How to Buy Gold and Silver UK?

How to invest in gold and silver in the UK

Turning to gold and silver has been a tried and tested vehicle for investors in the precious metals’ category. While gold has remained a popular and preferred asset class for most investors, silver has steadily risen in popularity in recent years. Most investors prefer to hold these precious metals in its physical form. So, let’s explore how to buy gold and silver UK-wide.

Knowing your objectives is the first step

Both precious metals are available as bars and coins. Investors choose different forms of investment, depending on their investment horizon, their expectation of profits and their overall investment objectives.

The divisibility factor

Divisibility is an essential factor when it comes to investing in precious metals. The logic behind this is quite simple. Assuming that the price point is right, and it meets your objectives, you will want to make a sale. Owning a large bar of gold and silver will provide you that one chance and the sale is over. However, only several gold and silver coins of different dimensions give you multiple opportunities to cash in at different price points in the market.

How to Buy Gold and Silver UK?
Gold and silver coins are popular investments in precious metals

A question of balance

Divisibility and liquidity are, of course, important aspects of your portfolio. But, we need to think ahead. Spreading your investments between gold and silver can provide much-needed balance to your portfolio. The current gold-silver ratio is 87:1, which simply means that silver is 87 times cheaper than gold. Therefore, you can buy large amounts of silver and wait for the price to rise in the future, providing your portfolio with balance and meeting your long-term investment objectives.


Connecting with a reliable broker

Any investor who is serious about buying gold and silver needs to get connected with a reliable broker. But who is a reliable broker and how can you find one? An online broker usually has a far greater variety of bars and coins for sale. But, it’s important to ascertain that the business is legitimate and has a transparent and reliable track record. You can check if the broker is registered with an industry body like the BNTA or LBMA. Also, find out if they offer a guaranteed buyback scheme and check their reputation online. Once you have identified the broker of your choice, the next obvious step would be to discuss your investment objectives with them and draw up a plan.

Gold and silver can be sourced through online precious metals dealers, at auction or from areas specialising in precious metals. Hatton Garden in London features dozens of shops sells gold and silver bars and coins. However, the choice of coins may be limited. The Jewellery Quarter in Birmingham offers similar services.

Purchase your gold and silver by keeping to fundamentals

Once you’ve decided to put your money in the market, it’s important not to get swayed by irrelevant offers. You should always evaluate your purchases by calculating how it can contribute to the balance, liquidity and divisibility of your portfolio. Don’t ignore tax considerations, as this will ultimately impact your profits. Remember, if you’re seeking to buy gold and silver as an investment, then it’s best to stick to well-known UK coins. These have the advantage of being Capital Gains Tax free, but also offer flexibility to sell small parts of your holding.

Download the 7 step cheat sheet to buying tax free gold and silver here

Ensure you get good discounts from your broker and keep to buying gold and silver coins and bars with low premiums. If you’re investing in a coin, make sure that it has a strong secondary market.  The Britannia and the Sovereign could be your top choices. If you are interested in buying numismatic coins, avoid buying obscure ones and ensure that there is scope to make profits in the long run.

Call Physical Gold today to plan your gold and silver purchases

We have a team of investment experts who can guide you on the right way to buy gold and silver in its physical form. Call us on (020) 7060 9992 or reach out to our team online, and we will get back to you ASAP.


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