Minimum Amount to Invest in Gold?

Gold investing isn’t just for big budgets or high rollers – contrary to popular belief, you don’t need to spend thousands of pounds to invest in gold. Gold bullion bars and coins come in a range of sizes that make gold accessible for everyone, whether you’re investing £100 or £10,000.

If you’d like to start investing in gold but don’t have a massive budget to play with, this guide is for you. We’ll break down the minimum investments for gold bullion, explore the cheapest gold bars and coins you can buy, and cover some beginner tips to help you get the most out of your budget.

Note: At StoneX Bullion, we believe in making gold investing accessible to everyone. We have no minimum purchase amounts, so you’re free to buy as little or as much as your budget allows.

Ways to invest in gold

There are five main ways you can invest in gold:

• Physical gold: Investing in physical gold means owning tangible assets like gold bars, coins, and jewellery. This type of gold has intrinsic value which means you have direct access to your investment. You can store your physical gold at home, in vaults, or in a safe deposit box.
• Gold ETFs and mutual funds: Gold Exchange-Traded Funds (ETFs) and mutual funds allow you to benefit from gold’s price movements without needing to own the physical metal. You can buy gold ETFs and mutual funds through a brokerage account.
• Gold mining stocks: Buying shares of gold mining companies provides indirect exposure to gold prices. Gold mining stocks can be bought in fractional shares, meaning you can invest very small amounts.
• Digital gold: With digital gold, you can buy gold online and have an equivalent amount stored in a vault on your behalf. Unlike buying physical gold, digital gold is less tangible as you don’t have direct access to your holdings.
• Gold futures: Gold futures are contracts to buy or sell gold at a specified price on a future date. This option is more suitable for experienced investors as it involves speculating on gold’s prices.

Read More: Gold vs Shares - FTSE 100. Should I buy physical gold over FTSE 100 shares?

What are the cheapest gold coins for investment?

The cheapest gold bullion coins are those that come in the smallest weights or denominations. While traditional gold bullion coins weigh one troy ounce, their prices can be intimidating for beginners. Fear not – you have plenty of options below that price point!

1 gram gold coins

The smallest, and therefore cheapest, coins you’ll find are those weighing one gram. At StoneX Bullion, our most popular 1 gram gold coin is the China Panda gold coin. These coins are known for their beautiful engravings that feature new panda designs each year. Despite their small size and weight, China Panda coins are still an excellent investment made from 99.9% pure gold (24-carats).

1/25 oz gold coins

The next size up is in the ounce weight range – the 1/25 oz Gold Vienna Philharmonic, which amounts to about 1.24 grams. These coins are amongst the most popular worldwide, cherished for their exquisite craftsmanship and 99.99% purity. Gold Vienna Philharmonic coins not only make excellent investments but also thoughtful, meaningful gifts for a loved one.

Keep Reading: What are the Best Gold Coins to Buy and Why? From Kruggerands to Maple Leafs

1/20 oz gold coins

If your budget allows for more, you might want to consider coins in the 1/20 oz weight range, equivalent to 1.56 grams. In this size, we have the Lunar Series Gold Coins and Canadian Gold Maple Leaf. Both of these coins are produced by exceptional mints and made from 99.99% pure 24-carat gold. While the Canadian Gold Maple Leafs are highly regarded across the world for their intricate design, the Lunar Series coins are popular for their annually changing design depicting that year’s animal from the Chinese zodiac.

1/10 oz gold coins

A more popular size is the 1/10 oz gold coin, equal to about 3.1 grams. In this weight, you’ll find a wider range of coins to choose from, including the American Gold Eagle, Gold Britannia, Australian Gold Kangaroo, and Gold Krugerrand coin, all of which are highly popular. Again, these coins feature the same designs and purity as their 1 oz counterparts, but at reduced weights that make them more affordable for those with smaller budgets.

VAT-free gold coins in the UK

If you’re in the UK, you can maximise your gold coin investments by investing in gold coins or bars produced by the Royal Mint. These are all VAT-free, helping you save even more on your bullion purchases. Coins like the Gold Britannia and Gold Sovereign are also exempt from Capital Gains Tax (CGT) due to their status as British legal tender.

Final note

Buying gold bullion in smaller sizes provides an accessible entry point for new investors and those with smaller budgets, however it’s important to know that these coins tend to carry a higher price per ounce compared to larger bars or coins. If you plan on making bulk purchases, it’s always better to invest in larger coins than smaller denominations.

See: How Do You Take Care of Gold Coins? A Step-by-Step Guide

What are the cheapest gold bars to buy?

Like coins, the cheapest gold bars are those that come in the smallest sizes and weights. In fact, gold bars tend to be slightly cheaper than gold coins due to their simpler designs and manufacturing process. If you really want to maximise your investment and are happy to forego the aesthetic appeal of coins, gold bars may be the best way to start investing in gold.

See: What are the Types of Gold Bars?

1 gram gold bars

The cheapest gold bars will be those weighing one gram. You can find a range of exceptional gold bullion in this weight range, including 1 gram gold bars by Argor-Heraeus, PAMP, C. Hafner, and Valcambi, all of which are prestigious mints recognised worldwide for their exceptional products and high purity.

Although gold bars tend to be more uniform and simple in design, you can still buy 1 gram gold bars with unique features, such as the 1 gram Argor-Heraeus Kinebar that are embossed with a holographic kinegram that changes colours and textures depending on the angle.

2 gram gold bars

The next size up is two grams, where you'll find the similar range by the same respected mints. You’ll also find some gold bars in the 2.5 gram weight range, including the 2.5g Gold PAMP Fortuna, one of the most popular gold bars known for its elegant Lady Fortuna design.

Read More: What Are the Best Gold Bars to Buy?

5 gram gold bars

Finally, 5 gram gold bars can be an ideal entry point for those willing to invest higher amounts. In this range, you'll find the same popular gold bullion bars as well as a few additional pieces, such as the PAMP Statue of Liberty Gold Bar.

Things to consider when investing in gold

Before you start investing in gold, take a look at the key considerations we’ve outlined below to help you make the most of your investment.

Purity and quality

Gold’s value largely depends on its purity, which is measured in carats or fineness. It’s essential you check the purity of gold when comparing prices and pieces. The higher the purity, the more valuable the gold. Investment-grade gold bullion usually comes in:

• 24 carats (99.9% pure): This is the highest purity, used for all gold bullion bars and many gold coins.
• 22 carats (91.6% pure): This is often used for gold jewellery as well as some gold coins.
• 18 carats (75% pure): This is mostly used for gold jewellery and is alloyed with other metals for added durability.

Read more about gold purity in our guide: Gold Purity, Fineness, And Karat – What Is It And How To Check It

Storage and security

Storage is an essential consideration when investing in gold and can come with additional costs. You have a few options when it comes to storing gold:

• Home storage: This is the most convenient option but requires a secure storage solution, like a reliable home safe.
• Bank safety deposit box: These are secure storage boxes provided by banks for a fee.
• Professional vaults: This involves paying a company to store your gold in their highly secure, state-of-the-art vaults in exchange for a fee.

Additional costs

It’s important you look beyond gold’s market price and consider other transaction costs, such as:

• Premiums: Physical gold usually includes premiums over the gold spot price. Gold coins often have higher premiums than gold bars, and smaller gold bullion will have higher premiums than larger sizes.
• Commissions and fees: Precious metal dealers will often charge commissions or service fees. When buying gold, it helps to compare prices from a few different dealers. Don’t settle for the cheapest price, but consider the dealer’s reputation, trustworthiness, and the quality of their collection.

State of the market

Gold’s price can fluctuate depending on economic and geopolitical factors. Timing your purchase can help you get the best possible price. You might also want to consider dollar-cost

averaging – investing small amounts on a regular basis – to slowly build up your gold holdings.

Some market conditions that can affect gold’s price include:

• Economic conditions: Gold’s prices often rise during periods of economic uncertainty or high inflation.
• Geopolitical events: Global events, political instability, or conflicts can all affect gold price movements.
• Interest rates: Gold’s price tends to rise when interest rates are lower.

To learn more about gold’s prices, read our guide: What Drives the Price of Gold?

Investment goals

It’s important you take some time to consider your personal investment goals and risk tolerance before you buy gold. This can shape your approach to investing. Think about:

• Long-term vs short-term: Are you investing for long-term stability or short-term gains?
• Risk tolerance: Gold is usually considered low-risk, but it can be volatile. Think about whether you’re comfortable with price fluctuations.
• Diversification: Gold can balance your investment portfolio to reduce risk and hedge against inflation. Think about what percentage of your portfolio you want to assign to gold versus other investments. Most experts recommend dedicating no more than 5% to 10% of your portfolio to gold or other precious metals.

Precious metals dealers

Finally, be cautious when purchasing gold. Here are our best tips for finding a reputable, trustworthy precious metals dealer:

• If you find a price that seems too good to be true, it probably is.
• If dealers are pressuring you to buy now or using scare tactics to convince you that your money will only be safe in gold, run.
• Look for dealers who are affiliate members of the London Bullion Market Association (LBMA). This is a symbol of trust, quality, and integrity.
• Try to purchase bars and coins from well-known mints where possible. This has two benefits: the products will be higher quality and it’s easier to sell gold from recognised mints, meaning your asset will be more liquid.

Start investing in gold today

Gold investing isn’t limited to those with massive budgets – you can start today for much less than you think. At StoneX Bullion, we stock a wide range of accessible but high-quality gold bullion bars and coins from the most well-known mints in the world. With no minimum purchase amounts or value spend, we aim to make gold investing easy and affordable for all.

Our gold bullion products start from just one gram – browse now and start growing your wealth today.