Why Buy Gold?
Gold has been a store of wealth for thousands of years. In uncertain economic times — rising inflation, currency devaluation, or geopolitical instability — gold tends to hold its value when other assets struggle. For UK investors, physical gold also offers unique tax advantages that make it particularly attractive.
Gold Coins vs Gold Bars: Which Should You Buy?
The two most common forms of physical gold are coins and bars. Both are made from investment-grade gold, but they suit different needs:
- Gold coins (such as Sovereigns and Britannias) are legal UK tender, which means they are exempt from Capital Gains Tax (CGT) for UK investors. They are also easier to sell in smaller quantities, making them more flexible.
- Gold bars typically offer a lower premium over the spot price of gold, meaning you get more gold for your money. They are ideal for investors focused purely on gold content rather than collectability.
For most beginners, UK gold coins are the best starting point — the CGT exemption alone can save you a significant amount when you come to sell.
Understanding the Gold Spot Price
The spot price is the current market price for one troy ounce of pure gold. When you buy physical gold, you will pay a premium above the spot price — this covers minting, distribution, and dealer margin. Premiums vary by product: coins typically carry a higher premium than bars, but the CGT benefit often more than compensates for this.
Capital Gains Tax (CGT) on Gold in the UK
This is one of the most important considerations for UK investors. UK legal tender gold coins — including Gold Sovereigns and Gold Britannias — are exempt from CGT. This means any profit you make when selling them is not subject to tax, regardless of the amount. Gold bars and foreign coins do not carry this exemption and are subject to standard CGT rules.
How Much Should You Invest?
There is no minimum investment in gold — you can start with a single 1g gold bar or a fractional coin. Most financial advisers suggest allocating 5–15% of a portfolio to precious metals as a hedge. The key is to invest only what you are comfortable holding long-term, as gold is best viewed as a multi-year store of value rather than a short-term trade.
Where to Store Your Gold
Once you have purchased physical gold, storage is an important consideration:
- Home storage — convenient but carries security and insurance risks. Ensure your home insurance covers precious metals.
- Bank safe deposit box — more secure, though availability has reduced in recent years.
- Professional vault storage — the most secure option, often offered by bullion dealers. Typically insured and allocated to your name.
Getting Started with 888 Bullion
At 888 Bullion, we stock a carefully curated range of investment-grade gold coins and bars from the world's most trusted mints and refineries — including The Royal Mint, Heraeus, Umicore, and Valcambi Suisse. Every product is authenticated and quality-checked before dispatch.
Browse our Gold Coins and Gold Bars collections to find the right product for your investment goals.