Buying Gold for Your Business

Investing in gold as a business can be an interesting option for your company, whether it is to protect your business assets, diversify your balance sheet, or build up your pension. On this page, we explain why investing in gold as a business can be interesting (from a tax perspective), for which types of businesses this is possible, and how buying gold as a business at GoldRepublic works.

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Why buy gold for business purposes?

Buying gold through your company offers several advantages over buying gold privately:

Protection of business assets: Gold is seen as a safe haven in times of economic uncertainty or inflation. Business gold ownership can help stabilise the balance sheet.
Liquidity and risk management: Gold can be easily purchased, stored and resold, which provides flexibility in financial planning.
Tax advantages: For certain types of businesses, tax advantages are possible, such as deferring taxation.
Pension accrual: Many entrepreneurs use investment gold for business purposes as part of their pension.

In short: buying gold for business purposes is not only a way to protect your assets, but can also contribute strategically to your financial planning and pension provision.

Tax rules for business gold

At GoldRepublic, various types of businesses can purchase physical gold for business purposes. The tax treatment of business investment gold differs depending on the type of business:

Limited Company (Ltd) or Public Limited Company (PLC): Gold purchased through a company is listed on the balance sheet either as stock or as an investment asset. Depending on accounting treatment, value changes may affect the profit and loss statement. Realised gains upon selling the gold are subject to Corporation Tax in the relevant accounting period. Profits can be reinvested within the company.
Sole Traders and Partnerships: In these structures, gold is considered part of the business assets of the owner or partners. Gains arising from the sale or revaluation of gold are treated as business income and taxed accordingly through Income Tax.
Pension schemes and long-term planning structures: In certain cases, gold may be included within approved pension or long-term investment structures, provided they comply with UK regulations.

It is important to seek advice from a tax specialist or accountant prior to your business gold investment, so that you are fully aware of the tax rules that apply to your company.

Fees for Buying Gold as a Business

At GoldRepublic, the following rates apply if you invest in gold for business purposes:

Purchase of gold: 1% transaction costs upon purchase.
Sale of gold: 1% transaction fee on sale. You can sell your gold back to GoldRepublic (at any time) at the current gold price.
Storage: from 0.5% per annum (excluding VAT) for gold, depending on the chosen vault location.

Your gold is stored in highly secure, independent vaults in the Netherlands, Germany or Switzerland, whereby you retain 100% legal ownership.

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How does buying physical gold from GoldRepublic work?

The process is simple and completely digital:

1. Create an account as a business customer with GoldRepublic.
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2. Register your business type and verify the company.
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3. Then purchase gold and select the desired quantity and vault location. You can also opt for our Gold Savings Plan, whereby you purchase commercial gold periodically for a fixed amount. This can be weekly, fortnightly or monthly.

Your gold is then stored in an independent, heavily secured vault, with daily inventory and external audits.

Asset managers have the option of managing multiple client portfolios via a single account, making it easy to purchase and store gold on a larger scale. With a multiple account trading environment, asset managers can trade and manage precious metals for multiple clients.

The asset manager can execute orders from the precious metals portfolio on behalf of the client. The client can receive separate login details to view their own portfolio.

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Gold returns over time

Historically, gold has retained its value and often correlated with inflation. The price of gold has reached several record highs in recent years. Investing in gold for business purposes therefore offers stablewealth accumulation and protection against currency risk and economic volatility. By combining physical gold with other business assets, entrepreneurs can spread their risk and increase financial security.

PERIOD CURRENCY / WEIGHT TYPE

Frequently asked questions

What is the difference between platinum and palladium?

Both are precious metals from the Platinum Group Metals (PGM) and are used for automotive and industrial catalysts. Platinum has a higher density, is rare and has a wider range of applications, including jewellery and medical instruments. Palladium is subject to greater price volatility due to more erratic global production.

How scarce is platinum?

Approximately 180 tonnes of platinum are mined worldwide each year, compared to over 3,500 tonnes of gold and 25,000 tonnes of silver. Platinum reserves are highly concentrated in South Africa and Russia, which creates supply risks.

How does the buy-back guarantee work for platinum?

You can easily sell your platinum back to GoldRepublic via your account at the current platinum price. The settlement is fast, transparent and without hidden costs.

Is platinum exempt from VAT?

Normally, you pay 21% VAT on the purchase of platinum. However, because your platinum is stored in Switzerland via GoldRepublic, you do not pay VAT on your platinum purchase.

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