Country guide: buying physical gold in Israel

Step 1: Set your amount and time horizon

Before talking to a dealer, write down three answers: how much you intend to allocate, for how long, and what you would do if you needed the money earlier than planned. Physical gold pays no interest or dividends, and its price can fall for long periods. How much of your savings to put into gold is a personal decision; if you are unsure, speak to a licensed investment adviser.

Step 2: Choose a product — bar or coin

Investment bars are sold by weight and fineness, usually 999.9 (24 carat), and typically carry a serial number and a refiner’s certificate. Bullion coins are recognised internationally and easy to sell in part, but their premium is different. Some coins also carry collector value — that is a different product, priced on more than its gold content.

Larger bars often carry a lower premium per gram than small units, but you cannot sell half a bar. Coins are easier to sell a few at a time.

Step 3: Decide where the gold will be kept — before you buy

Storage is not a detail to sort out later. If the gold will sit in a dealer’s or a security company’s vault, find out whose name the metal is registered in, whether it is allocated to you, what the insurance covers and what it costs to take it out. If you will keep it at home or in a bank box, check your insurance first. See what to compare in a storage provider.

Step 4: Get written quotes and compare them properly

In Israel, ask for every quote in shekels, including VAT, for the same product and at the same time of day — dealers often update shekel prices as both the gold price and the exchange rate move. Then calculate the final price per gram of fine gold for each quote:

For example, a coin weighing 33.93 g at 91.67% fineness contains about 31.1 g of fine gold — one troy ounce. A 31.1 g coin at 99.99% contains almost exactly the same amount. Compare by fine gold content, not gross weight. You can enter each quote in the calculator to see the total over your holding period.

Step 5: Understand VAT in Israel

The Israel Coins & Medals Corp. states that buying investment precious metals in Israel is subject to 18% VAT — unlike many countries where investment gold is VAT-exempt. Treatment differs in some cases: under Israel’s 1994 VAT regulations on coins, medals and gold bars, VAT on a dealer’s resale of a coin or small bar bought from a private person is charged on the margin only, and buying and storing outside Israel may also be treated differently. Gold Decision does not determine the tax treatment of any specific transaction; check with an Israeli accountant or tax adviser, and ask the dealer whether their price includes VAT.

Step 6: Check the dealer

• Company name, registration number and business address in Israel — and that they match the entity issuing your tax invoice.
• Whether products come from recognised refiners or mints. The LBMA (London Bullion Market Association) publishes a list of accredited refiners.
• What you receive: a tax invoice, product certificate, serial number and storage confirmation.
• A written buyback policy: which reference price, what spread, and how many business days until you are paid.
• If the dealer stores the gold, who physically holds it and what happens to it if the dealer stops trading.

Step 7: Payment and records

Pay by a method that leaves a record, and make sure the invoice lists the product, quantity, price and VAT. Israel’s law on reducing the use of cash limits cash payments above certain amounts; check the current limits before any transaction. If you pay from an account abroad, ask in advance about transfer fees and the exchange rate applied. Keep every document — you will need them when you sell, and possibly for tax purposes.

Step 8: Plan your exit now

Know in advance who you would sell to, how the price would be set and what it costs to withdraw the gold from storage. Selling back to the dealer you bought from is often the simplest route, but not necessarily the best-priced. Ask a tax professional about the possible tax consequences of a gain on sale.

Warning signs

• A promised return, a “price floor” or a fixed buyback price without written terms.
• Time pressure: “this price is only valid today”, “last units left”.
• Refusal to give a written quote, or a quote that does not state product, fineness and VAT.
• “Pooled” storage where it is unclear whether specific metal belongs to you or you only hold a claim against the provider.