When purchasing physical gold or gold bullion, there are numerous factors to take into account
Here's how to purchase gold coins and bars, along with some things to consider beforehand.
One of the most vivid images when discussing wealth is physical gold, whether it be a pile of gold bars, a treasure trove of gold coins, or any other type of gold bullion.
That's for good reason. Throughout human history, gold has proven to be one of the most efficient means of storing wealth.
Investing in gold can be done in a variety of ways, such as through gold funds or ETFs, but purchasing actual gold, or gold bullion, is the most straightforward method.
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Start your trial. In January 2026, the price of gold reached an all-time high of £5,600. This came after 2025, which was the best year for price increases since 1979.
However, there was a selloff in gold due to the Middle East conflict, and between February 27 and March 31, prices dropped by 11%.
According to Patrick Farrell, chief investment officer at wealth manager Charles Stanley, "many investors have been caught off guard by the unusually sharp and rapid selloff in precious metals in recent weeks." "Despite the kind of geopolitical uncertainty that would normally drive prices higher, gold, in particular, has experienced one of its steepest declines in years. The "
However, rather than a fundamental change in gold's long-term ability to preserve wealth, these price movements seem to be a reaction to the need for liquidity.
"This selloff in precious metals looks less like a fundamental shift and more like a positioning reset driven by liquidity needs and crowded trades," Farrell stated. "The fundamental forces behind the long-term demand for gold are still present. A "
One advantage of having physical gold (in the form of gold bars or coins known as gold bullion) is that you can keep it on hand in case of an emergency, such as a financial or social collapse.
Such a breakdown would seem unrealistic not too long ago. However, the global financial crisis of 2008 came next. Additionally, it appears a little more likely now than it did not so long ago due to Brexit, a worldwide pandemic, and current conflicts in the Middle East and Eastern Europe.
So, how should one go about purchasing gold bullion?
How to purchase gold bullion.
There are two primary ways to purchase gold bullion: gold bars (also known as ingots) or gold coins. You can be more adaptable with gold coins than with gold bars. After all, if you have ten gold coins instead of a single gold bar, it will be simpler to sell 20% of your gold. On the other hand, because of this flexibility, coins are likely to be easier to sell than large bars.
However, gold bars are a more economical choice if you wish to purchase in large quantities.
This is due to the fact that, even when the same amount of gold is used, producing multiple smaller gold coins or bars is more costly than producing a single large one.
Purchasing fractions of large gold bars that are expertly stored is the most economical strategy, according to the World Gold Council.
However, this implies that you don't have the gold on hand, and you might want to have it at home if you're purchasing it for peace of mind in case of a crisis. But keep in mind that there is a risk involved, and you will need insurance to protect you from theft.
Where can I purchase bullion made of gold?
Purchasing from big, reputable British dealers is the best choice for the majority of UK investors who wish to purchase and store physical gold. They will use trackable, insured couriers to deliver it right to your home. Selecting a reputable, sizable company with a solid track record is preferable.
Make sure you are dealing with a trustworthy dealer when purchasing and selling gold bullion. If you have been contacted via email or online advertisements, exercise extra caution. Before interacting with them, look up the company's name online to reduce the possibility of scams.
The World Gold Council advises you to check if the gold products you are thinking about purchasing are eligible for regulated investment services and are covered by a compensation plan in situations like fraud or financial error, as well as to make sure the provider has a physical office and support staff you can reach by phone or email.
The following UK-based dealers are listed as full members of the London Bullion Market Association (LBMA), indicating that they uphold the organization's strict ethical and quality standards.
Gold bullion can also be purchased directly from the Royal Mint through Amalgamated Metal Trading Baird and Co. BASF Metal Limited BullionVault Chards Coin and Bullion Dealer Jewellery Quarter Bullion Marex Financial Merrill Lynch International Mitsubishi Corporation Sharps Pixley Sucden Financial Triland Metals.
Do you have to pay taxes on bullion or gold?
The fact that gold bullion coins are exempt from capital gains tax (CGT) due to their legal tender status is one benefit of purchasing them from the Royal Mint.
CGT does not apply to any coin produced by the Royal Mint, with the following exceptions.
Some coin sets (possibly because the set's curation is valuable); some older coins (anything demonetized, like Halfpennies and Sovereigns minted before 1837); and any coins that aren't UK coins (like Alderney, Guernsey, Isle of Man, and Gibraltar). If you sell gold coins made by any other company at a profit, you might have to pay taxes because they are not recognized as legal tender. Furthermore, CGT applies to all gold bars.
Another benefit of purchasing smaller amounts of bullion or holding fractions of gold that is stored remotely is that you can use your 3,000 annual CGT allowance to sell smaller amounts each year instead of selling everything at once and incurring a tax bill.
Purchasing your physical gold through an online retailer is another way to avoid paying CGT.
Self-funded personal retirement plan (Sipp).
To purchase gold into your Sipp, ask your Sipp administrator to open an account with a gold bullion dealer.
When compared to keeping your gold at home, the remote storage option has certain benefits and drawbacks.
Physical gold storage: should you purchase gold online or keep it at home?
One issue with receiving gold in person is that you will need to store it safely. The most obvious choice for keeping your actual gold close at hand is a home safe or a bank safety deposit box.
You must notify your insurer if you intend to keep your gold bullion at home. This could greatly increase your premium, depending on how much gold you own.
Another option is to purchase your gold from a company that provides remote storage. Depending on why you're purchasing your gold, the problem is that you don't actually own it, so you have to have complete faith that the person handling it is doing so safely. It does, in fact, contain the gold that it claims to.
Companies that provide remote gold storage services include BullionVault, Chards, and Sharps Pixley.
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