Physical gold is one of the oldest assets and, paradoxically, one of the least well understood by the average Spanish investor. Most mistakes are not made at the moment of the transaction, but before it: in the choice of format, of provider and of the method of custody. This guide is written for those who want to enter the asset with sound judgement, not for those looking for thrills.
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 superior. For tactical exposure, intraday traders or short-term hedges, financial vehicles are more efficient. But if the thesis is long-term wealth preservation against monetary debasement, physical gold performs a function that no derivative can fulfil.
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:
- 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 28% 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 practically unsellable in the professional circuit. Even if the gold is real, without traceability you can only sell it in the retail resale market, usually at discounts of 8 to 15%.
Mistake 2: Paying numismatic premiums believing it is an investment
The numismatic coin (with collector's value) is not an investment in gold, it is an investment in collecting. Its price depends on supply, demand and fashion, not on the price of the metal. It is a valid market, but not an equivalent one.
Mistake 3: Storing everything at home "for safety"
The home safe has three problems: risk of theft, risk of fire and, above all, the fact that your home insurance policy probably does not cover metals above a ludicrous limit (usually €3,000 - €6,000). For substantial wealth, professional custody in vaults independent of the banking system is the reasonable option.
Mistake 4: Buying in moments of panic
When gold is in the headlines, retail distributors' premiums soar. The professional rule is the opposite: accumulate when the asset is out of public conversation.
Mistake 5: Not documenting the transaction
A named invoice, a serial number and a traceable bank payment method are essential. Without this documentation, the tax authorities may question the acquisition cost in a future sale and apply an origin value of zero, which drives up the taxable gain.
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 product: we structure exposure to the asset within a wealth strategy.