What are you actually buying?
Physical gold usually means a particular coin or bar, rather than a share in a fund. Your invoice should identify the product, quantity and agreed price. If someone else stores it, establish precisely what you own and how your ownership is recorded. A photograph of a bar does not establish title to it.
Bullion value and collectible value
Bullion is generally bought with close attention to its precious-metal content. A collectible coin may also carry a premium for its issue, condition or demand among collectors. These two sources of value can move differently. Paying more for a scarce-looking coin does not mean that premium will be available when you sell.
The costs that sit around the metal
Allow for the purchase premium, the difference between buying and selling quotations, and any delivery, storage or insurance charges. Gold pays no interest or dividends. A higher market price is not the same as a profit after costs, and market prices can fall.
A useful first conversation
Choose an amount you can afford to commit without relying on a quick sale. Ask the dealer to explain two comparable products, including fine gold content, total price and resale arrangements. Keep the written quotation and take time to understand the terms before deciding.
BEFORE YOU DECIDE
Understand the product.
Ask about the details.
Request a current written quotation and confirm all charges, availability and fulfilment terms. Precious metals can fall in value. Collector premiums may not be recovered on resale.
SPEAK TO OUR TEAMGeneral educational information, not financial, investment or tax advice. Consider your circumstances, conduct independent research and seek qualified advice where appropriate. Past performance does not indicate future results. Tax rules and product specifications should be checked at the time of purchase.