UK investors should verify the business and bullion independently, compare the full cost of buying and selling, and understand what happens to their money and gold after an order is placed.

A professional website, established trading name or accreditation logo should not substitute for those checks.

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What does a gold dealer do?

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A gold dealer is a business through which investors buy or sell physical gold. Bullion gold dealers typically specialise in investment products such as gold coins and bars, although some also trade collectable coins and other precious metals.

The dealer should not automatically be confused with the organisation that produced the gold or holds it in storage. A mint or refiner may manufacture the bullion, a separate dealer may sell it, and another business may act as custodian or vault operator.

Where several businesses are involved, establish which legal entity is responsible for each part of the transaction.

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Start by checking who you are dealing with

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Before comparing individual products, establish the identity of the business that will receive your money.

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Verify the business identity
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For an incorporated UK dealer, Companies House can help you check its registered name and company number, company status, registered office, officers and filing history.

Compare the company name and number shown in the dealer's terms, website or footer with the Companies House record. Then check whether the same entity appears on invoices and payment instructions.

Companies House registration should not, however, be treated as an endorsement of a gold dealer. Companies House does not verify the accuracy of all information filed with it.

Look for consistency across the dealer's website, terms and conditions, invoices, contact information and payment instructions. If different companies appear at different stages, establish the relationship between them before transferring money.

Trading history can provide additional context, but age alone does not prove that a business is reliable. It should form part of a wider assessment.

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Understand what regulatory and registration claims mean
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Terms such as "registered", "regulated" and "accredited" can sound reassuring, but they do not mean the same thing.

A business may be subject to particular HMRC requirements without HMRC having endorsed it as a suitable gold dealer. Similarly, FCA authorisation should only be understood as applying to the entity and activities actually covered by that authorisation.

The same principle applies to industry memberships and accreditations.

When a gold dealer makes such a claim, verify it with the organisation concerned and establish its scope.

The useful question isn't simply, "Is this dealer registered?"

It is: registered with whom, for what activity, and what does that status actually tell me?

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Verify the gold you are actually buying

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A reputable dealer should provide enough information for you to identify the bullion being purchased.

For a gold coin, relevant information may include the specific coin, issuing authority or mint, denomination, weight and fineness. Condition may also matter depending on the product.

For a bullion bar, check the refiner or manufacturer, weight and fineness, along with serial numbers, packaging or certification where these apply to the particular product.

The listing should provide enough information to establish what you will actually receive rather than relying on a generic description such as "investment gold".

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What does LBMA accreditation mean?
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The London Bullion Market Association (LBMA) maintains Good Delivery Lists for accredited gold and silver refiners and the bars covered by its Good Delivery system.

This distinction matters when assessing retail gold dealers.

A retail dealer may sell bullion products manufactured by a refiner that appears on the LBMA Good Delivery List. That does not mean the retail dealer is LBMA accredited, nor does it mean every retail product manufactured by that refiner falls within the scope of the Good Delivery List.

Investors should therefore distinguish between the credentials of the business selling the bullion and those of the organisation that manufactured or refined it.

If a gold dealership makes an accreditation claim, check exactly which entity holds the accreditation and what it covers.

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Compare the total cost, not just the advertised gold price

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Dealer premiums matter, but they are only one part of the cost of purchasing physical gold.

The amount you actually pay reflects the gold price used by the dealer, its premium and any additional costs such as delivery, insurance, payment charges or storage.

When comparing gold dealers, use the final executable price for the same product and quantity rather than comparing headline premiums in isolation.

Larger orders and different payment or delivery methods can produce different costs, so comparisons should be made on a like-for-like basis.

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Check the dealer's buyback price
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Existing investors should also consider the other side of the transaction: what happens when the gold is sold.

Two dealers may offer the same bullion coin at similar purchase prices while quoting materially different prices when buying that coin back. The difference between the amount an investor pays and the amount they could receive when selling forms part of the overall transaction cost.

A useful comparison is therefore to ask two questions at the same time:

What would this dealer charge me for this product today?

What would the same dealer pay today to buy an equivalent product from me?

Where possible, check whether buyback prices are published and how they are calculated.

Also establish whether the dealer buys bullion originally purchased elsewhere. Prices may differ depending on the coin or bar, quantity, condition or verification required.

Comparing the purchase premium without considering the potential exit price gives an incomplete picture of dealer costs.

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Check what happens after you pay

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The period between paying a gold dealer and receiving your bullion creates a different type of risk from owning physical gold itself.

Before placing an order, establish when the price is fixed, how payment is made and which business receives the money. Check the expected dispatch timeframe, whether delivery is insured, whether tracking or a signature is required, and what happens if a package is lost or damaged.

If bank details or the named payment recipient unexpectedly change during a transaction, verify the new instructions independently. Use established contact details rather than relying solely on the email or message containing the replacement payment instructions.

Documentation matters as well. Retain order confirmations, invoices and other records identifying what was purchased, the amount paid and the business involved.

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Consider how you will sell before choosing where to buy

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The existence of an established market for gold does not mean every coin or bar can always be sold immediately at the price an investor expects. Practical liquidity also depends on the product and the route used to sell it.

Look beyond the headline buyback price and understand the dealer's actual selling process.

Find out how and when the selling price is fixed. If the bullion must first be returned for verification, establish what happens if the dealer's eventual valuation differs from the price you expected.

Consider the logistics as well. If bullion must be posted to the dealer, who arranges and pays for insured transport? When is payment made? Are any fees deducted? Will the dealer buy bullion originally acquired from another provider?

These questions are easier to investigate before buying than when you later need to sell.

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Apply additional checks if the dealer will store your gold

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Buying bullion for delivery and buying bullion that remains in a storage arrangement create different counterparty considerations.

Where a dealer offers storage, establish how the arrangement works before assuming that paying for gold means specific bars or coins are being held on your behalf.

Questions to investigate include:
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• whether specific bullion is allocated or otherwise identified to your holding;
• who owns the bullion under the contractual arrangement;
• which organisation operates the vault;
• whether a separate custodian is involved;
• what insurance applies;
• how storage charges are calculated;
• whether withdrawal or delivery charges apply;
• whether physical delivery can be requested;
• what the contractual terms say about dealer or custodian insolvency.
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The arrangements vary between providers. The dealer's terms and custody documentation therefore matter more than general assumptions about how gold storage works.

If the ownership or custody structure cannot be clearly explained, investigate further before proceeding.

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Warning signs when assessing gold dealers

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No single warning sign necessarily proves that a gold dealer is fraudulent. However, unexplained inconsistencies are reasons to investigate further before transferring money.

Potential warning signs include:
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• an unclear legal or trading identity;
• inconsistencies between the dealer, invoice and payment recipient;
• vague bullion specifications;
• accreditation claims that cannot be independently verified;
• unexplained fees or pricing;
• unclear delivery or storage arrangements;
• payment instructions that unexpectedly change;
• pressure to transfer money quickly;
• promises of guaranteed returns or future gold-price performance.
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Pricing that appears materially out of line with comparable bullion also deserves scrutiny. A competitive premium is normal, but an unusually attractive price should not override basic checks on the business, product and transaction.

Storage creates additional considerations. If it is unclear who holds the gold, what the investor owns, how the bullion can be withdrawn or what happens if one of the businesses involved fails, resolve those questions before purchasing.

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A pre-payment checklist for choosing a gold dealer

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1. Verify the legal business. Check the company identity, trading information and contact details.
2. Verify the bullion. Confirm the precise coin or bar, its weight and fineness, and the mint, refiner or manufacturer responsible for it.
3. Verify important claims. Check regulatory, registration, membership and accreditation claims with the relevant organisation and establish what each status actually covers.
4. Compare purchase and buyback prices. Look at the final amount payable and the dealer's current price for buying equivalent bullion back.
5. Confirm payment and fulfilment. Establish who receives your money, when the price is fixed, expected dispatch times and how the bullion is insured in transit.
6. Check how selling works. Understand price fixing, verification, return arrangements, applicable charges and payment timescales.
7. Check custody separately if using storage. Establish ownership, allocation, custody, insurance, costs and withdrawal arrangements.
8. Resolve discrepancies before paying. If the identity of the business, bullion, payment recipient or custody arrangement cannot be satisfactorily established, there is no need to proceed with that provider.

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No single registration, review score or accreditation proves that a gold dealer is reputable. The stronger test is whether the dealer's identity, products, pricing, payment process, fulfilment and buyback arrangements can all be independently understood and verified before money changes hands.