Ways to Invest in Gold
There are three main ways UK investors typically gain exposure to gold, each suited to a different approach.
Gold ETFs and ETCs
A gold ETF (Exchange-Traded Fund) – often structured in the UK as an ETC (Exchange-Traded Commodity) – tracks the price of gold and trades on a stock exchange like a share. Most are backed by physical gold bullion held in secure vaults (Fidelity UK). This is the most direct way most UK investors get exposure without arranging storage or insurance themselves.
Gold Mining Shares
Buying shares in gold mining companies, often via a specialist fund, offers indirect exposure. Mining shares can amplify gold price moves in either direction, since a miner’s profitability depends on production costs as well as the gold price itself, adding company-specific and operational risk on top of commodity price risk (Fidelity UK).
Physical Gold (Bars and Coins)
Retail investors can buy physical gold bars or coins directly – for example through the Royal Mint – but this comes with additional costs for insurance and secure storage (Fidelity UK). UK legal-tender gold coins such as Sovereigns are exempt from Capital Gains Tax, though this depends on individual circumstances.