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Invest in Gold in the UK: Gold Bullion Price and Krugerrand Value

Are you thinking about starting investing and wondering what you should invest in? What about gold? Is it a realistic idea to invest in gold UK funds? If it is, how is it best to go about it?

The answers to these questions and many more, including what role gold can play in your investment portfolio, what the best Gold ETF is, and the pros and cons of buying bullion UK are revealed right here. All you have to do is read on.

Invest in Gold in the UK: Gold Bullion Price and Krugerrand Value: Summary Table

🤓 What does ETF stand for?Exchange-Traded Fund
❓ What is a gold ETF?A gold ETF is a fund that only consists of one asset, which is gold
💸 Can I buy gold in the UK?You sure can, as it is not against any law
🏆 What is the best way to invest in gold now?A gold ETF or ISA is the best solution right now

The Beginner’s Guide to Investing in Gold

It used to be that oil and gold ETFs were the go-to investments for many UK investors. Although buying gold and silver UK funds is still a popular choice, oil is becoming much more of a taboo investment. It is due to the damage that mining oil is doing to the environment, the fact that it is unsustainable, and the enormous mountains of plastic scrap that exist across the planet in the oceans.

While gold mining is still not environmentally friendly, the product itself does much less damage. It’s also worth knowing that the gold the UK Royal Mint produces complies with LMBA’s (London Bullion Market Authority’s) responsible gold sourcing policy – an excellent sustainable gold policy in relation to ethical trading and responsible sourcing.

If you want to invest in gold UK funds, there are many ways of doing so. They include:

  • Buy gold bullion UK
  • Buying Krugerrands
  • Gold ETFs UK
  • Gold bonds UK
  • Buy gold shares UK

Buying gold as an investment in the UK has been with us for almost as long as the precious metal itself.

The Appeal of Bullion Coins

Bullion coins are made from silver, as well as gold (some coins are also made from platinum and palladium). Like gold coins, where the gold bullion market dictates the price, the cost of silver coins is determined by the silver bullion price UK market.

Beginners who want to invest in gold often turn to the Krugerrand. It emanates from South Africa, and the first coin was minted on 3 July 1967. Since then, the value has steadily increased, as seen from the Krugerrand value by year UK chart.

The gold Krugerrand price today to buy UK 1 oz coins for your collection, has risen from £1.38 each when first minted, to over £1,560 each in 2022 (at today’s exchange rate). Purchasing Krugerrands is seen as the easiest delivery option for buying gold online for UK newbie investors.

The Krugerrand is probably the best known to bullion UK coin collectors, but many countries have their own gold coins. The USA has its American Eagle series, and Canada has its Maple Leaf series.

Here in the UK, we have Britannia, the Queen’s Beasts, and the Sovereign, all made by the Royal Mint with safe havens storage available via their safety deposit boxes. You can also buy gold bullion London from them.

The Many Uses of Gold

The precious metal price of gold fluctuates more than many people imagine. You only have to take a peek at the chart on the Bullionvault to see what we mean. Over the past month alone, gold prices have varied from a high of $1932.69 per oz to a low of $1,793.16 per oz.

So, whatever it is used for, the price for buying and selling gold varies widely. The most common uses for gold include:

  • Making financial exchanges
  • invest in gold to sustain and grow wealth
  • Jewellery
  • Electronics
  • Medal and dental
  • Space exploration

This blog will concentrate on its use in making financial decisions concerning investing. So we are talking about the gold bullion price for UK investors, buying gold in London and having it stored in a vault at the London Bullion Market Association, buying into gold ETF UK funds, and selling gold bullion in the UK.

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What is the Best Way to Invest in Gold in the UK?

For most people, buying gold bullion in the UK is not a preferred option. This is because gold and silver are heavy, expensive to ship and demand tight security to store. But suppose you do want to buy physical gold in the UK. In that case, you will need to approach a gold bullion company UK whose registered office is registered in England and Wales and who is approved and regulated through the Financial Conduct Authority.

You’ll find a useful list of bullion dealers you can compare on the Coincompare website.

The investment decision most people make – the best way to invest in gold for the majority of UK investors, is to invest in Gold UK ETFs (Exchange Traded Funds – ETFs) or gold Bonds UK funds.

Gold is an expensive commodity, so the deeper your wallet is, the better. If you’re wondering how to invest £10,000,  gold is a good option, as is a golf EFT ISA in particular.

Should You Invest in Allocated or Unallocated Gold?

The cheapest gold bullion UK prices are to be found in unallocated gold. It’s because the gold still belongs to the bank. You are actually a creditor of the bank, and your investment is underwritten by the bank’s physical gold reserves.

With allocated gold, you immediately become the outright owner.

Does Investing in Gold Attract VAT?

If you buy gold coins and you are not VAT registered, you have to pay VAT. But it is exempt if you buy gold bullion London for investment purposes. Silver, however, is not.

The Advantages and Disadvantages of Gold Investments

If you invest in gold investment products like Gold ETFs and Bonds and treat it as a long-term investment strategy, it’s pretty much all pros – there are few, if any cons. However, with physical gold investing, it’s a different story because the gold stock price in the UK is wholly reliant on bullion prices in the UK. As we indicated above, the spot price varies.

Pros of Investing in Physical GoldCons of Investing in Physical Gold
Use as a hedge against inflationSafe storage problems
Use as a hedge against a disasterIt’s not a passive income asset
Affords stability and security of valueSubject to premiums and taxes
Investment portfolio diversificationSubject to swings in supply and demand
SimplicityPoor historical returns

Depending on your investment profile, investing in gold may or may not suit your saving style or appetite for risk. Having said that, a Gold ETF Stocks and Shares ISA is not really any riskier than an ordinary Investment ISA.

Many newbie investors like to tread carefully in the beginning, and you might well find that a general investment account is the best way to get started.


The disadvantage of investing in gold ETFs?

Gold ETF investments can only be redeemed in cash and not in gold.

How is gold taxed in the UK?

Gold coins produced from the Royal Mint are considered legal tender, so it is free of Capital Gains Tax. There is no VAT or Income Tax on gold bullion or gold coins. Gold ETFs held in an ISA or SIPP are tax-free.

Is a gold ETF a good investment?

A gold ETF is a good investment if you are not interested in owning physical gold. It is also great for hedging against inflation, portfolio diversification, price stability, and tax reliefs.


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