Royal Mint Offers Gold to Pension Funds

Royal Mint Offers Gold to Pension Funds.

The Royal Mint has announced that your pension fund will shortly be able to buy Gold from it.  You will be able to buy gold in the following amounts:

• 100g bars
• 1kg bars
• Shares in the traditional 400oz bar

You gold will remain in the custody of the Royal Mint protected by UK Armed forces and the Royal Mint will charge you 1% per year for the privilege.

Is this new?

No.  Many self invested pension funds have Gold Bullion accounts and can buy physical gold as well as shares in gold mining companies.

Can my pension fund buy gold?

Most people do not have true self invested personal pension plans (SIPP) and therefore cannot simply register to buy gold.  Your own private pension may offer a gold fund but not physical gold bullion accounts.

Why is Royal Mint offering gold bullion?

We believe it is all about boosting the UK’s gold reserves.  It has been well publicised that Gordon Brown sold a significant amount of UK gold reserves at arguably the wrong time.  It is Gold that underpins our currency the confidence in the UK as a safe haven home for cash and investments.

By Royal Mail having greater cash flows in, gold prices will rise, the mint will probably need to buy more gold.  Gold prices are high, so you will pay more today.  We suggest at a later date when economic worries reduce (EU referendum), gold prices will fall and HM Treasury will likely buy back your gold or even simply ‘print’ more money and buy back your Gold to under pin sterling.

In the coming years, Britain certainly needs to bolster reserves.