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Investment Tips: Dos and Don'ts of Selling and Buying Gold

Investing in gold is an excellent way of diversifying your portfolio with a reliable asset that’s sure to increase in value consistently. However, you should be wary about how you go about purchasing and selling it to ensure that you receive the highest profit margin possible.

In this guide, we’ll break down the dos and don’ts you need to keep in mind when transacting with gold so that you can make the most of your investment.

How to buy and sell gold responsibly

1. Don’t: Purchase obscure coins for your portfolio

Not all gold has equal value, similar to how properties from different locations but with identical features can have vastly different prices. Some gold coins have more liquid value, while others may be more challenging to sell. The larger the buyers’ market is, the easier it is to sell at a higher profit. On the other hand, obscure coins from dubious sources will make it harder for you to find a potential buyer.

Do: Invest in reliable liquid coins

Although there are rare occasions when obscure gold coins can fetch a hefty price in a collector’s market, you shouldn’t invest too much of your money by waiting for a lucky catch. Instead, you should focus on consistency in building your golf portfolio. Buying obscure coins defeats the purpose of having reliable assets in case your stock shares are in danger. Focus on obtaining coins from Krugerrand, Sovereign, and Britannia labels, since these hold high liquid value.

2. Don’t: Invest in non-UK coins

Although it’s healthy to diversify your gold portfolio, you should consider the implications of buying and selling different brands of gold coins. If you own non-UK coins, you need to consider deducting Capital Gains Tax (CGT) on your transactions. Because of this, you need to adjust your pricing accordingly so that you won’t lose more than you’re gaining. However, you can maximise profit by spreading out your sale. You can offload by selling one batch before the April 5th tax year-end then selling the rest in the following fiscal year.

Do: Buy local UK coins

In buying gold, bullion coins offer the best investment for your money’s worth. By focusing your purchases on coins issued by The Royal Mint, such as Britannias and Sovereign labels, you can maximise your selling price and avoid the need to pay Capital Gains Tax (CGT) on your profits. This is only applicable when transacting with UK coins, which make them CGT-free.

3. Don’t: Rush your broker with a same-day sale

Unlike other assets, it’s not as easy to find a potential buyer of your gold coins. Because of this, you need to give your gold broker time to pair you with prospects who are willing to purchase your assets. Requesting for a same-day negotiation to sell your gold isn’t just unrealistic but also disrespectful.

Do: Give your gold dealer time to weigh your options

It’s common courtesy to provide your dealer with ample time to find potential buyers for your gold assets. Instead of rushing them for a purchase, consider giving them at least a few weeks before you decide that you want to convert your gold for cash. Doing so allows them to find the right buyer by scoping out prospects and weighing their pros and cons. A responsible dealer will give you updates every few days and will actively help you improve your selling price.


With the economy still recovering from the repercussion of the coronavirus pandemic, now is the best time to secure and invest in diversifying your asset portfolio. When it comes to profiting from your gold assets, patience and timing are two fundamental values that you need to master.

When dealing with your gold assets, you need to make sure that you have a reliable platform in buying and selling with other investors. At the London Gold Centre, we help our clients sell and buy gold in the UK safely by providing accurate gold prices per gram. Get in touch with us today!

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