Best way to invest 20k

With a £20,000 nest egg, you could easily benefit from investing in gold. Gold is a safe-haven asset, but has also outperformed many other investment vehicles in recent years, making it one of the best ways to invest 20k.

In terms of return on investment, gold is one of the best options to invest in, especially considering it has much lower risk than other assets. Historically, gold has also performed very well. Buying and selling physical gold is simple too, and there is no third-party risk from a broker or fund manager who could mismanage your investment.

As the chart below shows, a short-term investment can still yield good returns, but a long-term investment in particular can make considerable gains.

The simplicity of the investment, and strong returns are why we believe gold is the best way to invest 20k. Gold can also be used a great way to diversify a portfolio, with a 5 - 10% allocation typically being recommended. Have different assets forming part of your portfolio is a great way to further reduce your risks.

With inflation hitting double digits in 2023, 20k left in the bank is simply being eroded in value over time. As the gains above show, gold makes a great long-term investment, and in our opinions is certainly worth considering for any investor looking to protect £20,000.

Best investment for 20k

If you have decided that gold is the best investment for 20k that works for your situation then there are two ways to invest £20,000 in physical gold; coins and bars - and both offer unique benefits as discussed below.

Coins will have slightly higher premiums, due to manufacturing costs and size. Although larger coins exist, the
typical investment coin will be one troy ounce of gold, and for £20,000 this will involve buying multiple coins.
There are two benefits to this though; flexibility and tax reduction. By spreading your investment across several
coins, you can sell off pieces of your investment as and when you wish, giving you a highly liquid asset. For UK
investors, coins made by The Royal Mint also offer tax benefits on Capital Gains Tax. This means that, by buying
a UK coin, your £20,000 investment will be maximised when you buy, and tax-free when you sell.

The Royal Mint’s Gold Britannia would be the ideal coin for a £20,000 investment. Introduced in 1987 – and
containing 31.21 grams of 24 carat gold – the Britannia is internationally recognised, VAT-free, and CGT
exempt. At current gold prices, a £20,000 investment would buy you 12 of BullionByPost’s best value
Britannia coins.

Gold bars offer the lowest premiums; which for most investors is the primary factor behind their decision
to buy bars. The cheaper manufacturing costs, and bigger sizes, make bars the cheapest way to buy gold.
They’re easy to sell and easy to store, making them a hassle-free asset.

£20,000 in gold bars would involve a mix and match of sizes, but would give good flexibility. A 250g bar with
multiple smaller bars could give you the best of both worlds - a large bar with a low premium, and several smaller
bars for flexibility and part-selling opportunities.

Customers can also try our investment calculator for a range of package suggestions based on your budget.
This is a great way to find the best-priced options for you on the site, but tailored to your budget, and is one of
the best ways to pick a 20k investment in gold.