Gold is having a moment.
Since Trump’s election, the price has jumped over 20%, and it’s up 95% in the past five years. In April this year, it hit an all-time high of $3,200 per ounce.
Crypto crashes, skyrocketing inflation and crazy global macroeconomics…when the only thing consistent is uncertainty, the old faithful gold re-emerges as the safe haven in a storm.
While gold ETFs, digital gold, and gold mining stocks are still popular options, more people are gravitating toward physical gold as it’s tangible, trustworthy and surprisingly accessible.
In 2024, global demand for gold jewellery dropped by 13%, but purchases of gold bars and coins rose by 3%, hitting 325 tonnes.
As US gold trader Becky Algozhoeva at GT Findings put it: “Regular people are thinking gold is the key. They don’t even believe in banks any more because the economics are shaky, and they don’t even want to invest in institutions. They want to have it under their pillow. And gold doesn’t go bad. It’s not milk, right?”
Hard to argue with that.
So if you’re a first-timer, a cautious saver or just someone who likes the idea of holding actual value in your palm, this guide is for you.
Forms of physical gold
Physical gold comes in three main forms:
- Coins: Sovereigns, Krugerrands or Britannias. Coins are collectible, recognisable and easy to sell.
- Bars: These range from a few grams to a kilo and are ideal if you’re looking to invest a larger sum.
- Jewellery: Is much more complex when it comes to investment.
It’s worth understanding gold hallmarks (official stamps which show purity and origin) and carat ratings before you dip your toe into the world of physical gold (see our recent blog post for more information on this.)
The benefits of physical gold
It’s tangible: A lot of people’s money exists in the digital space, such as on their banking app or investment dashboard. But owning physical gold is different. Although you can hold it, you must store it carefully and be responsible for its security. In addition to this, it’s one of the most liquid assets that you could have, meaning that if you need to release money from it quickly, you can usually find a willing buyer.
It’s a safe-haven asset: When inflation creeps up or currencies take a hit, historically, gold remains steady. Central banks still rely on it as it’s one of the few assets which keep its value when everything else is losing it.
Its value is universally recognised: Everybody knows what gold is, and how much it’s worth. You don’t need to explain it, translate it or convert it into a dozen different formats.
Beginner mistakes to avoid when buying physical gold
- Not checking the hallmark
The hallmark is proof that the gold is real, it confirms how pure it is and that it’s been properly authenticated. If your gold doesn’t have one you risk paying full price for something that isn’t what it claims to be. - Forgetting about storage and insurance
A lot of first-time buyers focus so much on buying the gold, they forget to think about where they’ll keep it. Letting it lie around in a drawer or keeping it under the mattress isn’t a wise option. We highly recommend you have a plan before you buy – think vaults, security, insurance… read on for more on this. - Confusing scrap value and resale value
This one can catch out a lot of people. Jewellery and bullion aren’t the same. People buy gold jewellery thinking it will hold its value like a gold bar. But what they don’t realise is they’ve paid a big premium – often 30% more – because of the design, branding and shop markup. When they try to sell it later, they only get paid for the gold itself, not the extras.
How to buy physical gold
Buying gold isn’t rocket science, but there are a few things worth knowing before you dive in headfirst. First up: buy from trusted sources – that means sticking with well-known, reputable dealers, or using comparison sites to check prices and reviews. We’ve been in the business of buying and selling gold for 30 years so we’ve seen a lot of bad businesses come and go. Make sure you do your research.
Here’s 10 questions we recommend you ask before you buy physical gold:
1. Is this dealer reputable and accredited?
Look for memberships with bodies like the LBMA (London Bullion Market Association) or national trade associations. Check reviews, history, and how long they’ve been in business.2. What’s the price per gram or per ounce?
This helps you compare fairly between dealers and understand how close the price is to the market (or “spot”) price.3. What premium am I paying above the spot price?
All dealers add a markup but some mark up far more than others. Know what you’re paying on top of the raw gold value.4. Is this gold investment-grade (i.e. 22k or 24k)?
If you’re buying to invest, you want pure gold, usually 99.99% (24 carat) in the form of bars or bullion coins.5. Is the gold hallmarked or certified?
Hallmarks prove authenticity and purity. Avoid any gold that lacks proper markings or certification.6. Will you buy it back from me, and at what rate?
Good dealers offer a buyback service. Ask how much they’d pay if you sold it back today.7. How is the gold stored or delivered?
Are you taking it home? Using a vault? Make sure delivery is insured and secure, and that any storage options are transparent and fully regulated.8. Are there any hidden fees (storage, delivery, insurance)?
Always check for extra costs that may not be obvious upfront.9. Can I physically inspect the gold before or after purchase?
If you’re buying in person, this should be standard. If buying online, look for photos and ask about inspection policies.10. Is this a high-pressure sale?
Any sense of urgency (“prices are going up today!”) should be a red flag. Legitimate dealers don’t push hard sells.
Storing gold
Investors have several secure options depending on their preference for accessibility, privacy and cost.
Professional vaulting service: A popular and hassle-free way to store physical gold is through a professional vaulting service. This means your gold is kept safe in a high-security facility – think thick vault doors, 24/7 surveillance and top-tier insurance. This service is offered by reputable companies like the Royal Mint, Loomis and Brinks.
Most of them offer what’s called ‘allocated storage’ which means your gold is held in your name, not mixed in with anyone else’s.
Home deposit box
If you’d rather keep your gold close to home, storing it yourself is an option. However, it comes with a few important things to think about.
First off, you’ll need a proper safe, something which is sturdy, fireproof and ideally bolted down. Secondly, insurance; usually home insurance policies don’t cover high-value items like gold, so you will need to take out a policy which does. Bear in mind insurers may ask for extra security measures or charge a higher premium.
The benefits of storing your gold at home include having full control and instant access. The downside is you take on all the risk if something goes wrong.
Bank deposit box
A bank safety deposit can be a good middle ground between professional storage and keeping it at home as it’s secure, off-site and out of the way.
Unfortunately not all banks offer them anymore and availability can be limited especially in smaller towns. You’ll also need to factor in the annual rental cost and make sure the contents are properly insured, as banks don’t usually cover that part.
We’ll go into more detail about how to store gold in a future blog post, stay tuned!
How to sell physical gold
When it’s time to sell your gold, you want to get the best possible return. One of the easiest routes is going back to the dealer you bought it from.
Another option is selling privately either through online platforms or directly to other investors. You might get a better price this way, especially for rare coins or collectibles, but it also comes with more risk. You’ll need to handle the legwork yourself and be extra careful about scams or time wasters.
Then there’s the auction route, which can work well for unique or high-value items. Auction houses often have specialist gold or coin sales, and while they’ll take a cut in fees, if you have a specialist piece it might spark a bidding war, and you could get more than you bargained for.
If you’re looking to sell your physical gold we offer a service where it can all be done by clicking a few buttons from the comfort of your own home. We can collect your gold fully insured straight from your doorstep, and we’re highly rated on TrustPilot. Start your gold selling journey here.
