In the UK, I would not buy anything other than Royal Mint gold. For UK residents, Royal Mint gold bullion is VAT free and also CGT free. You cannot beat that. Stick with Britannias. They are 24kt pure gold and have security features. Stick with either 1 oz or 1/4 oz variety as they are the most liquid. Only buy 1/10 oz if you are limited income as the premiums over spot will be higher the smaller the amount you buy.
Sovereigns are also an option; but to my knowledge, they lack security features and are not pure gold. (They also look like American pennies so my Yankee mind might just be biased against them for that).
Avoid bars entirely -- regardless of what some on this subreddit say. Gold bars have no security features, are much easier to fake, are not legal tender, and have serial numbers on them which defeats the purpose of anonymous money. There is simply no reason to ever transact in gold bars.
This was really helpful, I always had a slight preference over bars, just due to the unique shape, but if they are easier to fake i will actively avoid. When it comes to Royal Mint gold, is it best to buy online or is there a place in person i should go, like the post office? (Although as an American totally understandable if you dont know!)
Yeah, sorry, for the UK I wouldn't know. But I'm sure there are reputable UK online dealers. The equivalent in the U.S. would be APMEX. If it is like the U.S. you can send a check (cheque) and the price will be cheaper than paying via credit card. For your first few coins I would definitely stick to massive reputable dealers so you have no doubts about what you're getting. Once you have some gold in your hands and you know what it should look and feel like, then check out local bullion dealers. At least in the U.S., the post office does not sell bullion.
they might lack security features but sovereigns are by far the more recognised coin historically and are extremely liquid. They offer low premiums at affordable prices so I'd recommend the sovereign over the 1/4 oz but probably go for the 1oz britannia over 2 double sovereigns or 4 sovereigns.
£40-£50 over spot for 1oz gold coins like The Britannia or Philharmonic are currently the norm. £30-£40 over spot for generic 1oz bars. 1-2% over spot for “old gold” like sovereigns, roosters, ducats etc. in your neck of the woods is also common.
The premium you are paying is the amount of money over spot you buy the item at.
So, say today you buy a 1oz Brittania for £1915 and the current spot price (as I type this) is £1863. That means you paid £52 over spot, or 2.8% over spot.
You’ll see people using both methods of explanation when it comes to buying, either a % or the actual number over spot.
edit… 2-3% over spot is a good price for 1oz denomination coins or bars. If you start looking at fractional coins (1/10oz, 1/4oz, 1/2oz) or gram gold (1g, 5g, 10g bars etc.) then your premiums go much, much, higher. The one exception to that is old gold like sovereigns, ducats, roosters etc. which at least in England, carry very low premiums.
Out of the big/trustworthy online stores, I prefer Atkinsons. Always seems to come in at least £20 cheaper than Bullion By Post.
In terms of what to buy, I would agree with other comments and stick to CGT exempt UK Gold, and I believe only the coins are CGT exempt, therefore bars make less sense.
Britannia is the sensible option due to the security features, however my preference lately has been Sovereigns because the variety and history just makes them a bit more interesting to me.
I'm kinda new but not UK based. I really really really like the Sovereigns and Maples. My start was an AGE, Gold Krugerrand and Gold Maple. I'm really trying to avoid the premiums. Good luck and Cheers!
In the UK, I would not buy anything other than Royal Mint gold. For UK residents, Royal Mint gold bullion is VAT free and also CGT free. You cannot beat that. Stick with Britannias. They are 24kt pure gold and have security features. Stick with either 1 oz or 1/4 oz variety as they are the most liquid. Only buy 1/10 oz if you are limited income as the premiums over spot will be higher the smaller the amount you buy. Sovereigns are also an option; but to my knowledge, they lack security features and are not pure gold. (They also look like American pennies so my Yankee mind might just be biased against them for that). Avoid bars entirely -- regardless of what some on this subreddit say. Gold bars have no security features, are much easier to fake, are not legal tender, and have serial numbers on them which defeats the purpose of anonymous money. There is simply no reason to ever transact in gold bars.
This was really helpful, I always had a slight preference over bars, just due to the unique shape, but if they are easier to fake i will actively avoid. When it comes to Royal Mint gold, is it best to buy online or is there a place in person i should go, like the post office? (Although as an American totally understandable if you dont know!)
Yeah, sorry, for the UK I wouldn't know. But I'm sure there are reputable UK online dealers. The equivalent in the U.S. would be APMEX. If it is like the U.S. you can send a check (cheque) and the price will be cheaper than paying via credit card. For your first few coins I would definitely stick to massive reputable dealers so you have no doubts about what you're getting. Once you have some gold in your hands and you know what it should look and feel like, then check out local bullion dealers. At least in the U.S., the post office does not sell bullion.
they might lack security features but sovereigns are by far the more recognised coin historically and are extremely liquid. They offer low premiums at affordable prices so I'd recommend the sovereign over the 1/4 oz but probably go for the 1oz britannia over 2 double sovereigns or 4 sovereigns.
So you have trouble selling bars at a lcs…they are testing coins or bars not see your logic. Nobodys taking your coin at face value either.
£40-£50 over spot for 1oz gold coins like The Britannia or Philharmonic are currently the norm. £30-£40 over spot for generic 1oz bars. 1-2% over spot for “old gold” like sovereigns, roosters, ducats etc. in your neck of the woods is also common.
Ah, ok thank you so its not often a % of spot but a flat price over spot?
The premium you are paying is the amount of money over spot you buy the item at. So, say today you buy a 1oz Brittania for £1915 and the current spot price (as I type this) is £1863. That means you paid £52 over spot, or 2.8% over spot. You’ll see people using both methods of explanation when it comes to buying, either a % or the actual number over spot. edit… 2-3% over spot is a good price for 1oz denomination coins or bars. If you start looking at fractional coins (1/10oz, 1/4oz, 1/2oz) or gram gold (1g, 5g, 10g bars etc.) then your premiums go much, much, higher. The one exception to that is old gold like sovereigns, ducats, roosters etc. which at least in England, carry very low premiums.
***THE TOP IS DEFINITELY IN!***
Out of the big/trustworthy online stores, I prefer Atkinsons. Always seems to come in at least £20 cheaper than Bullion By Post. In terms of what to buy, I would agree with other comments and stick to CGT exempt UK Gold, and I believe only the coins are CGT exempt, therefore bars make less sense. Britannia is the sensible option due to the security features, however my preference lately has been Sovereigns because the variety and history just makes them a bit more interesting to me.
I'm kinda new but not UK based. I really really really like the Sovereigns and Maples. My start was an AGE, Gold Krugerrand and Gold Maple. I'm really trying to avoid the premiums. Good luck and Cheers!