Not All Gold is Equal
That may sound strange, gold is gold, right? But from a tax and legal point of view it makes a world of difference whether you sell a gold Krugerrand or an old gold bracelet. The distinction between investment gold and scrap gold partly determines how much you get, whether you pay VAT and whether you have to declare anything to the tax authorities.
What is Investment Gold?
Investment gold is gold that primarily serves as a financial investment. Think of:
- Gold bars and plates of at least 99.5% pure gold (995/1000 fineness), in common weights such as 1 gram, 10 grams, 1 troy ounce or 1 kg
- Recognised gold investment coins with at least 90% gold content (900/1000), struck after 1800 and once legal tender: the Krugerrand, Maple Leaf, British Sovereign, Wiener Philharmoniker or the classic 20 franc Napoleon
The value of investment gold is directly linked to the current world market price of gold. No mark-up for design, no deduction for wear: only the weight and purity count.
What is Scrap Gold?
Scrap gold is a broad umbrella term for all gold objects that are not considered investment gold:
- Old, broken or unworn gold jewellery (rings, chains, earrings)
- Dental gold (crowns, bridges)
- Damaged or outdated watches and objects in gold
- Gold coins that do not meet the investment gold criteria
- Investment coins too heavily damaged to pass as investment gold; they too are counted as scrap gold and melted down
For scrap gold a buyer looks only at the weight and the carat content. A beautiful gold chain from a Belgian jeweller fetches the same price as a crumpled piece of gold of exactly the same weight, because the gold is melted down and reused.
Common carat contents for jewellery: 18 carat (75% gold, hallmark 750), 14 carat (58.5% gold, hallmark 585) and 9 carat (37.5% gold, hallmark 375).
The Differences at a Glance
| Property | Investment gold | Scrap gold / Jewellery |
|---|---|---|
| VAT on purchase | 0% (VAT exempt in the EU) | 21% VAT |
| Value determination | Weight × purity × gold price | Weight × carat content × gold price |
| Capital gains tax | Yes, from 2026 (10% on profit) | No |
| Design / emotional value | Not relevant | Lost on sale |
| Keep proof of purchase | Strongly recommended | Recommended |
What Should You Know When Selling?
Whether you are considering selling investment gold or selling scrap gold, there are a few things to keep in mind:
- Identification requirement: Every professional buyer is required to check your identity and ask about the origin of the gold. So keep proofs of purchase, inheritance documents or deeds of gift.
- No cash payment: We pay exclusively by bank transfer, paid instantly so the money is in your account before you leave. Once we agree, you immediately receive a receipt by email with all the details of the purchase, and after payment a payment document by email.
- Anonymous forbidden: Selling gold anonymously is legally forbidden in Belgium.
- Honest pricing: An honest buyer shows you the current price for pure gold, weighs your gold in front of you and explains every step of the calculation clearly. Gold investment coins have no historical mark-up in the price; their value is simply the value of the investment gold they contain.
When you sell scrap gold, you lose the making costs, the design and the artistic added value entirely. Only the weight and purity are paid. With collectors or antique dealers you can sometimes get more for rare or artistically valuable pieces; always seek advice before you sell.
Frequently asked questions about investment gold and scrap gold
What is the difference between investment gold and scrap gold?
Do I pay capital gains tax on scrap gold?
Do I get more for investment gold than for scrap gold?
How do I sell my gold, investment or scrap gold?
Want to Know What Your Gold is Worth?
Do you have investment gold, jewellery or scrap gold and want to know for how much you can sell it? At De Munter we value your gold without obligation on location, in front of you, based on the current gold market price.