When people are questioned on the ways in which they may invest in gold and silver, it would be easy to think jewellery, like rings and necklaces, would be one of the only ways to start. However, there is a wide range of gold and silver bullion options available, should you wish to invest in gold, with some starting from just £20.
Why buy gold?
- Throughout history, gold has held its worth
- Gold isn’t subject to VAT, unlike silver
- Prices start from as little as £20 if you choose The Royal Mint’s Signature Gold
- People have been investing in gold for hundreds of years
- Gold can easily be sold back into the market and has ‘universal value’ meaning it is an internationally recognised across the world.
- It can be used as part of a diverse investment portfolio and can help insulate you against risks in other areas
- Gold has been nicknamed the ‘crisis commodity’ because of its rise in popularity when confidence in governments is low. It’s traditionally seen as a store of value and a protection policy against catastrophe
- Because of their legal tender status, Sovereign, Britannia, Queen’s Beasts and Lunar Bullion coins are also exempt from UK capital gains tax for UK residents
Why buy silver?
- Silver is less expensive than gold and it is also more abundant
- Silver is used in a variety of industries, including electronics, automotive and high-performance batteries. This means the value of silver changes in a different way to gold and is often linked with how well other industries are performing.
- Some silver coins are also legal tender, for example the Silver Britannia, Queen’s Beasts and Lunar Bullion coins meaning they are exempt from UK capital gains tax for UK residents
Should you choose coins, bars, digital precious metals or a mix?
Gold and Silver coins
Apart from The Sovereign coin, The Royal Mint’s selection of coins is available in both gold and silver.
The Sovereign and Britannia Royal Mint Bullion coins are legal tender in the UK and while they are worth much more than their face value, they still have a link with the currency we use today. The Sovereign coin in particular also tends to offer better value for investors who choose to buy smaller quantities.
Royal Mint Refinery (RMR) Gold Bars
There’s a wide selection of sizes of RMR gold bars – ranging from 1g to 1kg – to suit every budget. Usually, the larger the bar purchased, the lower the premium on the gold contained in it. So if you’re looking for a low premium, many choose 1oz and above.
Signature Gold is The Royal Mint's digital gold offering that is backed by physical gold bars. The physical gold that is kept securely in The Vault™ is a great cost-effective option for purchasing gold based on monetary value instead of weight. It offers an opportunity for all budgets as Signature Gold can be purchased for as little as £20 and has guaranteed ‘buy-back’ from The Royal Mint. You also don’t have the risks associated with storage, as you do with coins and bars.
How can you store your gold and silver?
At your home
With the exception of Signature Gold, The Royal Mint delivers all silver and gold bullion free of charge within the UK.
This means if you prefer to be in control of your investment, you can have the items delivered to your registered address. However, it is really important to consider the security of your purchase. We recommend keeping it in an enclosed safe with the appropriate climate and environment. It is also necessary to check your insurance covers your bullion portfolio as not all do.
At The Vault™
The Royal Mint’s storage facility, The Vault™, is guarded by trained security staff 24 hours a day, 7 days a week, 365 days a year – so you can rest easy in the knowledge that your purchases are in the safest possible hands. Climate controlled and efficiently stored, your physical bullion can also be liquidated at your request at any time easily from within your account area.