Storing and Selling Physical Gold
How to store gold safely, the difference between allocated and unallocated vaulting, and how to sell — including tax implications across key markets.
Physical gold requires two decisions that paper gold does not: where to store it, and when and how to sell it. Storage choices range from a home safe (low cost, high risk) to LBMA-accredited professional vaulting (higher cost, maximum security and liquidity). The choice has direct legal and tax consequences: allocated storage preserves ownership rights in a counterparty insolvency; unallocated does not. When selling, the difference between a good and poor exit strategy can amount to 2–5% of your holding's value.
Home Storage
The Case For Home Storage
Home storage eliminates counterparty risk entirely — there is no institution between you and your gold. For small amounts (under approximately $10,000–20,000), home storage can be practical and cost-effective. Some investors value the psychological comfort of being able to physically access their gold without relying on any third party.
The Risks of Home Storage
Home storage carries risks that are frequently underestimated:
Insurance gap: Standard home contents policies typically cover gold to a maximum of £1,000–5,000, far below most investors' holdings. Specialist precious metals insurance is available but costly (typically 0.5–1.0% of value per year) and requires documentation of every piece held.
Security: Gold is the most frequently targeted precious metal by residential burglars. A quality wall-mounted safe (not a portable safe, which can be removed) bolted to masonry is the minimum standard. Floor safes embedded in concrete are more secure. The weight of a good safe (200–500kg) is itself a security feature.
Discretion: The most important security measure for home storage is secrecy. Do not tell friends, family, advisers, or tradespeople that you hold gold at home. This applies even to close confidants — information spreads. Never discuss home gold storage on social media.
Bank Safety Deposit Boxes
Bank safety deposit boxes offer more security than home storage but are less commonly available than they were a decade ago — many major banks have reduced or eliminated the service. Key characteristics:
| Feature | Bank Safety Deposit Box |
|---|---|
| Typical cost | £50–500/year depending on box size and bank |
| Insurance | NOT typically insured by the bank — you must arrange your own |
| Access hours | Limited to branch opening hours |
| Privacy | Theoretically private, but subject to legal orders (courts, tax authorities) |
| Counterparty risk | If the bank fails, access may be temporarily restricted |
| Availability | Declining — many banks have phased out the service |
Bank safety deposit boxes are suitable for modest amounts when professional vault storage is not practical. Critical note: the contents are not insured by the bank or any deposit protection scheme — you must arrange separate insurance.
Professional Vault Storage
What Professional Vaulting Provides
Professional vault storage — offered by specialist providers including Brinks, Loomis, G4S, and precious metals platforms such as BullionVault, GoldCore, and The Royal Mint's "The Vault" — provides institutional-grade security combined with proper insurance and clear legal structures.
Professional vault storage comparison — selected providers across key markets
| Provider | Location(s) | Allocation | Cost | Insurance | Minimum |
|---|---|---|---|---|---|
| BullionVault | Zurich, London, NY, Toronto, Singapore | Allocated | 0.12%/yr | Comprehensive | 1 gram |
| Royal Mint Vault (DigiGold) | Llantrisant, Wales | Allocated | 0.5%/yr | Insured | £25 |
| GoldCore | Zurich, Dublin, Singapore, Hong Kong | Allocated | 0.15–0.5%/yr | Lloyd's of London | $1,000 |
| Goldmoney | Zurich, Hong Kong, London, NY | Allocated | 0.18–0.25%/yr | Insured | $10 |
| BullionStar (Singapore) | Singapore | Allocated | 0.39%/yr | Comprehensive | 1 gram |
LBMA Good Delivery — The Gold Standard for Vaulting
The London Bullion Market Association (LBMA) maintains the global standard for gold bars used in professional storage and settlement. LBMA "Good Delivery" bars must meet strict specifications: minimum 99.5% purity, weight between 350 and 430 troy ounces, and production by an LBMA-accredited refiner. The LBMA Good Delivery list includes refiners whose bars are accepted by central banks and institutional investors worldwide.
The LBMA's "Chain of Integrity" principle requires that Good Delivery bars remain within the approved vault system — once a bar leaves the London Good Delivery vault system, it must be re-assayed before re-entering. This is why buying from LBMA-accredited vaults carries maximum liquidity: your bars are guaranteed to be acceptable in any institutional transaction without additional testing.
How to Sell Physical Gold
Getting the Best Price
The spread between the spot price and a dealer's buyback price varies significantly — from as little as 0.3–0.5% for large LBMA Good Delivery bars to 5–10% for small coins at local coin shops. The three most important steps to maximise your sale price:
1. Get at least three quotes. Dealer buyback prices vary more than most investors expect. Spending 30 minutes contacting three reputable dealers can save several percentage points on a large sale — potentially thousands of dollars.
2. Match your gold to the right buyer. British Sovereigns get better prices from UK dealers who know their CGT-exempt status commands a premium from UK buyers. 1kg LBMA bars get the best prices from institutional dealers who deal in volume. Small coins get poor prices everywhere except specialist coin dealers.
3. Timing matters. Avoid selling in thin markets: Fridays before long weekends, late December, or immediately after a major price spike when dealers' inventories are already high. The best time to sell is during normal market hours when global liquidity is highest.
Sale Methods
| Method | Best Price Potential | Speed | Who It Suits |
|---|---|---|---|
| Specialist bullion dealer (online) | 97–99.5% of spot | 1–3 days | Standard bars and coins; most investors |
| Original dealer buyback | 96–99% of spot | Same day | Coins bought from the dealer; relationship advantage |
| Bullion exchange (e.g. BullionVault marketplace) | Spot to spot+ | Hours to days | Large holdings; sophisticated sellers |
| Royal Mint / sovereign mint buyback | 97–99% of spot | 1–3 days | Their own coins; certified provenance |
| Auction house (numismatic) | Variable; can exceed spot | 4–8 weeks | Rare/collector coins only |
| Local coin shop / pawnbroker | 85–92% of spot | Immediate | Emergency cash only; significant discount |
| Private sale | 97–100% of spot | Variable | Large amounts; requires trust and due diligence |
Tax Implications by Jurisdiction
Tax treatment of gold sales is one of the most practically important — and most overlooked — aspects of gold investment. The rules vary significantly across key markets. This is a summary only; always consult a qualified tax professional in your jurisdiction before making investment decisions.
Capital gains tax treatment of gold — key markets (summary only, not tax advice)
| Jurisdiction | CGT on Gold Bars/ETFs | Special Exemptions | GST/VAT |
|---|---|---|---|
| Singapore | No CGT for individuals | N/A | Investment-grade gold (≥99.5% purity) is GST-exempt |
| New Zealand | Generally no CGT* | *CGT applies if bought with intention to sell at profit | GST-exempt for investment gold |
| Australia | CGT applies; 50% discount if held >12 months | LBMA bars under $10,000 may qualify for personal use exemption | GST-free for investment-grade gold (≥99.5%) |
| United Kingdom | 18% (basic rate) or 24% (higher rate) | Sovereign and Britannia coins CGT-exempt as UK legal tender | VAT-exempt for investment gold |
| United States | Up to 28% federal (collectibles rate) | None for bars/coins; ETFs may qualify for lower rates | No federal GST; state sales tax varies |
| Canada | 50% of gains included in income | None | GST/HST applies unless ≥99.5% purity |
| India | 12.5% LTCG (>24 months); 20% STCG | Sovereign Gold Bonds have CGT exemption on maturity | 3% GST on physical gold |
Documentation Checklist
Keep the following records for every gold purchase and sale:
| Document | Purpose | Retain For |
|---|---|---|
| Original purchase receipt | Establishes cost basis for CGT; proof of purchase | Lifetime of holding + 7 years |
| Assay certificate / CoA | Proves authenticity and purity; required for resale | Lifetime of holding |
| Storage receipts / account statements | Proves possession and provenance | Lifetime of holding + 7 years |
| Insurance policy | Required for claims; proves insurable interest | While policy is active |
| Sale receipts / settlement confirmations | Required for CGT calculation | 7 years from sale |
| Valuation reports | Useful for estate planning, insurance, divorce settlements | As needed |
Store digital copies of all documents separately from the physical gold — in encrypted cloud storage or a separate physical location. If your gold is stolen or destroyed, you will need these documents to make an insurance claim. If you inherit gold, the previous owner's documentation will determine the cost basis for any future sale.
Frequently Asked Questions
Related Articles
Sources & References
- LBMA LBMA Good Delivery Rules — Chain of Integrity. London Bullion Market Association, 2024.
- World Gold Council Responsible Gold: A Guide for Consumers. World Gold Council, 2024.
- HMRC HMRC — Capital Gains Tax on Gold Coins and Bullion. HM Revenue & Customs, 2025.
- Australian Taxation Office ATO — Capital Gains from Precious Metals. ATO, 2025.
- Internal Revenue Service IRS — Collectibles and Capital Gains Tax. IRS, 2025.
- Inland Revenue Authority of Singapore MAS — Investment Gold GST Relief. IRAS / MAS, 2025.
The Gold Intelligence Editorial Team comprises finance professionals with backgrounds in commodity markets, central banking research, and retail investment education. Our analysis draws on primary sources including IMF publications, World Gold Council research, Federal Reserve working papers, and peer-reviewed academic literature.
Gold Intelligence is an independent financial education platform. We are not licensed financial advisers. Data sources are cited throughout this article. Last reviewed May 13, 2026 by the Gold Intelligence Research Team.