Coins, bars, premiums, spreads, CGT — a plain-English starter for new bullion investors.
If you have decided that some allocation to gold belongs in your portfolio, the next decision is how to express it. The options for UK investors are physical bullion, allocated storage, ETFs, mining equities and futures. Each has different cost, risk and tax characteristics.
For most new buyers, the simplest entry point is a small position in UK-issued bullion coins — Sovereigns and Britannias — both of which are exempt from UK Capital Gains Tax. The premium over spot is around three to five per cent at our desk, well below the long-run appreciation we expect.
“For most new buyers, the simplest entry point is a small position in UK-issued bullion coins — Sovereigns and Britannias — both of which are exempt from UK Capital Gains Tax.”
Avoid private one-off dealers without published spreads. Avoid generic 'gold investment plans' that pool client metal. Avoid scratch-and-dent secondary-market bars without LBMA provenance. The bullion market has more than its share of intermediaries adding fees without adding value.
Start with one Sovereign. Hold it for a month. Get used to it. Then make the second purchase a deliberate one.
