Collecting gold coins
If you’re a coin collector, numismatic scholar or just a hobbyist with an interest in gold coins, it’s likely that you already have a great deal of knowledge of the UK gold coin market. Turning that knowledge into a profitable investment for your future is a very realistic endeavour, especially given the positive state of today’s gold coin market.
As you may already be aware, there’s a sweet spot in the UK market at the moment for semi-numismatic coins. In particular, Victorian, Edwardian and Georgian sovereigns are trading at higher prices than brand new sovereigns. These higher prices are due to the scarcity of these coins compared to their newer compatriots. This presents a prospective opportunity for collectors, who may wish to retain their collection for now, in anticipation of a potential value rise as the coins age. The alternative is to cash in on an existing opportunity to trade the coins, at a price currently above their intrinsic gold weight.
If you’re new to collecting gold coins, it is important for you not to make mistakes when buying gold coins. One of these is purchasing from a TV infomercial. There are many TV commercials which promise collectors on the best deals on the rarest of rare coins. The problem with buying off these shows is that it will never be the best deal, no matter what they say.
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Simple logic should tell us that there are exorbitant marketing and advertising costs involved in selling coins in this manner, including the costs of producing the infomercial. These costs will be added on to the price of the coins, making them a lot dearer. Another point to consider is the rarity of the coin. If a coin is being mass marketed through advertising, it means there is a huge supply of the coins in order to meet the demand. This also means that they cannot be very rare, and often these commercials talk about the rarity of the coin in a bid to lure you into purchasing. A quick online search of the same coin will prove that it is available from other reputable sources online and offline dealers often at far more reasonable prices.
Gold Coins Investment
Gold investment research sources
It is also important to research a coin properly before purchasing it or speak to a gold investment expert. A good starting point is the Numismatic Guaranty Corporation (NGC) or the PCGS. Both of these are reputed coin certification companies and their websites contain a wealth of information about rare coins and their values. Another great source of information about which rare coins to buy are the mints around the world, like the Royal Mint. When buying a rare gold coin, one must ensure it is certified and graded by a professional grading service. If the coin is in a slab, it should have been encapsulated by the NGC or PGCS, otherwise, it may not be in a condition that the seller claims it is in. Likewise, one should never remove a coin from a certified slab as it would affect the value.
This is crucial….
Another point to note is that a rare coin should never be cleaned. Cleaning it with solutions will simply damage the coin and erode its value. Touching a coin with bare hands is yet another complete no-no. Coins should only be handled when wearing gloves. Last but not least, when a coin is sold as a low mintage, it does not mean that it is rare. The intrinsic value of a rare coin is directly proportional to its demand, not to the numbers that were minted.
Numismatic gold coins
The above scenarios are two examples of opportunities available to utilise your knowledge of coins for your benefit. The value of gold coins is based on their gold content, coupled with a further premium reflecting their historical worth and scarcity. Because numismatic coins are valued this way – both on gold weight and historical value – it’s possible to achieve greater gains than you may otherwise be able to achieve, if you were solely investing in modern coins. This can be particularly true if you begin to save now, for the longer term, or have amassed a collection already which you’re willing to start liquidating
What should I be aware of…
However, if you’re just starting out in your coin collecting and investing, it’s wise to take care when interacting with numismatic or semi-numismatic coins. As some trade significantly above their intrinsic value, it’s feasible that you’ll pay a much higher premium. And whilst you may be able to recoup this premium upon sale, you may find yourself in a situation where it’s difficult to find a specialist buyer willing to match your valuation.
Specialist collectors may also wish to add to their holding with modern gold coins. Agility is required to capitalise on semi-numismatic coins, as they need to be purchased when premiums are low and sold at times when premiums rise. However, new sovereigns can be used to add flexibility to your collection and ensure you enjoy the benefits of owning gold coins over a longer period.
Help from Physical Gold
Whether you’re a new or experienced collector of coins, Physical Gold can help with information on your collection, whatever your financial requirements. To learn more about how we help collectors and private individuals just like you, contact us here, call 020 7060 9992 or download our Guide to Investing in Gold and Silver.
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Gold Britannia coins are popular with numismatists and investors alike. We frequently receive questions about these popular coins, so have prepared this page of gold Britannia coins FAQs with answers, which we hope helps you with your research.
What are the cheapest Britannia gold coins?
Please visit https://www.physicalgold.com/insights/what-are-the-cheapest-gold-britannia-coins to read a comprehensive answer to this question.
How do I sell Britannia gold coins?
Please refer to our detailed answer to this question by clicking this link.
Are gold Britannias legal tender?
Read our answer to this especially important question here, https://www.physicalgold.com/insights/are-gold-britannias-legal-tender.
Are gold Britannias a good investment?
Please visit https://www.physicalgold.com/insights/are-gold-britannias-a-good-investment/, for a detailed reply to this question.
Gold Britannia vs Sovereign
Please read our detailed answer to this question at this link.
Buy the Gold Britannia coin directly from Physical Gold Limited
Was Britannia on Roman coins?
Britannia has actually appeared on Roman coins since 119 AD. The practice of using the persona of an authoritative female to portray a nation has existed for hundreds of years. When the Romans invaded Britain, they used the depiction of Britannia to signify the colonised country on their coins.
Can you get Platinum Britannia coins?
We have provided a separate blog post to answer this question, please see https://www.physicalgold.com/insights/can-you-get-platinum-britannia-coins.
Should I buy old or new Britannia coins?
For a detailed reply to this question, visit this link.
What is the value of Britannia gold coins?
See https://www.physicalgold.com/insights/whats-the-value-of-gold-britannia-coins/ for a detailed answer to this question.
Which years does Britannia face left?
There is no pattern to which way Britannia faces on the reverse of UK coins and this adds to the collectability. Examples of Britannia facing to the left include the 2001 ‘Una & The Lion’ Britannia and the 2005 Philip Nathan designed coin which features a seated Britannia.
Who is Britannia on the coins?
Read our detailed answer to this question at https://www.physicalgold.com/insights/who-is-britannia-on-the-coins.
What are Britannia gold coins?
Please read our detailed answer to this question by clicking this link.
How to buy gold Britannia coins?
The best place to buy Gold Britannias is directly from a reputable bullion dealer. Most will have online stores where Britannias can be bought with a variety of payment methods and delivery is usually free, insured, and quick. These sites usually feature live pricing which updates with the spot price every 60 seconds. Bullion dealers should be members of the BNTA to ensure trustworthiness.
Do you have any more questions?
No worries, if you need any further support, please contact us at:
- By phone – 020 7060 9992
- By contact form – https://www.physicalgold.com/contact
You can’t go wrong with Sovereign coins
While most UK investors have owned property, shares, bonds and ISAs at some point, gold investment is still pretty new. If you’re a novice, what’s the best place to start a physical gold portfolio? In our opinion Gold Sovereigns provide a perfect starting point for the new gold investor!
1. Great value – Sovereign coins have existed for hundreds of years so there’s a very deep second hand market. This means that older Sovereigns provide a lower price per ounce as than any other gold coin – perhaps along with Krugerrands. Buying any asset at a low price is a great starting point!
*Pro-tip: Buy the pre-owned ‘Best value’ Sovereigns. They’re cheaper than brand new ones, but will obtain the same price when you sell.
2. Further discounts with volume – Specialist dealers like Physical Gold will generally be able to offer even lower prices if you buy 50 Sovereigns or more. In fact discounts can be achieved on a sliding scale once you look at more than a single coin. Our website has handy volume discount tables for each coin.
3. Easy to sell – Sovereign Gold Coins are arguably the most established bullion coin in the market so you’ll always be able to sell the coins at a great price. If you try to sell an obscure coin, the reduced number of buyers will be reflected in a lower price per ounce for that piece of gold
*Pro-tip: Give your dealer a week or two notice that you wish to sell, and you may achieve a slightly higher selling price if the dealer can match up your sale with a buyer.
4. Affordable – While 1oz gold coins are now trading around the £1,400 mark, Sovereign coins are around a quarter of the size and price. This provides a great opportunity to dip your toe in the market or even set up a regular gold savings scheme, whereby you receive a Sovereign coin every month
5. Tax free – Sovereigns are VAT exempt like all other forms of investment grade gold. However, they have the huge added benefit of also being Capital Gains Tax free due to their status as legal tender in the UK. For a novice seeking to buy gold, this provides peace of mind that you’ll never be hit with a tax bill
6. Flexible – Due to their small size, even a modest investment of say £2,000 will provide 6 Sovereign coins. This provides versatility that you can sell as little as one coin at any time of you need to realise some cash. Larger coins or bars do not offer this flexibility
7. Talking Point – The sheer variety of issue dates and Sovereign heads available means that a novice investor can own a piece of history as well as a superb investment. For anyone who’s enjoyed watching The Crown on Netflix, modern Sovereign coins date back more than 200 years, reflecting the various monarchs and periods of reigning.
So if you want get started in the world of gold, buy Gold Sovereigns and you won’t go far wrong.
Gold coins have been a source of great attraction for many individuals over the centuries. Numismatists who collect gold coins are thrilled with the idea of acquiring a precious and rare gold coin. Investors choose to buy gold bullion coins due to the returns they can make on their investments. Of course, there are certain compelling advantages to buying gold coins.
They are easy to store and often come packaged in monster boxes. They provide divisibility to an investor’s gold portfolio. Also, they have a certain aesthetic value, which many investors prefer over gold bars. However, if you’re thinking of investing in gold coins, there are certain parameters to be aware of.
Gold coins are a fascinating investment
Checking gold coin authenticity
How will you know that the gold coins, you have just invested in are authentic? You will need the services of a gold expert who can certify the authenticity of the coins. But, there are certain checks you can do at home that can help you decide whether the coins are genuine or not. Gold, like other precious metals, has a high density. Therefore, the size of the coin would depend on its weight.
If the gold content of the coin has been tampered with and a certain percentage of base metals introduced into the coin, it will be lighter than it should be. Therefore, you can measure the diameter, thickness, and weight of the coin. To do this test at home, you will require a set of Vernier callipers and a weighing scale used by jewellers. You can also use a magnet to detect the purity of gold in the coin. Since gold is non-magnetic, a pure gold coin will not be attracted by a magnet. There is also a device called the Fisch Tester that allows you to test popular gold coins like the Krugerrand or the Gold Britannia.
Gold weighing scales are often used by jewellers
Apps to test your gold coins
Yes, in 2021, there is an app to test gold coins as well. These apps emit a sound and generate a ‘ping test’ by measuring the echo your coin produces. One of these apps is called Coin Trust and there is a drop-down menu that allows you to select the particular coin you’re testing and proceed from there.
Buy your gold coins from a reputed coin dealer
If you know which coins to buy, then simply purchase them online from a trustworthy broker. If you need guidance as to which gold investment coins to buy, then any good dealer will be able to advise you. Generally, stick to bullion finish coins, rather than proof finish, and only buy really well-known coins. In the UK, Sovereigns and Britannias are best as they’re also tax-free.
The simplest way to buy authentic and genuine gold coins, without going through the hassle of testing them at home is to buy your gold from a reputed UK dealer. Most reputed dealers will provide you with a certificate of authenticity, which is stamped by a coin certification agency like the PCGS or NGC. Storing the gold coin is important and you should never remove the coin from its original packaging so that there are no doubts regarding genuineness when you want to sell the coin.
Call Physical Gold to find out more about buying gold coins
Physical Gold is one of the U.K.’s most reputed gold dealers and has a team at your service that can guide you on how to buy gold coins and advise you on the authenticity of the coins you own. Please reach out to us on (020) 7060 9992, or simply send us an email and our team will connect with you to help you purchase the right gold coins.
Image credits: Mark Herpel and Pxhere
The gold Sovereign is the pride and joy of British coinage and has been around for a very long time. The modern gold Sovereign was launched in 1817, however, the Sovereign has a history that dates back even longer. The 1817 coin was part of the great British Re-coinage of 1816. The original 1817 gold Sovereign was designed by the Italian designer, Benedetto Pistrucci, who created the classic image of St George slaying the dragon. This is the image that appears on the gold Sovereign. At the time, the brother of the Duke of Wellington, William Wesley Pole commissioned the Italian designer to create the new coin for the re-coinage. Thereafter, the Sovereign was created to replace an older British coin called Guinea.
A fine example of an 1838 Gold Sovereign
The early history of the Gold Sovereign
The gold Sovereign is based on an even older British coin called the English Sovereign. This was issued in 1489 by King Henry VII. The English Sovereign weighed of 15.55 g in gold. It was the first coin with a value of 1 pound, and its size and fineness of gold changed over the years. In 1603, when King James I acceded to the throne of England, a Sovereign was released to commemorate the occasion. After that, the Sovereign was withdrawn from circulation and did not resurface until 1817.
How much gold did the 1817 Sovereign contain?
Under the proclamation of King George IV in 1817, the weight of the gold Sovereign was set at 5 pennyweights, three grains, Troy weight of standard gold. When we calculate this amount in grams, it becomes clear that the 1817 gold Sovereign contained approximately 7.942 g of gold. According to the proclamation, the 1817 gold Sovereign would also be known as the 20 shilling coin. It was this occasion that heralded the birth of the modern Sovereign, as we know it.
The changing Sovereign
Over the years, the design of the Sovereign was modified with the reign of each British monarch. For example, the Sovereign of King George IV features a laureate head of the King. Once again, when King William IV took over the throne in 1830, a new makeover of the sovereign was created.
By the reign of Queen Victoria, the Sovereigns size and weight were standardized, containing 7.98 g of gold, with a purity of 91.7%. The coin, popularly known as the Young Head, had a diameter of 22.05 mm and a thickness of 1.56 mm. However, the gold content of the Sovereign was eventually brought down to 7.32 grams of gold. This weight continued through the reigns of King Edward VII, George V, right up to the 2022 gold Sovereign of Queen Elizabeth II. Currently, the half Sovereign of Queen Elizabeth II contains 3.66 g of gold.
The obverse of the Sovereign of King George IV with a laureate head
Both coins are tax-free when bought and sold in the UK. A full Sovereign contains 7.32g of gold, with the smaller coin containing exactly half that amount. Half Sovereigns tend to cost more per gram to buy but provide more divisibility to a coin portfolio. A mix of both types of Sovereign is preferable for a balanced collection.
A bullion coin
Both the full Sovereign and the half Sovereign are now released by the Royal Mint as a bullion coin. Since 1932, the Sovereign has been withdrawn from circulation. However, it continues to enjoy its status as a legal tender coin. In the UK. However, its gold value makes it unfit for use in the economy as a payment method.
Talk to the gold experts to know more about the British Sovereign
Physical Gold is proud to be one of the largest and most reputed gold dealers in the UK. If you wish to invest in gold Sovereigns, please speak to our investment team, who can guide you on getting the best deals for this coin. Call us on (020) 7060 9992 or drop us an email via our website.
Image credits: Public.Resource.Org and Wikimedia Commons
There are many gold coins in the market and an investor needs to decide which ones to add to his portfolio. Undoubtedly, two of the best British coins that are attractive to investors are the Gold Britannia and the Gold Sovereign. In this article, we will explore the merits and demerits of both these coins and assess them based on key attributes and fundamentals required for building a strong portfolio.
Variety is the spice of life
A key consideration when choosing any gold coin for your portfolio is variety. As an investor, you need to have a good distribution of popular gold coins in different sizes and dimensions. There can also be variations based on the year of issue. The Gold Sovereign is an excellent choice when it comes to variety. The coin has been around for more than two centuries and several issues over the years are available from the reigns of different British Kings and Queens. In terms of size, there is also a wide choice that’s available.
A Sovereign from the reign of King George IV
The Sovereign comes in different denominations such as the half, double and quintuple Sovereigns. Within the reign of just one British monarch – Queen Victoria, there are three available variations of the Sovereign. These are well-known as the Young Head, the Jubilee Head and the Old Head. When one takes into consideration all the attributes of the Gold Sovereign, it can be called an excellent choice that adds divisibility, variety and balance to your investment portfolio. When we compare the Britannia to the Sovereign, it’s worth noting that the Britannia only carries the portrait of our current Queen, Elizabeth II. On the other hand, the modern Sovereign carries the images of eight British monarchs.
Value for money
Gold Sovereigns are around one quarter the size of Britannias (1oz), making them slightly more expensive per gram due to the higher relative production cost. However, their smaller size provides more flexibility for gold investors. A mix of both is preferable in a portfolio, especially as both coins are tax-free in the UK due to their legal tender status.
The Gold Britannia is the flagship coin of the Royal Mint
Some Sovereigns may carry premiums based on their rarity and historical value, however, Sovereigns that were minted as a bullion coin are easily available at low premiums. By this comparison, the Gold Britannia is also a bullion coin that has been around since 1987. Since it is a recent coin, Gold Britannias do not carry any historical premiums. The coin is easily available from most gold dealers with greater discounts on larger volume purchases. However, the Britannia is four times larger than the Sovereign in size, making it a more expensive coin.
Download the 7 Crucial Considerations before you buy Gold HERE
Divisibility provides balance to your portfolio
The Sovereign provides a greater variety and choice when compared to the Gold Britannia. Due to its smaller sizes, the Sovereign provides investors with the freedom and flexibility to sell the coin at various price points in the market by trading in different sizes and denominations.
Liquidity is an important consideration
In terms of liquidity, both coins are evenly poised, since they enjoy a strong secondary market. For investors, liquidity is a very important factor as investing in obscure coins defeats the objective of investment. The coin should be saleable at any given point in time for an investor to redeem its value. The Gold Britannia and the Sovereign are both excellent coins in this respect.
Which is the right coin for you?
The gold experts at Physical Gold can answer this question, based on the fundamentals and objectives of your investment. They can offer you free advice on whether you should buy, the Gold Britannia or the Gold Sovereign. Two find out more, call us on (020) 7060 9992 or drop us an email and a member of our team will be happy to get in touch with you.
Image credits: picryl.com, Wikimedia Commons
Gold Sovereign coins are one of the most popular British coins that attract investors every year. The Sovereign has been around for more than two centuries and benefits from abundant availability and low prices. The modern Sovereigns are available as bullion coins and carry low premiums due to mass production and lower manufacturing costs. The gold Sovereign is also a very affordable coin, since it is available in smaller sizes, as a quarter of an ounce. The gold Britannia, on the other hand, is a 1-ounce coin that is far more expensive than the Sovereign.
Great value for money
Due to their affordability factor, the gold Sovereign allows beginner investors access to the gold market by investing a smaller sum of money. Investors can also enjoy the flexibility of owning gold Sovereigns. Due to their smaller sizes, they add divisibility to an investor’s portfolio. From a tax perspective, Sovereigns are a great investment. Investors do not pay any VAT when buying the coins. Since the Sovereign is considered to be legal tender, investors can also avoid paying Capital Gains Tax (CGT) on the profits made from the sale of these coins.
A gold proof Sovereign featuring the portrait of our Queen, Elizabeth II
Buying gold Sovereigns
The growing interest amongst investors in buying gold Sovereigns, leads many people to ask the question – what is the best route to buy Gold Sovereigns? Of course, many would turn to high-street jewellers and gold shops. This is an old route, mainly for people who like to see and touch the gold they’re buying. However, over the last 10 years, much of the gold trade has moved online. Today, if you’re buying investment-grade coins like the gold Sovereign, it’s best to buy from a reputed online dealer.
It’s safest to buy gold Sovereigns directly from a reputable precious metals dealer. If the dealership has the right credentials, it will ensure the Sovereigns are authentic, in great condition and sell at a competitive price. Many now have e-commerce stores, making it easy to buy online. Buying from a jeweller, an auction or privately are other options, but they pose significant risks.
Reputed online gold sovereign dealers
Moreover, large online dealers are more likely to stock a diverse range of gold products. By visiting the dealer’s website, you will probably see a variety and volumes of investable gold coins like the Sovereign. High-street dealers usually do not have such a large inventory. Due to their buying power, reputed online dealers are also able to offer rock bottom prices, especially on larger volume purchases. Many dealers, like Physical Gold, also have a monthly purchase scheme, through which you can regularly invest in gold Sovereigns and build up a formidable gold portfolio.
A reputed dealer can store your gold in an LBMA approved vault
Safety and security
Online gold dealers will also ensure that your transaction is conducted with utmost safety. Online payments are made using a debit or credit card, through a secure, encrypted payment gateway. Physical Gold, a reputed UK dealer uses a 3D secure payment method. Your gold Sovereigns are dispatched via a secure courier, and your package is fully insured. Many large dealers may also offer you the option of storing your gold securely with them in an LBMA approved vault. Lastly, all reputed dealers will provide an authenticity certificate and a buyback scheme. It is unlikely that you would get all this when you shop for your coins on the high street.
Download the Insiders Guide to buying Gold Sovereigns HERE
Get in touch with Physical Gold to find out more about buying gold Sovereigns
At Physical Gold, we pride ourselves on being one of the country’s most reputed online gold dealers. Our experts are always willing and ready to work out the best deal on gold Sovereigns for you. Call us today on (020) 7060 9992, or reach out to us online by visiting our website.
Image credits: Adam Greig, piqsels.com
If you want to collect a piece of history, along with unmatched value, look no further than the Gold Sovereign. While the Gold Britannia may be the flagship coin of the Royal Mint, the Gold Sovereign is perhaps the most iconic coin ever issued as a part of British coinage. The coin is heralded as one of the oldest British coins that have been around for more than 200 years.
The gold Sovereign
There is a distinction between the modern Gold Sovereign and the older coin that was issued during mediaeval times. The modern Sovereign has seen the face of several British monarchs. The coin was around during the reigns of the great Queen Victoria and Edward VII, followed by King George V, Emperor of the British Empire during the First Great War.
The Sovereign was continued during the reign of King George VI, who ruled the Empire during World War II and continued into the reign of his daughter, Queen Elizabeth II, our current British monarch. The older Sovereign was issued in 1489 during the reign of King Henry VII. However, the mintage of the Sovereign was terminated in 1604. The coin was reintroduced only in 1817.
A rare George III half Sovereign from 1817
An illustrious history
It’s not just the history that makes this coin attractive. The Sovereign has a unique design. The reverse of the coin features an image of St George slaying a dragon. This iconic image was conceptualised by the famous Italian designer and engraver, Benedetto Pistrucci. The coin is indeed a work of art, as well as a representation of the fineness and elegance of British coinage.
Which Sovereigns should I buy?
The first consideration for any investor is affordability. Most investors want value for money. Old Sovereigns are small in size and therefore affordable. Having been produced for over 200 years, they’re very easy to sell on and can make a good investment if the gold price goes up. Their value generally increases with age and any profit made on their sale is completely tax-exempt in the UK. It’s also important to research the secondary market. Due to its long years of production, the gold Sovereign enjoys a vibrant secondary market. Many Sovereigns that have been issued over the years are available at different price points. So, it’s important to build a relationship with a reputed gold dealer and find out the best deals on Sovereigns that you can benefit from.
A proof Sovereign from the reign of Queen Victoria
Divisibility is an important differentiator
A definitive reason to invest in gold Sovereigns is the divisibility it brings to your portfolio. There is a wide variety of different sizes to choose from. As an investor, if you prefer larger coins with lower production costs, the full sovereign, the double Sovereign, and the quintuple Sovereign could be just right for you. The latter two are known as the 2-pound coin and the 5-pound coin, respectively. However, it may make sense to invest in smaller coins, which gives you the flexibility of selling small amounts of gold at the right price points. In that case, you have the option of acquiring the half and quarter sovereign. Incidentally, the quintuple Sovereign is perhaps one of the most famous, as it has the largest gold content ever found in a British coin.
Accessibility to the gold market
Another important reason to buy gold Sovereigns is that it is an affordable coin when compared to the gold Britannia. Investors can therefore own a sovereign, with a lesser amount of capital outlay and enjoy its benefits, including VAT and CGT exemptions.
Get in touch with Physical Gold for the best deals in gold Sovereigns
Our numismatic experts at Physical Gold can advise you on how to avail of the best deals when buying gold Sovereigns. Call us on (020) 7060 9992 or visit our website and get in touch with us online.
Image credits: Wikimedia Commons and Picryl
Gold Britannia coins are extremely popular amongst investors for several reasons. Firstly, being one of the most popular British coins in the world, the coin offers a tremendous amount of liquidity for any investor’s portfolio. However, there are other reasons for its popularity too.
Since 2013, gold Britannia coins are available in 24-carat gold. Therefore, the coin presents an irresistible opportunity to acquire a 1-ounce gold coin manufactured with 99.9% pure gold. It’s important to note that until 2012, gold Britannias were minted using 22-carat gold, with a fineness of 91.7%.
The gold Britannia coin was originally introduced in 1987. From 1987 till 1989, copper was the base metal introduced into gold. This was changed from 1990 to silver, making the Britannia coin minted completely out of precious metals.
Tax efficiency
A question that many investors ask is whether the gold Britannia is a legal tender coin.
Yes, Gold Britannias are legal tender within the UK. All Britannia fractions and precious metals feature Queen Elizabeth on the obverse of the coin and a face value, including silver versions. These features qualify the coins as legal tender so in theory they can be spent in shops. However, with the 1oz gold Britannia boasting a £100 face value but being worth ten times that it would be foolish to do so. More commonly, the legal tender status increases the coins’ appeal due to it not being subject to Capital Gains Tax.
The British round pound has been discontinued since 2017
There is no upper limit to the Capital Gains Tax exemption on gold Britannia coins so larger investors who sell their Britannias at substantial profits remain tax efficient too.
General tax free allowance
The Government do currently allow you to make £12,300 capital gains before they’ll tax you. But this is reducing to £6,000 in April 2023 and all the way down to just £3,000 in 2024. So you could buy one taxable piece of gold for £2,000, sell it for £4,000 and pay no Capital Gains Tax.
However, there are dangers to this approach, which is why sticking to tax free gold coins like Britannias is a prudent choice.
The tax free allowance includes all assets you sell within a tax year. So you may only make £2k profit on your gold, but if you also sell shares that year, you could breach your tax free threshold and end up paying tax.
Just as problematic, is that the allowance isn’t guaranteed for ever. Any Government can reduce the threshold if they wish, or abolish it altogether if they want to raise some tax. So if you’ve bought some taxable gold and they abolish the tax free threshold, you’re going to get taxed when you sell.
Maundy money is also considered legal tender
Download The Ultimate Insiders Guide to Tax Efficient Gold & Silver Investments HERE
What is a legal tender coin?
Any official currency that has a face value, minted by the Royal Mint and signed off under the Royal Proclamation is considered to be legal tender in the UK. These rules are part of the Coinage Act 1971 and the Currency Act 1983. Legal tender coins include all coins in circulation, Maundy money and precious metal coins minted by the Royal Mint. Coins that have been withdrawn from circulation do not qualify as legal tender in the UK. For example, the old ‘round pound’ has been withdrawn from circulation and does not qualify as legal tender from 15th October 2017. However, they can be exchanged in a bank.
Other important points to note about legal tender currency
An important point to note is that gold and silver coins may not qualify as legal tender if the weight of the coin is found to be less than the specified weight denoted on the coin. Even today, several places outside the UK accept British legal tender coins.
These are British Overseas Territories and Crown Dependencies, like the Channel Islands, Falkland Islands, and many other places like Gibraltar and Ascension Island. However, the local currencies of these places are not accepted as legal tender in the UK. An interesting anomaly is Scotland and Northern Ireland, where Bank of England notes are not considered to be legal tender.
Talk to Physical Gold for all coin related information
The coin experts at Physical Gold are always willing and ready to respond to any queries you may have regarding precious metal coins. Get in touch with us today on (020) 7060 9992 or visit our website and contact us online.
Image credits: Thomas Duesing and Wikimedia Commons
The gold Britannia is an iconic British coin that enjoys popularity and liquidity all over the world. The flagship coin has become the backbone of any gold investment portfolio. It is interesting to note that, unlike the gold sovereign, the Britannia has only been around since 1987. So, the coin is available at relatively low premiums and does not command a historical or rarity value. Due to continuous mintage by the Royal Mint, the coin is easily available in abundance.
Why is the gold Britannia an attractive investment?
For gold investors, these coins offer amazing value due to mass production and large sizes. Additionally, the gold Britannia is completely tax-free in the UK due to its status as legal tender. Investors do not have to pay VAT or CGT (Capital Gains Tax) on these coins. This means that any profits that an investor may make through the sale of gold Britannia coins are tax-free up to a limit of £12,000 in a single tax year. Undoubtedly, the tax efficiency factor hugely enhances its appeal for investors.
Gold bullion coins do not carry hefty premiums
Where can one buy cheap gold Britannia coins?
Usually, the latest year of issue Britannia is the cheapest for the simple reason that they are the most plentiful. It is important to note that investors should look for bullion coins to be able to buy at the best rate. According to the Royal Mint, the Gold Britannia bullion coin is manufactured each year with an unlimited mintage. However, this does not imply that infinite numbers of the coin will become available every year.
The actual production numbers are largely dependent on market demand. These numbers are also dependent on the amount of gold that the Royal Mint can source every year to meet the required demand and produce the gold Britannia coins. The coins are struck at the Royal Mint’s facility in Llantrisant where blank, faceless 1-ounce gold coins are received by the state of the art coin pressing machinery and printed with the obverse and reverse of the Britannia coins. Of these, the basic, mass-produced bullion version is cheaper than any special edition varieties or proof productions.
What are the other avenues of buying the cheapest gold Britannia coins?
Generally, older Britannias cost more due to scarcity and collectability, but occasionally it may be possible to find even cheaper pre-owned coins if someone has sold a large quantity at one time. In fact, one of the guiding principles in buying gold coins is to generally avoid older coins that carry hefty premiums and totally avoid obscure gold coins.
Low mintage in specific years can also be a problem, raising the price of the coin due to scarcity. For example, in 1998, the Royal Mint released only 750 gold Britannia bullion coins. Similarly, in 2002, only 945 coins of the 1-ounce gold Britannia were released. These numbers are much smaller when compared to 2010 when 14,727 gold Britannia bullion coins were minted.
So, buying the cheapest gold Britannia coins can mean looking out for the years of issue with easy availability and large mintage numbers. Of course, since 2013 the gold Britannia is also available in a greater number of size options like the half, quarter, one 10th and one 20th of an ounce. These are likely to be cheaper, due to the lesser amount of gold contained in the coin.
The Royal Mint manufacturing facility in Llantrisant
Call Physical Gold to find out about the best deals in gold coins
Physical Gold is a highly reputed, leading gold dealer in the country. We can offer the best advice when it comes to purchasing gold Britannia coins at the cheapest prices. Call us today on (020) 7060 9992 or get in touch with us via email.
Image credits: Jeremy Schultz and Wikimedia Commons