0121 634 8060 7am-10pm, 7 days a week Free Insured Next Day Delivery

Gold as an investment

We're all familiar with gold. Be it a piece of jewellery, the medals awarded in sport, or treasure; the word gold is synonymous with wealth and luxury. Using gold as an investment however may be a new proposition for many. Gold has been used for thousands of years as currency for thousands of years, but during the 20th century the rise of fiat currencies saw gold become a new asset, one many investors included in their portfolios to protect their wealth.

Whether you’re a seasoned investor, or someone looking at investing in their future for the first time, gold is an excellent place to start. Long-term, safe assets are the perfect way to protect your savings against the uncertain economic times that have dominated the past 20 years.

Below is a short introduction to gold as an investment asset but for more information please view our investment guide, or speak to our friendly customer services team at 0121 634 8060.

Buying gold as an investment

Buying gold as an investment can take several different forms; buying stocks in gold mining companies, gold derivatives such as futures or ETF's, or physical gold. It is the latter of these that we at BullionByPost recommend. Only by purchasing physical gold do investors achieve outright ownership with total control of their investment.

Other methods can prove quicker, and often suit wholesale trading companies, but these methods also seen an increase in risk. Unallocated gold , mismanagement, management fees, all can impact your investment experience. Buying physical gold as an investment ensures you have total ownership, with the gold in your possession.

Buying physical gold as an investment

Buying physical gold as an investment will most often take the form of bullion coins or bars. Some investors do choose to buy jewellery as an investment, but the additional cost to craft the piece, as well as any precious stones can make jewellery much more expensive than the gold is truly worth. When buying physical gold coins or bars as an investment there are a few things to consider.

Buyers of physical gold must balance the low gold unit cost of bars against the tradability and tax advantages of coins. Large gold bars generally offer the most cost-effective way to buy the metal, but legal tender gold coins are easier to trade and more flexible. Numismatic coins can also offer a premium above the metal weight, while giving owners an opportunity to purchase a piece of history.

All gold has the advantage of being VAT-free in the UK but those looking to make a substantial profit also need to consider Capital Gains Tax, which is applicable to bars but not legal tender British coins.

Buying gold as an investment UK

Buying gold as an investment in the UK has never been easier thanks to the internet and the rise of online dealers such as ourselves. For those needing guidance on the process we have a simple how to buy gold guide with easy steps to follow.

As a safe haven, hedge, and useful method of diversification for your portfolio, gold is best viewed as a long-term investment, but swings in the market can open the possibility of short-term profit. Both long and short-term investors are well advised to keep informed and follow the market trends. BullionByPost's price charts show the current and historic market prices of precious metals. Plus our online news pages deliver valuable investor insights.

At BullionByPost we aim to make buying gold as transparent as possible and any of the links above will take you to further pages on the site with more detailed information. Please note, we do not offer personal investment or tax advice, for this you should seek independent advice from a qualified adviser.

We’re here to help: If you have specific questions relating to gold and precious metal investment our outstanding, friendly and knowledgeable customer service advisors are ready to take your call on 0121 634 8060.