The Royal Mint is offering people the opportunity to buy gold for as little as £20. Of course, you could always buy gold in coins, costing around £95, or bars, costing at least £800, but ‘signature gold’, as the new service is called, means you can buy tiny amounts of gold by price.
How much gold can you get for £20?
About three-quarters of a gram, but prices fluctuate. This service offers gold by price rather than weight, which the Royal Mint says allows it to offer economies of scale. That means the amount you get for £20 will change according to live prices, linked to the current metal price.
Right. And why would you want to in the first place?
People usually buy gold because of financial uncertainty, such as inflation or fluctuating foreign exchange rates. Low interest rates in the UK might encourage people to ground their money elsewhere. Governments buy gold as a kind of insurance against big fluctuations in currency – if a currency is suddenly devalued by inflation, all that gold in the vaults of a bank should still be worth a stable amount.
Great, I’ve always wanted some gold grills. Do they deliver?
Sadly no. It’s only a sliver of a 400 oz bar. Instead the Royal Mint keeps it in a vault, guarded by the Ministry of Defence police, and charges a 0.5 per cent custodian fee.
Shame. Where can I get my gold?
First you open a Royal Mint account. Then you can buy online. Simple!
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