How to invest in gold in the UK

Markets rise and fall, currencies inflate and deflate – but gold has always been gold. From pharaohs burying it in tombs to central banks locking it in vaults, it’s long been the go-to asset for anyone wanting to protect their wealth when the world feels uncertain.

The precious metal has provided an average annual return of around 5% over the last 100 years, and over the last 20 years, the average annual return has been closer to 10%.

But when someone says they're looking to invest in gold...what do they even mean?

• Do they want to bet on the price of gold increasing?
• Do they want to invest in companies that mine gold?
• Are they buying physical gold to stash away in a safe, like a Bond villain?

All of these are potential options – totally different options – that would allow someone to "invest in gold". Which one is right for you will depend on how involved (or how shiny) you want your investment to be.

This guide breaks down the different ways you can invest in gold and how to go about it in the UK, and whether it's even a good investment in the first place.

Gold ETCs

For most of us, Exchange-Traded Commodities (ETCs) offer the most convenient way to invest in gold – and the closest we'll get to owning the real thing with no heavy safes, secret maps or suspiciously large insurance policies required.

These funds function like shares – trading on the stock market – and typically own physical gold and issue shares that closely track its current, real-time price – also known as the "spot price".

ETCs are easy to buy and sell and are available through most brokers. Just be aware, some platforms will label them as ETFs, even though that's technically not what they are.

You'll be able to figure out whether a fund is actually tracking the gold spot price by reading the details on the fund fact sheet or in your brokerage platform:

Just like all investments, ETCs come with annual fund management fees, typically ranging from 0.1% to 0.4% of your investment value. The charge might be higher for some – for example, if it invests in responsibly-sourced gold.

Gold ETC examples

Here's a list of ETCs you might consider, along with the annual charge from the fund provider.

They're not recommendations, just a list of options traded in GBP, so you won't have to worry about FX fees – though other fees may apply depending on your broker.

ETC name	Ticker	Annual expense ratio (TER/OCF)
Invesco Physical Gold	SGLS	0.12%
iShares Physical Gold	SGLN	0.12%
WisdomTree Core Physical Gold	GLDW	0.12%
SMO Physical Gold	BARG	0.29%
The Royal Mint Physical Gold	RMAP	0.25%

All of these funds physically hold gold bars in secure vaults, meaning your investment is backed by the real thing. When you invest, you’re essentially buying a tiny sliver of a real gold bar (even though you'll never get to admire it in person).

Where can I buy gold ETCs?

Most brokers allow you to buy gold ETCs, including Trading 212, InvestEngine, Freetrade and Hargreaves Lansdown.

Wherever you're investing, you'll be able to find the asset by searching for the name of the ETC, or view all the options available by using your platform's filters. You'll likely find gold ETCs under a filter like "precious metals" or "alternatives".

Physical gold

Buying physical gold means exactly that: you’re getting your hands on real gold bars or coins, not just a number on a screen.

For some, there’s nothing quite like the weight of the real thing. But while it can feel satisfyingly old-school, there are a few things you need to consider before you start hoarding bullion.

Hidden costs (and hassle) of buying physical gold

Storage and insurance: once you've got your hands on your gold, you'll need somewhere to stash it – safely and securely. On the plus side, gold is fairly lightweight compared to silver – £300 will get you around three grams. Nevertheless, you'll want a proper safe, to invest in vault storage, or use a safety deposit box. Then there's the cost of insurance to consider – some providers will charge an additional premium if you're keeping gold at home.

Dealer premiums: in addition to the spot price, you'll also need to pay extra costs covering manufacturing, handling, packaging and distribution – on top of the dealer's profit margin and operating costs. If the fees are too high, you're eating into your profits. Too low, and it could be too good to be true.

Capital Gains Tax (CGT): Profits from gold are subject to CGT if your total annual gains exceed the tax-free allowance (currently £3,000). Gains above this allowance are taxed at 18% for basic-rate taxpayers or 24% for higher-rate taxpayers. An exception to this is if your gold is classed as British legal currency and produced by the Royal Mint, like Sovereigns and Britannias.

There is some good news, though – unlike silver, most gold is VAT free for private investors.

Where to buy physical gold in the UK

Some reputable vendors of physical gold in the UK include:

BullionByPost: Royal Mint authorised distributor with free insured delivery in the UK, based in Birmingham.

PhysicalGold.com: Streamlined pricing, guaranteed buyback of coins at market prices, broad inventory, insured delivery.

Baird & Co: full service merchants operating out of London. Vault storage, refining, and sovereigns for purchase.

Please note: we haven't tested these vendors, so be sure to do your own research before you buy.

Gold mining stocks and ETFs

This option means investing in companies that dig the gold out of the ground – the miners, rather than the metal itself.

Instead of owning any physical gold, you’re buying shares in firms whose fortunes rise (or fall) with the price of gold, their ability to find new deposits, and, occasionally, how good they are at not flooding their own mines.

You can invest directly in individual mining companies or go for a mining ETF, which spreads your money across a basket of gold miners to help smooth out the bumps if one company has a particularly rocky quarter.

An increase in the price of gold should automatically have an amplified effect on the profits of gold miners, because their costs tend to stay relatively steady, while every extra pound on the gold price goes straight to their bottom line.

That's certainly been the case in 2025, as you can see in the chart below which tracks the price performance of iShares Physical Gold ETC (which should move in line with the spot price) and Ninety One Global Gold Fund – a fund that invests in gold mining companies around the world:

Source: Fidelity.co.uk. Past performance is not a reliable indicator of future results.

Over longer period of time, however, miners have proved far more volatile than gold and have often underperformed – not ideal for anyone in search of a "safe" portfolio bet.

Gold mining ETF examples

There aren't a huge amount of gold mining ETFs available for UK investors that are traded in GBP, but here are three you'll likely find available through most brokers, along with their ongoing fund charges:

ETF name	Ticker	TER/OCF	What it does
Legal & General Gold Mining	AUCP	0.55%	Tracks an index of companies from around the world involved in gold mining.
AuAg Gold Mining	ESGO	0.60%	Tracks the performance of 25 ESG-screened companies that are active in the gold mining industry.
VanEck Gold Miners	GDGB		Track the performance of global gold miners, with a weighting towards larger companies.

Where can I buy gold mining ETFs?

Again, you'll likely find you can invest in gold mining ETFs through most brokers, though you'll find the bigger range through newer, app-based platforms like Trading 212, InvestEngine, Freetrade and XTB.

To locate these types of funds on your brokers platform, type in "gold miners" or "gold mining".

Tax considerations when buying gold

Whether or not you'll owe any taxes on your gold purchases depends on what – and where – you're buying.

If you purchase gold ETCs or mining ETFs through a stocks & shares ISA or a self-invested personal pension (SIPP), you'll avoid Capital Gains Tax (CGT) entirely.

If you were to hold them in a general investment account (GIA), you'd have to pay CGT on any profits over the £3,000 annual allowance when you sell.

And as we've already covered, if you're buying physical gold, you'll also be liable for CGT unless it's classed as British legal currency.

Is gold even a good investment?

Gold's certainly been having a moment in the sun over the past couple of years or so, reaching a record high in October of 2025. But just as puzzlingly, not long after, it suffered its sharpest one-day decline in over a decade.

It's not surprising, then, that many investors will ask themselves whether gold is genuinely a "safe haven", or just another asset prone to big swings when markets get jittery. 

Luckily, research can provide us with some answers.

One study based on historical data identified that from 1980-2005, gold and stocks tended to move in opposite directions – when stock markets were falling, the price of gold often went up, and vice versa. This is known as a negative correlation.

But, from 2006-2024, the correlation between the two turned more positive – meaning gold and stocks started moving in the same direction more often.

This shift matters because gold’s reputation as a safe haven is built on the idea that it moves differently from the stock market – ideally rising when shares are falling, helping to cushion your portfolio in tough times. With gold prices behaving in the way that they have, experts say this casts doubt on gold's status as an effective diversifier.

Another study called The Golden Dilemma also suggests that while gold can act as an inflation hedge over extremely long periods, it may not be as effective in the short- to medium-term.

The same study also suggests that the precious metal is a poor safe haven – with many gold investors using the commodity as a place to store their funds in case ish ever hits the fan.

A perfect safe haven would see a large number of entries in the second quadrant of this image, and no entries in the third (where gold prices fall in line with the stock market).

That said, backwards-looking analyses can't tell us how gold is likely to behave in the future. Markets change, investor behaviour shifts, and what worked in one decade doesn’t always hold in the next.

And of course, there’s nothing wrong with owning a little gold simply because it makes you feel more secure, or you like the idea of holding something timeless. At the end of the day, investing isn’t just about numbers and charts – it’s about what helps you sleep at night. Whether gold earns its keep in your portfolio or simply calms your nerves, that’s a personal decision only you can make.

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