Buying Precious Metals Explained
Buying gold
Step 1: Research and Choose a Reputable Dealer
Look for licensed retailers online or in-person bullion dealers in your area.
Check customer reviews to ensure you’re buying from a trustworthy dealer.
Step 2: Determine Your Investment Goals
Decide whether you want to buy bullion gold or rare coins. Rare coins will be far more expensive, but could appreciate more in value.
We do not recommend this unless you are an experienced investor and become knowledgeable on this topic.
Consider your budget and the amount of gold you want to invest in.
Step 3: Understand Gold Purity and Weight
Gold coins and bars come in various purities (e.g., 22K, 24K, 99.9% fine gold) and weights (e.g., grams, ounces, kilograms).
Ensure you understand the gold’s weight, purity, and amount before agreeing to a price.
Step 4: Compare Premiums
Gold coins typically command slightly higher premiums over the spot price due to minting costs and commemorative value.
Gold bars, being larger and with lower manufacturing costs, attract smaller premiums.
Compare prices among dealers to find the best value for your investment.
Step 5: Verify Authentication and Hallmarking
Ensure your gold coins and bars are authenticated and hallmarked by a recognised organization, such as the London Bullion Market Association (LBMA) or the Professional Coin Grading Service (PCGS).
Verify the hallmark or stamp on the gold product to guarantee its purity and weight.
Step 6: Store and Insure Your Investment
Store your gold coins and bars in a secure location, such as a safety deposit box or a home safe.
Consider insuring your investment against loss or theft.
Additional Tips
Be cautious of counterfeit products and ensure you’re buying from a reputable dealer.
Keep in mind that gold prices can fluctuate, so it’s essential to monitor market trends and adjust your investment strategy accordingly.
Consider diversifying your investment portfolio by allocating a portion of your assets to gold coins and bars, along with other precious metals and assets.
By following these steps and tips, you can confidently purchase gold coins and bars as a valuable addition to your investment portfolio.
where to purchase gold
Bullion Dealers Online:
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 coin 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, silver, and platinum.
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.