Introduction
Gold is having a big moment again. Its demand has surged to record levels recently as investors react to a weakening U.S. dollar, rising geopolitical tensions, and aggressive buying by central banks worldwide. In 2025, global gold demand surged, witnessing its biggest yearly gain since 1979. Its prices increased by over 60% this year, crossing $5000 an ounce. This reflects the steady move by investors toward “safe haven” assets. Unlike stocks or high-risk tokens, it does not depend on company earnings or hype cycles. It has been used as money and a wealth reserve for thousands of years. In times of inflation, banking uncertainty, or market crashes, many investors turn to gold to reduce risk. If you have made profits in crypto and you want to protect some of those gains without fully exiting the digital ecosystem, gold naturally enters the conversation.
With the ongoing economic uncertainty, inflation pressures in the UK, and changing regulations, there is a need to seriously consider how and where you store value. In this article, we’ll be digging deep into how to buy gold with crypto in the UK. You’ll get to understand the legalities surrounding its purchase, how digital gold tokens like PAXG and XAUt function, and how physical gold purchases with crypto operate.
Table of Contents
- Introduction
- Is it Legal to Buy Gold with Crypto in the UK?
- What Options do UK Investors have for Buying Gold with Cryptocurrency?
- How to Buy Gold with Crypto in the United Kingdom in 6 Steps
- Where to Purchase Gold with Crypto in the UK?
- What Taxes do UK Investors Need to Pay When Buying Gold with Crypto?
- FAQs
- Conclusion
Is it Legal to Buy Gold with Crypto in the UK?
No UK law bans the use of crypto assets such as Bitcoin or stablecoins to purchase physical gold or gold-backed digital tokens. In the UK, crypto assets are not illegal tender but property, so you’re free to own and trade them for another asset, including gold.
Meanwhile, these sorts of transactions must pass through businesses that follow UK regulations. Crypto exchanges and service providers that operate in the UK must register with the Financial Conduct Authority (FCA) and comply with anti-money laundering rules. However, legality does not remove tax duties. Since digital assets are seen as property, you’re required to pay taxes to HM Revenue & Customs (HMRC). So, to answer the question earlier: yes, it is legal to use crypto to purchase goldin the UK.
What Options do UK Investors have for Buying Gold with Cryptocurrency?
Buying Physical Gold
The first option is buying real gold bars or coins that exist outside the digital space. The gold can be delivered to your home or stored in a secure vault under your name in the UK. When you pay with cryptocurrency, the seller converts your crypto into fiat behind the scenes and settles the transaction in gold.
This option is often preferred if you want full control over a tangible asset. If your goal is long-term wealth preservation or protection against banking risk, physical bullion may suit you. Across the UK and Europe, several reputable bullion dealers accept crypto payments. International dealers like Bitgild accept cryptocurrency and ship purchases to the UK.
Buying Digital Gold
The second route is buying digital gold through blockchain-based tokens backed by physical gold. In this case, you’re not receiving gold bars, but rather, you hold a crypto token that represents ownership of a set amount of real gold stored in vaults. This path is most suitable when you want exposure to gold without dealing with shipping, storage, or insurance. Two major examples are PAX Gold and Tether Gold. Each token is backed by physical gold stored in professional vaults. You can purchase these tokens on large exchanges, depending on their availability for UK residents.
How to Buy Gold with Crypto in the United Kingdom in 6 Steps
- Type of gold to purchase
First thing is to decide if you want physical gold bars or coins delivered to you. If you are buying physical gold, check the purity (usually 99.5% or 99.99%) and its qualification as an investment-grade bullion. Investment-grade gold is VAT-free in the UK, which makes a big difference to your total cost. Your desired gold weight also affects the price, storage cost, and resale value. - Live gold price and final quote
Gold prices fluctuate throughout the day based on the global market. To avoid errors in your account, review the live gold rate per ounce or gram before you commit. Dealers usually add a premium (dealer markup or premium over spot) to the market price. This covers minting, logistics, operating costs, and their profit margin. - Extra costs and UK tax rules.
Looking over details about delivery fees, vault storage charges, and insurance cover is non-negotiable. If you ordered the gold to be shipped to your home, check the packaging and insurance. - Crypto payment method
At checkout, choose the crypto method for payment. The platform will generate a wallet address and show the exact crypto amount based on the locked gold price. Double-check the address before sending funds because crypto payments cannot be reversed once sent. - Payment window for crypto transfer
Quoted prices are usually valid for a short period. If you miss the window, the order may expire, and you will need to restart at a new rate. After you send the crypto, wait for blockchain confirmations. The number of confirmations required depends on the coin you used. The order moves to the next stage after the network confirms your payment. - Delivery or storage arrangements
When payment is confirmed, the dealer will process your order. If you’re getting a home delivery, you will receive tracking details and an estimated arrival date. But, if you’re using a vault storage, you would receive proof of ownership and storage documents.
Where to Purchase Gold with Crypto in the UK?
Bitgild
Founded in 2013, Bitgild is a Netherlands-based precious metals dealer that sells physical gold and silver, and accepts cryptocurrency as payment. Since its launch, the company has shipped over 50,000 parcels to customers across Europe and other regions. Orders are paid through a self-hosted crypto payment system, giving users easy access to use their wallets for transfers without relying on third-party processors.
Sharps Pixley
Sharps Pixley, which was established in 1796 by William Sharp, is an independent, full-service precious metals brokerage based in London with a global client base. It deals in physical gold, silver, platinum, and palladium. It also runs secure vaulting and safe deposit box services in high-security facilities. You can transact using Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), XRP, USDC, GUSD, PAX, and BUSD, which offer a direct process for buying gold with Bitcoin. The firm combines centuries of trading history with modern crypto payment options.
Kinesis Money
Kinesis Money is a digital platform built around physical gold and silver ownership on a blockchain system since 2018. Through its minting system, you can create KAU (gold) and KAG (silver) by depositing funds, with each unit backed by allocated metal stored in professional vaults. KVT is its yield-bearing token linked to platform fees. One of its standout features is the Kinesis virtual card that connects metal balances to everyday spending.
APMEX
One of the top platforms to consider is APMEX, a well-known online precious metals dealer based in the U.S. It carries a huge selection of over 30,000 products, including gold bars, coins, and rounds from famous mints like the Royal Canadian Mint, U.S. Mint, and Perth Mint. You can check out its Vintage Shop for rare and collectible pieces or browse unique categories such as bullion coins, gold sets, and commemorative editions. The platform also supports payment for gold with Bitcoin, making it easy to move crypto into physical gold.
What Taxes do UK Investors Need to Pay When Buying Gold with Crypto?
One of the most comforting things about purchasing gold with cryptocurrency in the UK is that you don’t pay VAT on investment-grade bullion. This includes standard gold bars and coins of recognised purity. However, you may need to pay Capital Gains Tax if you sell gold to make profit later.
FAQs
What are Gold-Backed Tokens?
Gold-backed tokens are digital assets that represent real physical gold stored in secure vaults. Each token is tied to a fixed amount of gold, such as one ounce or a fraction of it. The tokenised gold is used to track gold’s price and hold its value in a crypto wallet.
Is it Better to Buy Gold or Bitcoin?
Gold holds value during crises and has centuries of trust behind it. Meanwhile, Bitcoin can deliver higher returns but comes with sharp price swings. So, if your goal is stability, gold wins. If you want growth and accept risk, Bitcoin wins. It depends on what you want.
How to Know the Best Time to Buy Gold with Crypto?
The first thing is to observe gold price trends and crypto market cycles. When gold pulls back after a strong rally, and your crypto holdings are still in profit, that can be a smart entry point. Also, pay attention to inflation data, central bank buying reports, and major global tensions, as these often push gold higher.
What is the Best Platform to Buy Gold in the UK?
Sharps Pixley stands out as the best platform in the UK from this list. It is London-based, founded in 1796, and deals directly in physical gold with secure vault storage. You can pay with Bitcoin and other major cryptocurrencies, making it a strong choice for UK buyers who want trusted local service.
Conclusion
You now have the steps, legal points, platform options, and tax rules you need before you buy gold with crypto in the UK. Take your time to review fees and risks, protect profits, but never move funds without a clear plan.
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