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?
The silver Britannia was first issued in 1997
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 30th-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.
Image Credit: Eric Golub
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.
Britannia coins are the one-ounce British Bullion coins issued by the Royal Mint since 1987. Both proof and bullion versions have been issued every year to date and fractional versions are commonly available. The Britannia coin is available in either silver or gold and since 2013 has a purity value of 999.9. It is currently the largest, purest British legal tender coin available on the market.
Britannia coin
County: Great Britain
Face Value: £100 GBP
Gold Content: 1 ounce (31.104g) – Alloyed with copper or silver depending on year (pure from 2013)
Purity: 917 / 1000 (22 karat) (1987-2012) or 999.9/1000 (24 karat) (2013-)
Gross Weight: 34.0500 g (1987-2012) or 31.104g (2013-)
Coin Diameter: 32.69 mm (1987-2012) or 38.61mm (2013-)
First Year of issue: 1987
British coinage history
Britain has a long history of coinage. The first coins that were minted in Britain were Celtic ones around 80 BC. The first gold coins and silver coins in Britain were introduced by the Romans. The gold one was called ‘Aureus’ and the silver ‘Denarius’.
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Why Britannia?
The ‘Britannia’ first appeared on the coins of the Roman Emperor Hadrian in AD119. Britannia represents the strength of the British Isles in female form and she has been depicted as a goddess since the 2nd century. Over the years she has appeared on many coins including every penny issued from 1797 up until decimalisation and all 50p coins issued before 2008. Over the years the image of Britannia has changed with more of an emphasis being placed on her maritime links (She is often referred to as the Queen of the Seas) and images of her brandishing a spear have been replaced by those portraying her with a trident.
Bullion coin market growth
After the 80s saw significant growth in the global bullion market, the Royal Mint introduced Britannia coins to their bullion portfolio. Designed by Philip Nathan, the coin featured a new interpretation of Britannia that was powerful, yet elegant and it caught the imagination of the entire nation. Introduced in 1987, the coin made a worldwide impact and became a classic. Today, 30 years later, the classic design still remains the same – with a small addition. The new design displays a radial sunburst on her back.
The beautifully designed Gold Britannia
The Britannia – Europe’s premier modern coin
The Britannia coin is fast becoming Europe’s premier modern coin and is regarded as one of the world’s most beautiful coins. This coin is admired by collectors, dealers and investors from around the world, and is, therefore, one of the World’s most liquid coins.
With the face value of £100 UK Britannia coin is considered legal tender in Great Britain and it is therefore not subject to Capital Gains Tax when sold for a profit by UK residents. As the law currently stands you are required to pay CGT for any personal goods you have sold or made a profit on over the tax-free allowance rate of £11,300. As gold and silver Britannia’s are CGT exempt, however, you can sell as many as you want over the tax year without having to pay CGT.
Design features
The classic design featured on the 2018 1oz Britannia coin
displays a stroking image of a standing Britannia who is portrayed as a beautiful young woman, wearing a centurion’s helmet and holding her trident aloft. The reverse side of the coin features the most recent portrait of Queen Elizabeth II which was designed by Jody Clark of the Royal Mint and first introduced in 2015. Like previous editions of the Britannia coin, it has a purity of 999.9 and is created in 24 karat gold.
Britannia gold coins originally had a fineness of 91.7% or (22 karats) gold with the alloy being copper until 1989 and silver from 1990. The Royal Mint increased purity to 24 karats from 2013 to appeal to the ever-growing Asian market.
Collectable and with solid investment potential
These lovely 24 karat coins are an amazing investment for any numismatist or an investor. They are worth their weight in gold and have a purity of 999.9 since 2013. The 2018 edition is an excellent value for money and fitting addition to any coin collection. Investors on the other hand, who want to invest serious money in these coins as an investment in gold, would benefit from purchasing a large number of the coins. This is because it works out considerably cheaper to buy gold bullion in bulk rather than individual coins. The advantage of purchasing gold in small denominations such as a coin also gives the investor an advantage in terms of liquidity. At a later point in time, when the investor wishes to exit gold as an investment strategy, he need not dilute all his investments. He can simply sell the ones he wishes to and transfers a part of that investment to another asset class.
Britannia coins are also currently available in a range of different weights and denominations depending on the amount you wish to invest. These include 1/2, 1/4 and 1/10th troy ounce coins which have face values of £50, £25, and £10 respectively. Since 2013 two additional sizes of Britannia coin have been introduced – a 5-ounce coin and 1/20th ounce-coin. These have face values of £500 and £5.
Another reason to invest in Britannia Coins is that they present European and UK investors with the opportunity to purchase physical gold totally exempt from VAT. All of our Britannia coins are available to purchase VAT free and CGT exempt.
The Britannia is a prestigious coin, famous all over the world and makes an excellent companion to gold sovereign coins. It would make an excellent Christmas gift item for someone in the family or a loved one. So, as we can see, investing in a Britannia isn’t just about parking money and hedging risks. The coin is a true work of art and would make a fitting family heirloom to be passed down from one generation to the other. The coins come with their own case and are suitable for display as an outstanding work of art and a great symbol of British history. Call us on 020 7060 9992 to discuss how Physical Gold Limited may help you invest in the Britannia 2017.
New Britannia gold coin launch
In the past couple of weeks, we’ve seen the launch of the 2013 Gold Sovereign and Britannia gold coin from the Royal Mint.
While the new Sovereign coin is pretty much the same as recent issues, the latest Britannia gold coin represents an evolution. The Royal Mint has made the bold decision this year to produce their 1oz bullion coin in 24 carats for the first time. So why have they done this, and more importantly what are the consequences to UK gold investors?
Indications are that the Mint feels they can increase the global demand for their products by producing the 24-carat coin. There can be tax advantages in some countries for investors buying 24-carat gold rather than its diluted 22-carat version. Certainly, the Far Eastern market tends to demand pure gold, known as “4 nines gold” due to it being 99.99% pure, more than gold mixed with alloys. So undoubtedly there are advantages for the global market. But how will this change affect UK investors? Is it just as positive for us?
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Let’s first of all deal with the misconception that you somehow get more gold with a 24-carat coin. You don’t! Generally, a 24-carat gold coin will weigh around 31g whereas its 22-carat cousin may weigh closer to 34g. So in both coins, you will receive around 31g of pure gold, with an additional 3g of alloy in the 22-carat coin. So there is no advantage with regards to gold quantity in 24-carat coins.
Possible scratches
How about the way the two coins resist wear and tear? Hands down, the 22-carat coin is
preferable from a resilience perspective. If your 24-carat coin is encapsulated or packaged in a way whereby it won’t be handled, then this may not prove to be too much of a problem. But the whole joy of owning physical gold is that you can touch and feel it! Gold is a very soft metal, so in its pure state, it is susceptible to scratches and damage. Regardless of whether your coin purchase is for investment or collection purposes, you now own a damaged coin that is worthless. So while I see some argument for 24-carat coins for collectors, as an investment you want to receive as much liquid gold as possible for your money, which means not paying for packaging and protection. Moreover, you’ll want gold that maintains its integrity and fetches the highest price upon disposal.
This notion is supported by history and the majority of other bullion coins on the market. The fact that most gold coins are 22 carats suggests that this is the optimum mix for this type of gold investment. Certainly, the coin needs to be resilient due to its function as money. So in my mind, one of the reasons the Sovereign coin market is so deep is because coins of 100 years old are still in decent shape and desirable. Will the market for century-old 24-carat coins also prove successful? I don’t think so. The Royal Mint also seems to have lost focus on the original Britannia concept when it launched in 1987. After all, it was developed to piggyback on the success of the South African Krugerrand. This was and still is the most successful investment coin of all time. It was the first gold coin to possess exactly 1oz of gold. The Britannia if you like, was our version or copy of the Krugerrand. What is the purity of the Kruger? Well, 22 carats of course!
Will the new coin price differently to the old one?
One interesting development to keep an eye on over the coming months is that of pricing. There will now be around 25 year’s worth of 22-carat Britannias on the secondary market, mixed with the new 24 carat coins. So how will the two coins price against each other? I guess only time will tell. The new pure coin may trade at a slight premium. There’s always a demand for the latest version of a coin, and this one is 24 carat after all! I’m not sure I would want to pay an additional premium for investment purposes for the reasons of value discussed earlier. Alternatively, we may see the older coins trading at a discount as the market may perceive these as less desirable. If this is the case, I will be snapping those up all day long as supply is limited.
So while the brand new Britannia gold coin is beautiful and will no doubt prove a huge success for the Royal Mint in opening up global demand for UK coins, the jury is still out on whether it will be as well-received on UK shores. Still, along with Sovereign gold coins, the Britannia (excluding the silver version) remains VAT exempt and Capital Gains Tax-free for UK residents so it’s certainly not worth discounting yet!
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