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Beginner's Guide to Gold

Everything you need to know about buying gold for the first time — from choosing the right product to understanding pricing.

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Why Invest in Gold?

Gold has been used as a store of value for thousands of years. Unlike paper currencies, gold cannot be devalued by a government or central bank simply by printing more of it. It holds intrinsic value and has proven to be a reliable hedge against inflation, currency depreciation, and economic instability.

Investors typically include gold in a portfolio to diversify risk. When stock markets fall, gold often holds its value or rises — making it a natural "safe haven" asset. Many financial advisors recommend holding 5–15% of a portfolio in physical precious metals.

Types of Gold You Can Buy

Gold Coins

Minted by government mints such as The Royal Mint and Perth Mint. UK coins like Sovereigns and Britannias are CGT-exempt as British legal tender — making them especially attractive for UK investors.

Gold Bars

Available in weights from 1g to 1kg+. Bars typically carry lower premiums over spot price than coins, making them cost-efficient for larger investments. Ideal for those buying purely for weight of metal.

Gold Sovereigns

A classic British gold coin containing 0.2354 troy oz of fine gold. Sovereigns have been minted since 1817 and remain one of the UK's most popular gold investments. Fully CGT-exempt.

Proof & Collector Coins

Struck to the highest quality with mirror-like finishes and frosted designs. Issued in limited quantities and supplied in presentation boxes. They carry a higher premium but offer numismatic value in addition to gold content.

Understanding the Gold Price

Gold is priced by the troy ounce (31.1035 grams). The "spot price" is the current market price for immediate delivery of one troy ounce of gold. This price fluctuates constantly during trading hours.

When you buy physical gold, you pay the spot price plus a premium. The premium covers manufacturing costs, distribution, dealer margins, and insurance. Premiums are generally lower on bars than coins, and lower on larger weights than smaller ones.

Quick Premium Guide

Large Bars (250g+)

~1–3%

over spot

1oz Coins / Bars

~3–6%

over spot

Small Coins/Bars

~5–15%

over spot

Tax & VAT on Gold

VAT: Investment-grade gold (minimum 995 fineness for bars, or gold coins minted after 1800 of 900 fineness or more) is VAT-exempt in the UK. This means you pay no VAT when buying gold bullion.

Capital Gains Tax (CGT): UK gold coins that are British legal tender — including Sovereigns and Britannias — are fully exempt from CGT. Other gold products may be subject to CGT if your gains exceed your annual allowance.

For personalised tax advice, we recommend consulting a qualified UK tax adviser. For more detail, visit our Capital Gains Tax Guide.

How to Buy Gold in 5 Steps

1

Decide on your budget

Gold can be bought from as little as £50 for a small coin or fractional bar. Decide how much you want to invest and whether you want to make a one-off purchase or build up over time.

2

Choose your product

For CGT efficiency choose UK coins (Sovereigns, Britannias). For the lowest premium over spot, choose larger bars. For collecting, consider proof coins.

3

Add to basket & checkout

Select your items, add to your basket and proceed to checkout. Prices are locked at the time of purchase. Choose your preferred payment method — bank transfer, card or crypto.

4

Receive your order

All orders are dispatched in secure, discreet packaging via fully insured Royal Mail Special Delivery or tracked courier.

5

Store your gold safely

Consider a home safe, safety deposit box, or our professional vaulted storage service for peace of mind and insurance coverage.