Bullion is gold, silver, platinum or palladium in a form valued mainly by its metal content: bars, ingots and bullion coins of known weight and fineness. Its price follows the spot price plus a small premium.
Bullion bars and bullion coins
Bullion comes in two main forms. Bars range from 1 g wafers to 1 kg bars, and the wholesale market trades 400 oz bars under the LBMA Good Delivery standard. Bullion coins are struck by national mints in large numbers, carry a face value and state their fine weight and fineness.
Popular bullion coins with UK buyers:
- Britannia (The Royal Mint): 1 oz gold at 999.9 with a £100 face value, and 1 oz silver at 999.
- Sovereign (The Royal Mint): 7.32 g of fine gold, 22 carat.
- Krugerrand (South Africa), Maple Leaf (Canada) and Vienna Philharmonic (Austria).
Bullion vs everything else
The test is simple: would a dealer price it from the spot price? Bullion is bought and sold close to metal value. Jewellery, medals, plated "commemoratives" and limited edition numismatic coins are priced on design, rarity or brand, so you pay more over metal value and usually get less back when you sell.
| Bullion | Collector or jewellery item | |
|---|---|---|
| Price basis | Metal content plus premium | Rarity, design, retail margin |
| VAT on gold | Exempt if it meets HMRC rules | Jewellery: 20% |
| Resale | Many UK dealers buy back | Depends on finding a collector |
Bars or coins for a UK buyer?
Gold bars and gold coins are both VAT exempt as investment gold (see VAT on investment gold). The difference is Capital Gains Tax. HMRC treats Britannias and post-1837 Sovereigns as sterling currency, exempt from CGT, while bars and foreign coins are chargeable assets. Larger bars often carry a lower premium per gram, which can matter more if your gains stay within your annual exempt amount.
Smaller pieces are easier to sell in part. A 1 kg bar must be sold whole; ten 100 g bars or thirty Britannias can be sold a few at a time.
To see the trade-off in pounds, compare the full range of investment gold from UK dealers or go straight to the 100 g gold bar prices, both ranked by delivered cost.
Related terms
Investment Gold and VAT in the UK Premium Over Spot Numismatic Coins LBMA Good Delivery
FAQ
What is the difference between bullion and coins?
Bullion coins are a type of bullion: they are valued by metal content like bars, but they are struck by a mint and carry a face value.
Is the Sovereign a bullion coin?
Yes. The standard Sovereign is sold as a bullion coin priced on its 7.32 g of fine gold, although proof and older dated Sovereigns can carry collector premiums.
What is the best gold bullion to buy in the UK?
Many UK buyers choose Britannias and Sovereigns because they are VAT free and exempt from Capital Gains Tax, but the right choice depends on the premium you pay and how you plan to sell.