There are MANY myths and misunderstandings around the purchasing of gold by individuals, and what dealers do and don't have to do to comply with the various laws and regulations.  None of this is actually very complicated, but because the regulations make 'heavy' reading they become interpreted in different ways.  However, we at Weighton Coin Wonders like to make things very simple, so we have created here a 'MYTH BUSTER' guide to purchasing gold.

All gold sales are generally governed by 3 different regulations, and in general terms these are as follows:

Notice 701/21 - Investment Gold

This gives the rules regarding the purchasing of gold, the form it has to take, and the rules governing it's supply

Notice 701/21a Investment Gold Coins

This notice gives the rules regarding what constitutes an Investment gold coin, and the full list of Investment gold coins

The Money Laundering Regulations

These regulations govern the amounts of physical cash we can deal with.

Generally those looking to purchase the odd coin or ingot in precious metals, do not need to think about any of the above, as the value of the purchase will mean that none of the above need to be considered by the individual;  It would be the same as going into any shop to purchase any item.  When it comes to larger purchases of precious metals for investment, all of the above do need to be considered, and we generally find that those looking to purchase larger quantities are aware that these regulations exist.  HOWEVER, there are several MYTHS surrounding differing interpretations of these regulations, and we know this from the questions we get asked by clients wishing to purchase.  So we will now let you know the 3 most frequently asked questions by potential clients wishing to make a purchase, and we will BUST the Myths that go with them.


Question 1

Do you have to report a sale to the Customs and Revenue if I purchase over £5000's worth of gold ?

Answer - NO.  This is the BIGGEST Myth in the industry.  It originates from the section in the Investment Gold Notice 701/21 as follows:

3.1 When and how do I have to notify?

Legal force
The first time that you make an exempt supply of investment gold which exceeds £5,000, or when the value of your supplies of exempt investment gold to any one customer is over £10,000 in any 12 month period, you must notify us within 28 days at the following address:

The Gold Team
HM Customs and Excise
Thomas Paine House
Angel Square
Torrens Street

If you are required to notify that you trade in investment gold and you are not registered for VAT, you must also provide the following information:

1. Name of company, partnership or sole proprietor.
2. Company incorporation number or details of partners.
3. Address(es).
4. Telephone number.
5. Contact name.
6. Accountantís name, address and telephone number.
7. Associated VAT registration numbers. 

The Gold Team will send you an acknowledgement. If, however you do not receive this within 28 days, you must check that they have received your notification.

You do not need to notify us of subsequent supplies.

As you will see from the parts we have highlighted, WE have to register as a trader of investment gold, and NOT notify every sale we make.  Weighton Coin Wonders registered a long time ago, and we have the acknowledgement from Customs and Revenue on file.  We do however have to keep records of every sale we process as any business does, but this is for financial / company purposes.

If you check out section 3.2 of the same regulations, it shows the form the notification should take, which clearly show it is the COMPANY / TRADER that is registering, and NOT the individual sale.


Question 2

We wish to purchase a quantity of gold from your website / over the telephone.  What forms of physical identification will we need to supply ?

Answer - NONE.  This would just not be practical, and almost impossible to 'police'.  The law does recognise the modern day methods of trading, and there is a section in the regulations specifically relating to internet and mail order trading as follows:

7.4 Internet and mail order sales

Legal force
If you sell investment gold over the internet or by mail order and you fulfil the conditions at (a) or (b) below, you may, instead of keeping the customer record set out at paragraph 7.1(b), keep and maintain the following record:

(a) if your supply is paid for by credit card and the delivery address is also the card holderís address, you must record the name of your customer, the credit card issuer and the card number; or

(b) if your supply is paid for by cheque, you must record the name of your customer, the name of the bank and the account number of your customer.

You must also keep proof of despatch of the investment gold to your customerís address.

If you come to our premises to purchase, then you do have to provide the required forms of Identification, but as an internet customer our database has a complete record of every customer we deal with, and we hold all payment and delivery details as a matter of routine.


Question 3

Can I pay in CASH ?

Answer - YES.  At Weighton Coin Wonders we are ALWAYS willing to accept cash as a payment method (why wouldn't we !), but we do restrict the amount we handle at any one time especially to new clients.  If wishing to pay via this method (for larger amounts), please call us to discuss in the first instance.

Finally as you will all be aware, because we deal in high value transactions we have to be very cautious, especially when dealing in CASH sales.  This is where the Money Laundering Regulations come in.  These regulations (just updated in 2007), detail the rules that govern the processing of larger cash transactions, and highlight when and if you have to be registered with a regulatory authority to handle large cash volumes. 

Hopefully we have clarified the myths that surround this particular part of our industry.  However if there is stll something you are unsure of, please feel free to call us and we will try to answer your query as honestly as we can.  Just bear in mind we are NOT legal experts and NOT qualified to give legal advice.  The contents of this page are OUR interpretation of the regulations based on our dealings with the authorities to date.



50 Market Place, Market Weighton, YORK. YO43 3AL

Please feel free also to phone on

01430 879740 / 07905 467650

or email to

 We can then assist you in person - ask for Richard