People interested to buy gold but only have small amounts of money may now turn to Royal Mint to start their collection of the safe haven yellow metal. The company said it is selling tiny fractions of gold bars for as low as £20 (US$30) a piece. The only catch is, you cannot bring it home.
Still, Royal Mint assured would-be buyers it will extend full legal title to customers for every ounce of gold they buy. A £20 worth of gold is about three-quarters of a gram. Customers can buy the tiny fractions at a “signature gold” service that Royal Mint had added to its website.
The service, which opened in September 2014 to educate the general public and open them to the world of gold trading, offers the gold by price rather than weight. Prices will always be linked to the yellow metal’s current price.
The gold that people buy will be stored in the Mint’s vault. It said the on-site storage facility is manned 24/7 by the Ministry of Defense. As such, customers will have to pay a yearly management fee of 0.5 percent of the value of the gold, plus VAT, for storage, insurance and admin costs.
How to get the gold? Open a Royal Mint account, then buy online. “The launch of our online bullion platform last September opened up gold trading to an audience that may previously have been put off by the perceived complexities of the market,” Martin McDade, the Royal Mint’s director of bullion, said. “With the introduction of signature gold, we hope to expand this audience even further.”