How Can IFAs Introduce Tax Free Gold Investments to Retail Customers

With the traditional asset classes falling in value over the past couple of years, conversations about alternative assets have come more into focus. With hindsight most investors wish they’d had a portfolio hedge in place, a safe haven product, an asset that has returned on average 25% per year, even in the current economic climate.

Gold continues to dominate headlines and provide astounding invest in brics currency  returns. Now even the most unsophisticated investor is aware of gold as an asset class, and has read about its benefits as a crisis hedge, inflation protection, and diversification tool. But few are sure how to invest in it, and even the IFA community may not be aware of some of the tax free methods of investing into the physical metal itself.

One well kept secret is that gold bullion qualifies for Self Invested Personal Pensions (SIPPs). There was so much media attention around A-day regarding property that Pension Gold seemed to slip under the radar. The consequence is that a few years on, while many SIPPs offer property products, few offer gold bullion. The fact that investors actually buy gold bars, rather than a paper asset, provides huge comfort that there is no credit exposure whatsoever. We offer bars denominated in 1oz or 100g sizes to provide exceptional liquidity and store them in a licensed depository where it is fully insured by Lloyds of London. Like any other SIPP qualifying asset, gold bullion receives up to 40% discount through tax relief, and enjoys the usual sheltering from Capital Gains Tax.

Pension gold can be particularly appropriate for savers entering the final phase before retirement. The current economic downturn, and subsequent plunge in pension values, has demonstrated the exposure and lack of balance many pension investors have. When these nasty shocks occur shortly before retirement, there’s usually little time to recover, and many feel forced to delay their retirement in the hope of recovering portfolio values. An allocation in physical gold acts as a hedge against such events.

Pension gold can also play a vital role in a younger, more aggressive pension portfolio. It provides balance when teamed with property structures, high yield and emerging market assets.