Physical gold is one of the oldest assets there is and yet one of the least understood by the average Spanish investor. Most mistakes are made before buying: in choosing the format, the dealer and how it will be stored. This guide is for people who want to buy with sound judgement, not for those looking for thrills.
In this article
1. Why physical gold and not "paper" gold
Physical gold has a property that no ETF, futures contract or allocated gold account replicates: it does not depend on the solvency of a third party. A gold ETF is a promise from an issuer; a bar in your possession is the asset itself.
This does not mean physical gold is always better. For tactical exposure, intraday traders or short-term hedges, financial vehicles are more efficient. But if what you want is long-term wealth preservation against monetary debasement, physical gold does something no derivative can.
2. Formats: bar, coin or grain
In Spain, the three legal formats for investment are:
| Format | Purity | Liquidity | Premium over spot |
|---|---|---|---|
| 1 kg bar | 999.9 | High (institutional) | 1 - 2% |
| 100 g bar | 999.9 | High | 2 - 4% |
| 10 - 50 g bar | 999.9 | Medium | 5 - 8% |
| Bullion coin (Krugerrand, Maple, Britannia) | 916 - 999.9 | Very high retail | 4 - 7% |
| Numismatic coin | Variable | Low | Variable and subjective |
Practical rule: the greater the fragmentation, the higher the premium over the spot price. Buying 1 kg in 10 g bars can cost you between 4 and 6% more than buying it as a single bar. Fragmentation comes at a price, but it gives flexibility when selling.
3. Taxation: the advantage almost no one knows about
Investment gold is exempt from VAT throughout the European Union (Directive 98/80/EC, transposed into Art. 140 of Law 37/1992). For the exemption to apply, the gold must meet these conditions:
- A minimum purity of 995 thousandths in bars.
- A minimum purity of 900 thousandths in coins, minted after 1800, which are or have been legal tender, and whose price does not exceed the market value of the gold by more than 80%.
Capital gains generated on sale are taxed under personal income tax (IRPF) as a capital gain within the savings base: 19% up to €6,000, 21% from €6,000 to €50,000, 23% from €50,000 to €200,000, 27% from €200,000 to €300,000 and 30% above €300,000 (scale in force in 2026).
Physical gold is one of the few assets where Spanish taxation clearly works in favour of the long-term investor, provided the transaction is correctly documented.
4. Certification: what has to appear on the bar
A professional bar must be stamped with:
- A unique serial number.
- Weight and purity (e.g. 999.9).
- The refiner's mark (ideally an LBMA Good Delivery refinery: PAMP, Argor-Heraeus, Valcambi, Umicore, Heraeus).
If you buy small bars (5 - 100 g), require them to come in a sealed blister pack with an integrated certificate. Breaking the blister pack reduces its resale value by between 1 and 3%.
5. The most common mistakes
Mistake 1: Buying from private individuals with no traceability
A coin or bar without verifiable certification is almost impossible to sell on the professional market. Even if the gold is real, without traceability you can only sell it to high-street gold buyers, usually at discounts of 8 to 15%.
Mistake 2: Paying numismatic premiums believing it is an investment
A numismatic coin (one with collector's value) is not an investment in gold but in collecting. Its price depends on supply, demand and fashion, not on the price of the metal. It is a perfectly valid market, but a different one.
Mistake 3: Storing everything at home "for safety"
A home safe has three problems: theft, fire and, above all, the fact that your home insurance probably does not cover metals above a laughably low limit (usually €3,000 - €6,000). For substantial wealth, professional storage in vaults independent of the banking system is the sensible option.
Mistake 4: Buying in moments of panic
When gold is in the headlines, retail dealers' premiums shoot up. Professionals do the opposite: they accumulate when nobody is talking about it.
Mistake 5: Not documenting the transaction
An invoice in your name, a serial number and a traceable bank payment are essential. Without these documents, the tax authorities may question the acquisition cost when you come to sell and treat the purchase value as zero, which pushes the taxable gain right up.
6. How much gold makes sense in a portfolio
There is no universal answer, but the institutional literature (World Gold Council, Bridgewater studies, analysis by the Bank for International Settlements) places the optimal allocation between 5 and 15% of total wealth, adjusted according to:
- The investor's age and time horizon.
- Existing exposure to equities and bonds.
- Tolerance for medium-term volatility.
- Macro thesis on inflation and monetary policy.
7. How Equus Capital operates
At Equus Capital we work with LBMA-certified physical gold, contracts with a buy-back clause, optional professional custody outside the banking system and documented tax planning on every transaction. We do not sell gold as a stand-alone product: we fit it into your overall wealth strategy.