldic beasts present at Queens Elizabeth II’s coronation. Available in either gold or silver, Queen’s Beasts are very high purity coins containing .9999 silver/gold bullion. Like gold sovereigns, Queen’s Beasts coins are also considered Legal tender in the UK and are therefore free from Capital Gains Tax. With their stunning designs and high bullion content, Queen’s Beasts coins would make an excellent bonus gift. Browse Physical Gold’s Queen’s Beasts range here.
2oz Silver Queen’s Beasts coin
Order gold or silver through Physical Gold
Physical Gold are specialist dealers in gold and silver. We offer a wide selection of investments at leading market prices, many of which are Tax and VAT free. These include bullion coins, gold sovereigns and gold/silver bars. Get in touch today to find out more by giving us a call on 020 7060 9992.
Image Credits: Money Metals and Bullion Vault
When it comes to buying silver online, the first thing you need to do is identify a reliable silver broker. Look no further than Physical Gold. Yes, we are a trusted and vetted precious metals broker and investment advisor. Although our name may indicate that we only sell gold, we do sell silver and we can tell you how to buy silver bars or bullion online without getting ripped off.
The London precious metals market
For centuries, London has been a great market for precious metals. Today, with the advent of online trading, the rules of the game have changed. By going to a large online broker like ourselves, you are able to exercise choice in buying silver products. We have established links with silver manufacturers, from whom we are able to source our silver at rock bottom prices.
Value, range and expertise
The scenario is vastly different from buying silver locally at a high street shop. While we have great regard for the high street traders, they simply cannot offer the range of products we can and at the prices we sell. All our silver is vetted and carefully selected by our team of experts and this takes away your hassle of having to do the same. We use state of the art equipment to test products and our quality assessment and vetting process are second to none. Our products come with a certificate of genuineness and a buyback guarantee that ensures your peace of mind when you buy from us.
Considering buying silver? Download our FREE 7 step cheat sheet here first
Buying silver online is the smartest and quickest way to purchase
Identifying a reputed broker
Reliable and reputed brokers are registered with an industry body. Physical Gold is a member of the British Numismatists Trade Association (BNTA) and The Royal Numismatic Society. This means we have to adhere to a certain code of conduct when dealing with customers.
It’s also important to complete a background check on the company you’re buying from. We have an excellent track record, borne out by reviews from customers who have traded with us in the past. Reputed online silver brokers would always maintain transparency and must have a customer hotline through which they can be reached.
We are always reachable on 020 7060 9992. No matter which online broker you choose to trade with, it’s important that you conduct the proper checks before executing a precious metal transaction, as your deal could involve a large sum of money. There are plenty of con artists out there who conceal their true identity behind the anonymity that the internet offers. So, its buyer beware.
Get in touch with Physical Gold to buy silver direct
Once you’ve decided to make a purchase from our website, the procedure is really simple. A free account on our website is usually the first step. Next, you need to browse our products online and decide your purchase. You might want to buy silver coins or silver bars. Even if you don’t buy, you will still continue to benefit from all the silver industry news, opinion and research on buying.
Much of this is available in the ‘insights’ section on our website. Payments can be made through bank transfers and most credit or debit cards, through our 3D secure payment gateway. Call us on 020 7060 9992 or send a message online and a member of our team will get in touch with you to discuss your silver requirements.
Image credits: Inyucho
The case for regular investments
Investors who are serious about building a strong financial portfolio usually invest regularly. It doesn’t matter what asset class you pick, the periodic churning of your portfolio is the only way to keep it optimised. Building a precious metals portfolio is, of course, no exception.
When you invest regularly, you end up buying at various price points. So, you don’t have to worry about timing the market because the market fluctuations average out over a long period of time. For example, if you were to buy mutual funds and you invested every two months, you would build a sizable investment portfolio over a period of time, without laying undue financial stress on your budget, while gaining the advantage of averaging the various price points in the market out. Eventually, if you stayed invested for say, 6 years, you would make money.
Download our FREE 7 step Cheat Sheet to Successful gold and silver investing here
Monthly gold plan
As precious metals brokers and investment advisors, we often advise investors to put together a regular investment plan. Our monthly saver gold bundle is an excellent investment option for investors who aren’t sure about the products they want to buy. The minimum monthly threshold starts at £350 and we set you up to buy tax-free gold coins.
Investors receive different varieties of sovereigns and half-sovereigns delivered to their door. They cannot choose the coins they receive. Given that the spot prices of gold vary, you would also buy the coins at different price points, spreading your risk. This is a great way to build the foundations of a strong portfolio of physical gold. Before you know it, you would have amassed a small fortune. You can simply get started by filling out the form on this page.
A regular monthly investment can help you build a quality gold portfolio over time
The director’s pick
If on the other hand, you wanted to kick-start your gold portfolio, we also have a ‘director’s pick’ option. You can choose to invest a couple of thousand pounds, going all the way up to 50k. The tax-free gold coins you will receive are handpicked by our director, Daniel Fisher and have great investable value. All of our products come with a certificate of authenticity and we also offer a guaranteed buyback scheme.
Silver monthly saver
While we don’t run the same auto-pay monthly saver for silver, it’s still possible to regularly save in silver coins. Silver investors need to make individual purchases of silver from our online portal every month. Once an account has been created, single orders are very quick to complete.
Talk to our precious metal experts for the best investment options
At Physical Gold, we take customer satisfaction to new heights. Just call our team of investment experts if you’re unsure which monthly saver package is best for you. Call 020 7060 9992 or drop us an email and a member of the team will be in touch with you shortly. We are a BNTA registered precious metals broker and we always ensure that every customer gets the best value for their money. Call now.
Image credits: Mark Herpel
What is Silver
Silver is one of the most popular precious metals in existence, not only as a material for producing jewellery and currency but also as a commodity to be traded. But what is silver exactly and can it be defined in an unambiguous way?
Silver bars
The etymology of ‘silver’
The modern word ‘silver’ is derived from Old English ‘seolfor’, which in turn has links to Germanic words including ‘silbar’ and ‘sidabras’. Throughout its history, the word has referred both to the metal itself and to the properties it exhibits; namely its bright, shining, almost ethereal quality.
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Where is silver found?
Silver is mined in a number of key regions of the globe, in places as diverse and disparate as Poland, Australia, Peru and Mexico.
What explains the popularity of silver?
Silver shares many of the same properties as gold, hence its widespread use and universal appreciation. It is the best conductor of electricity of any metal, meaning it can be useful in various manufacturing roles.
It is easy to work into different forms thanks to being a relatively soft metal, which is advantageous for producing jewellery and coinage. While it is more common than gold, it is rare enough to remain a precious commodity and eye-catching enough to have value for purely aesthetic reasons.
The history of silver trading
Silver was known to humanity before the written word was invented, so it is widely assumed that it was a vital element that acted as a bartering tool in the days before the concept of currency had been formalised.
Silver’s relative malleability meant that it was appreciated more for its pleasing appearance than its practical applications. It was also more widely available in some parts of the ancient world than others, which impacted its value. In Ancient Egypt, for example, silver was more precious than gold at some points.
Silver coins have been circulated since at least 600BC, with archaeological digs at sites in Turkey bringing truly ancient coins to light in recent years. Even at this early stage in the emergence of currency, a design was struck in the coin to make it recognisable, albeit only on a single side.
In Britain, silver has a long history as a store of value, as well as in coinage. Up until the 19th century it was still used to make pennies and has since grown in popularity as a bullion coin with the introduction of the Silver Britannia coin in 1997.
A display of silver coins
Interesting facts about silver
- Although silver is more conductive than other metals, including copper, it is too expensive to be widely used in electrical wiring.
- Silver is so reflective that it is the element of choice for use in the manufacture of everything from mirrors to microscopes. Interestingly its shiny surface is only effective at bouncing backlight in the visible part of the spectrum, while UV rays are absorbed in much higher proportions than you might expect.
- Like gold, silver naturally occurs in nuggets and so was found by prehistoric humans without the need for processing.
- Silver is edible and is used to make various foods from around the world more attractive. Don’t expect the presence of silver to have any impact on the taste of the food, however, as it doesn’t have any flavour and is purely decorative in a culinary context.
- Mexico produces more silver than any other country in the world, mining an impressive 5600 tonnes in 2017
- The largest silver nugget discovered by humans to date was hauled out of Smuggler Mine in the US state of Colorado way back in 1894. Estimates of its weight vary, but a figure of around 900kg is seen as plausible.
Silver as an investment
Silver is an appealing option for investors for a number of reasons, chief amongst which is its resilient reputation and historic low level of volatility. It has been bought and sold for thousands of years and will continue to be traded for thousands more.
Like investing in gold, the decision to buy silver can be spurred on by a desire to avoid the risks associated with other investments. Silver’s value is innate and fairly stable, unlike nebulous concepts of currency and other marketable commodities.
Of course, owning physical silver in the form of silver bars or coins will require that you also have somewhere safe to keep them. If you need help with silver storage, speak to us about our secure storage solutions.
Contact Physical Gold to invest in silver today
The team at Physical Gold should be your first point of contact for all of your silver investment needs. Call us on 020 7060 9992 or drop us an email to ask a question, learn more about our investment opportunities or get advice on precious metal trading.
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A country’s monetary policy usually has some kind of knock-on effect on the prices of all stocks, bonds and commodities. Of course, although we view gold and silver as precious metals, they are essentially traded as commodities. So, all monetary policies will have certain effects on the gold and silver markets. Investors are often confused about what quantitative easing really is and how this move affects markets. Let’s dive in and find out.
What is quantitative easing?
Firstly, quantitative easing is not a normal step taken by the central bank of a country. It is an extraordinary and somewhat unconventional move in which a country’s central bank basically increases the money supply. Many of you may think that’s inflation. But we must understand that quantitative easing does not involve the printing of extra banknotes. The central bank (in the UK it would be the Bank of England) simply buys government securities and other financial instruments from the market in a bid to lower interest rates and increase the money supply, thereby creating more liquidity.
An explanation of quantitative easing from the Bank of England
So, the assumption here is that lowering interest rates would add stimulus to the economy by encouraging industry to invest more. When companies invest and start new projects, more jobs are created and additionally, there is a positive ripple effect that kick starts smaller suppliers to also start providing services to the bigger players.
Gold is a safe haven for investors during times of uncertainty
What are the benefits of quantitative easing?
So, quantitative easing (QE) increases the supply of money and financial institutions benefit by increasing their capital base. This promotes lending and increases liquidity, ushering in a revival of the economy. Quantitative easing is usually a step taken when short-term interest rates have fallen to zero or are nearing zero levels. Going by past experience, we can say that if the central banks invest $600bn, the move typically triggers a fall in interest rates of 0.15 to 0.2%.
When did the UK first start exploring quantitative easing and what were the results?
At the height of the last financial crisis, in 2009, the interest rates were dropped to 0.5% for the first time in the history of the Bank of England. The UK economy badly needed a shot in the arm and the first QE programme for the UK was started with an infusion of £75 billion. This was eventually raised to £200 billion. The programme was rolled out on 5th March 2009. The Bank of England had been contemplating a drop in interest rates to 0.5% from 1.00% for a while. By November 2008, the financial pundits of the Gordon Brown government knew that the drop to 0.5% wasn’t going to be enough. It had to be backed by a parallel strategy that could save Britain from going into a long drawn economic depression.
Alistair Darling, the Chancellor of the Exchequer adopted a financial technique that had been used in Japan during the early 2000s. Interestingly, the same technique had also been adopted by Ben Bernanke, the chairperson of the American Federal Reserve, during the US chapter of the crisis, which triggered the fall of Lehman Bros. The radical macroeconomic technique was designed to put cash back into the hands of banks by buying out the government and corporate bonds they held.
These resources would have a two-pronged effect. Firstly, the new demand for these gilts would drive up their prices, triggering the required fall in the interest rates. Banks would now have money to pump back into the economy and things would be easier for businesses and individuals, as the cost of borrowing would be radically reduced. That was pretty much how the under-performing banks like RBS were saved back in the day. The government was able to bail them out via the QE programme.
Many homeowners also rejoiced at the time, since their mortgage repayments dropped to a negligible level. Many homeowners across Britain seized the opportunity to opt for capital repayment, ensuring that banks were able to recover their sub-prime housing loans, injecting more cash into their reserves. The move was hailed as having a double whammy effect for the sub-prime housing market in the UK. While the banks were able to claw back the money they had loaned, homeowners were able to reduce their debt exposure and free up equity in their homes.
However, many critics have been sceptical about the success of the U.K.’s QE programme. It has been 11 long years since the programme was rolled out. It had been purported as an emergency measure, designed to revive the economy and not a permanent fixture. Additionally, interest rates never recovered completely and remained near zero, as we plunge headlong into the next financial crisis. So, the verdict in the minds of many is that the program was a relief mechanism that did not have long-term success. However, in the backdrop of these criticisms, one must not forget that the UK has had the longest sustained quarterly growth record of any G-7 nation.
What quantitative easing was taken during the Coronavirus pandemic of 2020?
US response
On 15th March 2020, the US Fed announced its fourth round of quantitative easing. The Fed is purchasing $700 billion worth of mortgage-backed securities ($200 billion) and treasuries ($500 billion) with three main priorities:
- boosting liquidity within financial systems and
- increasing the aggregate demand by expanding the supply of money
- helping the US to avoid going into a recession
Part of the Fed announcement from 15th March said
“We haven’t set a gradual schedule for QE, quite deliberately. This crisis in UK financial markets demanded more. We will act in the markets promptly and rapidly as we see appropriate. The alternative was a run on sterling, a flight to the dollar and a complete breakdown of the UK financial system’s core.”
On March 23rd, 2020 the Federal Reserve announced:
“it would purchase an unlimited amount of Treasuries and mortgage-backed securities in order to support the financial market.”
UK response
On 19th March 2020 the Bank of England increased quantitative easing in the UK by £210 billion (from £435 billion to £645 billion) through the purchase of government bonds.
Andrew Bailey the new Governor of the Bank of England announcing the £210 billion quantitative easing said:
“We haven’t set a gradual schedule for QE, quite deliberately. This crisis in UK financial markets demanded more. We will act in the markets promptly and rapidly as we see appropriate. The alternative was a run on sterling, a flight to the dollar and a complete breakdown of the UK financial system’s core.”
On 18th June, 2020 the Bank of England raised quantitative easing by an additional £100 billion (from £645 billion to £745 billion) through an additional purchase of government bonds.
Andrew Bailey said after the additional easing
“As partial lifting of the measures takes place, we see signs of some activity returning. We don’t want to get too carried away by this. Let’s be clear, we’re still living in very unusual times.”
All quantitative easing to date by the central bank for quantitative easing purposes have been (click here for further details):
- November 2009 – £200 billion
- July 2012 – £175 billion and
- August 2016 – £60 billion
- March 2020 – £210 billion
- June 2020 – £100 billion
EU response
On 18th March, Christine Lagarde the President of the European Central Bank announced the €750 billion Pandemic Emergency Purchase Programme (PEPP). This was for the purchase of private and public sector securities to mitigate the economic risks caused by the COVID-19 pandemic. Purchases will be made up until the end of 2020 for all asset categories, which are eligible under their asset purchase programme.
On 4th June, the EU announced an additional €600 billion of quantitative easing with an aim of controlling inflation and stimulating vulnerable areas of the EU economy caused by the COVID-19 pandemic. This brings the total response to €1350 billion of quantitative easing when added to the €750 billion from March.
Relative comparisons of response – US, UK and EU
Although, this is a moving picture as at 22nd March the following amount of quantitative easing has been provided by the 3 different central banks:
- US – $700 billion – 3.3% of GDP initially, but this is unlimited
- UK – £310 billion – c14% of GDP and
- EU – €1350 billion – c13% of Eurozone GDP
The US response was the first and is now seen as a small intervention in the markets. Almost certainly there will be further rounds of quantitative easing from the 3 central banks.
How did the 2008 financial crisis affect QE?
The 2008 financial crisis triggered massive falls in interest rates in the UK. As the crisis broke out, interest rates were at 4.5% on 8th October 2008. By 5th March 2009, it had fallen to 0.5%. Unemployment rose as businesses failed due to their cash flows being affected by the bank’s refusal to lend. Overall consumer confidence plummeted and the entire economy entered a bearish phase. By March 2009, quantitative easing was introduced. The Bank of England put in an initial tranche of £75bn in new money, rising up to £375bn eventually.
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The Bank of England actually called it ‘asset purchase facility’ and bought assets from financial institutions like high street banks. Many of us remember the bailing out of Northern Rock at the time. The Bank of England formally started its QE program on 5th March 2009 after bailing out the high street banks. Initially, it was just long-term government bonds, but by the 25th of March, the program had been expanded to purchasing corporate bonds as well, in an effort to boost business confidence and increase lending to companies. In 2013, Japan announced a massive QE program going into trillions of dollars to boost its economy, in response to the global financial crisis.
The Bank of England introduced quantitative easing in 2009 as part of the monetary policy
In recent years, the ECB has announced a halt to its QE programme, in spite of a continuing slowdown in the European economy. The ECB is currently investing 30bn euros in buying bonds, although this program was slated to phase out by the end of 2018, Coronavirus and the world economy has caused a change in plan!
What are the effects of quantitative easing on gold and silver?
So, now that we know what quantitative easing is all about and how large industrialised economies used it during the global recession, let’s look at how it affects the gold and silver markets. Well, firstly quantitative easing is a step usually taken by central banks during economic turmoil. We already know that gold and silver act as safe havens during these times. So, if we look at price charts for gold during the period 2009 to 2011, we can see that gold prices skyrocketed during this period.
According to economist Marc Faber, quantitative easing hurts currencies and sends people rushing to buy gold. In 2016 he predicted that gold would continue to rise on the back of the fourth round of QE undertaken by the US federal reserve. On June 14th, 2018 when the ECB made the announcement to phase out QE by the end of 2018, they also announced that the European economy was still soft and interest rate hikes would not take place till March 2019. This news saw the gold market responding positively on that very day. Therefore, we can surmise that while QE is good news for the economy in terms of its GDP growth at a time of crisis, it’s not good for the stability of currencies. It’s both these reasons that spur the rise of gold prices at these times.
Call us to know more about gold investments
Our investment experts can guide you on the best times to invest in gold and silver and how to approach them. Call Physical Gold Limited on 020 7060 9992 or get in touch online and a member of our team will get in touch with you shortly to discuss your investment objectives and how precious metals can be an important part of your investment plan.
We sell a range of gold bars (sizes from 1oz, 100g to 1 kilo), gold coins (including gold Sovereigns and gold Britannias).
We also sell an excellent silver range, including silver bars (such as a 1 kilo silver bar) and silver coins (including silver Britannias).
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When people buy and sell silver, they often use the terms sterling silver and silver interchangeably. The precious metal is much in demand, thanks to rising demand from the industry, as well as increased scarcity in recent years. Silver is, of course, a popular metal, as it is 75 times cheaper than buying gold. Basically, it would take around 75 troy ounces of silver to buy one troy ounce of gold, at the current gold-silver price ratio. As silver prices continue to escalate, there is increased interest in the white metal from customers all over the world.
What is sterling silver?
So, is sterling silver and silver the same thing after all? Actually, sterling silver is an alloy of silver. When we use term ‘fine silver’, we are in fact referring to silver with a purity of 99.9%. However, sterling silver has a purity of only 92.5%. The balance 7.5% consists of other metals, which we will discuss shortly. Like gold, silver is an amazing conductor of heat and energy. It is also a soft metal in its pure form. Due to this, 99.9% pure silver is not a good choice for making artefacts, jewellery, cutlery, etc. Sterling silver was therefore created by metallurgists in order to have a metal to work with, that was hard and durable enough to be able to hold the shape of an item.
Sterling silver is a popular choice for making kitchenware
The composition of sterling silver
Steel, which is an alloy itself is sometimes added to silver to make sterling silver. Other metals of choice include copper, nickel or zinc. So, when sterling silver is made, the balance 7.5% is made of these base metals. The addition of base metals may enhance the stability of the metal, but it also causes loss of lustre and the metal becomes tarnished over time. Tarnishing is a common feature of most alloys and if sterling silver is not polished regularly, the shine starts to fade. Basically, on exposure to air or water, sulphur compounds react with the sterling silver and a black sulphide layer is created on the surface, which fades the lustre from the surface. On the other hand, pure silver does not tarnish easily.
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Uses of sterling silver
Sterling silver is cheaper than pure silver and is often used in the making of kitchenware, particularly cutlery. These include spoons, knives, forks, etc. Prior to stainless steel cutlery being introduced, sterling silver was the material of choice for cutlery making and this cutlery needed to be polished every day. Utensils made out of sterling silver also need to be used every day, as lack of use causes reactions with the air and the items start to look tarnished.
Call our silver experts to know more
Our silver experts can help you identify the differences between sterling silver and fine silver. Since it is a popular choice, many items that are actually made of sterling silver are referred to as silver. It is important that our buyers are well aware of what they are buying. Call a member of our team on 020 7060 9992 or get in touch online via the contact page on our website. All the silver products sold by us carry a certificate of authenticity and a buyback offer. You can also get more information on our website about the various silver products that we do.
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Best Gold and Silver Research sites
François-Marie Arouet, the classical French philosopher and writer commonly known as Voltaire (1694-1778) once said: “Paper money eventually returns to its intrinsic value – zero.” One of the earliest uses of fiat currencies is recorded in China in the year 1000 AD. Since then, modern global economics has successfully managed to keep the solvency of fiat currencies alive. Its intrinsic value was kept alive by linking it to gold so that businesses and tradesmen would honour paper notes and coins made of base metals as having an accepted representative value. This was popularly known as the gold standard and the practice ended at the end of the two world wars, as gold reserves eventually thinned out.
Do your research to really unlock the potential of gold and silver
Rising inflation has been eating into the value of fiat currencies over the last 20 years, and global economic turmoil has left few options to generate good returns for investors. Therefore, anyone looking for a sustainable, stable store of value with strong fundamentals in order to hedge against currency debasement and market risks would seriously consider gold and silver. With the prices of precious metals slated to go up in the near future, it is important to conduct your own research into gold and silver. In this article, we’ll run through the best blogs for you to read.
Investor research is an essential step before investing in gold bars
1. The World Gold Council blog
The World Gold Council focuses on developing the gold industry by creating awareness among investors, ensuring a steady demand for gold and establishing themselves as a market authority for gold. Their blog provides insights into the gold market and helps investors understand the drivers for supply and demand in the market. The blog also provides market commentary and tracks price trends for precious metal. Through its members, the World Gold Council seeks to be a collective voice in the gold industry. Several articles on the blog are available for free download and provide investors with effective guidance on how to invest in gold.
Interested in gold and silver? Read our Ultimate Insider’s Guide to tax efficient investment here
2. The LBMA blog
The London Bullion Market Association (LBMA) is a regulatory body that sets standards for the precious metals market. The association has a footprint across 30 countries, with more than 140 members. The LBMA sets trading standards for the industry in a number of areas including purity and form. As a regulatory body, the organisation value adds to the industry by ensuring that service providers adhere to the highest standards at all times. Their blog is essentially a collection of news articles, press releases and publications relating to the precious metals industry.
3. Gold trading experts
Based in Birmingham, Gold Trading Experts is a gold industry training services provider for investors. They provide online tutorials, training materials and information designed to assist their users in understanding the dynamics of the gold market. Regular video overviews of the market are regularly uploaded on their website. In order to gain full access to their services, users need to purchase a paid subscription. The gold blog provides market updates and price trends.
Coin buyers use blogs to do their research before buying coins made out of precious metals
4. The Royal Mint bullion blog
The Royal Mint has a long history that dates back to 886 AD, during the time of Alfred the Great. Since then, the Royal Mint has been the official flag bearer for British coinage. After centuries of existence as a mint owned by the British government, it is now a limited company, wholly owned by Her Majesty’s Treasury. The mint is the official manufacturer tasked with creating the nation’s coinage. The bullion blog published by the Royal Mint is a great repository of information about the London bullion market, price information, coin reviews and articles about important coins in the history of British coinage.
5. Mint news blog
The Mint News Blog provides market watch articles and commentary on the products released by the United States Mint. The information contained in the blog is of great interest to numismatists and bullion investors alike. The blog was originally published by Michael Zielinski back in 2009 and is now managed by a publishing firm called Whitman Publishing LLC.
6. PNG news and events blog
The Professional Numismatists Guild (PNG) is one of the best-known certification agencies in the world for gold and silver coins. Their website features a blog page under the title ‘news and events’, which serves as a library of information for investors who wish to buy gold and silver coins. Set up in 1955, PNG is an industry regulator of repute, whose coin grading service is trusted all over the world.
7. The artisanal gold council blog
The artisanal gold council caters to the mining industry and champions the sustainable development of small-scale gold mining companies. The artisanal gold council blog publishes information, articles and news related to the gold mining industry and can be an interesting read for investors who wish to know about the sources of the gold they’re buying.
8. The silver institute blog
The Silver Institute is a non-profit organisation that acts as an industry body for the global silver industry. The institute’s website is essentially a blog aimed at educating silver investors across the world. It features industry news, the uses of silver, silver price charts and links to other online resources about silver investing.
Call the precious metals team at Physical Gold to know more
As a reputed online broker of precious metals, Physical Gold has a team that provides expert advice to investors. Call us on 020 7060 9992 or get in touch online to connect with a member of our team to know more about making the right investment decisions in precious metals.
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