Help and Advice

Gold Investment Guide

Gold's value has persisted throughout history, and the precious metal has been used as currency since ancient times. Its significance stretches back to 4000 BC, symbolising power and wealth. Gold’s rarity and versatility sets it apart from other metals; from jewellery and currency to technology, it plays a vital role with many uses in today’s world.

Gold is often used by many to preserve and safeguard wealth amid countless investment options, in the form of gold bullion coins and bars. Before buying physical gold, it is important to explore which options best suit your personal goals and circumstances.

What are the origins of the term “Bullion”?

The word "bullion" is of French origin and means “boiling”, a reference to the practice of melting the raw gold to create ingots and bars. This practice would occur in melting houses and the term has remained the umbrella term for gold coins and bars ever since.

Popular types of gold bullion:

Gold Coins

The most popular and recognised British gold bullion coins are The Britannia and Sovereign. Due to these coins being legal tender in the UK, they are exempt from Capital Gains Tax (CGT), meaning UK investors have the freedom to invest in as many of these coins as they require, without paying tax on any profit they make when it comes to selling them.

Other popular gold bullion coins from across the globe include the USA Gold Eagle, Canadian Maple Leaf, and South African Krugerrand.

Gold Bars

The selection of gold bars available today is extensive, ranging from 1 gram right up to 1 kilo in weight. A gold bar is exactly that, a bar of gold, manufactured by various Mints from across the world to a pre-determined weight and quality standard.

Gold bullion purity

The purity of gold bullion (or ‘fineness’) is measured in parts per thousand. For example, many gold coins have a fineness of 999.0 meaning it contains 999 parts gold and 1 part of another metal. As 100% pure gold is virtually impossible to achieve, the purest type of gold available is 999.99, and any coin or bar containing 999.0 or above is considered ‘fine gold’.

Some coins, most notably the ever-popular sovereign, are struck in 22ct gold, or 916.7 fineness. This means the coin contains 916.7 parts gold and 83.3 parts of another metal or combination of metals, such as copper. The use of copper makes the coin more hard-wearing but of course, less valuable because of its reduced purity.

Why do people choose to invest in gold?

A core reason why many choose to invest in gold bullion is to protect their wealth against economic fluctuations. The value of assets like property and shares are heavily influenced by the global economies so they can lose vast amounts of value very quickly, should an economy crash. Gold, on the other hand, will often appreciate in value in times of economic slumps as it is seen as a more stable and reliable form of investment for protecting wealth in the long term.

However, it’s also worth noting that, due to the variety of designs of new coins being bought out each year, gold bullion coins can also be a popular choice as a collector’s item.

Is buying gold a good investment?

There can be many benefits to buying gold, especially in times of economic uncertainty, instability, and when there is low confidence in the banking system.

Historically, gold has performed well through wars, economic turmoil, and turbulent political times. Many individuals choose to own physical gold bars and gold coins in order to provide ultimate control over their own wealth and to offer a timeless safeguard against financial crisis.

How do you invest in gold?

Individuals can buy physical gold in the form of bullion coins or bars which are available in a range of different sizes and designs. In today’s digital age, these products are easy to acquire from established bullion dealers online, such as Atkinsons Bullion, either in single quantities or bundles of multiple coins or bars.

Whether to choose gold bars or gold coins should take some consideration before making a decision on which to buy.

When buying gold coins, clients can choose from a variety of weights such as 1oz, 1/10oz, 1/4oz, and 1/2oz. Best-selling gold coins include the British Gold Sovereign and Gold Britannia - these are popular with UK investors due to their exemption from Capital Gains Tax. Gold coins offer flexibility and are easy to store due to their smaller size. They are available in a huge variety of designs from mints across the world, offering diverse options for collectors and investors alike.

Gold bars, especially the heavier bars such as 1kg and 500g, can often offer excellent value due to their larger unit size and lower manufacturing costs compared to coins. For those planning on keeping their gold for a long time with no plans to sell in the near future, then the larger gold bars could be ideal. Smaller gold bars such as 1g, 20g, and 1oz can also offer ease of storage, flexibility, and entry into the gold market at a lower price point.

Should I buy pre-owned or new gold bullion?

If you are looking to get the most physical gold for your money, buying pre-owned can often be a great option. New products attract costs such as manufacturer’s premiums, yet pre-owned coins and bars are often sold at a lower price, helping the investor save money.

How is the price of gold determined?

The most important factor to consider when buying gold is the spot price. The spot price, sometimes referred to as the ‘live price’ is the current market value of gold and is constantly fluctuating, so it is important to find the most up-to-date price possible. The spot price is set electronically, dependent on current supply and demand, and can change significantly during times of political or economic uncertainty.

It is nearly impossible to buy a gold coin or bar at the spot price as manufacturers and dealers will always need to charge a premium. This is the percentage charged for the product over the spot price of the metal contained within. The premium varies depending on the product and is usually dependent on the costs associated with the acquiring and manufacturing of the coin or bar. The bullion dealer must also make a profit.

Take a look at our gold price live chart to keep up-to-date with the live gold price in order to make informed decisions on buying gold bullion.

When is the best time to buy gold?

The best time to buy gold is down to personal choice. Many people choose to buy gold whenever they can, whenever they have the money, in small regular quantities. Others choose to keep a close eye on the gold spot price and decide to buy when the price is at the right point for them. It is all about choosing to buy gold at whatever time it feels right.

Selling gold

It is an excellent idea to buy with a bullion dealer that also has a transparent market for buying back gold coins and bars at a favourable rate.
As well as having a large selection of gold coins and bars for sale, Atkinsons Bullion & Coins also buy these items. Prices do vary depending on the item. See our ‘Sell to Us’ page for more details.

How to buy gold bullion

When it comes to buying gold bullion, it is essential to do your research. World affairs and stock market activity often results in fluctuating gold prices, so it is important to take this into consideration when purchasing. If you are buying bullion online, take your time and don’t forget to dive a little deeper when it comes to the bullion dealers. One great way of doing this is to visit, independent third party review sites such as Trustpilot, Google reviews, or Feefo, and read first-hand what their customers think of them.

During the course of your research, our experts are on hand to answer any questions you may have, so feel free to give them a call on 0121 355 0620 or email them at info@atkinsonsbullion.com.