How to Buy Gold in the UK: A Step-by-Step Guide

Buying gold in the UK is straightforward, but there are plenty of hidden costs and pitfalls that can trip up new investors. This step-by-step guide will show you exactly how to buy gold safely, get the best price, and store it securely.

Not sure if gold is the right choice for you? First, read our Why Buy Gold in the UK guide to understand the benefits.

1. Decide Why You’re Buying Gold

Before you buy, think about what role gold will play in your financial plan:

  • Wealth preservation – hedge against inflation and protect savings.
  • Portfolio diversification – balance shares, property and cash with a hard asset.
  • Collecting – certain coins have historic or collectible value beyond their metal content.

Your reason for buying will help determine whether coins or bars are best for you.

2. Choose Between Coins and Bars

In the UK, the most popular bullion products are:

  • Gold Coins (e.g. Sovereigns, Britannias)
    • Exempt from Capital Gains Tax (CGT) if classed as UK legal tender.
    • Easy to sell in small amounts when you need liquidity.
    • Sometimes competitively priced due to high demand and wide availability.
  • Gold Bars
    • Can offer lower premiums per gram, particularly on larger sizes (100 g, 1 kg+).
    • Smaller bars (1 g, 5 g, 10 g) may actually carry higher premiums than popular coins.
    • Best suited for larger lump-sum investments where scale reduces the extra cost.

Rule of thumb: coins offer flexibility, tax advantages, and strong resale demand, while larger bars may provide better value per gram. Always compare both before buying.

3. Understand the True Cost

The spot price of gold is only part of the cost. Expect to pay:

  • Premiums – a dealer’s markup above spot (varies by product and seller).
  • VAT – not charged on bullion gold in the UK, but silver and platinum are subject to VAT.
  • Delivery & insurance – some dealers include this in the price, others don’t.
  • Storage costs – if you use a professional vault or safe deposit provider, expect to pay an annual fee (often 0.5%–1% of value, or a fixed charge depending on weight/volume).

Comparing total costs across multiple dealers is essential. Our live bullion comparison tool helps you find today’s cheapest price instantly.

4. Compare UK Bullion Dealers

When choosing a dealer, reputation matters as much as price. Look for:

  • Clear pricing – no hidden fees at checkout.
  • Strong reviews – check Trustpilot, Google, and bullion forums.
  • Buy-back service – some dealers will repurchase your gold at competitive rates.
  • Secure delivery – all parcels should be tracked and fully insured.

See the full list of UK bullion dealers we compare.

5. Place Your Order

Most UK bullion dealers allow you to buy online in just a few minutes:

  • Payment methods: typically debit card or bank transfer.
  • Large orders (£10,000+) are usually settled by bank transfer.
  • Identification checks: you may need to provide ID (such as a passport, driving licence, and/or proof of address) depending on how much you spend — dealers are legally obliged to verify customers for larger transactions under anti-money laundering rules.
  • In-person purchases: many established dealers also have offices or shops where you can buy directly, usually by appointment. This can be a good option if you prefer face-to-face service or want to collect your bullion immediately.

6. Decide How to Store Your Gold

Once you have received your order, storage is the next big decision:

  • At home – in a robust safe, ideally bolted down and covered by your home insurance (check your policy).
  • Safe deposit box – most high street banks have phased these out, but specialist providers are available.
  • Vaulted storage – dealers and firms such as Brinks and Loomis offer insured vaulting for a small annual fee.

Beginners often start by storing small amounts at home before moving to professional storage as their holdings grow.

7. Track Your Investment

  • Monitor gold prices regularly to stay aware of market trends.
  • Review your holdings annually to decide whether to buy more, hold, or sell.
  • When selling, don’t just look at the spot price — compare dealer buy-back rates, as these can vary just as much as premiums when buying. The difference can significantly affect how much you receive back.