Trading physical precious metals can be confusing and complex, here are the main things you need to think about when investing in them:
Key Points – The Main Things to Know
Investing in precious metals for the first time can feel daunting. Do you buy a coin or a bar? What are premiums? Where do you store them? These are all common questions — so we’ve pulled together the key things you should know before making your choice.
⛏️ Precious metals benefit from scarcity, strong returns, diversification and liquidity
📈 Gold has delivered ~8–9% annualised returns since 1971 and ~150% growth since 2019
⚖️ Investors can choose between physical metals and derivatives, with different ownership and risk profiles
🏷️ Larger bars have lower premiums, while smaller products typically carry higher mark-ups
📦 Large bars are more cost-efficient but usually require whole-unit buying and selling
🇬🇧 Coins can offer UK tax advantages but often come with higher upfront premiums
🔗 Fractional ownership provides access to large-bar pricing with the ability to trade smaller amounts
🏦 Platform choice impacts pricing, liquidity and execution
💸 The true cost of investing is driven by spreads and mark-ups, not just the spot price
🧱 Prices are built in layers, with multiple parties adding cost before reaching the investor
🚚 Taking delivery adds costs and can reduce sell-back efficiency
🧾 VAT and CGT treatment varies by metal, format and acquisition method
🔻 Sell-back prices are typically below spot and depend on format, platform and condition
🔒 Security depends on safeguarded funds and how your metals are stored and owned
