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Investing guide · UK edition

How to Invest in Gold in the UK

Last reviewed 2 November 20268 ways to invest comparedFor readers in the UK · Switch to US

The short version

This guide explains how to invest in gold in the UK, from buying coins and bars to gold funds, pensions and trading. For each route you’ll see how it works, who it suits, what it costs, the main risks and how to get started.

  • Most beginners choose between physical gold (coins and bars) and a gold ETC, a fund that tracks the gold price and trades on the stock market.
  • UK investment gold is free of VAT3, and sovereigns and gold Britannias are free of Capital Gains Tax6.
  • A gold ETC can sit inside an ISA or SIPP, so any gain can be tax-free.
  • Day trading gold with CFDs uses borrowed money and is very risky. Most beginners should avoid it.
  • Gold pays no interest or dividends. Its price can fall for years, so most people keep it to a small part of their savings.

Compare the ways to invest

Here are the main ways to invest in gold in the UK, from most to least hands-on. Tap a route to jump to its card.

RouteYou ownTypical costsRiskBest for
Physical gold: coins and barsReal gold you can holdPremium of a few % on bars, more on small coins; storage and insuranceMediumLong-term holders who want metal they control
Online vaulted gold ("digital gold")Gold held in a vault for youDealing fee plus a yearly storage feeMediumSmall, regular buyers who don’t want to store metal
Gold ETCs on the stock marketShares in a product backed by vaulted goldYearly fee around 0.12%–0.25%, plus dealing chargesMediumMost beginners; ISA and SIPP investors
Gold in an ISA or SIPPGold ETCs, funds or (in some SIPPs) barsAccount fees plus the cost of what you buyMediumLong-term and retirement savers
Gold mining shares and fundsShares in mining companiesDealing charges; fund fees if you use a fundHighInvestors comfortable with bigger swings
Day trading gold (CFDs and spread bets)Nothing: a contract on the priceSpread, overnight financing, possible commissionVery highExperienced traders with money they can afford to lose
Gold futures and optionsA contract to buy or sell gold laterCommission and exchange fees; marginVery highExperienced traders and hedgers
Gold-backed crypto tokensA crypto token with a claim on goldExchange fees and spreadsHighPeople already using crypto who accept the extra risks

Words you’ll see

Spot price
The price for gold delivered now, quoted per troy ounce. It’s the benchmark that everything else is priced from1.
Troy ounce
The unit used for precious metals. One troy ounce is about 31.1 grams2, slightly heavier than an ordinary ounce.
Premium
The extra you pay above the spot price for a coin or bar. It covers making, selling and delivering it. Small coins carry higher premiums than large bars.
Spread
The gap between the price a dealer sells at and the price they’ll buy back at. You start every purchase down by roughly this amount.
ETC (exchange-traded commodity)
A product listed on the stock exchange that tracks a commodity such as gold. Physically backed gold ETCs hold real gold in a vault.
Leverage
Using borrowed money to control a bigger position than your deposit. It magnifies gains and losses.
Allocated gold
Specific bars or coins held in your name. Unallocated gold is a claim on a pool of metal, which carries more risk if the provider fails.

Ways to invest

Way 1 of 8

Physical gold: coins and bars

Owning the metal itself, at home or in a vault.

You own
Real gold you can hold
Typical costs
Premium of a few % on bars, more on small coins; storage and insurance
Risk
Medium
Best for
Long-term holders who want metal they control

How it works

You buy coins or bars from a dealer or The Royal Mint and either have them delivered or stored in a vault. The price is the spot price plus a premium, and you sell back to a dealer later, usually just below spot.

Gold that meets the rules for investment gold is exempt from VAT3. That covers bars at least 99.5% pure and coins such as sovereigns, Britannias and Krugerrands4. Silver, by contrast, carries 20% VAT5.

Sovereigns and Britannia gold coins are legal tender, so they are exempt from Capital Gains Tax6. Bars and foreign coins such as Krugerrands are not exempt.

Who it suits

  • People who want to own gold outright, outside the financial system.
  • Long-term savers happy to hold for five years or more.
  • Anyone who values the tax-free status of sovereigns and Britannias.

Risks and costs

  • Price risk: gold can fall a long way and stay low for years.
  • Premiums and spreads: you often need gold to rise several per cent just to break even. A single 1 oz coin costs more per gram than a 1 kg bar.
  • Storage and theft: at home, check your insurance covers it (many policies have low limits for valuables). Vault storage costs a yearly fee.
  • Fakes: counterfeit coins and bars exist. Buy from established dealers and keep the paperwork.
  • Buying physical bullion isn’t a regulated investment, so the Financial Ombudsman and FSCS protections that cover investments generally won’t apply.

How to get started

  1. Decide between coins (easier to sell in small amounts; sovereigns and Britannias are CGT-free) and bars (lower premium per gram).
  2. Compare the total price per gram, including delivery, across two or three well-known dealers.
  3. Check the dealer’s buy-back price as well as the selling price. That gap is your real cost.
  4. Choose storage: insured home storage, a bank or private safe deposit box, or the dealer’s vault.
  5. Keep invoices: you’ll need them to prove what you paid when you sell.

Where to buy

Well-known UK names, listed as examples, not recommendations. We haven’t audited any dealer. Check reviews, how long they’ve traded and their buy-back terms.

Way 2 of 8

Online vaulted gold ("digital gold")

Buy a share of real gold stored in a professional vault, from small amounts.

You own
Gold held in a vault for you
Typical costs
Dealing fee plus a yearly storage fee
Risk
Medium
Best for
Small, regular buyers who don’t want to store metal

How it works

You open an online account and buy gold by weight or value. The provider keeps it in a professional vault and you can sell at any time through the website.

Fees differ a lot. For example, The Royal Mint’s DigiGold starts at £25 and charged 0.5% to buy, 1% to sell and 0.5% plus VAT a year for storage when we checked. Its gold can’t be delivered to you8. Other services, such as BullionVault, let you buy fractions of large bars and may allow delivery or withdrawal.

Who it suits

  • People who want to start small or buy a little each month.
  • Anyone who wants physical backing without home storage worries.

Risks and costs

  • Provider risk: read whether your gold is allocated (yours by name) and what happens if the company fails.
  • Fees add up: a yearly storage charge of 0.5% halves a 1% yearly gain.
  • Online vaulted gold is generally not covered by the FSCS. Also beware fake “digital gold” websites: the FCA has warned about firms using names like this without authorisation13.

How to get started

  1. Read the provider’s terms on ownership (allocated or not), storage location and fees.
  2. Check the company’s history and, if it claims FCA authorisation, look it up on the FCA Register.
  3. Start with a small amount and test selling before you add more.

Where to buy

Examples, not recommendations. Check current fees on each provider’s own site.

Way 3 of 8

Gold ETCs on the stock market

The cheapest and simplest way for most people to follow the gold price.

You own
Shares in a product backed by vaulted gold
Typical costs
Yearly fee around 0.12%–0.25%, plus dealing charges
Risk
Medium
Best for
Most beginners; ISA and SIPP investors

How it works

A gold ETC is listed on the London Stock Exchange and buys real gold to back its units. Its price moves with the gold price, minus a small yearly fee. In the UK and Europe these products are usually called ETCs rather than ETFs.

You buy and sell through an investment platform, just like a share. For example, the iShares Physical Gold ETC (ticker SGLN) charges 0.12% a year and is eligible for ISAs and SIPPs9.

Who it suits

  • Beginners who want gold exposure without storage or large premiums.
  • Anyone investing through an ISA or SIPP.

Risks and costs

  • You own a security, not the metal. You can’t take delivery of the gold.
  • Most gold is priced in US dollars, so a stronger pound can reduce your returns. Some ETCs are “GBP hedged” to reduce this, usually at a higher cost.
  • Platform fees, dealing charges and the small bid/offer spread all add to the cost.
  • Outside an ISA or SIPP, gains above your Capital Gains Tax allowance are taxable7.

How to get started

  1. Open an account with an FCA-authorised investment platform. Check it on the FCA Register.
  2. Search the platform for “physical gold ETC” and compare yearly fees and whether the product is physically backed.
  3. Buy inside a Stocks and Shares ISA if you have allowance left, so gains are tax-free.
  4. Decide how much to hold and stick to it. Many people rebalance once a year.

Where to buy it

Big UK investment platforms that offer gold ETCs. Listed as examples, not recommendations; fees vary.

Way 4 of 8

Gold in an ISA or SIPP

Use tax-free accounts to hold gold investments.

You own
Gold ETCs, funds or (in some SIPPs) bars
Typical costs
Account fees plus the cost of what you buy
Risk
Medium
Best for
Long-term and retirement savers

How it works

ISA: you can’t put physical gold in an ISA, but many gold ETCs and gold mining funds are ISA-eligible9. Gains and income inside an ISA are free of UK tax.

SIPP: a self-invested personal pension can hold gold ETCs. HMRC also allows investment-grade gold bars (at least 99.5% pure) in pensions10, but only some SIPP providers offer this, and coins aren’t covered by that rule.

Who it suits

  • People with spare ISA allowance who want gold as part of a long-term mix.
  • Pension savers who want a small amount of gold for diversification.

Risks and costs

  • The same price risk as gold itself, plus account fees.
  • Money in a SIPP is locked away until pension age.
  • Tax rules and allowances can change, and depend on your circumstances.

How to get started

  1. Check how much ISA allowance you have left this tax year.
  2. Open or use a Stocks and Shares ISA or SIPP with a platform that lists gold ETCs.
  3. For gold bars in a SIPP, ask your provider whether they allow it, where the gold is stored and what it costs.

Learn more on this site: Position sizing: how much to put in one investment

Way 5 of 8

Gold mining shares and funds

Invest in the companies that dig gold out of the ground.

You own
Shares in mining companies
Typical costs
Dealing charges; fund fees if you use a fund
Risk
High
Best for
Investors comfortable with bigger swings

How it works

Mining companies earn more when the gold price rises, because their costs stay roughly the same. Their shares often rise faster than gold in good years and fall faster in bad years.

You can buy individual miners on the London or overseas stock markets, or a fund that holds many of them. Search your platform for “gold miners ETF” or “gold mining fund”.

Who it suits

  • People who want more growth potential than gold itself and accept more risk.
  • Investors who want possible dividends, which physical gold never pays.

Risks and costs

  • Company risk: mine accidents, rising costs, debt, poor management or political problems in mining countries can sink a share even when gold rises.
  • Miners often fall further than gold during stock market crashes.
  • A single company can lose most of its value. A fund spreads that risk.

How to get started

  1. Prefer a diversified fund over single companies unless you can research them properly.
  2. Check the fund’s yearly fee and which countries its miners operate in.
  3. Hold it inside an ISA if you can.

Learn more on this site: Trading Basics: shares, ETFs and how markets work

Way 6 of 8

Day trading gold (CFDs and spread bets)

Short-term bets on the gold price using borrowed money. Very high risk.

You own
Nothing: a contract on the price
Typical costs
Spread, overnight financing, possible commission
Risk
Very high
Best for
Experienced traders with money they can afford to lose

How it works

Day traders try to profit from moves within a day, buying and selling quickly. In the UK this is usually done with CFDs (contracts for difference) or spread bets, which pay out the change in price without you owning any gold.

These products use leverage. For retail clients, UK rules cap it at 20 to 1 on gold, so a £500 deposit controls up to £10,000 of gold11. A 5% move against you wipes out the deposit. Firms must close positions when your funds fall to half the required margin, protect you from losing more than your account balance, and show what percentage of their clients lose money12.

Who it suits

  • Experienced traders with a tested plan, strict risk limits and money they can afford to lose completely.
  • Not suitable for most beginners.

Risks and costs

  • Most retail CFD accounts lose money. Every UK provider must publish its own percentage. Read it before you open an account.
  • Leverage turns small price moves into large losses within minutes.
  • Overnight financing charges make holding positions for weeks expensive.
  • Tax: spread betting profits are usually free of UK Capital Gains Tax for most people, while CFD profits are taxable. Treatment depends on your circumstances, so check with HMRC guidance or an adviser.

How to get started

  1. Learn the basics first: how orders, stop losses and position sizing work. Our free lessons start below.
  2. Use only an FCA-authorised provider and check it on the FCA Register.
  3. Practise on a demo account for several months.
  4. If you go live, risk only a small percentage of your account on each trade.

Where to buy

FCA-authorised CFD and spread betting providers. Examples only. Each must show the percentage of its retail clients who lose money.

Learn more on this site: Trading Basics · Position sizing and the 1% rule · ATR stop losses · Opening range breakout

Way 7 of 8

Gold futures and options

Exchange-traded contracts used by professionals and experienced traders.

You own
A contract to buy or sell gold later
Typical costs
Commission and exchange fees; margin
Risk
Very high
Best for
Experienced traders and hedgers

How it works

A futures contract is an agreement to buy or sell gold at a set price on a future date. The main market is COMEX in the US. A standard contract covers 100 troy ounces and a micro contract 10 ounces16.

UK traders reach these markets through brokers that offer US futures. Options on futures, or on gold ETCs, give the right but not the obligation to buy or sell.

Who it suits

  • Experienced traders who understand margin and contract expiry.

Risks and costs

  • Leverage: margin is a small fraction of the contract value, so losses can exceed your deposit.
  • Contracts expire and must be rolled over or closed.
  • Prices are in US dollars, which adds currency risk.

How to get started

  1. Learn how margin and expiry work before trading.
  2. Use a regulated broker that offers COMEX futures to UK clients.
  3. Start with micro contracts and small size.

Learn more on this site: Covered calls: how options work

Way 8 of 8

Gold-backed crypto tokens

Cryptocurrency tokens that claim to be backed by gold.

You own
A crypto token with a claim on gold
Typical costs
Exchange fees and spreads
Risk
High
Best for
People already using crypto who accept the extra risks

How it works

Some companies issue tokens on a blockchain, each claiming to be backed by a set amount of gold in a vault. They trade on crypto exchanges at any time of day.

Who it suits

  • People already familiar with crypto wallets and exchanges.

Risks and costs

  • Most cryptoassets are unregulated in the UK, and the FCA warns you should be prepared to lose all the money you put in14.
  • You rely on the issuer actually holding the gold, and on the exchange or wallet staying secure.
  • Little or no protection if things go wrong.

How to get started

  1. Read the issuer’s audit reports and redemption terms.
  2. Only use exchanges registered with the FCA for cryptoassets.
  3. Keep any amount small.

Gold and tax in the UK

Tax depends on what you buy and how you hold it. These are the main rules as of the 2026/27 tax year.

VAT

Investment gold is exempt from VAT3: bars and wafers at least 99.5% pure, and qualifying coins such as sovereigns, Britannias and Krugerrands4. Gold jewellery and collector items aren’t investment gold and usually carry VAT.

Capital Gains Tax

Sovereigns minted in 1837 or later and Britannia gold coins are UK currency, so gains on them are exempt from Capital Gains Tax6.

Gains on gold bars, foreign coins and gold ETCs held outside an ISA or SIPP can be taxable. For 2026/27, the first £3,000 of total gains each year is tax-free. Above that, the rates are 18% for basic-rate taxpayers and 24% for higher-rate taxpayers7.

ISAs and pensions

Gold ETCs held in an ISA or SIPP are free of Capital Gains Tax. Investment-grade gold bars can be held in some pensions under HMRC rules10.

Inheritance Tax

Gold you own, including tax-free coins, normally counts as part of your estate for Inheritance Tax, like most other assets.

How to avoid scams and bad deals

Gold attracts scammers because it feels safe. These checks protect you:

  • Be wary of cold calls, social media adverts and “guaranteed returns”. Gold has no guaranteed return.
  • Look up any investment firm on the FCA Register, and check the FCA’s warning list of unauthorised firms13.
  • Compare prices with the live spot price before buying. A huge premium is a red flag.
  • Avoid “rare” or “limited edition” coins sold as investments. Their premiums are high and they can be hard to sell at a profit.
  • Never send money to a personal bank account or pay in crypto for a gold purchase.
  • Get the buy-back price and every fee in writing.

Frequently asked questions

Is gold a good investment?

Gold can help diversify savings because it often behaves differently from shares, and demand from investors and central banks can push it higher15. But it pays no income, it can fall for long periods, and there’s no guarantee it will rise. Many people hold only a small share of their savings in gold.

What is the cheapest way to invest in gold in the UK?

For most people a low-cost, physically backed gold ETC bought on an investment platform is cheapest, with yearly fees from around 0.12%9. Large bars have the lowest premiums for physical gold, but you then pay for storage and lose the spread when you sell.

Are gold sovereigns tax-free?

Yes, for Capital Gains Tax. HMRC treats sovereigns minted in 1837 or later, and Britannia gold coins, as currency, so gains are exempt6. Investment gold, including sovereigns, is also exempt from VAT3.

Can I hold gold in an ISA?

Not physical gold, but many gold ETCs and gold funds can be held in a Stocks and Shares ISA, which keeps any gains tax-free9.

Can I put gold in my SIPP?

Yes, through gold ETCs, and some providers allow investment-grade gold bars, which HMRC permits in pensions10. Coins aren’t covered by that rule.

Is it safe to keep gold at home?

It can be, but tell your insurer: many home policies cap valuables at low amounts. Use a good safe, keep your purchase quiet, and consider a professional vault for larger amounts.

Should I buy coins or bars?

Bars usually cost less per gram. Coins are easier to sell in small amounts, and UK sovereigns and Britannias are free of Capital Gains Tax. Many people use coins for small amounts and bars for larger ones.

Sources and further reading

Numbers in the guide, like 1, point to these sources. Prices, fees and tax rules change, so check the latest version before you act.

  1. The OTC Guide: The Price. LBMA (London Bullion Market Association).
  2. The OTC Guide: Conversion table (troy ounces and grams). LBMA.
  3. Gold acquisitions, imports, investments and VAT (VAT Notice 701/21). HM Revenue & Customs, GOV.UK.
  4. Investment gold coins (VAT Notice 701/21A). HM Revenue & Customs, GOV.UK.
  5. Bullion & VAT explained. The Royal Mint.
  6. CG78305 – Foreign currency (sovereigns and Britannia gold coins). HMRC Capital Gains Manual, GOV.UK.
  7. Capital Gains Tax rates and allowances. HM Revenue & Customs, GOV.UK.
  8. DigiGold. The Royal Mint.
  9. iShares Physical Gold ETC (SGLN). BlackRock iShares.
  10. PTM125100 – Taxable property: tangible moveable property (investment-grade gold in pensions). HMRC Pensions Tax Manual, GOV.UK.
  11. PS19/18: Restricting contract for difference products sold to retail clients. Financial Conduct Authority.
  12. FCA proposes permanent measures for retail CFDs and binary options. Financial Conduct Authority.
  13. Protect yourself from scams. Financial Conduct Authority.
  14. FCA warns consumers of the risks of investments advertising high returns based on cryptoassets. Financial Conduct Authority.
  15. Gold Demand Trends. World Gold Council.
  16. Micro Metals Futures and Options. CME Group.

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