SUMMARY :

• 1) How can I buy physical gold safely?
• 2) Where can I buy physical gold?
• 3) How much does it cost to buy gold bullion?
• 4) How should I store my physical gold?

1) How can I buy physical gold safely?

 

Buying physical gold is relatively simple and accessible as long as you follow certain basic rules to ensure a safe and transparent transaction. 

To begin with, it's vital to get informed about the gold metal (the latest news, the price per ounce, etc.). Information is particularly plentiful on the internet, but it will also help you to distinguish between serious, recognised and reputable houses.  

In other words, it's essential to go for dealers who are certified and recognised by national and international bodies such as the London Bullion Market Association (LBMA). The role of this association is to supervise the wholesale gold market in London, which is a global benchmark. It has set very precise standards for the quality and purity of gold traded and sold. 

As a private buyer, it is important to obtain a certificate of authenticity when purchasing gold. This should state the weight, purity and serial number of the ingot or coins purchased. This certificate ensures that you can resell your gold investment under the best possible conditions when the time comes.

2) Where can I buy physical gold? 

 

This is one of the key questions for anyone wishing to invest in gold. By extension, choosing where to buy physical gold will depend mainly on your priorities: discretion, security, ease of management or price. 

 Depending on your priorities, there are a number of options, each with its own advantages and limitations. 

 

      Banks 

Some banks offer their customers the option of buying gold bars and coins. For reasons of traceability and guarantee, this is accompanied by certificates of authenticity detailing the purity of the metal.  

While the choice of going through your bank may seem appropriate at first sight, the range of gold assets on offer is still fairly limited. You should also bear in mind that custody fees may apply to the holding of gold. These charges can be particularly high compared with gold specialists, especially over time. 

 

      Specialist physical shops 

These establishments are recognised for their expertise and offer a very wide range of investment products. 

They are generally located in large towns and cities, where you can get personalised advice, check the quality of the coins or ingots directly and make your purchase immediately. 

In all cases, check the seller's reputation carefully through customer reviews, specialist forums and professional recommendations.

      Specialist online platforms 

These platforms generally have very attractive websites that are easy to use for comparing the prices of the many assets available in real time, and they have the advantage of offering a lot of information (analysis of gold prices, macroeconomic articles, news, etc.), fast ordering, secure delivery and reasonable charges. 

Online platforms specialising in buying physical gold have become particularly popular in recent years. They generally offer a wide range of products, from certified bars to collector coins.  

These companies often offer a secure storage service in outsourced vaults, making it much easier to manage and secure your investment. 

 

      Auctions 

More marginal and reserved for a more initiated and informed public, it is quite possible to acquire gold or rare coins at auction. At these one-off events, which can take place anywhere in France, it's not uncommon to be offered very old coins, ingots or gold objects from inheritance, collectors' sales or judicial seizures. 

The advantage is that you can benefit from a particularly attractive bidding price. These sales are also supervised and secured by the presence of an auctioneer.  

But prices can rise rapidly, especially when the price of an ounce of gold is breaking records, and demand for these goods can be very strong. You should also be aware that auction fees can be very high (15/20% of the hammer price). Finally, buying gold at auction requires in-depth knowledge to avoid counterfeiting or impulse buying with no real guarantee.

 

      The private individual market 

Although the intermediation of a gold professional such as GODOT & FILS seems essential to secure your investment, it is still possible to buy gold directly from a private individual. 

We can only warn you against doing so, however, as there is an increased risk of falling victim to a scam or swindle, either by not receiving the purchased item or by receiving a counterfeit (on this point we refer you to our section on ‘how to tell if a coin is gold’). 

Be that as it may, vigilance is the order of the day, and we strongly recommend that you opt for face-to-face transactions, accompanied by a prior appraisal to authenticate the precious metal. 

3) What are the costs of buying gold bullion?

 

As with any investment, especially one involving an intermediary, there will be costs to take into account when buying gold bullion. It is essential to understand and take account of these various costs in order to assess the real cost of investing in physical gold.

These costs can vary depending on the buying channel, the type of bullion, the service provider and the geographical location.

 

      The buying premium

This is the main additional cost to the spot price of gold. Essentially, it is the difference between the price of the raw metal quoted on the markets and the actual selling price of the bullion.

This premium takes into account the manufacture, transport and temporary storage of the bullion, as well as the seller's margin.

For example, for a standard 1 kilogram bullion certified by the London Bullion Market Association (LBMA), the premium is generally low, fluctuating between 1.5% and 3% above the spot price.

On the other hand, the premium is higher for bullion because manufacturing and logistics costs are proportionately higher. For example, for 100 gram or 250 gram ingots, the premium can be as high as 4% to 8%.

 

      Intermediary fees (brokerage or commission) 

If the purchase is made through a specialist broker, bank or online platform, brokerage fees may apply. These commissions vary from intermediary to intermediary, but are generally between 0.5% and 2% of the value of the bullion. 

Depending on the market players, some will display an all-inclusive price including premium and commission, while others add the commission at the time of the transaction. 

 

      Additional costs: delivery, storage and insurance 

Buying online or remotely often involves secure delivery charges, which can vary from €50 to €200 depending on the weight and destination. Some service providers offer free delivery above a certain purchase amount. 

If investors do not wish to keep their bullion at home, they can opt for secure storage in a bank safe or specialist vault. These services are billed annually, at rates ranging from 0.5% to 2% of the stored value. 

It should be noted that physical gold generally has to be insured, which can generate additional costs if you opt for personal storage or home delivery. 

 

      VAT and taxation 

If certain conditions are met, investment gold (bars over 995 thousandths, listed coins) is exempt from VAT in France and the European Union. This is a major advantage that reduces the purchase cost compared with other precious metals subject to VAT. 

However, you need to bear in mind the tax that will apply if you resell.

- Either a flat-rate tax on precious metals of 11.5% (including CRDS)

- Or, as an option, capital gains tax on the sale of movable property.

4) How to store physical gold

 

Any investor in physical gold is first confronted with the problem of how to store his gold. Whether bullion bars, ingots or collector coins, the fact remains that this investment has a definite value, and securing its acquisition is not something to be overlooked.

There are several ways to store your gold, but here we'll focus on the three most common:

- Storing gold yourself, usually at home. This is legally possible, and desired by some investors who don't necessarily trust a third party or the costs involved. While the major advantage is the immediate availability of your gold, this storage option is not very secure.

Given the high risk of loss or theft, this storage option will often require the purchase of a highly-secured safe, also at a considerable cost. By extension, it would be wise to include dedicated insurance, as well as the installation of an alarm or video surveillance system.

- Using a service provider specializing in secure storage. In this case, investors must accept the idea of entrusting their gold to a third party. The advantage is the peace of mind of knowing that your gold is in high security. Generally speaking, these specialized companies have highly protected premises with alarms, video surveillance and even security guards. Here again, specific insurance policies come into play.

- Storage in a bank safe. This is a very common solution, offering maximum security for your gold investment. This option also offers confidentiality and insurance against damage and theft. The only major drawback is the limited accessibility of your gold investment, subject as it is to the bank's opening hours.