Home How to Buy Gold – The Basics

How to Buy Gold – The Basics

Ever wondered how you can start investing in gold? It’s simpler than you’d think.

Just about anyone can walk into a gold shop and purchase a £900 Krugerrand to get their investment started. Of course, most investors wouldn’t recommend taking that route. Instead, professionals generally prefer to buy their gold through online sellers, exchanged traded securities, and other specialist solutions.

Here are some of the things you’ll need to know if you’re considering buying gold now, or in the near future.

Buying Gold Bullion

Currently, the largest bullion dealer in the UK is a company called BullionVault. This eCommerce company operates online, but it has vaults in London, Zurich, and New York. Using BullionVault, you can buy anything from a single gram of gold for around £27 to something much more significant. What might surprise you about this company, is that it gives you your first gram for free when you sign up to the system.

The exciting thing about BullionVault is that when you buy a gram of gold, you’re not buying the physical product. Instead, you’re claiming part of a larger 400oz bar. This means that you can access better wholesale prices for your investment.

Buying Bars and Coins

If you’re looking for something more tangible from your gold investments, then you can try visiting the ATS Bullion company in London. Bar and coin purchases are more popular than ever, with one-ounce coins available for around £892 each.

Interestingly, if you sold a one-ounce Krugerrand to ATS, you’d get about £827 in return, as the company provides a 7% difference between the selling and buying price. Notably, in the UK, the Royal Mint equivalent to the one-ounce Krugerrand is a Britannia, and it sells for around £917. It has a higher price because it’s issued by the Royal Mint, which means that you don’t have to worry about capital gains tax when selling it in the future.

The ATS Bullion company can also sell you a kilo of gold for a total of £28,000. However, they do require their customers to pass stringent tests to make sure that they’re not attempting to launder money.

Buying Synthetic gold

One unique way to invest in gold today is through something called “Exchange Traded Funds.” This cheap, but effective way to diversify your portfolio is a great way to tap into the benefits of physical gold, and shares in gold funds. You can buy and sell ETFs for gold just like any share, and even ask a stockbroker to buy your gold for you.

There’s an average fee of around 0.39% for these purchases, and your gold will be held in a bank like the HSBC vault. Currently, ETFs are becoming increasingly popular, thanks to the liquidity of the market.

On the other hand, if you’re not worried about getting your hands on physical gold, and you just want something new in your investment portfolio, you could try gold funds. You can check the current physical gold rates for Dubai here

With a gold fund, you invest in a share of a gold mining company, instead of buying physical coins or bullion. The biggest company in the UK right now for gold funds is BlackRock Gold and General Fund. Already, the value of this business has increased by 202% over the last five years, and 29% in the previous twelve months.

You’ll need to commit to a minimum investment of £1,000 to get started, but once you do, you can choose whether to place your finances into a self-invested pension or ISA depending on your preferences.