1oz gold Britannias
The Gold Britannia is The Royal Mint’s flagship bullion coin and one of the most popular 1oz gold coins for UK investors.
Modern 1oz Britannias are produced from 999.9 fine, 24-carat gold and contain 31.103g of pure gold. Physical Gold’s current range includes current-year Britannias, Best Value coins and other Royal Mint 1oz issues.
Gold Britannias are both VAT-free and exempt from Capital Gains Tax for UK residents. Their CGT treatment can be particularly relevant to investors building larger gold holdings.
For buyers who do not require a particular year, Best Value 1oz Gold Britannias can provide an opportunity to purchase a Britannia at a lower premium.
1oz gold Krugerrands
The Gold Krugerrand was introduced in South Africa in 1967 and became the first widely produced bullion coin designed around exactly one troy ounce of pure gold. (Physical Gold)
Unlike a modern Britannia, the Krugerrand is made from 22-carat gold, with copper added to increase durability. The coin itself therefore weighs more than one troy ounce, but it still contains exactly one troy ounce of pure gold.
Krugerrands have a large international secondary market and pre-owned coins can offer competitive premiums. Physical Gold’s Best Value 1oz Gold Krugerrands are aimed at buyers whose priority is gold content rather than a particular year of issue.
Krugerrands are VAT-free as investment gold but, unlike British legal-tender Britannias, they are not exempt from UK Capital Gains Tax. + Read more
24-carat or 22-carat 1oz gold coins?
A 1oz bullion coin does not necessarily have to be made from 24-carat gold to contain one ounce of pure gold.
Modern Britannias and Canadian Maple Leafs are examples of 24-carat bullion coins, whereas Krugerrands are made from a more durable 22-carat gold alloy.
A 22-carat 1oz Krugerrand therefore weighs more overall than a 24-carat 1oz Britannia, but both contain one troy ounce of pure gold.
For investment purposes, the important distinction is therefore not simply the coin’s total weight or carat – it is how much pure gold the coin contains, together with factors such as premium, liquidity and tax treatment.
New or Best Value 1oz gold coins?
Physical Gold stocks both new and pre-owned 1oz gold coins.
New coins allow buyers to select the latest issue or a particular design. Best Value coins place greater emphasis on obtaining one troy ounce of investment gold at a competitive premium rather than choosing a particular year.
For investors primarily interested in the underlying gold content, Best Value coins can therefore be worth comparing with newly minted products.
A pre-owned bullion coin may show signs of age or handling, but this does not alter the quantity of pure gold it contains.
Understanding premiums on 1oz gold coins
The price of a 1oz gold coin consists of the underlying value of its gold plus a premium.
The premium reflects factors including minting, distribution, availability and market demand. Particular designs or limited issues may also attract higher premiums.
One-ounce bullion coins will generally have lower premiums per gram than smaller fractional coins, making them worth considering for buyers seeking to minimise the cost above the underlying gold value.
However, the cheapest coin is not necessarily the most appropriate in every situation. UK investors should also consider Capital Gains Tax treatment, liquidity and flexibility.
Read our guide to gold coin premiums for a more detailed explanation.
Tax on 1oz gold coins
Qualifying investment gold coins are VAT-free in the UK, but Capital Gains Tax treatment differs between coins.
British legal-tender gold coins such as Gold Britannias are exempt from Capital Gains Tax for UK residents.
International bullion coins such as Krugerrands and Canadian Maple Leafs do not generally benefit from this UK CGT exemption.
For someone purchasing a relatively large quantity of 1oz coins, the distinction can therefore become an important consideration when comparing products.
Read more about the tax implications of investing in gold and silver.
1oz gold coins or gold bars?
Both 1oz coins and gold bars provide direct ownership of physical investment gold.
Gold bars will often appeal to investors focused primarily on obtaining physical gold at a low premium. Coins provide additional choice and, in the case of qualifying British legal-tender coins, can provide the advantage of CGT exemption.
One-ounce coins also provide straightforward divisibility for larger holdings because individual coins can be sold separately.
If you’re still deciding which form of physical gold to buy, our guide to gold coins vs gold bars explains the main differences.
How much is a 1oz gold coin worth?
A 1oz bullion coin contains 31.103g of pure gold, so its underlying value is closely linked to the current price of one troy ounce of gold.
The actual price you pay will also include the applicable premium, which can differ between coins and change according to availability and demand.
Likewise, when you eventually sell a coin, the price a dealer can offer will reflect the gold price and prevailing market conditions.
You can check the underlying live gold price in pounds sterling before comparing individual coins.
Delivery and secure storage
One-ounce gold coins purchased from Physical Gold can be delivered using our free, fully insured UK delivery service, with orders securely and discreetly packaged.
Alternatively, customers who would prefer not to keep their coins at home can choose specialist secure vault storage.
Find out more about gold delivery and secure storage.
Why buy 1oz gold coins from Physical Gold?
Physical Gold is a specialist precious-metals dealer based in London’s Hatton Garden and an authorised Royal Mint distributor.
Our 1oz gold coin range includes Gold Britannias, international bullion coins, Best Value products and Royal Mint investment and limited-issue coins. The current range includes a substantial selection of 1oz Royal Mint products alongside Britannias. (Physical Gold)
Our team can help if you have questions about choosing between different 1oz coins, premiums, tax treatment, delivery or storage.
For assistance, call 020 7060 9992 or email info@physicalgold.com.
