The gold and silver guide
Buying gold or silver in the UK raises the same questions every time: which metal, which form, what tax applies, where to keep it, and what it will fetch when you sell. These are our guides to each, in the order most people need them.
The essentials
Six things worth knowing before you buy
- Gold and silver are priced from the spot price. Dealers sell above it and buy below it, and the gap between the two is the spread.
- Small pieces cost more per gram than large ones, because making, testing and packing a piece costs much the same whatever it weighs.
- Investment gold is exempt from VAT in the UK. Silver is not investment gold, so VAT is generally charged on silver bullion.
- Sterling coins, including Sovereigns minted from 1837 and Britannias, are exempt from Capital Gains Tax. Bars and non-sterling coins are not.
- Recognised products sell most easily: a Britannia or a Sovereign, or a bar from a known refiner with its paperwork intact.
- Never clean coins or bars before selling. Cleaning can cost real money; ordinary toning and milk spots usually cost nothing on bullion.
Step 1
Choosing what to buy
Metal, format and coin, and how each choice plays out on tax and resale.
- 01Gold vs SilverWhat each metal is for, why silver swings harder, and how much space it takes.
- 02Physical Gold vs Gold ETFsWhat you actually own in each, and how a one-off premium compares with an annual charge.
- 03Gold Investment in the UKVAT and Capital Gains Tax: two different tests, and what each one covers.
- 04Buying Gold Bars in the UKWhat the stamps mean, how cost per gram changes with size, and when a coin wins.
- 05Gold Britannia vs Gold SovereignA full ounce of modern bullion against a 7.32 g piece of British coinage.
- 06Commemorative Coins as GiftsWhat to look for before buying a coin for someone else.
Step 2
Tax in brief
Two taxes ask two different questions. VAT asks whether something is investment gold; Capital Gains Tax asks whether it is sterling currency.
- VATInvestment gold is VAT-exemptHMRC treats as investment gold: bars and wafers of at least 995 thousandths in a weight accepted by the bullion markets, and gold coins minted after 1800 that are at least 900 thousandths fine, are or have been legal tender in their country of origin, and normally sell for no more than 180% of the value of their gold.
- VATSilver carries VATThe investment-gold exemption does not cover silver, so VAT is generally charged on silver bullion bought in the UK. That is one reason silver’s premium looks larger than gold’s.
- CGTSterling coins are CGT-exemptHMRC exempts sterling currency, which covers Sovereigns minted from 1837 and Britannias. Coins that are currency but not sterling, such as Krugerrands, are chargeable, as are bars.
- CGTAllowances changeGains on chargeable gold and silver may be taxable above your annual exempt amount. The amount and the rates are set each year, so check GOV.UK for the current figures.
Sources: HMRC VAT Notice 701/21: gold, HMRC Capital Gains Manual CG78305: foreign currency, and GOV.UK Capital Gains Tax allowances. Our gold investment guide works through both taxes in detail.
Step 3
Storing it
Home safe or vault, what insurance does and does not cover, and how metal gets there.
- 01Gold Storage at Home vs VaultingSecurity, insurance, access and cost, and the holding size at which the answer changes.
- 02Vault Storage in the UK: What It CostsWhere the real cost sits, what insurance covers and how to get your metal back.
- 03Transporting Gold to a VaultWhy home cover stops at the door, and the route that skips the journey.
- 04How Yard Mint Vaulting WorksInsured UK and USA storage with an online dashboard and delivery on request.
Step 4
Valuing and selling
What your metal is worth, what a dealer will pay, and how to avoid the mistakes that cost sellers money.
- 01What Is My Gold Worth?Weight, purity and the day’s price, with the Sovereign arithmetic worked through.
- 02Selling Gold and Silver: What Dealers PayWhy an offer sits below spot, and the coins HMRC treats as currency.
- 03Selling Gold Coins: Sovereigns and BritanniasThe checks a dealer runs, which coin to sell first, and why you must not clean them.
- 04Selling Silver: Britannias, Eagles and BarsWhy milk spots rarely cost you money, and the one difference between a Britannia and an Eagle.
Selling?
We buy Sovereigns, Britannias, Silver Eagles and Goldbacks
We buy gold and silver coins and bars, and Goldbacks. Tell us what you have and we will quote; please do not clean anything first. We do not buy jewellery or scrap.
Background
More guides
Context that helps the rest make sense.
- What Is Sound Money?Why gold keeps being the reference point when people talk about money.
- British Coin GradingFDC, UNC, EF and the rest: the British grading terms explained.
- What Are Silverbacks?Silver notes holding a thousandth of an ounce, and who should skip them.
- The Goldback GuideEvery Goldback guide we have written, in reading order.
Shop and services
Shop and services
Buy, store or sell with us.
- Shop goldCoins, bars and notes in gold.
- Shop silverCoins and notes in silver.
- Gold coinsGold bullion and collector coins.
- Silver coinsSilver bullion and collector coins.
- Vault storageInsured storage with an online dashboard.
- Sell to usQuotes for coins, bars and Goldbacks.
- GlossarySpot, spread, fineness and the rest, in plain English.
- FAQsOrdering, delivery, vaulting and selling.
General information based on HMRC guidance, not tax or financial advice. Tax rules, allowances and rates change, and your position depends on your circumstances. Check GOV.UK or speak to a qualified adviser before acting. The value of gold and silver can go down as well as up.