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Royal Mint DigiGold is a digital gold product that allows investors to buy fractions of physical gold stored in the Royal Mint’s vault in Llantrisant, Wales, through the Royal Mint’s app or website. You own a digital record of allocated gold - not a specific coin or bar - and can start from as little as £25.
DigiGold is not the same as buying a Gold Sovereign or Britannia. The key difference is CGT treatment: DigiGold is not UK legal tender and gains are taxable.
At a glance
| DigiGold | Physical Sovereign | UK-listed gold ETC in a S&S ISA | |
|---|---|---|---|
| Minimum investment | ~£25 | ~£950 | ~£1 (fractional) |
| Physical ownership | No (allocated, but digital) | Yes | No |
| CGT | Taxable | Exempt | Exempt (inside ISA) |
| VAT | None | None | None |
| Storage fee | 0.5%/year | 0% (if at home) | ~0.12–0.40%/year (TER) |
| Can you take delivery? | No (or only full LBMA bars) | You already hold it | No |
| FCA-regulated as a security? | No | No | Yes (the ETC is listed) |
What is DigiGold?
DigiGold is operated by The Royal Mint Bullion - a commercial subsidiary of the Royal Mint. When you buy DigiGold:
- You own a fractional claim on physical gold held in the Royal Mint’s vault
- The gold is allocated to your account in grams
- You cannot take delivery of your specific holding (the minimum bar delivery is a full LBMA bar, approximately 400oz - worth ~£1.5 million at current prices)
- The gold is stored in a UK Crown-owned facility and is insured
The annual storage fee is 0.5% of the value of your holding. This is charged monthly. On £1,000 of gold, that is £5/year - modest, but it compounds.
Is DigiGold CGT-free?
No. DigiGold is not UK legal tender. You own a fractional claim on gold in a vault, not a specific coin classified as legal tender under the Coinage Act 1971.
Gains from selling DigiGold are capital gains, subject to CGT at 18% (basic rate) or 24% (higher rate) after the annual exempt amount (£3,000 in 2026/27).
This is the most important distinction between DigiGold and a physical Gold Sovereign. A Sovereign at £950 is CGT-free. DigiGold at £950 is taxable.
DigiGold vs BullionVault
BullionVault is DigiGold’s main direct competitor in the vaulted gold space. Key differences:
| DigiGold | BullionVault | |
|---|---|---|
| Storage fee | 0.5%/year | 0.12%/year (gold, Zurich vault) |
| Purchase commission | 0.25% | 0.5% (falls with volume) |
| Vault locations | UK only (Llantrisant) | Zurich, Singapore, NY, London, Toronto |
| VAT on silver | N/A (gold only) | Not charged in Zurich/Singapore vaults |
| Market type | Fixed buy/sell spread | Live marketplace - buy from other users |
| FSCS protection | No | No |
BullionVault’s storage fee is significantly lower (0.12% vs 0.5%) - on a £20,000 position held for 10 years, that gap amounts to roughly £1,520. Purchase commission works differently: DigiGold charges less on small transactions, while BullionVault’s commission falls sharply with volume, making it cheaper for larger buyers. Neither is FCA-regulated as a financial product, and client metal at both is segregated and allocated.
DigiGold vs a gold ETC in an ISA
DigiGold and a UK-listed gold ETC inside a Stocks and Shares ISA are structurally different routes to gold-price exposure.
| DigiGold | UK-listed gold ETC in a S&S ISA | |
|---|---|---|
| CGT | Taxable | Exempt (inside ISA) |
| Storage cost | 0.5%/year | ~0.12–0.40%/year TER |
| Buy/sell spread | 0.5% typically | LSE market spread — often 0.01–0.05% |
| Minimum | ~£25 | ~£1 via fractional shares |
| Platform fee | None | ISA platform fee (0.15–0.45%/year) |
| Counterparty | Royal Mint Bullion | The relevant ETC issuer and custodian |
On a like-for-like cost comparison, the ISA-ETC route tends to carry a lower headline storage charge and the ISA wrapper removes CGT. DigiGold has a recognisable consumer brand, no platform fee, and a lower entry minimum. Neither is “better” in the abstract — the right choice depends on holding size, intended holding period, and individual tax circumstances. UK-listed gold ETCs are controlled investments under FSMA; see the factual ETC reference page for product-by-product detail and consult a regulated adviser if you want a personal view.
When DigiGold might make sense
Very small regular amounts via the Royal Mint app: The interface is simple and the Royal Mint brand is reassuring for buyers who are cautious about third-party platforms.
Within CGT allowance: For buyers whose gains are reliably within the £3,000 annual exempt amount, the CGT difference is irrelevant.
Short-term gold price exposure: For short-term positions where CGT is unlikely to crystallise meaningfully.
Buyers who specifically want Royal Mint connection: Some buyers value the provenance of owning gold in the Royal Mint’s vault above cost comparisons.
Tax and regulation
CGT: Taxable on gains. No CGT exemption applies to DigiGold.
VAT: No VAT on investment gold, including DigiGold.
FCA: DigiGold is not a regulated financial product. There is no FSCS protection. However, as a Crown-owned institution, the Royal Mint is unlikely to fail in the conventional sense.
Ownership: Your gold is allocated in your name and is not on the Royal Mint’s balance sheet. It would not form part of the Crown’s assets in an insolvency scenario (which is in any case a remote possibility for a Crown body).
This guide contains factual information only and does not constitute financial or tax advice.
How the three routes compare
The three options serve different needs.
A UK-listed gold ETC inside a Stocks and Shares ISA combines the CGT shelter with low headline annual charges and exchange-traded liquidity, at the cost of holding a financial instrument rather than physical metal and paying an ISA platform fee.
DigiGold sits between the two on cost and brand. Its 0.5% storage fee is higher than typical ETC TERs and gains are taxable as CGT, but there is no platform fee, the Royal Mint app is straightforward, and the underlying gold is allocated and segregated.
Physical Sovereigns deliver direct ownership and a CGT exemption, with no ongoing charges if stored at home — at the cost of a higher entry price and the practicalities of physical storage and insurance.
None of these descriptions amount to a recommendation: which route fits a given person depends on holding size, holding period, tax position and whether physical possession matters to them. A regulated adviser can help with the suitability question.
Frequently asked questions
Is DigiGold safe? Your gold is stored in the Royal Mint’s vault and allocated to your account. As a Crown-owned institution, the Royal Mint is subject to oversight beyond that of a private company. There is no FSCS protection. The gold is yours and not on the Royal Mint’s balance sheet.
Can I convert DigiGold into a physical coin? Not directly - you cannot redeem DigiGold for a specific coin. You can sell your DigiGold holding at current market value and use the proceeds to separately buy a coin from the Royal Mint or another dealer.
Why does DigiGold charge more for storage than BullionVault? Partly the Royal Mint’s cost structure, partly positioning - the Royal Mint is a premium brand. The 0.5% annual fee is higher than most vaulted gold platforms.