How to buy gold: a step-by-step guide for beginners
To buy physical gold, choose a common bullion coin or bar, compare the price you will pay above the gold spot price (the premium) at two or three reputable dealers, pay by bank transfer, and arrange insured delivery or professional storage. Check your country's tax rules first, and plan how you will sell before you buy.
This guide is for first-time buyers in the US, UK, Canada and Australia. It explains each decision in plain English, using real prices we checked on dealers' websites on 10 October 2026.
What does "buying physical gold" mean?
Physical gold means coins and bars you own outright, either at home or in a vault in your name. It is different from gold funds (ETFs), mining shares or "digital gold", which give you a price link to gold without owning a specific coin or bar. This guide covers physical gold only. If you are weighing the options, see physical gold vs gold ETFs.
Investment gold is sold by weight and purity. Weights are usually in troy ounces (31.1 grams, about 10% heavier than an ordinary ounce) or in grams. Purity is shown as a fineness such as 999.9 (99.99% pure) or 916.7 (22 carat).
Decide why you want gold, and how much
People buy gold for different reasons: as a long-term store of value, as protection against inflation or currency weakness, or simply because they like owning something tangible. Gold also has real drawbacks. It pays no interest or dividends, its price can fall for long periods, and buying, storing and selling it all cost money.
Be clear about your reason, because it shapes everything else. Someone holding gold for 20 years can accept a higher buying cost on a favourite coin. Someone who may need the money in two years should focus on the lowest round-trip cost. Only use money you will not need for several years. Our guide is gold a good investment? sets out the evidence on both sides.
Choose coins, bars, or both
Both are pure gold. The differences are cost, flexibility and, in some countries, tax.
Gold coins vs gold bars at a glance Bullion coins Bars Typical premium Higher, especially for small coins Lower, especially 1oz and larger Easy to sell in small amounts? Yes Less so for large bars Recognised worldwide? Yes (Eagle, Maple Leaf, Krugerrand, Britannia) Yes, if made by an LBMA-accredited refiner Tax advantages UK: Britannias and Sovereigns are free of Capital Gains Tax None specific Best for First purchases and flexibility Lowest cost per ounce Size matters as much as type. A 1/10oz coin can carry a premium several times higher than a 1oz coin, because the cost of making and handling it is spread over less gold. Read gold coins vs gold bars and our best gold coins for beginners for detail.
Understand the spot price and the premium
The spot price is the live wholesale price for one troy ounce of pure gold. You will always pay more than spot, because dealers add a premium to cover minting, shipping, insurance and their margin.
The premium is easy to work out yourself:
Premium % = (price you pay ÷ value of the gold in the item at spot) − 1
Example from our UK check: a 1oz Britannia at Chards cost £3,259.95 when spot was £3,171.03. £3,259.95 ÷ £3,171.03 = 1.028, so the premium was 2.8%.Premium calculator (US dollars)
Premiums change with demand. When people rush to buy, premiums rise and stock can run short. When things are calm, dealers compete harder on price.
Choose a reputable dealer
Where you buy makes a real difference. On 10 October 2026, the same type of 1oz UK gold coin ranged from 2.8% to 7.1% above spot across four UK dealers. In the US, a 1 oz American Gold Eagle paid for by wire cost 3.3% above spot at SD Bullion and 5.5% at APMEX.
Before you buy from any dealer, check that it:
- shows live prices that move with the spot price, and states the premium or a clear price ladder;
- has a long track record, a registered company address and recent independent reviews;
- ships with full insurance until you sign for the parcel;
- publishes a buyback policy, so you know it will buy back what it sells;
- never pressures you, cold-calls you or promises returns.
The US Mint's own bullion consumer awareness page gives similar advice. Start with the dealer comparison for your country:
Where to start in each country Country Common choices Our guide United States APMEX, JM Bullion, SD Bullion, Money Metals Exchange, Costco Best places to buy gold in the US United Kingdom Chards, Hatton Garden Metals, Atkinsons Bullion, The Royal Mint, BullionByPost Where to buy gold in the UK Canada Royal Canadian Mint dealers, Silver Gold Bull, Kitco, TD Precious Metals Best places to buy gold in Canada Australia The Perth Mint, ABC Bullion, Ainslie Bullion, Jaggards Best places to buy gold in Australia Check the tax rules where you live
Tax can change which product is cheapest for you. These are the headline rules. Each links to the official source.
Headline tax rules on physical gold, October 2026 Country When you buy When you sell at a profit US Sales tax varies by state; many states exempt bullion Held over a year: taxed as a collectible, at up to 28% federally (IRS Topic 409) UK No VAT on investment gold (Notice 701/21) Sovereigns and Britannias: no CGT. Bars and foreign coins: CGT above £3,000 a year (CG78305) Canada No GST/HST on gold of 99.5%+ purity; 22-carat coins are taxable (CRA 17.1) Gains are generally taxable as capital gains or income Australia No GST on investment gold of 99.5%+ fineness (GSTR 2003/10) Gains are generally subject to Capital Gains Tax One detail many guides miss: the American Gold Eagle is 22 carat (91.67% gold). That is fine for UK VAT, but it is below the 99.5% purity line in Canada and Australia, so it does not get the same sales tax exemption there. Canadians and Australians usually pay less tax by choosing 99.99% coins such as the Maple Leaf or the Kangaroo.
Pay the cheapest safe way
How you pay can cost more than which dealer you choose. Most dealers price bank transfer, wire or check payments lower than card or PayPal, because card fees are high.
Card vs wire: one 1 oz American Gold Eagle, 10 October 2026 Dealer Wire or check Card or PayPal Extra for card SD Bullion $4,335.39 $4,516.03 +$180.64 (4.2%) APMEX $4,424.29 $4,608.64 +$184.35 (4.2%) Single-coin prices on each dealer's product page at 21:17 BST on 10 October 2026, with spot at $4,195.60.
Always pay the dealer directly, into an account in the dealer's own company name. Never send money to a personal account or pay someone who contacted you first.
Plan where you will keep it
Decide before you buy. The three main options are a home safe, a bank safe deposit box (where available), or a professional vault. A home safe is cheap but your home insurance may cap cover for valuables. Vaults charge a fee, often a small percentage of value each year, but offer insurance and audited security. Some services offer allocated storage, where specific bars are held in your name.
Our gold storage guide compares the costs and risks of each option.
Know how you will sell
When you sell, dealers pay you less than spot. Add that to the premium you paid and you get your round-trip cost. On 10 October 2026, Hatton Garden Metals in the UK would sell a 1oz Britannia at 3.5% above spot and buy it back at 3.3% below spot: a round trip of about 6.8% before the gold price moves at all.
Keep your receipts and any certificates, keep coins in their original capsules and do not clean them. Popular coins and bars from well-known mints are the easiest to sell. Read how to sell gold for where to get the best price.
Mistakes first-time buyers make
- Buying "collectible" or proof coins as an investment. They can cost far more than their gold value and are harder to sell at a good price.
- Paying by card without checking the wire price. In our check it added 4.2%.
- Buying lots of tiny coins. Fractional coins are useful but expensive per ounce.
- Responding to cold calls or ads promising returns. Legitimate dealers do not promise profits.
- Forgetting about selling costs and tax. Work out your round-trip cost before you buy.
Frequently asked questions
What is the safest way to buy gold?
Buy common bullion coins or bars from an established dealer or a national mint, pay by bank transfer to the dealer's own account, and make sure delivery is fully insured. Avoid cold callers, private sellers you cannot verify, and anyone offering gold well below the spot price.
How much does it cost to buy gold?
You pay the spot price plus the dealer's premium, plus any delivery or payment charges. In our October 2026 checks, single 1oz coins cost between 2.8% and 9.8% above spot depending on the dealer, the coin and how you paid.
Is it better to buy gold coins or gold bars?
Bars usually have lower premiums per ounce, especially in larger sizes. Coins are easier to sell in small amounts, are widely recognised, and in the UK some coins are free of Capital Gains Tax. Many buyers start with 1oz coins and add bars later.
Can I buy gold at a bank?
In Canada, some banks such as TD sell gold coins and bars. In the UK, US and Australia, most people buy from a mint or a specialist bullion dealer instead, because high street banks generally do not sell physical gold to customers.
How much gold should a beginner buy?
There is no right amount, and we cannot give personal advice. Many first-time buyers start with a single 1oz coin or a few fractional coins to learn how buying, storing and selling works before committing more. Only use money you will not need for several years.
Do I need to show ID to buy gold?
Usually, for larger orders. Dealers must follow anti-money laundering rules in all four countries, so expect identity checks once an order passes the dealer's own threshold, and stricter checks for cash payments.
Sources
We checked these primary and official sources when writing and fact-checking this page.
- LBMA: Precious metal prices (how the benchmark gold price is set)
- US Mint: Bullion coins
- IRS Topic 409: Capital gains and losses (collectibles rate)
- HMRC Capital Gains Manual CG78305
- HMRC VAT Notice 701/21: Investment gold
- Canada Revenue Agency: GST/HST Memorandum 17-1, precious metals (paras 29 to 34)
- Australian Taxation Office: GSTR 2003/10, what is precious metal for GST
- US Mint: Bullion consumer awareness
Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.