Physical gold means owning bullion such as coins or bars directly, or through an allocated custody arrangement. The price of gold is only part of the cost — dealer premiums, storage, insurance and the price you can sell for all matter.
Physical gold does not pay interest or dividends, and its value can fall as well as rise.
Last reviewed: 12 August 2026
Direct ownership
You own coins, bars or allocated bullion rather than shares in a fund.
No investment income
Physical gold does not normally pay interest or dividends.
Costs beyond spot
Premiums, spreads, storage, delivery and insurance can affect returns.
Capital at risk
The gold price can fall and you may get back less than you paid.
UNDERSTAND THE COSTS
The gold price is only part of what you pay
Physical bullion normally trades above or below the wholesale spot price depending on the product, dealer, size and market conditions.
Dealer premium
The amount charged above the underlying gold value when you buy.
Buyback spread
The difference between the dealer’s selling price and the price they will pay to buy the gold back.
Storage
Home, bank or specialist vault storage can involve one-off or recurring costs.
Insurance
Check whether stored or delivered bullion is insured and what the policy covers.
Delivery
Physical delivery may involve postage, secure courier or handling charges.
Authenticity
Recognised mints, refiners, serial numbers, packaging and assay documentation can help verify bullion.
How the dealer spread affects your break-even point
Illustrative example only
Spot value of gold
£2,000
Dealer selling price
£2,100
Dealer current buyback price
£1,950
Premium paid
£100
Immediate buy/sell difference
£150
This is only an illustration. Actual premiums and buyback prices vary by product, quantity, dealer and market conditions.
The gold price may need to rise before you recover the difference between what you paid and what you could sell for.
HOW IT WORKS
How buying physical gold typically works
Step 1
Choose the form
Coins, bars or vaulted/allocated bullion.
Step 2
Compare the total buying cost
Look beyond spot price at premium, delivery and custody costs.
Step 3
Decide where it will be stored
Home, bank, dealer vault or specialist custodian.
Step 4
Keep ownership records
Invoices, certificates, serial numbers and custody statements may matter.
Step 5
Plan how you would eventually sell
Understand dealer buyback terms, resale spreads and withdrawal/delivery processes.
FORMAT
Gold coins or gold bars?
Gold coins
Potential advantages
· Available in smaller denominations
· Can be easier to sell in portions
· Widely recognised products may have established resale markets
Considerations
· Smaller coins can have higher premiums per gram/ounce
· Some coins may have collectible value in addition to bullion value
· Tax treatment depends on the exact product and current UK rules
Specific bullion is identified or held for you under the provider’s custody arrangements.
Check
· Whether bars are individually identified
· Whether assets are segregated
· Custody terms
· Withdrawal rights
· Insurance
· Insolvency treatment
Unallocated gold
You may instead hold a contractual claim against a provider rather than ownership of specific identified bars.
Check
· Legal ownership
· Counterparty exposure
· Withdrawal rights
· Provider terms
· Insolvency treatment
Read the provider’s custody and insolvency terms carefully. Do not treat marketing language as a definitive legal ownership claim unless supported by the provider documents.
STORAGE
Where can physical gold be stored?
Home storage
Consider
· Security
· Insurance
· Access
· Fire / theft risk
Safe-deposit / bank facility
Consider
· Access times
· Insurance
· Fees
· Provider terms
Dealer vault
Consider
· Allocation
· Fees
· Insurance
· Withdrawal terms
· Provider failure
Specialist custodian / vault
Consider
· Jurisdiction
· Segregation
· Audit
· Insurance
· Withdrawal
Storage arrangements can materially change both the cost and legal structure of your gold ownership.
Take delivery or leave gold in storage?
Take delivery
You physically possess the bullion.
Consider
· Secure delivery
· Home storage
· Insurance
· Verification
· Later resale logistics
Vaulted gold
A custodian stores the bullion.
Consider
· Storage charges
· Allocation
· Insurance
· Withdrawal fees
· Provider / counterparty risk
· Audit / ownership records
Neither option is universally safer. Compare cost, custody wording, insurance and how you would sell or withdraw.
SELLING
How easy is physical gold to sell?
Gold bullion is widely traded, but the amount you receive can depend on the dealer, product, condition, quantity and current market.
Things to compare
Published buyback price
Buyback spread
Whether the dealer only buys products it sold
Authentication requirements
Postage / secure delivery
Settlement time
Minimum quantities
Branch vs online sale
A dealer offering a buyback service does not guarantee a particular resale price.
CHOOSING A DEALER
What should you check before buying gold?
How long has the business operated?
Is company information easy to verify?
Is pricing transparent?
Is the premium over spot clear?
Is the current buyback price visible?
Are delivery charges disclosed?
Are storage costs disclosed?
Who legally owns vaulted bullion?
Is storage allocated or unallocated?
Is insurance included?
Can you take physical delivery?
What happens if the provider fails?
Which mints / refiners are used?
Are product weights and purity clearly stated?
What documentation will you receive?
How is a complaint handled?
Check the provider’s actual regulatory status and do not assume a physical bullion dealer is FCA regulated.
How can you check gold is genuine?
Authenticity checks matter when buying and when selling. Focus on documented provenance rather than informal home tests.
Recognised mint / refiner
Stated fineness
Weight
Serial number where applicable
Tamper-evident packaging
Certificate / assay documentation
Reputable dealer
Professional testing for resale where necessary
Avoid unreliable DIY authenticity tests. If authenticity is uncertain, seek professional verification before paying or selling.
UK TAX
How is physical gold taxed in the UK?
This is general educational information, not personalised tax advice. Tax treatment depends on your circumstances and rules can change.
Investment gold and VAT
Qualifying investment gold can receive specific VAT treatment under UK rules. Under HMRC VAT Notice 701/21, investment gold is generally exempt from VAT (subject to limited options to tax for certain traders).
HMRC defines investment gold to include gold of a purity not less than 995 thousandths in the form of a bar or wafer of a weight accepted by the bullion markets, and certain investment gold coins meeting the conditions in VAT Notice 701/21A.
Not every gold product automatically qualifies as investment gold. Collectible, jewellery and non-qualifying products can be treated differently.
Capital Gains Tax
CGT treatment can depend on the specific gold product, disposal gains, your individual circumstances and current allowances and rules.
HMRC’s Capital Gains Manual (CG78305) treats sterling currency as exempt from CGT. It states that Sovereigns minted in 1837 and later years and Britannia gold coins are currency and, like all sterling currency, are exempt because of TCGA 1992 s.21(1)(b).
Coins that are not sterling currency — for example many non-UK bullion coins — can be chargeable assets. Gold bars are not sterling currency and are typically within the CGT rules, subject to your overall gains, reliefs and allowances.
Some older or non-legal-tender coins may instead be treated as chattels under separate rules. Always check the exact product against current HMRC guidance.
Tax treatment depends on your circumstances and rules can change. If unsure, seek regulated tax advice.
Physical bullion does not normally pay interest or dividends. Any investment return depends mainly on changes in the value of the metal, currency movements and your total buying and selling costs.
Why sterling investors should think about currency
Gold is internationally priced, commonly with reference to US-dollar markets. A UK investor’s return can therefore be affected by both the gold price and movements in sterling.
Gold price
+ GBP / USD
+ Costs
UK investor outcome
RISKS
What are the risks of owning physical gold?
Price risk
Gold prices can fall.
No income
Bullion does not pay interest or dividends.
Spread risk
Buying and selling costs can reduce returns.
Storage risk
Secure storage can cost money and involve operational risk.
Vaulted or unallocated arrangements can expose you to providers/custodians.
Authenticity risk
Counterfeit or misrepresented bullion can cause losses.
Currency risk
Sterling returns can differ from headline USD gold moves.
Liquidity / resale
The price you can sell for may differ materially from the headline spot price.
Tax change
Tax treatment can change.
Who might consider physical gold?
May be worth exploring if
· You specifically want direct bullion exposure
· You understand storage and insurance requirements
· You are comfortable with no investment income
· You can tolerate gold-price volatility
· You understand dealer premiums and resale spreads
· You want exposure outside a conventional fund structure
May be less suitable if
· You need regular income
· You want very low transaction costs
· You need simple instant liquidity
· You do not want custody/storage responsibilities
· You cannot tolerate commodity-price losses
· Gold would become an excessive portion of your portfolio
Educational only — not a recommendation and not a fixed portfolio allocation.
CHECK BEFORE BUYING
Before buying physical gold
What exactly am I buying?
What is the weight?
What is the purity?
What is the current spot value?
What premium am I paying?
What is the dealer’s current buyback price?
What is the spread?
Are delivery fees charged?
Where will the gold be stored?
Is storage insured?
Is ownership allocated?
Can I take delivery?
What documentation proves ownership?
How would I sell?
What costs apply when selling?
What is the provider’s regulatory status?
What happens if the storage provider fails?
What is the current UK tax treatment?
Can I tolerate a fall in the gold price?
When was this information last checked?
Compare Physical Gold Bullion
8 providers we cover
Current provider/product information checked 12 September 2026. Prices, premiums and availability can change.
Bullion prices can fall as well as rise. Physical bullion is not the same as a bank deposit and bullion products are generally not FCA-regulated investments.
Investment gold is generally VAT exempt in the UK. CGT treatment depends on the exact product; qualifying UK legal-tender coins can have different treatment from bars. Tax rules can change and depend on individual circumstances.
You’ll continue on the provider’s website. WiT Money may receive a commission or referral fee.
Ownership
Direct physical ownership; vault option available
Delivery
Yes
Storage
The Vault®: current published rates vary by product size, commonly 1% or 2% + VAT p.a.; verify exact item.
Buyback
Yes
Provider
The Royal Mint
Ownership model
Direct physical ownership; vault option available
Storage model
The Vault®: current published rates vary by product size, commonly 1% or 2% + VAT p.a.; verify exact item.
Storage fee / note
The Vault®: current published rates vary by product size, commonly 1% or 2% + VAT p.a.; verify exact item.
Payment / access
DigiGold from £25; coins/bars vary
Pricing basis
Live metal price / spot plus provider premium or live market spread
VAT treatment
Investment gold is generally VAT exempt in the UK; verify the specific product.
CGT note
CGT depends on product; qualifying UK legal-tender coins may be CGT-exempt, bars generally are not.
Regulatory / protection note
Physical bullion itself is not an FCA-regulated investment product. Provider/custody arrangements differ.
Checked date
2026-09-12
FAQs
Common questions about physical gold
Physical gold means owning bullion such as coins or bars directly, or through an allocated custody arrangement, rather than holding shares in a fund or mining company.
Bullion usually means investment-grade gold (or other precious metal) valued mainly for its metal content — typically coins or bars — rather than jewellery or decorative items.
The spot price is a widely used wholesale reference price. It is not normally the exact price a consumer pays for a retail coin or bar.
Retail prices usually include fabrication or minting, dealer premium, and may also include delivery, storage or insurance. Smaller denominations often carry higher premiums per unit of gold.
A premium is the amount charged above the underlying gold value when you buy. It is separate from any later buyback discount when you sell.
The bid/offer (or buy/sell) spread is the gap between the price a dealer sells gold for and the price it will pay to buy it back. That gap is a real cost of dealing.
A buyback price is what a dealer currently offers to pay for gold it is willing to repurchase. It can change with market conditions and does not guarantee a future sale price.
Gold bullion is widely traded, but ease of sale and the amount you receive depend on the product, condition, quantity, dealer and market. Compare buyback terms before you buy.
Coins can offer smaller denominations and flexible resale, but premiums may be higher. Larger bars can be more efficient per unit of gold but less flexible to sell. There is no universal best choice.
There is no single right size. Larger bars may reduce premium per unit of gold but can be harder to sell in portions. Consider total cost, storage, liquidity and how you would eventually sell.
For UK VAT purposes, HMRC defines investment gold bars or wafers as gold of a purity not less than 995 thousandths in a weight accepted by the bullion markets. Investment gold coins have separate qualifying conditions. Always check the specific product.
Allocated gold usually means specific bullion is identified or held for you under a custody arrangement. Read the provider’s custody, segregation, insurance and insolvency terms carefully.
Unallocated gold may give you a contractual claim against a provider rather than ownership of specific identified bars. Counterparty and insolvency treatment can differ — check the documentation.
Common options include home storage, bank safe-deposit facilities, dealer vaults and specialist custodians. Compare cost, security, insurance, access, allocation and ownership proof. No option is universally best.
Not automatically. Home contents policies may exclude or limit bullion. Vault storage may include insurance with exclusions and limits — check cover carefully.
Yes, some people do, but it creates security, insurance and access considerations. Confirm whether your insurance covers bullion and how you would sell later.
Look for recognised mints or refiners, stated weight and fineness, serial numbers where applicable, packaging, certificates or assay documentation, and a reputable dealer. Use professional testing if authenticity is uncertain.
Keep invoices, product descriptions, weight and purity details, serial numbers where applicable, certificates or assay documents, and any custody or storage statements.
Qualifying investment gold is generally exempt from VAT under UK rules in HMRC VAT Notice 701/21, subject to detailed conditions. Not every gold product automatically qualifies. Check current HMRC guidance for the specific product.
It depends on the product and your circumstances. Many gold bars and non-sterling coins can fall within CGT rules. Some UK legal-tender coins may be treated as sterling currency and exempt — see current HMRC guidance. This is not personalised tax advice.
HMRC’s Capital Gains Manual (CG78305) states that Sovereigns minted in 1837 and later years and Britannia gold coins are sterling currency and, like all sterling currency, are exempt from CGT. Other coins may be treated differently. Always check the exact product and current rules.
Physical gold does not normally pay interest or dividends. Any return depends mainly on metal price moves, currency and dealing costs.
Yes. Gold prices can fall as well as rise. After premiums and spreads, you may get back less than you paid.
No investment is risk-free. Gold is sometimes described as a safe haven in market commentary, but prices can fall and costs can reduce returns. Do not treat physical gold as an unqualified safe haven.
No. Gold has sometimes risen during inflationary periods, but that outcome is not guaranteed. Do not rely on gold as a guaranteed inflation hedge.
Not automatically. Physical bullion dealers and investment-product providers may operate under different regulatory frameworks. Check the provider’s actual status and do not assume a bullion dealer is FCA regulated.
Outcomes depend on whether you hold physical metal yourself, whether vaulted metal is allocated, custody terms, insurance and insolvency arrangements. Read provider documents carefully. Do not assume FSCS protection for ordinary investment or custody losses.
Physical gold involves coins, bars or allocated bullion with dealing, storage and custody considerations. A gold ETC is an exchange-traded security with product structure, ongoing charges and issuer/structure risk. They are not the same.
Physical gold is metal exposure. Mining shares are company equities affected by operating costs, debt, management, political risk and equity markets. A mining share can move very differently from the gold price.
OUR APPROACH
How WiT Money reviews physical-gold information
✓Ownership structure reviewed
✓Pricing terminology checked
✓Storage/custody considerations reviewed
✓Dealer/provider status checked where relevant
✓UK tax information checked against current official guidance