Green Sheet

Gold Bars Selling Like Hotcakes At Harrods

Henry Blodget — Sun, 08 Nov 2009 09:49:24 -0500

Gold smashed through an all-time high of $1,100 an ounce on Friday, bringing some solace to gold bugs who have been losing money on the metal since the 1980s.

Gold still hasn't come anywhere near its late-1980's peak on an inflation-adjusted basis ($1,800 or so), belying the general theory that it's a great inflation hedge. As the world gold frenzy really takes hold, however, $2,000-an-ounce predictions are coming fast and furious, so there's always hope.

The NYT surveys the gold landscape, checking in on the ultimate symbol of the rush--the bars on sale at the counters of Harrods:

[L]ast month, Harrods, the 160-year-old London department store, began selling coins as well as gold bullion ranging from tiny 1-gram ingots to the hefty, 12.5-kilogram, 400-Troy-ounce bricks that are so often featured in movies and stocked inside the vaults of Fort Knox. Harrods’s lower ground floor, where the gold is peddled, has been packed with interested shoppers.

“The response has been astounding,” said Chris Hall, head of Harrods Gold Bullion. “Bars are definitely more popular than coins. The 100-gram is the most popular.”...

THE Harrods gold line is made by PAMP, a rival Swiss refiner down the road here from Argor-Heraeus, in the nearby town of Castel San Pietro. And demand for bars weighing 100 ounces or less for individual investors is up 80 percent, said Marwan Shakarchi, the chairman of MKS Finance, a Geneva company that owns PAMP. Read the whole thing >

One reason people are buying gold? You can hide it from tax authorities. Just buy a few 400-ounce bars from Harrods and store them in your Harrods safe-deposit box (230 pounds a year), and the bastards won't be knocking on your door every year demanding capital gains taxes. (They probably will when you sell the bars back to Harrods for cash, though).

Courtesy of the NYT, here's a peak at gold's inflation adjusted performance over the years.

And here's more info about how to cash in on the craze at Harrods:

HARRODS GOLD BULLION
We are delighted to introduce Harrods Gold Bullion (HGB). Harrods Bank's newest initiative was recently launched and is focused on providing a first class service to customers wishing to invest in the physical gold market.

WE SELL
We offer "at market-linked prices" a full range of Swiss investment grade 999.9 fine gold bars that meet international 'good delivery' standards. We also supply major investment (non-numismatic) gold coins, including Sovereigns, Krugerrands, Eagles, Nuggets, Maple Leafs and Pandas.

WE BUY
As a customer, you will always have a buyer for your investment from Harrods Bank. Although you are under no obligation to resell to us, we will offer to buy back any gold that you have previously purchased directly from Harrods Bank, subject to current market prices.

WE STORE AND DELIVER
As an investor, you will also be offered the security and peace of mind that comes with over 100 years of experience securing high value merchandise in the confidential Harrods Safe Deposit. Customers may choose to make use of this highly secure storage*, collect their gold in person or have the Harrods Export Bureau facilitate the transportation of valuables to almost anywhere in the world, on request.

EXCEPTIONAL SERVICE
In addition to maintaining an international reputation as an acclaimed luxury brand, Harrods is renowned for its innovation and first class service. It is our formula for success.

Accordingly, with an infrastructure comprising skilled logistical and transactional support,
world-class security and extensive experience with handling high value merchandise,
Harrods is well positioned (through Harrods Bank) to help you achieve and maintain your investment objectives**. We look forward to hearing from you.

CONTACT US
For more information or to discuss any gold investment enquiries, please contact Harrods Gold Bullion on +44 (0)207 893 8201 or email gold@harrods.com.

PLEASE NOTE

Harrods Gold Bullion is a service to sell and buy-back gold bars and coins, offered by Harrods Bank Ltd and subject to the terms and conditions stated below.

You may receive information regarding HGB from the Harrods group as well as other auxiliary services they offer. These include Harrods Safe Deposit and Harrods Export Bureau and are available on request.

Your HGB transaction with Harrods Bank Ltd remains strictly confidential and information will not be shared with other parts of the Harrods group except where explicitly stated (see Terms & Conditions, section 13 (Privacy)).

Ingots	Coins
5 g	Sovereign
10 g	Maple Leaf
20 g	Krugerrand
50 g	Panda
100 g	Philharmonica
250 g	Nugget
500 g	Eagle
1000 g

The Harrods Gold Bullion service is available at Harrods Bank Ltd located on the Lower Ground Floor of ther Knightsbridge store.

* Availability of Safe Deposit boxes and safes is subject to availability.
** We encourage our customers to seek independent advice before making a transaction. Harrods Bank Ltd is not authorised by the Financial Services Authority to give investment advice regarding gold.

Frequently Asked Questions

Gold
1. What bars do you sell?
2. What coins do you sell?
3. How do I know my gold is genuine?

Sales
4. What is the process to buy gold and how long does it take?
5. Do you require identification? What identification do you require?
6. Can I buy in any quantity? Is there a minimum or maximum spending limit?
7. What are your prices? How can I get a quote?
8. What are your trading hours?
9. Do you sell silver and platinum as well as gold?
10. Do you sell collector's/rare coins?
11. Is it better to purchase coins or bars?
12. Which currencies and methods of payment do you accept?
13. Can I buy gold in the name of a corporation, trust or pension?

Storage/Delivery
14. How do I collect my gold? Do you deliver?
15. Does Harrods store gold? How do I arrange that?

Buy-Backs
16. Can I sell my gold back to you? Do you buy gold from the general public?
17. What is the buy-back process?
18. What is your refund policy?
19. I didn't buy my gold at Harrods. Where can I sell it?

Other considerations
20. What is the VAT/tax regulation on gold?
21. Do I get Rewards Points for gold purchases?
22 Is gold a good investment? Where do you think the price will be in a years' time?
23. What are Harrods' credentials for selling gold?
24. Harrods is a department store. Will my personal details really be kept confidential?

1. What bars do you sell?

Brand: Harrods gold bars and coins are exclusively supplied by PAMP (Produits Artistiques Métaux Précieux). Founded in Switzerland in 1977 PAMP is the world's leading independent refiner of precious metals and unquestionably the most prestigious. The PAMP seal on your gold bar is a mark of professional integrity recognised around the world.

Products are all subject to availability.

Credentials

PAMP Bullion meets the recognized and accepted 'Good Delivery' compliance standards at the following international markets and institutions:
London Bullion Market Association (LBMA)
Swiss National Bank
Dubai Gold & Commodities Exchange
The Commodity Exchange, New York (COMEX)
The Tokyo Commodity Exchange (TOCOM)
London Platinum and Palladium Market (LPPM)
PAMP is an Approved Deliverable Brand of the Chicago Board of Trade
PAMP is distinguished as one of five 'Approved Good Delivery Referees' at the LBMA.
The PAMP Assay Laboratory is certified with the ISO accreditation for general competency requirements (ISO / IEC '17025: 2005') as set by The International Organization for Standardization.

Sizes: 1g, 2.5g, 5g, 10g, 20g, 1oz, 50g, 100g, 250g, 500g and 1000g (oz = troy ounces)
Fineness: 999.9 parts per thousand fine gold
Design: The bars do not bear a Harrods logo/seal. They are all PAMP Fortuna design. Please see examples on website/in-store.
Serial numbers: Each bar is stamped with its own unique serial number

2. What coins do you sell?

(UK) Sovereign	8 g
(UK) Britannia	1 oz
(South African) Krugerrand	1 oz
(Canadian) Maple Leaf	1 oz
(Chinese) Panda	1 oz
(Austrian) Philharmonica	1 oz
(USA) Eagle	1 oz
(Australian) Nugget	1 oz

**Products are all subject to availability

3. How do I know my gold is genuine?

All bars are refined and supplied directly by PAMP. The PAMP Assay Laboratory is certified with the ISO accreditation for general competency requirements (ISO / IEC '17025: 2005') and meets the standards for 'good delivery' on all major international metals exchanges (see no. 4 above). Your gold is therefore always of the very highest quality. Coins are brand new, supplied through PAMP, and come directly from their respective national mints. Every bar is stamped with the metal quality and weight as well as a unique serial number registered with both PAMP and Harrods Gold Bullion. Small bars (up to 100g) are sold in sealed, PAMP certificated packaging.

SALES

4. What is the process to buy gold and how long does it take?

To avoid delays please make an appointment. For transactions you will be asked to provide certain documentation (detailed below) in person and sign a Terms & Conditions sheet. Cash and credit/debit card transactions can be executed immediately subject to documentation. If you wish to pay by bank transfer we require the funds to reflect in our account before we execute the sale. The time this takes is dependent on which bank you transfer funds from. Please contact us beforehand for a deposit reference and bank details. Gold items are usually available immediately but larger transactions may take longer to fulfil.

5. Do you require identification? What identification do you require?

£0 - £4,999	PAYMENT METHOD:	For all transactions we will record full name, date of birth, current address plus if appropriate UK address (where staying), telephone number and nationality. We may also perform routine electronic identity checks and may require further information to satisfy our customer due diligence.
	Cash, Credit card, VISA Debit, Travellers Cheques and Wire Transfer	Proof of NAME ONLY (one document from list below).

£5,000+ **	PAYMENT METHOD:
	Cash, Credit card, VISA Debit, Travellers Cheques and Wire Transfer	Proof of NAME and proof of ADDRESS required (one document from each list below).

PROOF OF NAME	PROOF OF ADDRESS
(ONE of the following):	(ONE of the following):
Valid Passport	Recent Utility Bill (not printed off the internet)
Valid Photocard Driving Licence	Valid Photocard Driving Licence
National Identity Card	Current Bank or Credit Card Statement (not printed off the internet)
Firearm Certificate	Hotel Key Card (for non-UK residents only)
Shotgun License	Recent entitlement to government-issued benefit, tax credit, pension or grant

** PLEASE NOTE:
- If your purchase exceeds £4,999 in one transaction OR you make mutliple purchases collectively exceeding £9,999 during the course of a year, you need to supply us with proof of name and address to comply with HM Revenue & Customs' (HMRC) legislation
- We will retain copies of all identification taken (irrespective of the transaction amount) which may be inspected by HMRC shoudl they wish to do so.
- Transactions totalling £10,000 or more may require up to 24 hours processing time for due diligence checking.
- Harrods Bank Limited reserves the right to decline transactions where we are unable to satisfy our customer due diligence.

6. Can I buy in any quantity? Is there a minimum or maximum spending limit?

There are currently no limitations on purchase orders.
Please note: All transactions under £5000 are subject to an additional processing fee of £20.

7. What are your prices? How can I get a quote?

HGB endeavours to price our coins and bars as competitively as possible. Prices fluctuate with the spot price of gold and other market factors. Every day we update our prices in-store to give a general indication to customers, however the final purchase price for each item is set at the time of executing the sale. Please contact us as gold@harrods.com, for a price indication.

Please note: All transactions under £5000 are subject to an additional processing fee of £20.

8. What are your trading hours?

In line with the gold market, business hours for gold transactions are weekdays; 10:00 to 17:00. We do not trade on weekends or on bank holidays.

9. Do you sell silver and platinum as well as gold?

Currently we only sell gold.

10. Do you sell collector's/rare coins?

No, we are not a numismatic business. The coins we sell are all for investment purposes, and therefore the purchase criteria should be based mostly on the intrinsic value of the gold content. However, at times certain coins we stock may be more scarce than others and therefore command a higher market premium.

11. Is it better to purchase coins or bars?

Coins are usually subject to higher premiums than bars, however these purchase premiums are not usually reflected in the sale price. This means that coins have a larger bid/offer spread than bars.

The premiums on larger bars are significantly lower than on smaller bars and therefore more cost effective to buy than coins or smaller bars. However, the coins and smaller bars provide more flexibility, allowing you to liquidate your gold holding in smaller increments.

The ultimate choice depends on your personal requirements, tax status and investment time horizon.

You should discuss the tax implications regarding your product choice with your own tax/financial advisor prior to making a purchase.

12. Which currencies and methods of payment do you accept?

We transact in Pounds Sterling (GBP) only. If you would like to pay cash in another currency or traveller's cheques, Harrods Bank will convert the equivalent of £5,000 for you at the Bank's customer buy rate, subject to internal foreign exchange rules. Harrods Bank account holders are not subject to the £5,000 restriction.

Acceptable payment methods are: bank/wire transfers, debit cards*, credit cards*, and cash. cash needs to be counted and verified. This may take longer for larger amounts.

*If you choose to pay by credit card an additional 2.5% fee will be levied. The maximum transaction amount we are able to to accept where payment is made by Debit or Credit card is £99,999.

Debit card is the most efficient form of payment for transactions up to £99,999. For transactions exceeding this value we can only accept bank/wire transfer. To facilitate this we will provide our beneficiary bank details and a cliuent reference number to you upon request.

Please note we DO NOT accept cheques (except traveller's cheques)

13. Can I buy gold in the name of a corporation, trust or pension?

No. Unfortunately, the legal compliance regulation for banks selling gold to entities other than private individuals is far too onerous. We suggest that you purchase in your personal capacity and then transfer to the legal entity yourself.

STORAGE/DELIVERY

14. How do I collect my gold? Do you deliver?

Collection is from Harrods Bank. Usually the gold is available at the time of purchase and you can choose to take it away with you. Alternatively you can arrange collection at a later date. Delivery can be arranged by Harrods Export Bureau through a specialised, secure and highly experienced courier service (Regency Shipping Ltd). We will introduce you to the relevant person in the department and they will arrange the delivery to your choice of destination. Delivery is an additional charegable service and the cost will depend on the destination and weight of gold. Please refer directly to Harrods Export Bureau for a full price quote. [Manager: Mike Harding: telephone number 0207 225 5647]

15. Does Harrods store gold? How do I arrange that?

Yes. Harrods Safe Deposit is a highly secure facility that has been in existence for 113 years. You can rent a safe box of variable size, a safe or an entire strong room. Prices start at approximately £230 per annum. You can store your property in the strictest confidentiality. For this reason Harrods Safe Deposits are subject to tight regulations by the Financial Services Authority (FSA). Harrods therefore has a separate application and identity checking process that takes 24 hours to complete. Your safe deposit must be set up before you can deposit your gold. This can only be done by you personally. [Manager: Ian Grewcock telephone number 0207 893 8271]

BUY-BACKS

16. Can I sell my gold back to you? Do you buy gold from the general public?

We DO NOT buy gold from the general public. Although under no obligation to do so, HGB customers have a right to resell to Harrods Bank subject to certain pre-conditions. HGB will offer to buy-back any gold purchased subject to current market prices and presentation of the original purchase invoice and valid identification. This is an exclusive service to HGB customers that applies only to gold purchased directly from Harrods Bank. i.e. This offer does not apply to:

Any gold NOT purchased directly from Harrods Gold Bullion (Harrods Bank) through Harrods Bank, even if it is a PAMP bar or coin type that the Bank hold in stock.
Any seller other than the person our records show as being the original purchaser stated on the original invoice.

17. What is the buy-back process?

Please consult the HGB manager. The summarised process (assuming the gold items and documentation are valid) is as follows: You will need to present us with your gold items together with relevant identification (as detailed on the Terms & Conditions) and your original purchase invoice. HGB will inspect these and give you a non-binding, indicative quote to buy-back the items. If you would like to proceed, you will be required to sign a Terms and Conditions sheet and HGB will then send the items to PAMP for authentication. Once authentication has taken place, HGB will contact you with a formal offer price based on the current market conditions. Should you choose to accept you will be sent an Acceptance Form. Once HGB receives the completed Acceptance Form from you we will deposit the funds into your bank account and send you a receipt.

18. What is your refund policy?

Due to the fact that the gold price fluctuates and that it is a financial asset we do not refund transactions.

19. I didn't buy my gold at Harrods. Where can I sell it?

HGB does not make any recommendations, however there are a number of reputable dealers in London that buy gold from the general public. You can contact the British Numismatic Trade Association (BNTA) for a list of reputable buyers, www.bnta.net.

OTHER CONSIDERATIONS
20. What is the VAT/tax regulation on gold?

HGB does not charge VAT on the sale of gold coins or bars. The product is classed as "investment gold" and is therefore a VAT exempt transaction under the current HM Revenue & Customs (HMRC) regulations.

You should discuss the tax implications regarding your product choice with your own tax/financial advisor prior to making a purchase.

21. Do I get Rewards Points for gold purchases?

No. Harrods Bank does not offer Harrods Rewards points on any financial products, including gold.

22. Is gold a good investment? Where do you think the price will be in a years' time?

Harrods is not authorised by the Financial Services Authority (FSA) to give investment advice regarding gold. We can only explain our products to you. We therefore encourage our clients to seek independent advice before transacting.

23. What are Harrods' credentials for selling gold?

Harrods Bank, has earned its sterling reputation providing private banking products and services to our top-level clientele for more than a century. Gold, as a financial asset, fits well within this ambit. In addition the Harrods group has world-class infrastructure and security geared to handling high value merchandise for elite clientele.

Key expertise within Harrods' management includes seasoned expertise in the international gold market, having worked with renowned gold and commodities experts, analysing and managing gold investments and even project managing the launch of an international gold mine.

24. Harrods is a department store. Will my personal details really be kept confidential?

We understand the importance of keeping your details with us completely confidential. Your information will only be used to process your HGB transaction*. We will not make your name, address, or transaction details known to anyone outside Harrods bank, including the Harrods group**, other than in the following four esxceptional cases when we are allowed to do this by law:

If we have to give the information by law
If there is a duty to the public to make the information known
If our interests mean we must give the information (for example, to prevent fraud or recover any money you owe us). However we will not use this as a reason for giving any information about you to anyone else, including the Harrods group for marketing purposes.
If you ask us to make the information known, or if we have your permission.

* We rely on our supplier's, Produits Artistiques Métaux Précieux S.A (PAMP), software and systems to process all gold transactions, meaning that your data will be shared with and recorded by PAMP and by MKS Finance (PAMP's parent company), both of which are Swiss companies based outside the EEA. Data protection laws are in place in Switzerland and The European Commission considers that Switzerland has an adequate level of protection for personal information.

If you purchase gold using a credit or debit card, our use of the Harrods Group payment system necessitates that such personal data be shared within Harrods Group. Such data will be handled in accordance with the Harrods Limited data protection policy, which is available upon request.

The terms and consitions that we will ask you to sign confirm that you expressly consent to the use of your data as stipulated therein. Without your express consent, youyr gold transaction cannot proceed.

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