Gold Coins Lose Shine in 21st Century Gold Rush

Gold coins “stuck in the Seventies” claims gold-trading website BullionVault.com as private investment in gold surges.

Gold is considered a ’safe’ and therefore popular investment in times of economic turmoil. The UK’s currently turbulent economic climate has caused a surge in private investment in gold.

The economic downturn of the 1970s effected a similar ‘gold rush’ – specifically in gold coin investments. They remain a popular option for new gold investors today. However, increasing numbers of private British investors prefer to buy and sell gold online through BullionVault, which is more flexible, more secure and significantly less expensive.

“I was at the point of ordering some Krugerrands (South African gold Coins) to put in a safe-deposit box,” says Mark Pickstone, a Manchester-based IT Consultant who discovered the benefits of BullionVault in 2006. “At BullionVault I found the sign-up and deposit process very straightforward and the process of buying and selling very easy.”

Initially Mr Pickstone bought and sold gold through BullionVault to make profit as the market value of gold surged. He currently uses BullionVault for investment purposes.

“I have recently started reinvesting in gold, mainly triggered by the poor performance of ISAs over the last 12 months,” he continues. “I have set up a direct payment from my bank to invest in gold on BullionVault every month.”

BullionVault enables anyone to invest as little or as much as they like in professional market gold bullion bars and hold them – securely – in their choice of vaults in either London, Zurich or New York.

Now looking after more than 8 tonnes of investment-grade gold, BullionVault lets investors buy and sell gold instantly – 24 hours a day, 7 days a week. The cost savings compared to gold coins are considerable and is also vastly more secure in BullionVault’s professional accredited vaults.

Cutting out the middleman and dramatically undercutting the retail market, the cost to buy and then sell gold at BullionVault regularly runs below 2% for even the smallest investment. Total commission fees on buying and selling gold coins is likely to cost upwards of 7.5%.

“The last bull market in gold – when it rose 19 times over for British investors – came in the 1970s,” says BullionVault Head of Research, Adrian Ash. “But that doesn’t mean you need to pay Seventies-style fees today or put up with pre-digital delays and hassle.”

So far this decade gold has risen two-and-a-half times in terms of Pounds Sterling, hitting a record of GBP512 per ounce earlier this year.

“Three decades ago, gold coins were virtually the only option for retail investors,” continues Ash. “Today, the internet makes gold investment infinitely more convenient and much cheaper.”