Bullion Coins

Unlike proof, commemorative, or historic coins, bullion coins are produced in large volumes and intended for investors. This means you won’t pay high premiums for limited edition packaging, unique finishes, or exclusivity – making them one of the most cost-efficient ways to invest in gold or silver.

At Physical Gold, we offer a secure, straightforward way to buy gold coins online in the UK, ensuring all our bullion coins meet international standards of authenticity and quality.

Gold coins once played a central role in global commerce. For centuries, they were trusted stores of value, used in everyday transactions and as reserves by central banks. However, dramatic shifts in the global financial system during the 20th century led to the phasing out of gold coins as circulating currency. This pivotal transformation set the stage for their re-emergence as investment tools and collector pieces in the modern era.

In the aftermath of World War I and into the Great Depression of the 1930s, many nations faced severe economic instability. To combat deflation and increase monetary flexibility, major economies such as the United States and the United Kingdom abandoned the gold standard. This shift allowed governments to issue more currency without being limited by gold reserves.

As a result, gold coins were recalled from the public and ceased to be used in everyday commerce. In the U.S., the 1933 Executive Order 6102 famously prohibited the hoarding of gold coins, bullion, and certificates by individuals. Similar actions followed in other countries. Gold was no longer a medium of exchange. It was now a strategic financial reserve.

Although gold coins disappeared from tills and wallets, they never vanished entirely. Governments and mints around the world continued to produce gold coins, now aimed at collectors and investors rather than the general public.

Many of the coins removed from circulation, such as pre-1933 British Sovereigns, U.S. Double Eagles, French 20 Francs, and German Marks, have since become the backbone of today’s thriving secondary gold coin market. Their historical value, combined with their precious metal content, makes them attractive to both investors and numismatists. The iconic 1933 Gold Double Eagle for example, gained incredible value. One such coin fetched a record-breaking £7.5 million at auction in 2002, showing that bullion coins can sometimes bridge the gap between investment and collectability.

This dual appeal led to a robust market where older coins are frequently bought and sold based not only on gold weight but also on rarity, condition, and historical significance. At the same time, modern bullion coins like the Krugerrand and Britannia were introduced to meet the demand for standardised, investment-grade gold coinage.

Bullion coins are one of the most popular and trusted ways to invest in physical gold. Whether you’re protecting your wealth, diversifying your portfolio, or seeking a hedge against inflation, buying gold bullion coins offers a flexible and cost-effective solution. Known for their consistent quality and high liquidity, these coins are ideal for both first-time buyers and seasoned gold investors.

Unlike collectible or numismatic coins, gold bullion coins derive their value primarily from their gold content. This makes pricing transparent and easy to track using live market rates, giving investors confidence and control when buying or selling.

Below are the top reasons why smart investors continue to invest in gold coins as part of their financial strategy.

Thanks to their reputation and standard specifications, these coins are easy to sell or trade quickly, often at competitive rates. This makes them one of the most liquid gold investments available – far more convenient than jewellery or obscure collectible coins.

Additionally, built-in security features such as reeded edges and micro-engraving help prevent counterfeiting, further enhancing their trust and value. The Britannia in particular, features world-leading anti-fraud characteristics.

This flexibility means you can start with a modest budget and scale up over time. Fractional gold coins also allow you to sell only part of your holdings when needed, unlike larger gold bars that must be sold in full.

💡 Insider Tip: Price per gram increases as the coin version gets smaller, so beware when buying tiny fractional coins.

Popular low-premium coins include:

• South African Krugerrand
• UK Gold Britannia
• UK Gold Sovereign
• Australian Kangaroo
• Austrian Philharmonic

These coins are widely traded and easily resold, making them ideal for both long-term investment and short-term opportunities.

Once you’ve decided to invest in physical gold, choosing the right bullion coins is crucial. With many options available, selecting the best coin type, size, and origin can significantly impact your investment’s long-term performance, liquidity, and tax efficiency.

Bullion coins are available in a range of weights to suit different budgets and strategies. The most common sizes include:

• 1 oz
• 1/2 oz
• 1/4 oz
• 1/10 oz
• Full Sovereigns (approx. 0.2354 oz)
• Half Sovereigns (approx. 0.1177 oz)

When it comes to cost efficiency, larger coins typically offer better value per gram of gold. This is because minting smaller coins incurs higher relative production costs and handling fees, which are passed on to the buyer in the form of higher premiums over the spot price.

Here’s a quick breakdown:

• 1 oz coins usually offer the lowest premiums and are ideal for value-focused investors and those with larger amounts to invest.
• Fractional coins (such as 1/10 oz or Sovereigns) are more flexible for partial liquidation or gifting but carry slightly higher premiums.
• Pre-owned coins can be priced closer to their bullion value due to their age and wear, offering an affordable entry point with potential semi-numismatic upside.

💡 Insider Tip: Balancing your holdings between larger coins (for value) and smaller coins (for liquidity and flexibility) is often a smart move. Buying pre-owned ‘best value’ coins can be more cost effective than sticking to brand new coins.

Buying bullion coins produced in your country has several benefits:

• Lower premiums due to reduced import and shipping costs
• Tax advantages – e.g. CGT-free status in the UK for Gold Britannias and Sovereigns
• Greater resale value and liquidity, as local dealers and investors are more familiar with your coin

For example, UK residents typically get the best value and tax benefits by investing in British Sovereigns and Britannias, while U.S. investors may favour American Eagles for similar reasons.

If you travel frequently, live in multiple countries, or are planning for international relocation, diversifying your coin holdings with internationally recognised bullion coins can be wise.

• Krugerrands, Maple Leafs, and American Eagles are globally accepted and easy to trade anywhere in the world.
• Holding a mix of coins can improve liquidity and resale options, especially in regions where one coin may be more familiar than another.

A well-diversified gold coin portfolio includes both local coins for efficiency and international coins for mobility- a smart hedge for global citizens.

Here’s a breakdown of some of the most trusted and widely traded gold bullion coins worldwide, including their unique features and investment advantages:

These older Sovereigns are often referred to as semi-numismatic – a hybrid category that combines intrinsic gold value with added collector appeal. Some investors may still refer to them as “bullion coins” due to their gold content and legal tender status, but in reality, their premiums tend to be higher than both brand-new bullion versions and recently issued pre-owned coins.

A Sovereign is generally considered historic if it was minted before 1933, a period that spans several British monarchs, including:

• Queen Victoria (Young Head, Jubilee Head, Old Head)
• Edward VII
• George V
• Less commonly, George IV or William IV in earlier years

These coins were once part of circulating currency and were widely used throughout the British Empire, giving them not only monetary but also historical significance.

Unlike modern bullion Sovereigns, which are mass-produced to meet investor demand, historic Sovereigns are limited those that still exist and often come with greater age-related scarcity. As a result:

• George V Sovereigns tend to trade relatively close in value to modern Sovereigns, with slightly higher premiums due to limited supply and growing collector interest.
• Queen Victoria (Young Head) and earlier Sovereigns can attract much higher premiums of 30-40%, nearing those seen in the numismatic market, particularly in better condition or rarer mint years (e.g., Melbourne, Sydney, or Ottawa mints).

It’s this range of premium levels that gives historic Sovereigns their semi-numismatic classification. Not quite collectible rarities, but certainly a step above standard investment-grade bullion.

There are several reasons why semi-numismatic Sovereigns appeal to investors and collectors alike:

• Potential for Dual Appreciation: They benefit both from the rising gold price and the growing numismatic demand for older coins.
• Historic and Aesthetic Appeal: The design, patina, and connection to key historical eras make them more engaging to own than modern, identical coins.
• Diversification: Including semi-numismatic coins adds an extra layer of depth to a gold portfolio, not just in terms of asset type, but also time period and scarcity.
• Relatively Accessible: While premiums are higher, many historic Sovereigns are still affordable compared to true numismatic rarities or proofs, offering a low-barrier entry point into collectible gold.
• Value falls less in a bear market: When the gold price falls, the overall value of an older Sovereign will fall less in percentage terms as its worth is protected to a degree by its historical element.

While historic Sovereigns are a rewarding addition to many portfolios, it’s important to buy wisely:

• Condition matters: Coins in better condition (EF or better) will attract higher premiums and be more desirable long term.
• Monarchs and Mints vary in value: Earlier reigns and non-London mint marks (e.g., “M” for Melbourne) often trade at higher values.
• Buy from reputable dealers: Ensure authenticity and grading are verified to avoid overpaying for condition or rarity.

💡 Insider Tip: While semi-numismatic Sovereigns aren’t being minted anymore, they’re still relatively plentiful. If you’re an investor, wait to get discounted prices on them from dealers during sale periods. Discounts can sometimes shave far more off these coins than standard bullion coins.

Historic Sovereigns are a compelling investment choice for those looking to blend gold exposure with historical and numismatic interest. While they cost more than newly minted or recent bullion Sovereigns, their added value lies in their scarcity, age, and enduring popularity. Whether you’re a seasoned collector or a gold investor wanting to diversify, these semi-numismatic coins offer a unique balance of value, history, and market liquidity.

Certification and Professional Grading

To avoid counterfeits, purchase certified coins from reputable mints or dealers. Trusted third-party coin grading agencies include:

• Professional Coin Grading Service (PCGS)
• Numismatic Guaranty Corporation (NGC)

These organisations certify the authenticity and condition of coins. They often participate in global events like Coinex (London) and the International Numismatic Convention (New York).

💡 Insider Tip: Avoid buying graded coins as many dealers will charge markups of up to 100% over the actual coin value. Buying bullion coins from trusted dealers is the cheapest way of ensuring authenticity.

DIY Authentication Methods

Several simple methods can help detect counterfeit coins:

• Coin Gauges: Measure diameter and thickness to spot deviations.
• Weight and Dimensions: Authentic gold has a unique density—fake coins are often too light or thick.
• Ping Test Apps: Smartphone apps can analyse the sound frequency when the coin is tapped, distinguishing fakes.

At Physical Gold, we rigorously authenticate every coin we handle. Our experts are always available to verify your coins and provide guidance.

What are bullion coins?

Bullion coins are investment-grade coins made from precious metals like gold or silver. Their value is based primarily on their metal content, not rarity. Bullion coins are produced by government mints and are a popular choice for investors seeking physical gold or silver.

What is the difference between bullion coins and numismatic coins?

Bullion coins are valued for their metal content and trade close to the spot price. Numismatic coins, on the other hand, are collectible and priced based on rarity, age, and condition. Investors typically buy bullion; collectors often seek numismatic coins with historical value.

Are bullion coins tax-free in the UK?

Coins like the Gold Sovereign and Britannia are exempt from Capital Gains Tax (CGT) because they are legal tender. Additionally, all investment-grade gold bullion is VAT-free in the UK. No gold is exempt from Inheritance Tax (IHT).

What are the best bullion coins to buy?

The best bullion coins to buy depend on your location and goals. UK investors often choose Sovereigns or Britannias for tax advantages. Globally, popular choices include the Krugerrand, Maple Leaf, and American Eagle due to their recognition and liquidity.

Are bullion coins easy to sell?

Yes, bullion coins are easy to sell, especially widely recognized coins like the Britannia, Sovereign, and Krugerrand. Their high liquidity and global acceptance mean they can be quickly traded through dealers, online platforms, or gold investment firms.