What is the cheapest most efficient way to buy gold?
There are many ways to buy and own gold. Coins and small bars offer a popular but costly way of doing so. The coin’s price is only one element of its total cost. Think about how much money you will get back when you sell. Also add the cost of shipping and insuring bullion bars or coins kept at home.
The table below shows you how much gold some popular coins contain. It also shows the live prices to buy the same amount on BullionVault. Use this table and our cost calculator to compare owning physical gold bought, stored and sold at wholesale prices using BullionVault versus buying coins from a dealer.
Many coin and small bar dealers offer 'free' shipping when you buy online, but in reality that cost has been shifted into the price you pay for the coin or bar, along with the cost of its manufacture and the dealer's profit margin. In total, it is not unusual for all of these costs to result in you paying 5-8% over the actual wholesale price of the gold you buy.
Paying 5-8% over the spot price to buy a coin or small bar may be acceptable to some, but the costs you face get worse. Because when you come to sell, you are unlikely to realise full value for your bullion.
A coin or bar dealer will not buy gold from you at the spot price, as they have to factor in their business overheads. They also have to consider the chance that the bar or coin is not what they think it is. Some rarer coins might be quoted at prices above spot, but in gold bullion products like small bars, Sovereigns or Krugerrands, this usually results in you receiving 2-5% less than the spot price when you come to sell.
All told, the typical roundtrip cost of buying and selling a small gold bar or coin will cost you 10% or more of the value of the gold it contains. Losing one-tenth of your money seems like an inefficient way of buying something with the primary purpose of a store of value.
How BullionVault enables you to buy gold in a cheaper, safer and easier way
- You buy gold in 1 gram increments within LBMA approved wholesale bars
- You pay prices that are closer to the wholesale market price
- No VAT or Sales Tax
- No delivery costs
- Your gold, silver & platinum is stored in professional vaults you choose where
- Professional vaults mean you pay the lowest storage & insurance costs
- Buy & sell 24/7 and instantly have funds back in your account ready to be withdrawn
- UK users can make their first purchase up to £5k with a debit card
- 5* TrustPilot rating & reviews
- BullionVault manages $2 billion in client property for over 65,000 users