experience with www.CoinInvestDirect.com

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#1 Wed, Feb 15, 2012 - 5:16am
Joined: Sep 13, 2011

experience with www.CoinInvestDirect.com

Dear all,

I'm new to the business and I found a couple of dealers in the UK.

e.g. CoinInvestDirect.com

they offer a huge range of gold coins and I just want to now which coins you recommend.

Is there anything I have to check before I buy?

I heard of something like capital gains tax but I am not informed very well, maybe you can help !?



Edited by: golddigger on Nov 8, 2014 - 5:30am
Wed, Feb 15, 2012 - 7:37am
giant catfish
Kent, South East England
Joined: Jun 14, 2011

I've used them for both

I've used them for both silver and gold. Their head office is in the UK, and are a UK registered company, but the actual PMs are all stored in Germany. This makes things interesting. Hence whilst you may pay in GBP via bank transfer to their UK bank account, the coins / bars will be shipped to you from Germany.

Gold is therefore no problem, since EU and UK tax law is harmonised on gold - no VAT. Capital gains tax is only payable when you realise the gain AFAIK. There is a KYC requirement for purchases of gold either over £5k in a single transaction, or if you buy more than £10k worth of gold over 12 months. In these cases, CoinInvestDirect will have to ask you for certified proof of identity and address, and hold this on file for when HMRC go on fishing expeditions. They claim that they don't actively send this information to HMRC, and only provide on request due to the new law - however the head office is in London, and they're one of the biggest online PM suppliers *to* the UK. You'd have to trust them on this. Personally, I would, but I don't have that sort of money to spend on gold.

It appears that this £5k limit doesn't apply to silver. However, you pay VAT on silver... and 20% VAT when you order online for delivery to the UK makes silver investment brave unless you buy on behalf of a company and claim the VAT back somehow...

This is where the German connection comes in. In Germany, VAT on fine silver (all bullion, not sure of the actual percentage required by law for non-bullion silver, but this is irrelevant for CoinInvestDirect since all silver is either bar or bullion coin) is actually 7% rather than the usual 19% (IIRC) for general German VAT. Hence it is possible to pay for your silver in GBP from your UK GBP bank account to their UK GBP bank account, and then pick the silver up in Germany yourself - and only pay 7% VAT.

It appears that there's a way round the 'travel to Germany' requirement - you can buy the silver from CoinInvestDirect and specify the delivery address to be a courier firm. You then separately instruct the courier firm to deliver the silver to your UK address, but since German VAT has already been paid, you are not assessed for duty on import (since EU market rules on VAT apply).

I haven't tried doing this, but it sounds like an easy way to make the 13% - and CoinInvestDirect are happy to take on 'reseller' merchant customers. Can't see HMRC turning a blind eye to large-scale abuse of this, though...

Regarding which *gold* coins I'd recommend, remember that any UK legal tender gold (Sovereigns are the only UK gold that CoinInvestDirect offer, last time I looked) doesn't attract capital gains tax, or tax of any kind, since it's considered money. Chard offer a load of information about this on their website (taxfreegold, IIRC).

If you don't like Sovs, and you may want to sell in the near future (given that the UK doesn't have the tradition of 'local coin shops', sadly) - ensure that there's a 'buy back price' on the gold coin you like, and compare the spreads. If there's a 'buy back price' then CoinInvestDirect are happy to buy the coins they sell you back. If not, then they are selling but won't take them back... The spreads vary depending on demand, but with gold bullion coin they tend to be fairly similar.

Silver is a different story! They're very reliable in my experience, though all the gold and silver I've bought from them has been sold recently to pay my tax bills...

cheeers, catfesh
Wed, Feb 15, 2012 - 11:16am
33 and a turd
Joined: Jun 14, 2011

I have used them 3 times and

I have used them 3 times and have had no issues.

Luckily, I do not have to pay UK VAT levels on Silver but there is some.

I get delivery in 2 days max too as Frankfurt is not that far away.

A nation that is afraid to let its people judge the truth and falsehood in an open market is a nation that is afraid of its people. John F. Kennedy
Sat, Feb 25, 2012 - 5:58am (Reply to #3)
Joined: Feb 21, 2012

I live in France and was

I live in France and was looking at buying from them because they "seem" to have competitive prices on silver coins and bars. However when it comes to checkout time they add 10% as a "handling fee on all VAT liable products".

Despite emailing them more than once to query this I have not had the courtesy of a reply.

Needless to say I have not used them and will continue to make purchases elsewhere without the "hidden" 10%........