Updated: April 22, 2024
Holding Gold in a SIPP
Interested in holding gold in your SIPP? This guide will tell you everything you need to know.
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Physical gold is something that a lot of investors like to hold onto, but did you know that it’s possible to add gold to your self-invested personal pension (SIPP) portfolio as well?
It can be a little more complex than standard investments and it’s essential to know what’s involved, so this guide will take you through what you need to know about holding gold in a SIPP.
You’ll find the following topics covered below…
Can you hold gold in a SIPP?
Yes, you can – in fact, it’s currently the only physical commodity that can be held in a SIPP. Just bear in mind that not all schemes will allow you to hold gold, so it’s important to check with the administrator before going ahead.
However, even if your current provider doesn’t allow gold SIPP investment, you could always open another SIPP with a provider that does, as there’s no limit to the number of SIPPs you can have. That said, it’s always best to discuss your options with an expert pensions advisor who has experience in this area, as this can be a very specialised sector of the market.
What are the rules for gold SIPP investment?
There are a few general stipulations around investing in this particular asset class, mainly:
- HMRC states that any gold held in a SIPP must have a minimum purity of 995. This means you’ll essentially be holding gold bullion, as gold coins don’t meet this purity level.
- You can either hold complete bars or shares thereof.
- You won’t physically own the gold yourself – it will instead be owned by the SIPP provider.
- There may be extra SIPP fees or admin charges for holding gold in your pension, but this will vary depending on your provider.
- All bullion will need to be securely vaulted, which means you’ll likely need to pay additional storage fees as well.
- There may be minimum investment levels for SIPP gold.
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How to buy gold in a SIPP
Your first step is to check that your scheme lets you hold gold in your SIPP, and if not, consider opening another pension with a provider that does (see below). Then you’ll need to consider the platform through which you want to buy your gold.
Choose your platform for gold SIPP investment
Here are three of the most popular gold bullion providers to consider:
- BullionVault is one of the most well-known dealers of gold bullion for SIPPs in the UK. It allows you to buy and sell gold 24/7 with all products meeting the criteria for gold SIPP investment, and it can be bought and sold in as little as 1 gram increments.
- Bullion by Post is another well-known offering, with gold bar purity stated to be 999.9 (well above HMRC’s minimum requirement) and a separate vaulted storage solution able to be arranged.
- The Royal Mint is a more recent addition to the SIPP space, offering a Gold for Pensions service. This gives you the chance to purchase gold bullion for SIPPs in one of two ways: either through buying physical bars of varying weights (all fully insured, with individual serial numbers and stored within the Royal Mint vault), or through the DigiGold product that allows you to buy monetary portions of larger bars (with a minimum investment of £25). All gold bars exceed the required standards with a purity rating of 999.9.
However, there are more options in addition to these platforms, and you may find that your SIPP provider will only operate through one or two services.
Open your account
Once you’ve chosen your gold-buying platform, the next step is to open an account and arrange the transfer of funds from your SIPP. This will normally be facilitated through your pension provider or financial advisor. Once transferred, you’re free to trade as you see fit – you can buy and sell bullion according to your wishes, with everything held in the SIPP wrapper.
Most platforms will let you buy, sell and withdraw funds at any time, allowing you to return your investment to the pension fund whenever you wish. Note that some SIPPs will allow you to trade yourself while others expect the administrator to buy and sell on your behalf, so always check the requirements of your individual scheme.
Get advice from a SIPP gold expert
Trading in gold bullion can be complex for all but the most seasoned of investors, and the addition of a SIPP wrapper can make things even more complicated. This is why we believe it is essential to get advice from the outset to ensure you’re making the right decisions for your portfolio and overall investment goals, and is where the expertise of a specialist pensions advisor can be invaluable.
They’ll be able to talk you through the process of gold SIPP investment to make sure it fits in with your investment strategy and risk profile, and if so, they’ll know the providers and platforms to approach to suit your needs. Make an enquiry or call us on 0808 189 0463 to get started.
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Which SIPP providers let you hold gold?
There are several providers that will let you hold gold in their SIPP wrappers, including many of the most well-known pension providers.
This includes:
- AJ Bell
- Barnett Waddingham
- Curtis Banks
- Dentons Pensions
- James Hay
- Mattioli Woods
- Xafinity SIPP
Just bear in mind that all will have different rules regarding gold SIPP investment, often with a minimum pension fund size, and some may prefer you to use one bullion platform over another. It’s vital to make sure you speak with your scheme administrator ahead of time, and remember you can always open a new SIPP purely for this purpose if you need.
Is gold a good pension investment?
Given that physical gold has proven to weather many storms over the years to provide long-term wealth protection, holding gold could prove to be a great investment for your pension.
It consistently ends the year up and shows a positive impact on portfolios over two, five and 10-year periods, making it not only a safe haven but also a viable investment opportunity (though remember that past performance is no guarantee of future returns, and there’s always risk involved in any investment).
There are also clear tax advantages of holding gold in a pension. For example, you could get an income tax rebate of up to 45% of the cost of your bullion, and the accumulation of gold is free from capital gains tax (CGT) as well. Normally, any profits you make on physical entities will be subject to a 20% CGT charge, so this could prove to be a great boost to your pension fund.
Get matched with an advisor experienced in gold SIPPs
Finding a pension expert is essential if you want to make the most of your investments, and it becomes even more important when dealing with something as complex as gold SIPPs. Yet finding an advisor who specialises in this sector isn’t always easy, but that’s where we can help.
We work with advisors who have a wealth of experience in helping clients maximise their pension fund with the help of gold bullion, and we can easily match you up with the expert to suit. Just make an enquiry or call us on 0808 189 0463 and we’ll put you in touch with an advisor who can offer a free pensions review and help you get the most out of your SIPP.
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FAQs
No – you cannot hold physical gold in an investment ISA.
Your only option, if you want to go down this route, is to invest in an ETF (exchange traded fund) that tracks the value of gold. This means you can still benefit from any positive movement in gold prices without physically holding bullion in your ISA wrapper.
Ask a quick question
We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions. Ask us a question and we'll get the best expert to help.
Tony Stevens
Finance Expert
About the author
Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.
Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.
