Page 45 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
We obviously don’t know what the situation would be, but I’d have thought having several coins could be more useful than one bar. That’s why it’s important to remember why you’re buying it in the first place.
Buying Gold Coins
Before I kick off, let me be crystal clear about something – I’m not a doomsayer.
But right now—and remember, investing is all about timing—I think there is less risk in holding gold than not. Perhaps think of it as a store of value (and a form of insurance) rather than an investment.
Here are a few other things to think about if you decide to go down to coin route.
What to buy?
If you’re in the UK, I’d suggest having at least some gold in lower denomination coins, such as Gold Britannia’s, Gold Sovereigns, or Half Sovereigns. We’ll talk about where to get these later.
VAT
Although at the time of writing this gold coins in the UK don’t currently attract VAT, silver coins do (currently 20%). So, any silver you buy costs at least 20% more than the spot price (the price you will be quoted by a dealer). You need to discuss any tax issues with an appropriate adviser.
Premiums
As well as the VAT, the premium is relevant when buying gold. At the moment (April 2023), not only do you not have to pay VAT, but the premium over the spot rate should be reasonably low.
It’s also worth bearing in mind that, at the time of writing (April 2023), you may be able to buy UK gold coins that do not attract Capital Gains Tax. But you must speak with your financial adviser about this, as it may no longer be the case.
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