How to buy gold

If you are looking at how to buy gold - whether as an investor or saver - you have a choice to buy actual physical gold or one of a growing number of financial vehicles linked to or based around the value of gold.

 

‘Paper’ gold

A speculative way of including gold in your investment portfolio without actually buying any is to invest in stocks and shares in companies which are engaged in mining gold. Alternatively you may invest through financial instruments such as funds which are exposed to the gold markets in some way.

These include things such as exchange traded funds and other complex products like futures and options, warrants and certificates. Such investments are not for the faint-hearted, since they can rise and fall very rapidly in value, independently from the market price of the precious metal itself.

 

Physical gold bullion

Of course you can also invest in the precious metal in the form of bullion (gold bars and coins) without actually taking physical delivery of the gold itself. It can be securely stored for you in a strongroom or vault, in which case you would have to pay somebody to take care of your gold for you.

The price would include security to safeguard your gold, insurance in case there was a problem, and charges and commissions as and when you buy or sell some or all of your gold.

 

Bars or coins?

Broadly speaking, gold coins are usually bought by individual investors, whereas bullion gold bars are the preferred choice of institutions and governments with substantial sums to invest in gold.

Gold Fact: Global gold reserves – the amount of gold available to be extracted from existing mines – are estimated to be a little over 50,000 tonnes – enough to last just 12 years at current usage levels.

 

Tax benefits

In some countries investing in gold can have tax advantages – for example in the European Union gold purchased as an investment is exempt from value added tax.

 

Buying gold online in the UK

Investors are increasingly taking advantage of the latest technology and buying and selling their gold online. It's important to ensure that if you choose this route you should carefully check the credentials of your chosen broker and do your "due diligence".

For more information on how to buy gold please contact our expert team.