A beginners' guide to Gold
Please note - ATS Bullion are not financial advisors and as such cannot provide financial or investment advice. What we can do is recommend the best product for you to buy after taking into account the amount you wish to invest.
There are many different gold products available on the market and no one product is universally best for everyone. The options will appeal to different people depending on a number of factors including cost, flexibility, ease of sale and geographic location. Below is a list of our best sellers as well as the reasons they are popular.
The 1oz South African Krugerrand is without a doubt our most popular product for private customers investing in gold. First made in 1967, the Krugerrand has been made in huge numbers ever since. As a result, the Krugerrand usually has a lower premium over the gold price than other 1oz gold coins or indeed any gold products of similar size. The Krugerrand is recognized throughout the world and is extremely easy to buy and sell because of its prestige and ease of verification. As the gold price is always quoted on the market per troy ounce, it is easy to monitor the fluctuation of the one ounce Krugerrand. These coins are usually the most cost effective way of buying physical gold for a private investor.
Good for - 1st time gold investors and people seeking low premiums on small to medium scale investment.
The 1oz Britannia is the British equivalent of the 1 oz Krugerrand produced by the Royal Mint. Unfortunately, as it is made in smaller quantities than the Krugerrand, it tends to have a slightly higher premium than the Krugerrand. The one advantage over the Krugerrand is that the Britannia as a legal tender coin does not count towards your capital gains tax liability. To find out the differences between Krugerrands and Britannias, view our Krugerrand vs Britannia coin review.
Good for - people who regularly exceed their CGT allowance.
Another way to buy and sell gold bullion is in the form of British Sovereigns. A Sovereign weighs 0.2354 of a troy oz (just under ¼ troy oz). Owing to their smaller size, they tend to have a higher premium than the 1oz coins. However, they usually cost a lot less than gold bars or other coins of similar sizes, meaning they are the cheapest way to buy and sell relatively small amounts of gold. The main benefit of buying Sovereigns over larger units of gold is the increased flexibility when selling, enabling you to sell smaller chunks of your overall gold investment. Another added benefit of Sovereigns is that owing to their legal tender status, they have a cash value of £1 and as such do not count towards your capital gains tax liability.
Good for - people looking for flexibility when selling. People who regularly use their CGT allowance. People making a relatively small investment.
If you are thinking of a large investment (£20,000+) then the 1 kilo gold bar could be the most viable option. Due to the considerable size of this item, these bars tend to be the product with the lowest premium that bullion dealers will sell. The 1 kilo gold bar is equivalent to 32.15 troy ounces and usually works out a much better deal than buying the same amount in 1 oz portions.
Good for - large scale investment.
Beginners' guide video
Watch Deputy editor of Moneyweek Ed Bowsher buy gold from ATS with Bullion manager, Michael Burrow.