Sovereign coins

Sovereign coins are 22 carat UK gold coins issued by The Royal Mint since 1817. With a face value of £1, they were initially circulated but are now popular amongst investors and collectors. The coin is minted by the Royal Mint, as a bullion coin and some designs of the coin are released in limited numbers. This is one aspect of the gold Sovereign that elicits healthy interest from investors and numismatists alike. The gold Sovereign enjoys a reputation of being one of the most liquid coins in the world.

Investment in these coins is widely regarded as safe and secure, and can also be used as a strategy to create diversification within a traditional investment portfolio, creating a good balance of paper asset classes and physical assets like gold and silver. Due to the scarcity of certain issues of the gold sovereign, the coin may attract high premiums. Their value can rise with the price of gold and also with their scarcity and antiquity. The gold Sovereign provides investors with plenty of options since this iconic British coin has been around for more than 200 years.

A coin that has seen the reigns of many monarchs

The earliest version of the gold Sovereign was issued in 1489 and is popularly known as the English Gold Sovereign. Today, this is extremely rare to find and it can fetch very high premiums due to its demand and scarcity. These coins were around until 1604. The weighed half a Troy ounce and was originally minted with 23-carat gold. During the reign of King Henry VIII, the gold content was reduced to 22 carats. Years later, during the Great Recoinage of 1816, the gold Sovereign was reintroduced in 1817, effectively replacing the original English Sovereign. By this time, the Coin Act had come into place and stringent technical specifications were introduced for the new Sovereigns, which are followed even today. The gold Sovereign was in circulation until 1932 and has since been released as a bullion coin.

Where are the Sovereigns minted?

Between 1817 and 1917 – a period of hundred years, the gold Sovereign was minted in the UK. However, mintage was shared with other reputed mints across the British Empire after 1917. The new production of the Sovereign was distributed across Canada, Australia and South Africa. By 1957, colonial rule had ended across the world and the Sovereign was once again minted exclusively by the Royal Mint till 2013.

Since then, the Royal Mint has inked a deal with MMTC-PAMP, a company based in India to share mintage of the gold sovereigns. This move was undertaken primarily due to the high demand for gold products in Asia. Although the production has been partly outsourced, strict quality controls continue to be in place and the Sovereigns produced in India are identical to the ones minted in the Welsh-based Royal Mint. The only difference is that the ones produced overseas bear a special ‘I’ mark.

The tax efficiency of gold Sovereigns

Gold Sovereigns are manufactured using investment-grade gold. Therefore, they enjoy VAT free status in the UK. Since the coins are considered legal tender in the country, they are also free from capital gains tax. Any gains are tax-free.

Speak to the gold experts at Physical Gold, if you want to invest in gold Sovereigns

At Physical Gold, we have gold investment experts who can offer impartial advice on investments in gold coins, especially iconic ones like the gold Sovereign. Please call us today on (020) 7060 9992 or get in touch with us online by dropping us an email

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Gold Coin Investing

In the world of precious metals investing, it is often said that there is no match for gold. Investing in gold coins can be extremely lucrative, both as a hobby and as a profit-generating investment vehicle. Many investors consider coins to be a better investment since they add liquidity and divisibility to any portfolio. However, it’s important to understand the philosophy and the rules of investing before buying gold coins.

Buying gold coins can be an excellent investment for those seeking portfolio balance. Owning gold in the form of coins, means you have the flexibility to sell small parts of your holding. Sticking to the main bullion coins such as Sovereigns, Krugerrands and Britannias, will enable you to buy at low prices and sell easily. Buying UK gold coins additionally benefits UK investors because any gains made on the sale of the coins is free from tax.

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British gold coins are both VAT and CGT exempt, offering investors a wonderful opportunity to maximise their tax savings on their investments. All investment-grade gold is VAT free in the UK and UK gold coins, being legal tender in the country, are also CGT free. That means any profits you make generate when selling is automatically tax-free.

Buy gold coins that enjoy a healthy secondary market

Several investors make the mistake of investing in obscure coins due to their collectability and rarity value. But, this is never a good strategy. Your investments in gold coins can reap great benefits if you buy liquid coins like the Britannia or the gold Sovereign. These coins are easily available in the market, without hefty premiums as they are mass-produced. Discounts can be availed on large quantity purchases. By following these simple strategies, you can achieve good returns on your gold coin investments. Liquid coins are much easier to sell at any point in time, as opposed to obscure gold coins.

Gold coin investing can be very tax-efficient

To save on taxes, it’s important to know which gold coins to buy. Well-known coins like the Krugerrand enjoy a great secondary market and possess all the attributes required to make it an attractive investment. However, only UK coins are considered to be legal tender and their sales are CGT exempt. By investing in British gold coins, you also get the double benefit of your purchases being VAT free. Needless to say, these are important considerations for any savvy gold investor whose objective is to build a strong portfolio and generate healthy returns over a period of time.

You can also combine collectability and profits when investing in gold coins

Not all gold buyers are purely investors. Many collectors acquire gold coins as a hobby, and their purchases are based on numismatic interest. Of course, one can combine both these objectives and create a portfolio that has good numismatic value, as well as potential to generate profits. So, you don’t have to stick to buying only mass-produced bullion coins. A perfect example of a diversification strategy could be the Royal Mint’s Lunar series or the Queen’s Beast coins. These are well-known coins that enjoy liquidity and divisibility while generating added value as collector’s items. These coins have generated healthy returns for investors and values have risen by as much as 40% in a single year.

Our investment advisory team can help you invest in the right gold coins

At Physical Gold, we are always keen to help investors achieve their objectives through impartial advice. Call us today on (020) 7060 9992 or get in touch with us online to find out how our investment advisory team can help you identify the right gold coins for your portfolio.

 

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Selling Gold Britannia coins

One of the golden rules of investing in gold coins is never to buy obscure coins. Gold Britannia coins offer liquidity to your portfolio. As a popular investment coin, it is easiest to sell Britannias to a reputable precious metals dealer, especially one whose focus is gold investing. The first consideration when selling gold Britannia coins is the spot price. The 1oz gold coin can usually be sold for around 98% of the prevailing spot price of gold in the market. However, supply and demand can also play an important role in the price you can achieve when selling gold Britannia coins. Although the coin has been around since 1987 and does not command premiums due to rarity and age, there are some years of issue that may be harder to get. These coins may achieve a higher premium – up to 5%. In this article, we will explore the best strategy is to adopt when selling gold Britannia coins.

How does the spot price affect the value of a gold Britannia when selling?

The price will reflect the coin’s gold content and a sale can be tied up very quickly. Selling Britannias privately may achieve higher prices if you can find a collector, but issues of trust and time exist. In reality, the spot price only indicates a guideline at which the coin can be sold. Market conditions can dictate the amount of premium that you can hope to achieve over and above the spot price.

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Now, it’s important to realise that other factors can impact the selling price of the gold Britannia. For example, if the coin you’re selling is larger, it benefits from lower production costs. Therefore, it is an attractive proposition for the buyer, as the coin becomes available at a lower price per gram.

Build a good relationship with a reputable dealer

An important step in selling gold Britannia coins is getting connected with a well-known dealer. Selling gold coins privately is a time-consuming option that is fraught with risk. If you attempt to sell your gold coins to a jeweller or a high-street gold shop, you will invariably receive far lower prices than expected. A reputable gold coin dealer can offer advice on the right time to sell the coins and assist you in achieving the price you desire.

Early intimation of your intention to sell can help your dealer scope the market and identify buyers in advance. Identifying reputed dealers can be fairly simple. Most of them are registered with the BNTA. Dealers like Physical Gold will also offer you a transparent process for selling and ensure you benefit from the right advice when you sell your coins with them.

Ensure that you make tax-efficient sales

If you invested wisely, at the time of buying, you would have added divisibility to your portfolio by investing in different sizes and denominations of the gold Britannia coin. When selling, this should enable you to sell the exact amount of gold required to fund your cash requirements. This would also enable you to drip feed small amounts of gold into the market and take advantage of different price points.

The gold Britannia is legal tender in the UK and any profits you make from its sale are CGT exempt up to a level of £12,000 in a single tax year. It’s important to be aware of the tax implications when making a sale so that you are not misled by third-parties.

Talk to our investment team before selling your gold Britannia coins

Physical Gold is one of the nation’s most reputed online gold dealers. Our investment experts research the gold market at all times. If you intend to sell gold Britannia coins, please call us on (020) 7060 9992, so that we can give you the right advice on how and when to sell. Our investment team is also reachable online through our website.

 

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Gold Britannia coins

Britannia gold coins are a 1oz fine coin produced by The UK Royal Mint. Its purity is 999.9 (increased from 22 carats from 2013) and it has a face value of £100. It’s minted in bullion and proof finishes, fractional sizes, silver and now platinum. It was launched in 1987 to compete with the South African Krugerrand and has now become one of the best value investment coins available, especially as it is Capital Gains Tax-free in the UK.

Flagship Royal Mint coin

It has gained repute internationally as a flagship British coin. Many investors and collectors build their portfolios with the Britannia as a backbone. The Britannia gold coins contained a single troy ounce of 24-carat gold. As discussed above, it denotes a value of £100. The silver version of the Britannia is a coin that displays a face value of 2 pounds. Like its gold counterpart, the silver Britannia has one Troy ounce of pure silver. The iconic coin has two sides and displays the image of the reigning monarch on the obverse. So, gold and silver Britannia coins that are currently minted will all have an image of our reigning Queen, Elizabeth II.

On the reverse of the coin, one sees the classic image of Britannia. The silver Britannia was issued since 1997 and the design on its obverse was created by Jody Clark. The Britannia image itself on both silver and gold coins (since 1987), was designed by Philip Nathan. It is considered to be one of the most liquid gold coins in the market and its great global repute has ensured that gold Britannia coins are easily saleable at any point in time.

Variety in sizes

Since 1987, the gold Britannia has been available in four different sizes. They are – one, half, quarter, and 1/10 of an ounce. This is an added bonus as it adds variety to the coin. In fact, since 2013, the coin is available in many more sizes, including a large 5-ounce coin. This large coin has become attractive to investors as it delivers a greater amount of gold at a lower price per gram.

Newer Britannias offer better deals

In terms of its value in gold, the new Britannia coins are a better bet. Firstly, the newer coins are abundantly available in the marketplace. Therefore, premiums are quite low. Secondly, many dealers are willing to offer bulk discounts for larger purchases. These factors ensure that you can buy these coins at bargain prices. In the process, you’ll ensure that you make good profits by getting in cheaper and selling at higher prices in the long term.

Some special issues are also available

The Royal Mint celebrates different occasions and dates in British history by issuing a commemorative coin. Of course, the gold Britannia has also enjoyed many special issues. One of the more recent special editions was the 30^th-anniversary gold issue, which was priced at £1048 in 2017. Another special issue worthy of mention is the 8mm coin. This is a proof coin, which is considered to be the smallest Britannia ever minted. The coin contains 1/40 parts of an ounce of gold. The mintage was only 1500 coins and is very desirable to collectors.

Call Physical Gold to buy gold Britannias today

The gold investment specialists at physical gold can provide you with guidance on which Britannia gold coins you should buy, at what price and when. Do call our team on (020) 7060 9992 or get in touch with us online to discuss your gold Britannia purchases today.

 

 

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Buying Gold Sovereigns

This is a common question we get asked all the time. “Why buy gold Sovereigns?” Do they really add value to your portfolio? How are they different from other popular gold coins like the Krugerrand or the Britannia? Well, it’s one of the oldest British coins and has been in circulation for more than two centuries. It was first issued in 1489 during the reign of King Henry VII. Its production was stopped in 1604 and then resumed once again in 1817.

Modern sovereigns have been minted across the reigns of several monarchs – Queen Victoria, Edward VII, George V, George VI and Queen Elizabeth II. On the reverse, the coin features an image of St George slaying a dragon, which is a design created by the famous Italian engraver, Benedetto Pistrucci. As such, it has an unbeatable reputation as one of the most famous British coins of all time.

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Liquidity and divisibility

The gold Sovereign is very easily available and enjoys an extremely vibrant secondary market. Its availability is a direct result of its long years of production. So, you can easily find Sovereigns issued in many different years at different price points. Due to its popularity, it’s very easy to sell and this enhances the liquidity of your portfolio. In terms of divisibility, the Sovereign is a winner. There are many different sizes to choose from, including the half and quarter Sovereign, the full Sovereign, the double Sovereign (2-pound coin) and the quintuple Sovereign (5-pound coin). The quintuple Sovereign has the largest gold content found in any British coin. Due to its variety of sizes, you can distribute your gold investments, enabling you to take advantage of different price points in the market, when selling.

Old and new

Old Sovereigns are small in size and therefore affordable. Having been produced for over 200 years, they’re very easy to sell 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. Older Sovereigns can, therefore, attract a premium due to the numismatic value. This means that its market price far outweighs the value of its gold content.

Newer Sovereigns, on the other hand, may not attract a rarity premium but can make a sound investment, due to their ability to lock in value. All sovereigns produced post-1817 are minted using 22-carat gold. This means that the coin has 11 parts crown gold and one part copper, which make up all 12 parts of the coin.

Comparison with other famous coins

The gold Britannia is a larger coin and it weighs one Troy ounce. This makes it affordable for investors with modest means. However, the Sovereign allows access to the gold market for these investors. In terms of choice, the Sovereign is a better option due to its variety of monarchs and years of issue.

Owning several different Sovereigns adds balance to your portfolio. In terms of tax efficiency, both the Britannia and the Sovereign benefit from their status as UK legal tender. Capital gains tax is exempt on both. However, the same tax advantage isn’t shared by other famous gold coins like the Krugerrand, since these coins are not legal tender in the country.

Our investment experts can help you buy the right gold Sovereigns

Call the investment team at Physical Gold on (020) 7060 9992. Our team is always available to work with you to identify the right sovereigns that can help you attain your investment goals. You can also get in touch with us online with any queries regarding gold Sovereigns.

 

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Buying Britannia coins

The Britannia is considered by many to be the flagship British coin to include in their portfolio. Originally minted in gold, it was introduced in 1987 by the Royal Mint. The current editions also include a silver version since 1997. The gold coins are a great investment, as they contain one Troy ounce of gold with a face value of hundred pounds. The silver version also contains one Troy ounce of silver with a face value of 2 pounds. Since 2013, the Royal Mint has been minting the gold Britannia with 24 carat gold and purity of 999.9. The Royal Mint also sells gold Sovereign coins, which are another popular range.

The coin features an image of Queen Elizabeth II on the obverse and the iconic Britannia image on the reverse. The coin enjoys immense liquidity and is available in a variety of editions. There are definitive tax advantages to investing in these coins. The coin is legal tender in the UK, and therefore attracts no capital gains tax. But the question is – should we be buying older or newer versions of these coins? What is likely to generate better value?

Buying older Britannia coins

The Britannia does not command a rarity value or historical premium. Most editions of the coin are easily available. Most of the time, the current year of issuance will also be the cheapest due to plentiful supply. Buying particular year Britannia’s from the past may well command a premium due to scarcity. However, you may find that the older coins can also rise in value quicker than the new ones in the context of the time you intend to hold onto the coins.

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Commemorative and special issues

The Britannia has also been released by the Royal Mint as special anniversary editions and commemorative issues. For example, the 30^th-anniversary gold edition was on sale in 2017 for £1048 .68. There was also a limited edition issued as an 8mm coin. Only 1500 of these were released, and it was the smallest Britannia coin. It contained only 1/40 parts of an ounce of 24-carat gold with a purity of 999.9, along with a proof finish.

Needless to say, these types of special issues attract a lot of interest as a collectable coin. Therefore, they command high premiums in the secondary market once supplies run out. But, investing in these special issues would require a higher capital outlay.

Buying newer coins

The current editions are a great buy if you consider their value in gold and silver. As these coins are available in plentiful, premiums are very low. It’s also a great idea to order these coins in bulk from your dealer.

Buying current years of an issue would result in a lower price commitment at the buying stage. This would mean that your profit margins could be a lot higher when you sell off your gold in the years to come.

Contact Physical Gold to buy Britannia coins

A proven and hassle-free way to acquire Britannia coins were your collection is to simply give us a call. Our precious metal experts are best placed to advise you about buying the right gold and silver coins. They can let you know when older versions of the Britannia become available at the price you want. Similarly, you can also benefit from sound advice and assistance in buying newer coins. Call us on (020) 7060 9992 or get in touch online through our website, which has a wealth of information about Britannia coins.

 

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Best Value Sovereign Coins

In this video, we’ll be taking a look at the Royal Mint’s flagship gold coin The Sovereign. For keen investors, I’ll reveal 6 smart ways that you can buy Sovereign coins for the best value.

The modern Sovereign has been around for more than 200 years so there’s plenty of secondary liquidity and choice when it comes to buying. Exploiting these proven methods will help you build the best value Gold Sovereign portfolio.

1. Buy the current year of issue

With older Sovereign coins fetching a premium for their age, rarity and desirability, it makes sense to focus on the most recent Sovereign year of issuance which commands a lower premium. Avoid buying them in the last month or so of the year when premiums can rise as supplies dwindle in preparation for the next year’s issue.

Buying the current Sovereign coin is a low price option as the coins are plentiful and most dealers will have them in stock so you’re able to shop around for the best prices. With wide availability, an extensive volume discount is offered by dealers on the latest Sovereign. So if you’re looking to buy a fair amount of Sovereigns, then you’re rewarded handsomely with progressive price reductions.

2. Buy big coins!

The full Sovereign is a relatively small coin, weighing around a quarter of an ounce. One way of achieving improved value is to opt for the quintuple Sovereign, or £5 gold coin as it’s also known. Make sure the dealer isn’t charging a commemorative issue premium for these coins and you could bag a bargain. With its huge size, the £5 gold coin benefits from a lower production cost per coin.

3. Nearly new pre-owned coins

Sometimes offering even lower prices than brand new coins, are nearly-new Sovereigns. Perhaps gold dealers have bought Sovereigns back from customers which are between 3 and 10 years old. They’re too recent to command a historical value yet, but may be offered at a discount to clear stock. We actually call this product ‘Best Value Sovereign’ in our online store. If you don’t mind us choosing the year and monarch, then you can end up getting a lot of gold for your money.

4. Buy when the market is quiet

Just like any other market, sales are on when demand is low. Premiums on Sovereigns can reduce when interest in gold is low. So if you have patience, waiting to buy your Sovereigns during a quiet patch gives you a little more negotiation than when demand outstrips supply.

5. Speak to a dealer

Again, patience is key for this one. If you’re willing to wait, then you could achieve a 1-2% discount off website prices. Let your gold dealer know which coins you’re after and they may be able to pair you with a seller. When a dealer’s customer wants to sell their Sovereigns, they can then call you to snap them up. This prevents selling back into the wholesale market and the saving can be passed onto you!

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6. Buy when a particular Sovereign coin’s premium falls

With such a variety of Sovereign coins available, it’s no surprise that premiums vary considerably between new ones and Victoria Young Headshield back coins. Best value doesn’t necessarily mean the lowest price.

Again, you may wish to build a relationship with a good gold dealer. Letting them know that you’re after a particular monarch and quantity of coins means they can call you when premiums fall.

So an older Sovereign coin which usually trades at a higher premium may have a brief period of higher supply which lowers its market premium. Their premium returns to usual levels once the supply is mopped up, so buying in the dip can reap great value.

Similarly, you may take a view that there’s a good chance that premiums of a particular Sovereign issue will rise in the future. For example, buying on a jubilee year may offer value at the time as it may become collectable in future years.

Buy great value Sovereigns from Physical Gold

So there you have it, 6 amazing hacks to obtaining the best value Sovereigns available.

If you found this video useful, please take a look at our full suite of 20 video guides covering all aspects of gold and silver investment.. If you’re looking to buy great value Sovereigns, then check out our online Sovereign store at https://www.physicalgold.com/gold-sovereign-coins/

If you need guidance on which coins or bars to buy, how to store, or how to buy online, then don’t hesitate to call our team on 020 7060 9992.

Gold Coin Collecting

In this video, we discuss how gold coin collecting can also produce a healthy profit if done correctly. We used to consider gold investors and hobbyist coin collectors as two different groups of people.

But, we’re increasingly asked by those who enjoy accumulating coins as a hobby, which ones are best to also turn a profit.

So I thought I’d look at some of the best ways to combine a passion for collecting coins with a desire to make money! I’ll run through step-by-step, how best to collect gold coins AND make money.

I’ll even be telling you exactly what type of coins to focus on to maximise returns.

Today, I’ll cover 2 main areas. Firstly, which type of coins to focus on and then how to buy and sell them for the biggest profit.

Type of coin to collect

So which coins are the best coins to collect in the first place?

Choosing coins with your head, rather than buying from the heart, will more likely result in the most profitable choice. Too many coin collectors buy coins based on personal desire or preference, rather than buying for more logical reasons. Going down the route of very rare or obscure collectable or numismatic coins can be risky as they can be illiquid and require high degrees of knowledge.

This doesn’t mean you should stick simply to mass-produced bullion coins because they’re the cheapest. It’s important you achieve a balance between value and enjoying the gold coin collecting process.

Gold Britannias – A Great All-Rounder

A great example would be the Gold Britannia coin. This happens to be our best-selling investment coin for larger investors as premiums are low and the coin benefits from being Capital Gains Tax free, so any profit is yours to keep!

But unlike many other mass-produced coins, the design of the coin’s iconic Britannia image is updated every couple of years. This makes the coin highly collectable, but without demanding the high cost associated with collectable coins.

Queens Beast series

Another great example of combining investment with a collectors hobby is the Queens Beast Series of coins. Like the Britannia, these coins are produced by the Royal Mint and benefit from being tax efficient and well-known. Two coins are released each year, with a total of ten coins in all. Each coin is beautifully designed and features Queen Elizabeth on the front, and one of ten heraldic beasts on the reverse.

The challenge of collecting all ten coins, and their quarter ounce and silver versions if you like, is satisfying, but being part of a set means premiums should rise quicker than on regular mass-produced coins. We’ve seen values of some of these coins increase by 40% in a year, even when the gold price has remained the same.

How to buy and sell

Next, I reveal how best to collect and buy coins. The key here is to develop a relationship with a reputable UK gold dealer. Dealers such as Physical Gold will offer the best access and choice to collectable coins, meaning you can base choices on value and upside potential rather than simply what’s available.

When buying limited issue coins such as the Lunar series and Queens Beast coins, being on a top dealer’s mailing list will mean you’ll hear about these coins before others. Generally, collectable coins will have the lowest premium when first released and can sharply increase in cost as stocks run low and time elapses. So getting in as soon as a coin is launched will lower your purchase price and increase profits.

If you have a really good relationship with a dealer, they may be able to call you when opportunities on older numismatic coins arise. With large customer bases, dealers sometimes buyback collectable older coins and can offer these at a discount to those who’ve expressed interest in such deals.

So, how about selling?

Well, if you have time, selling individual coins privately will usually yield the highest prices. Posting the coin on a platform like eBay should gauge if there are other collectors willing to pay a premium for your coin to complete a set they’re collecting.

Alternatively, selling back to your gold dealer is a simple and quick path to lock in your profit, as you can quickly turn around a sale when the gold price hits a certain level. If time is on your hands, then working with a gold dealer can achieve a higher sale price if they can match you with a specific buyer.

So there you have it, if you like the idea of collecting beautiful gold coins as a hobby, but want to be smart in the way you do it, then follow these basic guidelines. And remember, my number one rule to selling coins at the highest price, is ensuring you select the right coins in the first place.

Buy beautiful collectable gold coins from Physical Gold

We stock an array of fantastic gold coins, ideal for collectors and investors alike. If you need any help or guidance about gold coin collecting, our knowledgable team are available on 020 7060 9992 or on the live chat function on the website.

If you found this video helpful, we have 20 of our top video guides covering both gold and silver coins and bars together on this page.

Britannias versus Sovereigns

This article focuses on the two main UK investment coins – Gold Britannias and Gold Sovereigns.

For UK investors especially, these two coins are the go-to choice when putting together a gold portfolio.

But which ones are better? The Britannia or Sovereign? I’ll look at 5 factors to compare the two coins.

1. Price

Let’s start at the most obvious place, with the price. The Britannia is around four times bigger than the Sovereign, weighing 1 troy ounce. That means, its price is far higher, so for those with very modest means, the smaller Sovereign coin provides access to the market where perhaps the Britannia is out of reach.

For most investors though, a larger allocation to gold is granted, so the price per gram between the two coins can be compared. With its larger size, Britannia’s production cost is lower as a percentage of the price, allowing for a lower price per gram. So if you’re looking for the most gold coin weight for your money, then gold Britannias are the better choice.

Winner: Britannia

 

2. Variety

While there is the occasional special edition gold Britannia launches, usually, there is one type of coin to choose from – the standard 1oz bullion coin. Fractional versions also exist, allowing the investor to buy half, quarter and tenth ounce version, but these can be expensive for the privilege.

As Britannias have only been around since 1987, no coins really have historical or numismatic value. Yes, coin designs are updated every few years, but the variety with gold Britannias is very limited.

In contrast, the modern gold Sovereign has been around for 200 years. Like the gold Britannia, there is also various size option including Half Sovereigns, Double and even Quintuple Sovereigns!

But it’s the variety in age and monarch which really creates investment options. Sovereign coins can be bought with the current Queen on the front, but also there is a strong market in gold Sovereigns featuring King George, King Edward and Queen Victoria. The latter coins even vary between 3 different types of design, the Young head, jubilee head and old head versions and can be worth substantially more than newer Sovereigns.

Owning a variety of Sovereigns adds balance to an investment portfolio. It varies your upside potential between just owning bullion coins and perhaps also benefiting from numismatic gains.

I’m a strong believer in mixing the coins your own rather than owning all of one type, as it creates other profit opportunities.

Winner: Sovereign

 3. Divisibility

One of the most overlooked aspects of buying physical gold is obtaining divisibility within your portfolio.

This is one of the main reasons investors opt for gold coins rather than bars, it gives them the flexibility to sell small parts of their holding when they need.

Clearly, gold Sovereigns offer four times the divisibility of the standard 1oz Britannia. Yes, you can buy quarter and half ounce gold Britannias, but they’re a less economic method of obtaining flexibility than owning Sovereigns and Half Sovereigns.

So if you’re putting together a modest portfolio of coins – say £2-£5k – then we’d always recommend gold Sovereigns so that you can own a variety of coins and keep flexible.

However, for those looking to invest larger amounts, say £10k+, then you could still buy enough gold Britannias to achieve a great degree of divisibility.

Winner: Sovereign, unless you’re investing £10k+

 

4. Tax Efficiency

This one’s simple. Both the Sovereign and Britannia are VAT exempt when buying them as they qualify as investment grade gold.

In a similar way, any profits made on either coin are also free from Capital Gains Tax. That’s because both coins feature a face value and so qualify as legal tender in the UK. Selling any legal tender currency is free from Capital Gains tax.

Winner:               Tie

5. Liquidity

The second-hand market in any asset class is crucial when considering its merits as an investment. You can buy the best asset for capital gains in the world at a great price, but if no-one wants it when you come to sell, it fails as an investment.

Luckily, both the Sovereign and Britannia are highly sought and liquid coins globally. In the UK both coins are popular due to their tax free status. They can be sold in a matter of hours.

Globally, the Sovereign is better known as it’s been around for a lot longer than the Britannia. But the playing field is quickly changing. Since 2013, the Britannia has been minted as a 24 carat coin. While this doesn’t make any difference to gold content, it opens up the lucrative Asian market. In a land where only 24 carat appeals, the growing Chinese market love the Britannia but are more tentative towards the 22 carat Sovereign.

However, liquidity when buying is switched. While the latest year’s issue of either coin is plentiful and easy to obtain, buying pre-owned coins is a different matter.

If you wish to buy second-hand Britannias, they’re not always easy to buy when you want them. That’s because they’ve only been around for 30-odd years so there are less on the market.

In contrast, with the Sovereign’s long trading history, you’re able to obtain most types of gold Sovereign from any age, more or less when you want.

Winner: Sovereigns….just

Conclusion – gold Britannias or Sovereigns?

So there you have it, we’ve looked at 5 of the most important considerations when choosing gold coins for investment.

Ideally, owning a mixture of both, and in a range of ages and sizes, produces the most balanced portfolio. But that’s not always attainable for everyone’s financial means.

For the smaller investor, Sovereigns is the best starting point. For those seeking simplicity and the lowest purchase price, Britannias are the choice.

Either way, you won’t go wrong when investing in gold Britannias or gold Sovereigns. Silver Britannia coins are also available.

Contact a gold investment expert when buying Britannias and Sovereigns

Don’t forget that our team are here if you need any guidance on buying gold coins. Our Directors Pick is a popular choice if you want to own a gold portfolio of mixed UK coins but prefer our expertise to pick a balanced choice. You can leave a message on our Contact Us page, call our team on 020 7060 9992, or engage in the live chat function on the website.