How To Invest In Physical Gold


Investing in physical gold is a great idea. It diversifies your portfolio and protects against inflation. Gold is a tangible asset, unlike cash, and a long-term hedge against currency depreciation. You can invest in physical gold through gold coins, bars, and ETFs.

In this article, let's discuss the different ways to invest in physical gold. Plus, their advantages and disadvantages. And, the best practices for investing in physical gold.

  • Gold coins
  • Gold bars
  • Gold ETFs

Benefits of Investing in Physical Gold

Investing in physical gold is an awesome way to protect and boost your wealth. It's viewed as a secure asset in times of economic turbulence, so its value can jump during periods of chaos or stock market instability. Owning physical gold has benefits that other assets, like stocks and bonds, don't have.

  • Physical gold works as a great shield against inflation and it's a tangible asset that grows in value over time, while stocks may lose or vanish quickly.
  • It also offers diversification if investors want to balance their portfolios with safer assets than stocks or bonds.
  • Plus, there are no ongoing costs associated with investing in gold, unlike stocks which often come with third-party account management fees.
  • Moreover, you can avoid the risk of losing money due to digital theft or fraud through online accounts.
  • On top of that, taxes associated with metal investments are lower than those on stock or bond portfolios.
  • Finally, buying physical gold gives investors more privacy than those who invest in Gold Exchange-Traded Funds (ETFs). ETFs must be reported by name on their owners’ financial records, but metal investments stay anonymous. This provides greater security for buyers who want to keep their investment details secret while still cashing in on any potential long-term growth opportunities from investing in precious metals.

Types of Physical Gold

When it comes to physical gold investing, there are various choices. Gold coins and bars are the most well-known forms. But there's also gold jewelry and gold certificates. Knowing the advantages and disadvantages of each is necessary. Let's explore the different types of physical gold and their pros and cons:

Bullion Coins

Bullion coins are made from gold, silver, or platinum. They are bought for their metal content, not for their numismatic value. Bullion coins come in various sizes and shapes, from 1-gram coins to large kilo coins – each weighing 1,000 grams. The purity of these coins can be .999 or even .9999%. Bullion is a popular investment object today.

Popular types of bullion coins include:

  • American Gold Eagle
  • Australian Kangaroo/Nugget Gold Coins
  • Austrian Vienna Philharmonic Gold
  • British Britannia Gold Coins
  • Canadian Maple Leaf Gold Coins
  • Chinese Panda Coins
  • Mexican Libertads
  • South African Krugerrand


Bars are a great way to invest in gold. They come in sizes from 1 gram to 400 ounces. The most popular are 1 oz, 10 oz and 100 oz. The weights are stamped on them, as well as their purity (.999 fine). Bigger 400 ounce bars have hallmarks of refiners. Producing 1 ounce bars is cheaper than other forms of gold, making it a good choice for investors who want physical gold without spending too much money.

For starters who want to invest small amounts, bars are affordable. If you want to invest more than $1,000, dealers now offer fractional sizes like 1/20th and 1/10th ounce coins. You can store bars in a safe deposit box or mail them via insured services like Registered Mail or FedEx.

Where to Buy Physical Gold

Investing in physical gold can be a smart move since the value of gold rises over time. It's essential to find a reputable dealer and learn about the market. You can buy physical gold from various sources, such as online dealers, coin stores, and gold brokers.

Let's check out the different places where you can get physical gold:

Online Retailers

Online retailers are a great choice for gold investors who want convenience and flexibility. Products come in many varieties, and prices may be better than physical stores. Research the company before investing to make sure they're reliable. Read reviews and ask questions. Also, know where your gold will be stored if something happens to the retailer.

Common online retailers include Bullion Vault, JM Bullion, and APMEX. Bullion Vault offers coins, bars, rounds, and more from many suppliers worldwide. Storage is vaulted in insured vaults all over the globe. JM Bullion offers precious metals from top suppliers, such as the US Mint. They have coins and rounds at various proofs. And APMEX is one of the biggest online retailers of gold coins, silver coins, and platinum coins. They have access to hard to find items such as gold philharmonics and lunar series coins.

Local Dealers

A local coin and bullion dealer is a great place to start when wanting to buy physical gold. Make a relationship with a helpful dealer. They offer many precious metals like coins, rounds, and nuggets. People can see the value of rare coins or paper money at these dealers.

Local dealers can sell both coins and bars. Decide the denomination or weight you want before shopping. Popular gold bullion are American Gold Eagles in

  • 1/10 oz.
  • 1/4 oz.
  • 1/2 oz.
  • 1 oz.

size denominations. The most common size bar is 1 troy ounce. But sizes as small as 1 gram and as large as 10 ounces and Kilo (32.15 ounces) are also available.

Extra costs may be added when buying from local dealers. They may charge extra for safekeeping and storage. Learn market values beforehand by researching current prices. Compare different prices offered locally for competitive rates that fit your budget.

How to Store Physical Gold

Add a hedge to a portfolio and protect wealth? Physical gold is the answer! Historically, gold has been a safe haven asset when economic uncertainty and political turmoil arise. Before investing, be sure to understand the best ways to store physical gold. For this, we'll inspect the safest and most secure storage solutions.

Home Storage

When you have physical gold at home, remember: if you don't have physical possession of it, then you don't own it. There are secure ways to store gold in home safes. But larger bars may require extra security.

Security and safety from natural disasters like fire and floods must be considered when storing gold at home. Coins and small bullion bars can be stored in a home safe.

Bank safes may offer protection from casual theft and other risks from natural disasters. But further security measures are better. Such as keeping items in locked closets or alarmed rooms.

The best storage solution for physical gold depends on individual circumstances and investment size. Here are some possible solutions:

  • Home safe
  • Secured closet/room
  • Private vault
  • Bank safe deposit box

Professional Storage

Professional Storage is a good idea if you are buying large amounts of gold. Companies that specialize in storing physical gold are accredited and trustworthy. Your gold will be stored with other investors' gold.

Custodial vaults offer two options: segregated and communal. Segregated is where you own specific bars and know the definite ownership. Communal is where your bars are mixed with others. Both options provide insurance and have greater security than storing gold yourself. Most investments in vaults are insured against theft or damage. Extra insurance for location risks is available. Charges include administrative storage fees and a commission when metal is removed or deposited. Be sure to read and agree to your vault provider's terms.

Tax Implications of Investing in Physical Gold

Investing in physical gold can be rewarding for those seeking non-traditional investments. It is vital to comprehend the taxes that accompany gold investments, like potential capital gains or losses. Here, we'll explore the tax implications of investing in physical gold.

Capital Gains Tax

When investing in physical gold, you may be liable for Capital Gains Tax (CGT). This depends on the size of your profit and what asset you have invested in. CGT is charged on the difference between the sale price and the acquisition cost. The exact amount of CGT you will pay depends on factors such as your tax-free allowance, rate of tax and when you made the purchase and sold it. Generally, CGT is payable on profits over £12,000. You can also spread any tax liabilities over a period of six years with Rollover Relief.

Different types of gold products must be considered. Coins are ‘chargeable assets', but bullions are not. If investing in gold bars or coins from outside of Europe, you may need to pay VAT (20%) before customs release them. You can then reclaim this amount against VAT registered purchases.

It's best to know which form of gold would suit your investment portfolio. Each jurisdiction has different tax rules and regulations for income from investments, so do your research!


Physical gold investing is a great way to diversify your portfolio and add stability. It has been valued for thousands of years. Before investing, know the basics.

  • Source gold from reliable dealers and store in a safe place.
  • Coins and bars are the two main forms.
  • Buying is only half the process. Rebalancing and selling are necessary for success.

But, physical gold carries risks. Returns may be far off, or never. Don't borrow to buy gold. Interest payments could be heavy if you need to sell sooner than expected. Do your own research and invest responsibly.

Frequently Asked Questions

Q: What is physical gold investment?

A: Physical gold investment is the process of purchasing and owning tangible gold in the form of coins, bars, or other forms of bullion.

Q: Why invest in physical gold?

A: Physical gold is considered a safe haven asset that can protect against inflation, economic instability, and currency fluctuations. It can also provide diversification in an investment portfolio.

Q: How do I buy physical gold?

A: Physical gold can be purchased from reputable dealers and brokers, online or in-person. It is important to conduct thorough research on the dealer and understand the various forms of gold available before making a purchase.

Q: What are the storage options for physical gold?

A: Physical gold can be stored at a home safe, a bank safety deposit box, or with a trusted storage provider. It is important to consider the security of the storage option and any associated fees.

Q: What are the risks associated with physical gold investment?

A: Physical gold investment carries the risk of theft, damage, or loss. It is important to insure the investment and take appropriate security measures to minimize these risks.

Q: Can physical gold be sold easily?

A: Physical gold can be sold to dealers, brokers or investors. The price may fluctuate based on market conditions and the form and quality of the gold.

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