Business warchest - buying gold etc

[psychocandy]

Gold seems to be doing quite well at the moment. I guess theres no reason why you cant convert the cash sitting around in your business account at 0% into Gold.

In the last 60 days, its returned about 20%, in the last 5 years well over 300%. Obviously, not guaranteed.

What are the implications of making a few quid this way? Assuming any profit is subject to CT but what about flat rate VAT?

If you, say, in a month convert gold back to cash in any given quarter, does any profit you make become liable to flat rate vat as income? I think I'm right in saying that bank interest does, so I guess this is similar?

[Fred Bloggs]

You're too late, IMO.

[TestMangler]

Gold seems to be doing quite well at the moment. I guess theres no reason why you cant convert the cash sitting around in your business account at 0% into Gold.

In the last 60 days, its returned about 20%, in the last 5 years well over 300%. Obviously, not guaranteed.

What are the implications of making a few quid this way? Assuming any profit is subject to CT but what about flat rate VAT?

If you, say, in a month convert gold back to cash in any given quarter, does any profit you make become liable to flat rate vat as income? I think I'm right in saying that bank interest does, so I guess this is similar?

As our resident expert on gold buying/selling, I'm expecting DP will be along to explain the VAT position of gold purchases and sales.

[Wobblyheed]

Buy old knackered properties and do them up...oh hang on....too late for that one as well

[northernladuk]

Long live the search facility...

http://forums.contractoruk.com/accou...via-ltd-1.html

http://forums.contractoruk.com/accou...-buy-gold.html

http://forums.contractoruk.com/accou...4222-gold.html

One day young padawan you might use it.

[DaveB]

Gold seems to be doing quite well at the moment. I guess theres no reason why you cant convert the cash sitting around in your business account at 0% into Gold.

In the last 60 days, its returned about 20%, in the last 5 years well over 300%. Obviously, not guaranteed.

What are the implications of making a few quid this way? Assuming any profit is subject to CT but what about flat rate VAT?

If you, say, in a month convert gold back to cash in any given quarter, does any profit you make become liable to flat rate vat as income? I think I'm right in saying that bank interest does, so I guess this is similar?

You don't pay VAT on profit, VAT is added to the purchase price. In any case gold purchases and sales are VAT exempt where they are made for investment purposes.

You will still be liable for CT on the profits.

[ACAB]

You're too late, IMO.

I have gold. There is in my opinion no single currency that is worth investing in. Property is crashing everywhere and the financial markets are in crisis over sovereign debt. China's economy relies on it lending money to the West to buy its own goods, so that's in trouble too. Gold has a long way to go.

[rollingergrund]

I have gold. There is in my opinion no single currency that is worth investing in.

You invest based on the market conditions, seems you believe the largest, most profitable and most liquid market is in fact not worth considering for investment. If one half of a currency pair is doing badly logically the other half is doing well. So how has the CHF and AUD done against sterling over the last 5 years and against other currencies? Even the THB has performed well against major currencies.

Property is crashing everywhere

Where exactly is property crashing?

the financial markets are in crisis over sovereign debt.

Are you sure this is true? Arguably the finance markets are benefitting from these problems of increasing government debt.

China's economy relies on it lending money to the West to buy its own goods,

No it does not that money is lent for other purposes. Despite the so called slowdown in the global economy the biggest benefactors have seen their economies grow.

so that's in trouble too.

China's biggest problem right now is potential civil unrest, their economy overheating and keeping inflation in-check. How do you think the main players in the chinese equities markets have fared recently?

Gold has a long way to go.

If China is in trouble as you claim that will result in a massive reduction in the price of gold, China is the biggest buyer of gold in the world. If China is in trouble so will India, gold price will reduce further because India is the 2nd biggest buyer. That will get the speculators involved selling short in anticipation the trend will continue gold will fall further. Add onto this that your belief no currency is worth investing in, cross border cashflows would fall as would trade in gold.

[Bumfluff]

I have gold. There is in my opinion no single currency that is worth investing in. Property is crashing everywhere and the financial markets are in crisis over sovereign debt. China's economy relies on it lending money to the West to buy its own goods, so that's in trouble too. Gold has a long way to go.

How did you purchase it did you use bullionvault.com at all or has anyone else used them ? I registered with them last week you get the free 1gram to buy and sell which I had a go with, sold it then found I couldnt afford to buy anymore with the £ I had, I really can't figure out how to use the site, the user guides were pretty poor and didnt give me enough confidence to know what I was doing without making an expensive mistake.

Anyone got a dummies guide to bullionvault ?

[DaveB]

How did you purchase it did you use bullionvault.com at all or has anyone else used them ? I registered with them last week you get the free 1gram to buy and sell which I had a go with, sold it then found I couldnt afford to buy anymore with the £ I had, I really can't figure out how to use the site, the user guides were pretty poor and didnt give me enough confidence to know what I was doing without making an expensive mistake.

Anyone got a dummies guide to bullionvault ?

Places like bullionvault are not really for speculation, they are aimed at longer term investment. Buy it, hold onto it for 6 months or more and then sell at a profit.

If you want to speculate on the short term price of gold you are better of going to one of the spread betting sites and placeing bets on the price movements.