Buying bullion is an exciting prospect, but if you’re new to precious metals, you might not be aware of all the options that are available. Today, buying gold online is the most common way to invest. However, how you interact with it depends on whether you decide to take physical ownership of your bullion in the form of either a bar or coin or digital ownership via a precious metals programme.
This article will explain the benefits of each option (coins, bars & digital) should you decide to invest in bullion with The Royal Mint. Once you are clear on the differences between each offering, you should be in a position to choose the right option for you.
What are the benefits of buying gold bullion coins?
Gold bullion coins offer an excellent entry point to gold investment, and many investors grow their holding with coins slowly over time. Below are some of the key benefits of buying gold coins:
- All The Royal Mint’s gold coins are VAT free.
- Due to their legal tender status, bullion coins are exempt from UK capital gains tax for UK residents.
- Bullion coin sizes range from as little as 1/10 oz. to 10 oz and offer options for different budgets, as well as easier storage.
- Coins are commonly more suitable for those making a modest outlay.
- An array of iconic designs to choose from including The Royal Mint’s Sovereign & Britannia flagship ranges.
- Offers an opportunity to collect or gift numismatic coins at a reduced price to their proof alternatives.
- Their size makes it easier to buy and sell in comparison to larger bars.
- The majority of The Royal Mint’s bullion coins are available in gold, silver and platinum.
- A physical asset you can actually hold in your hands.
- Coins can be sold back to The Royal Mint through the buy back scheme.
- You have the option to protect your coins through The Royal Mint’s state of the art storage facility The Vault®.
What are the benefits of buying gold bars?
Bullion bars are typically used to diversify an investment portfolio as a long-term store for wealth. The main benefits of investing in gold bars are:
- All of The Royal Mint’s gold bars are VAT free.
- Sizes start from 1g right up to 400oz with options to suit every budget.
- Bars can be sold back to The Royal Mint through the buy back scheme.
- Bars offer a straightforward means of acquiring larger quantities.
- It is usually the case that the larger the bar, the lower the premium over the value of the metal contained within it.
- There’s a wide selection of bar designs available at The Royal Mint.
- Premium bars offer an opportunity to collect or gift precious metals.
- The majority of The Royal Mint’s bullion bars are available in gold, silver and platinum.
- A physical asset you can actually hold in your hands.
- You have the option to protect your bars through The Royal Mint’s state of the art storage facility The Vault®.
What are the benefits of buying digital gold?
Digital Gold is the modern way to invest in precious metals, and it allows anyone to buy and sell gold at any time. The key benefits of buying digital gold are:
- DigiGold is VAT-free for non-VAT registered individuals.
- You can invest in precious metals from as little as £25, as you are buying a percentage of a bullion bar.
- For a cost-effective option, our DigiGold service (unlike coins & bars) allows you to purchase physical gold, silver or platinum based on monetary value instead of weight.
- Straightforward and transparent pricing.
- DigiGold comes in the form of large bars, without the need to cut or shape them into smaller quantities, so there are economies of scale that are passed on to you. The prices are worked out to the nearest 0.001oz, so you’ll know you’re getting the latest rates when you buy or sell your bullion.
- You own your DigiGold and have full legal title over it, so there’s no third-party risk involved.
- The Royal Mint is custodian of the bullion and it is automatically stored in The Vault®. It’s reconciled and accounted for daily, and is guarded by trained security staff 24 hours a day.
- It makes buying and selling bullion effortless - just open an account, transfer in funds and you can use your balance to buy DigiGold in whatever quantity you choose – 24 hours a day, 7 days a week, 365 days a year.
- The Royal Mint offers a guaranteed buy back option through DigiGold, so you also don’t have the risks associated with storage, as you could with physical coin and bar purchases.
- You can take physical ownership of your precious metals at any time
Coins vs. Bars vs. Digital
| Coins | Bars | Digital | |
|---|---|---|---|
| Available at a wide range of price options from £25 | N | N | Y |
| Gold is owned by you, not owed to you | Y | Y | Y |
| VAT Free | Y (Gold) | Y (Gold) | Y (Gold) |
| Capital Gains Tax Free | Y | N | N |
| Option to store at The Vault® | Y | Y | Y |
| Option to sell back to The Royal Mint | Y | Y | Y |
| Option to select your choice of design | Y | Y | N |
| Available in gold, silver and platinum | Y | Y | Y |
What is the best way to invest in gold in the UK?
As we have seen, each of the various gold investment options offer their own set of pros and cons. Which one is best depends on a number of factors including individual investment goals, circumstances and budget.
If you are looking for the simple option for regular investments and maximum fluidity, Digital Gold investment is a great option for you. If you’d prefer the tangible quality of physical, but have budget considerations, gold bullion coins offer a cost-effective entry to the bullion market through lower cost fractional weights. For those in a position to make a more significant investment, gold bars may offer the offer the store of wealth you are looking for.
Whichever investment option is right for you, The Royal Mint can help you find the best value products, storage, and sales to make the most out of your investment.
