How and where to buy gold and silver depends upon your reasons for buying it. For example, if you’re simply looking for short term gains in the market then you might look at ETF’s (Exchange Traded Funds) or even mining shares. But be careful, unless you know the risks, investing in ETF’s and mining shares can be far more risky than holding physical bullion.
If, like most people who visit this site, you simply want to protect your wealth and spending power with something you can own and hold in your hand over the longer term, then physical gold and silver bullion might be for you.
All the above have their advantages and disadvantages but the advantage of physical precious metals is that they have no counterparty risk, i.e. their value doesn’t depend upon another party making a payment, delivery or being solvent. Their rarity and intrinsic value make them a great store of value, hedge against inflation and economic turmoil. Watch the short video below for an entertaining look at gold as a store of value throughout history.
Gold and Silver Bars or Coins?
If you’re set on buying physical precious metals, then you’ll need to make some further choices. Go to any precious metals bullion dealer online or on the high street and you’ll be offered bullion bars or coins. You might also find collector or numismatic coins but these can introduce another level of risk that requires a good understanding of coin collecting and are best avoided unless you know the market well.
There are some important considerations when choosing between bullion bars or coins but the first is to always know how much you’re paying over the current spot price. You can discover the best deals by working out the the cost per gram and comparing it against the current spot price of gold or silver. A competitive bullion dealer will typically charge 1%-5% depending upon the type and amount of bullion in question.
Gold and silver bullion bars can be a cheaper and more efficient way of buying larger amounts of bullion as any premium charged by a dealer will be lower. The down side is that larger gold bars are less liquid and therefore harder to sell on. You can find bars as small as a gram but premiums will be higher.
Gold and silver bullion coins are commonly minted by government mints in amounts of 1 troy ounce (31.3 grams) or less. This makes them easily recognisable, easy to sell and, if buying your own government mint coins, more tax efficient.
Where to Buy Gold and Silver Bullion
Where ever you buy gold and silver from, you should aim to pay as little over the spot price as possible. You can get the latest spot gold and silver prices on our home page.
So, armed with your calculator, you have a few more choices to make. If you are lucky enough to have a bullion dealer in your town or city who offers a good selection at competitive prices then that is a great option to consider.
Thanks to the internet though, you can have access to bullion dealers all over the world. However, buying bullion from overseas dealers can introduce some problems. Always consider import and tax rules relating to precious metals. For example, whilst the price of silver bullion might look attractive from buyers in the US or Australia, remember that silver is subject to VAT in the UK and HMRC may send you a tax bill should you bring silver into the UK from outside the EU.
Unless you have a very specific shopping list there are plenty of UK dealers offering a wide selection of gold and silver bullion. Here’s a list of some of the most popular:
[Links are provided for information only and are not a recommendation. Do your own research before buying. ]
Atkinsons
Bullion by Post
Bullion UK
Coin Invest Direct
Elm Investments
Hatton Garden Metals
UK Bullion
Weighton Coin Wonders
Please remember that all content on goldandsilverprices.co.uk is provided as information only and is not “investment advice” or a recommendation to buy or sell any financial asset or instrument. Please take professional advice or do your own research before taking any action.
