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Right Now Is The Time To Buy Physical Gold - CEO

There is no denying gold is viewed as a safe-haven asset; the metal recently rallied on heightened uncertainty in the marketplace.

And, to one executive in the gold space, investors should look to get their hands on physical gold right now.

“Physical gold is motivated by people who want long-term protection, long term safety and security. They want to remove counterparty risk,” Josh Saul, CEO of London-based gold dealer The Pure Gold Company, said in a CNBC interview Friday.

“It’s really the uncertainty that drives gold demand [and] it’s not necessarily things that are going to look good or bad, it’s about not knowing, unpredictability.”

Gold prices have surged recently on growing geopolitical uncertainty. The lack of confidence in the Trump administration alongside tensions between the U.S. and North Korea helped push the metal to multi-month highs this summer. Spot gold last traded up $5.20 at $1,291 an ounce. 

Saul said his clients prefer physical gold over electronic gold because they prefer to have a tangible asset that is not subject to risks of cyber-attacks.

“The benefits of having physical gold is that you have a physical store of wealth,” he said.

Spot gold prices are up about 13% year to date, while Comex gold futures prices are up roughly 12.5% over the same time frame.

But Saul added there is an additional benefit to owning physical gold.

“There are also various tax advantages available to people that purchase certain types of physical gold that you wouldn’t get if you were purchasing electronic gold,” he said.

Capital gains tax on some physical gold coin in the U.K. are not subject to tax. The coins include the U.K. Royal Mint’s Brittanias and Sovereigns, CNBC reported. However, the same does not apply in the U.S. because gold is subject to a capital gains tax.

Saul argued that investors should also look to own physical gold just like central banks do.

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Name Last Change
DOW 22359.20 0.24%
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TSX-V 775.87 0.00%

Resource Commodities

Name Last Change
Gold 1295.99 0.35%
Silver 17.00 0.18%
Copper 2.91 1.22%
Platinum 946.00 0.32%
Oil 50.55 0.28%
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Zinc 1.41 0.00%

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