Britannia gold coins

Why invest in Britannia gold coins?

The Britannia gold coin is one of the world’s most sought after coins ever made. Struck by the Royal Mint, manufacturing is of an incredibly high quality, complete with one of the most intricate designs ever crafted.

Minting began more than 30 years ago back in 1987, and the coin features a loan image of Britannia, Roman protector of the seas and goddess of war. Strong, iconic and majestic, Britannia’s image makes these fantastic gold coins a big hit with collectors worldwide.

But why else are Britannia gold coins so popular and why are so many people investing in them? Here we take a look.

Britannia gold coins bring significant tax advantages – including no capital gains tax

When you invest in UK gold Britannia coins you can benefit from something really rather unique: an investment that’s tax-free, without counterparty risk. As Britannia gold coins are in fact legal tender, there’s no capital gains tax liability. The coins are also physical assets, so do not come with the risks that currency and equities normally have. The reason that UK gold Britannias and sovereigns are valuable today, long after they were originally in regular circulation, is because the value of physical gold is used to protect wealth against uncertainty. Other markets can fluctuate, but it’s believed that investing in gold – relatively speaking – is a safer bet than other commodities. The fact there is no CGT to pay makes it incredibly attractive. In addition to this, gold coins are divisible. This means that they are much simpler to liquidate to closer denominations. Gold coins are therefore a more flexible form of investment than gold bars for instance. Lower costs also mean demand is higher for smaller coins – a fact which many investors happily discover in the buy back prices.

Fineness of gold

The UK gold Britannia coin can be purchased in one troy ounce, half-ounce and tenth-ounce. As mentioned, it is legal tender throughout the United Kingdom. The coins have a fineness of 99.9% pure gold (and have done since 2013). This is the maximum quantity of yellow metal that a coin can contain. The above is particularly great news for anyone looking to sell, as gold bullion prices are heavily based on the amount of gold the coin contains. Britannia coins that there minted prior to 2013 contained 22-carat gold with a 0.917 fineness. After 1990, the gold alloy used in constructing the coin contained silver rather than copper.

Britannia gold coins are the ideal long-term investment

When you invest in a Britannia gold coin, make sure you’re happy to be in it for the long haul. Short term gold investment is unlikely to bring you much in the way of a return. Premiums erode over time until the day comes when your coin is worth the gold it is made of. So the sooner you get into collecting the better, giving you the chance to start buying regular small quantities and building up your portfolio. You can then (hopefully) stand to make a good return on your investment if you choose your timing well.

Varying dimensions

Another good reason for the popularity of gold Britannia coins is simply because they come in such a wide variety. Although only released in four sizes at first, since 2013 a 5-ounce coin has come on to the market which investors are finding very lucrative. Furthermore, a fractional coin of one-20th of an ounce has also been launched. This has only served to add increased divisibility and variety, again making the gold Britannia a very worthwhile investment for many collectors.

The Britannia gold coin in all its forms is likely to remain a popular choice for many years to come. The attractive look and fascinating history behind it merely add to its appeal.

Looking to find out more about owning a Britannia gold coin yourself? Why not have a look through some of our recent blogs including Britannia 1oz Coin Guide and Buying gold coins for the first time? 5 things you need to know.

Of course, you’re also welcome to contact us for further information and advice.

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