How to buy gold: Royal Mint launches online gold bullion trading service

4 min Read Published: 23 Sep 2014

How to buy gold from the Royal Mint

How to buy gold bullion - Royal Mint launches online gold bullion trading serviceThe Royal Mint has launched a new bullion trading website which allows customers to buy gold bullion, sell and store bullion coins direct with the Royal Mint.

What is gold bullion?

Gold bullion coins are a monetary asset which is what distinguishes them from gold jewellery. Whilst gold bullion coins are a very attractive asset in their own right, the real value comes from the fact that they are made from pure gold, one of the most sought after precious metals.

Gold as a currency

Gold bullion coins are essentially currency and whilst they may not have been issued by a central bank or national treasury they are a form of money nevertheless. For instance, the International Monetary Fund, Bank of England and US Treasury hold gold bullion reserves totalling in the billions of pounds.

Why should I consider buying gold?

Rightly or wrongly, gold is traditionally seen as a safe haven in times of crisis, or economic recession, when other asset types are seen as too risky. So in times of crisis gold values can rise and in times of stability gold values tend to fall. Investing in gold, therefore, is seen as a hedge investment against the vagaries of other assets classes.

How to buy gold - physical or not?

There are two main ways of investing in gold, you can either buy the physical product or invest in equites, ETFs, funds or investment trusts. These will either invest directly in gold or invest in companies related to the gold mining industry with the asset price tracking, loosely, the value of gold itself. But, if you want your investment to have a direct relationship to the value of gold then buying gold bullion is a way of achieving this aim.

Why gold bullion coins?

You can purchase gold either as gold bars or as gold bullion coins. The choice is usually dictated by the amount you wish to invest. Gold bars would probably be the best choice for the larger investment whereas gold bullion coins are more suitable for those making a more modest investment.

How can I purchase gold bullion coins from the Royal Mint

How to buy gold bullion coins:

  • You can open a Royal Mint Bullion account in about 10 minutes
  • Once your account is open you can then add funds and purchase bullion immediately
  • All bullion is purchased in realtime prices and can either be delivered to the buyer or stored in the Royal Mint
  • If bullion is stored in the Royal Mint there is a guaranteed buy-back service at competitive market prices.

What is the tax situation if I invest in gold bullion?

Value Added Tax (VAT)

The Sovereign, gold Britannia and gold Lunar Bullion coins are free of VAT for all non VAT registered individuals. Silver coins are still subject to VAT (currently at 20%).

Capital Gains Tax

The Sovereign, Silver and Gold Britannia and Royal Mint Lunar Bullion coins are free of UK CGT for all UK residents due to being legal tender.