Hello,

I have just taken recipt of some PM's and I have a few questions that I'm sure other people will benefit from seeing the answers to, I'm not proud...

1) Is it an acceptable practice to handle your gold and silver with bare hands? i.e. can this effect the resale value of coins?
2) Is the condition of coins important when you want to sell them?
3) Why do Britannias cost about £45 per coin more than a 1 Troy oz bar or a Krugerrand? Especially given coins seem to fluctuate less than the equivillent weight in a bar. Does this have anything to do with capital gains tax?
4) WTF are netto & brutto prices?
5) Can anyone detail the percentage range that dealers take against a PM sale, does this vary between silver and gold?
6) Why do we have to pay VAT on silver?

If you can think of anything else to add that may be useful, I would be grateful.

Cheers,

Craig.

My views:

1) Is it an acceptable practice to handle your gold and silver with bare hands? i.e. can this effect the resale value of coins?
Silver definitely no. Yes condition matters.

2) Is the condition of coins important when you want to sell them?
Yes.

3) Why do Britannias cost about £45 per coin more than a 1 Troy oz bar or a Krugerrand? Especially given coins seem to fluctuate less than the equivillent weight in a bar. Does this have anything to do with capital gains tax?
Don't know.

4) WTF are netto & brutto prices?
Don't know

5) Can anyone detail the percentage range that dealers take against a PM sale, does this vary between silver and gold?
The New Zealand Mint for example, sells a small number of 1oz Gold Kiwi coins for about 6.5% over the spot price.
A larger quantity (say over 1kg) drops that to about 5%.
They buy them back at spot
So it works out better to buy 1oz coins than bars !

6) Why do we have to pay VAT on silver?
I don't know, but you don't if you use Gold Money.

Steve

4) WTF are netto & brutto prices?
Net and gross - in the case of gold they should be the same.

My answers

1) Is it an acceptable practice to handle your gold and silver with bare hands? i.e. can this effect the resale value of coins?
If it is a bullion coin or bar then you can, it makes no difference to the end price especially if you sell them to a bullion dealer. If it is a coin that has collectors value then don't as the oils from your skin will change even the colour of gold. If you don't know if it is bullion or collectors then don't handle it.

2) Is the condition of coins important when you want to sell them?
Not if they are bullion and you are selling them to a bullion dealer, if they have collectors value or bullion coins that you are trying to sell to some numpty on eBay then yes.

3) Why do Britannias cost about £45 per coin more than a 1 Troy oz bar or a Krugerrand? Especially given coins seem to fluctuate less than the equivillent weight in a bar. Does this have anything to do with capital gains tax?
No, this is all to do with the profit that the Royal Mint is orignally trying to make on the coin, they release the coins in limited numbers to give them an initial collectors value, the same with later proof version of Krugerrands, Maples, Nuggets, Eagles, etc

4) WTF are netto & brutto prices?
With or without tax - normally quoted in this country by some pompous **** who would try to use Latin in normal conversation

5) Can anyone detail the percentage range that dealers take against a PM sale, does this vary between silver and gold?
There are few bullion dealers in this country due to the way PM's are perceived, post WWII laws (repealed) and current tax law, so you don't get all the dealers offering a similar deal as you do in the US. In the UK for individual gold bullion coins & bar a dealer will give you spot -1% to -10% and sell at spot +5% to +15%, you get more for bulk.
In general you will get the same spread for silver bullion but the purchase price will be more as they have to add VAT
If it is a collectors coin then the price really depends on if the buyer is looking for that coin or knows a collector who would want to purchase

6) Why do we have to pay VAT on silver?
Because Brown is a numpty

I believe that netto & brutto are german for Net and gross.

Or reading id5's post above Latin (as well)

EDIT: read id5's post

Thanks for the detailed replies. Sorry it has taken me a while to get back to you I have been in the mountains for a week.

Thanks again!

Cheers,

Craig.