To buy gold, you have several options depending on whether you want physical gold or financial gold investments:
Buying Physical Gold
- You can purchase physical gold in the form of bars, coins, or jewelry. Common gold coins include Sovereigns, Krugerrands, Britannias, and Canadian Maples, while bars come in various sizes and purities (usually 24 carat or 99.99% pure)
- Physical gold can be bought from reputable dealers, jewelers, some banks, or online bullion dealers like BullionByPost or GOLD.co.uk. These dealers offer live spot-based pricing and insured delivery for safety and convenience
- When buying physical gold, ensure it comes with an assay certificate verifying its authenticity, purity, and weight
- Physical gold is marked up above the spot price, and you may pay sales tax depending on your location. Also consider secure storage options such as safes, bank safe-deposit boxes, or professional storage services, as physical gold requires safeguarding
- Buying smaller coins or bars can lower the entry cost, and some UK gold bullion coins are exempt from capital gains tax, which may benefit investors with larger portfolios
Buying Gold Financial Investments
- Gold can also be bought through financial instruments such as gold ETFs, mutual funds, gold futures, and gold mining stocks. These do not involve physical ownership but track gold prices or gold-related companies
- Gold ETFs like SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and abrdn Physical Gold Shares ETF (SGOL) offer a simple way to invest without handling physical gold. These require a brokerage account and have expense ratios
- Gold futures allow speculation on gold prices with leverage but are more complex and risky, suitable for sophisticated investors
Steps to Buy Physical Gold Online
- Choose a reputable dealer with transparent pricing and insured delivery, such as BullionByPost or GOLD.co.uk
- Register an account on their website.
- Select the gold product you want (bars or coins) and check the current spot price.
- Place your order and arrange payment.
- Receive your gold with secure, insured shipping.
- Store your gold safely or consider professional storage services
In summary, buying gold involves deciding between physical gold and financial gold products, selecting a trusted seller or platform, understanding pricing relative to spot prices, and ensuring secure storage if buying physical gold
