The 5 cheapest ways to buy gold in the UK

Last reviewed 2026-10-28

The cheapest way to buy gold is simply to pay the smallest possible margin over the spot price. Everything below is about keeping that margin, the dealer's premium, and the tax as low as they will go. Here are the five choices that make the biggest difference for a UK buyer.

1. Compare dealers and buy on premium, not the sticker price

The spot price of gold is the same everywhere. What differs is the premium each dealer charges on top, and that is the single biggest thing you control. The exact same 1oz bar can cost noticeably more at one dealer than another. Our comparison tool ranks UK dealers by the real all-in cost for your budget, so you pay the lowest premium available rather than the first price you see. See our guide on what the premium means.

2. Choose bars over coins, unless you need the tax break

Bars carry the lowest premium of any physical gold because they are the cheapest to produce, so pound for pound a 1oz bar gives you the most metal. Coins cost a little more. The one exception is tax (see below): on a large gain a CGT-free coin can end up cheapest after tax. Our bars versus coins guide weighs it up.

3. Consider pre-owned (best-value) bars

A pre-owned bar holds the same troy ounce of pure gold as a new one, but sells for less because the dealer resells it at a slimmer margin. If you do not mind it arriving without the original packaging or assay card, it is often the cheapest gold on the page. More in new versus pre-owned bars.

4. Buy the largest unit you can afford

The premium per gram falls as the bar gets bigger. A 1g bar can be 20% to 30% over spot, a 1oz bar nearer 2% to 4%, and larger bars less again. Splitting your budget across lots of tiny bars is the most expensive way to buy gold; one larger unit is far cheaper per gram. See what size bar your budget buys.

5. For pure price exposure, a gold ETF is cheapest of all

If you do not actually need to hold the metal, a physically backed gold ETF (technically an ETC) tracks the gold price for a tiny annual fee, around 0.12%, far below any physical premium, and you can hold it in an ISA or SIPP. The trade-off is that you own a claim on a custodian, not a bar you can keep at home. Compared in full in physical gold vs ETFs vs funds.

Don't forget tax

Investment gold is VAT-free in the UK, and UK legal-tender coins such as the Britannia and Sovereign are free of Capital Gains Tax. So on a large gain, a slightly higher-premium coin can actually be the cheapest option once tax is counted. See gold and silver tax.

Bottom line: the cheapest gold is the lowest premium plus the least tax for your situation. Compare on premium, favour bars or best-value bars for raw value, buy the biggest unit you can, and use the tool to see who is actually cheapest today. This is general information, not financial advice.

Sources: The Royal Mint: VAT and CGT on bullion, justETF: Gold ETFs and ETCs compared (UK)

Information only, not tax or financial advice. Physical bullion is unregulated (outside the FCA, with no FSCS or Financial Ombudsman cover). Tax treatment depends on your circumstances and can change; figures are for the 2026/27 UK tax year. Check current rules at gov.uk or ask a qualified adviser. The value of gold and silver can go down as well as up.