Read our free, no obligation guide to find out more about how you can invest in tax free UK Why Invest in Gold Coins?
Safety, security and tangibility in an uncertain world
Efficient investment:
The market supply of gold coins is limited to those issued historically and the new coins minted each year by the Royal Mint. Currently Sovereign coins are limited to 100,000 minted each year and Britannia coins even less.
Gold coins are collectible and provide a fantastic heirloom due to their additional design qualities and limited issue. Some collectors try to source older gold coins for sale that carry a sense of history with them, or collect coins with different sovereign heads to complete a "set".
Due to these qualities, the value of gold coins consists of both the intrinsic value of its gold content plus the additional premium the coins demand. Therefore their value is above that of a similar amount of gold in bar form. The market value of the coins fluctuates less than the spot gold price due to the additional premium balancing out any volatility in the gold price.
There is no VAT to pay when investing in gold coins as they are classed as investment gold which attracts an exemption. If coins are bought purely as an investment, there is no income as such derived and therefore no income tax to pay. There is no Capital Gains Tax (CGT) to pay when a UK resident sells UK Sovereigns and Britannia coins at a profit, as they are technically classed as legal tender. This contrasts with many alternative investments that attract income or capital gains tax. Therefore an investor gets to keep all their profit, which further enhances returns.