Buying Shares and Funds Explained

Buying Shares

Step 1: Research and Choose a Reputable Broker

Choose a reputable online broker or a traditional full-service broker and open an account. You’ll need to provide personal and financial information, as well as fund your account with an initial deposit.

Step 2: Fund Your Account

Deposit money into your brokerage account using a payment method accepted by your broker (e.g., bank transfer, wire transfer, or debit/credit card).

Step 3: Choose Your Investment

Research and select the shares you want to buy. You can search for companies by name, ticker symbol, or industry. Make sure to review the company’s financials, news, and analyst ratings before making a decision.

Step 4: Set Your Order

Decide on the type of order you want to place:

Market Order: Execute the trade at the current market price.

Limit Order: Set a specific price at which you’re willing to buy the shares (e.g., “I’ll buy 100 shares of XYZ Inc. at $50 or lower”).

Stop-Loss Order: Set a price at which you’ll automatically sell the shares if they fall below it (e.g., “If XYZ Inc. falls below $40, sell my 100 shares”).

Step 5: Verify Authentication and Hallmarking

Double-check your account information, order details, and confirmation before submitting the trade.

Step 6: Store and Insure Your Investment

Confirm your order and submit it to your broker. Your broker will execute the trade and update your account accordingly.

Step 7: Monitor Your Investment

Track your shares’ performance, dividend payments, and any changes in your account balance through your broker’s online platform or mobile app.

Additional Tips

Understand Brokerage Fees: Familiarize yourself with your broker’s fees, commissions, and any additional charges for services like trading, account maintenance, or research.
Research Broker Options: Compare online brokers and traditional brokers to find the best fit for your needs, including fees, trading platforms, and customer support.
Start Small: Consider starting with a small investment to gain experience and build your portfolio gradually.
Diversify: Spread your investments across different asset classes, sectors, and geographies to minimize risk and maximize returns.

Remember to always prioritize your financial goals, risk tolerance, and investment horizon when buying shares from a broker. It’s essential to educate yourself and make informed decisions to achieve your investment objectives.

[to be updated]

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There are plenty to choose from. We shall cover only those in the United Kingdom, which we know about.

These all sell gold coins such as Sovereigns from the UK, and other coins, gold bars, and other precious metals, listed in alphabetical order:

We offer no specific recommendations, please do your own research first when evaluating bullion dealers.

Buying Gold Sovereigns

Gold sovereigns are the most popular coins in the UK for investing in gold. The sovereign was the original £1 coin, although one sovereign is worth considerably more, costing around £480 at the time of writing.

Gold sovereigns have British legal tender status, so they are exempt from Capital Gains Tax (CGT) and are also exempt from VAT, like all investment gold.

Gold sovereigns today are manufactured by The Royal Mint. They have a weight of 7.98 grams, produced to a fineness of 916.7 (which means the coind contains 91.67% pure gold, the rest is added metals to give the coin strength). This means the coin contains 7.32 grams of gold.

The coins have a diameter of 22.05 mm, and are 1.52 mm thick.

Gold Bullion

Gold bullion is widely viewed as the ultimate asset for wealth preservation, with a strong track record of performance during uncertain or less stable times. For example, in 2008 when the UK was in recession, gold increased in value by 43.2% and in 2016 when the Brexit vote took place and Trump was elected President, gold increased by 30.2%.

Gold bullion can be purchased as coins or bars, for physical possession.

Vaults

Instead of buying gold bullion for delivery to your home, and having to find a secure location to store the gold, you can also buy gold at specialist vaults, who hold the gold for you.

You can purchase your gold online, and keep an eye on it, buying and selling as and when you want, instantly, without having to rely on the postal service.

Most online bullion dealers who sell gold sovereigns and bars, will often offer the option of storing your purchases in their vaults.

Or you can use a specialist vault, such as Bullion Vault.

BullionVault lets private investors around the world access the professional bullion markets. You can benefit from the lowest costs for buying, selling and storing gold and silver.

Below you should see a widget showing the current prices of gold to buy at BullionVault:

There are other bullion storage vault services available. We have used BullionVault and they have been good. Note that storage fees apply every month for each type of metal you keep there.