When making a decision regarding gold coins for our investment portfolio, we have to probe into the history of the coins, find out more about their investment potential and assess their availability. We can make an educated decision based on certain factors that most investors would consider when choosing a gold coin for their portfolio. In this article, the two coins that we shall discuss are the famous British Gold Sovereign and the South African Gold Krugerrand.

History of the coins

The Gold Sovereign

The iconic gold Sovereign has been an integral part of British coinage for more than a couple of centuries. Modern gold Sovereigns have been issued since 1817. However, it ceased to be in circulation since 1932. Gold sovereigns are now minted by the Royal Mint as a bullion coin. This amazing British coin has been minted throughout the reigns of several British monarchs. During the reign of Queen Victoria, the Sovereign witnessed three different issues, better known as the Young Head, the Jubilee Head and the Old Head. The coin is instantly recognisable due to the famous design of St George and the Dragon, which was initially created by the Italian designer, Benedetto Pistrucci. It is a coin that is loved by many investors and numismatists and worth including in your investment portfolio.

The Gold Krugerrand

The gold Krugerrand is a more recent coin. It was first issued by the South African Mint in 1967 and produced with gold provided by the Rand Refinery. The Krugerrand gets its name from the former president of South Africa, Paul Kruger. Of course, the country’s currency is called the Rand. Hence, the coin is named Krugerrand. The obverse of the coin has an image of President Paul Kruger, while the reverse features a Springbok, which is the country’s national animal. By 1980, the Krugerrand was the leading choice for investors, who wanted to buy gold coins. Due to its popularity, the coin prospered and represented 90% of the international gold coin market at one time.

Comparing the two coins

Gold Sovereigns can be a better purchase for UK investors than a Krugerrand as any profits are tax-free. While a Krugerrand can provide a cheaper overall purchase cost per gram due to its larger size, dealers may pay less for them and any profits are taxable. Sovereigns have been around for far longer so provide the possibility of owning more historical coins.

Liquidity and value

In terms of liquidity, both coins are well-placed. Both the Sovereign and the Krugerrand are globally renowned coins and sell quickly. Both coins feature 22-carat gold, which is a fineness of 91.7%. However, it must be noted that the older Sovereigns can fetch better value due to their age. The Krugerrand is a more recent coin and does not command premiums based on rarity and age.

Diversity

If we were to consider diversity, the gold Sovereign is a better choice. Having been around for centuries, the coin is available in a variety of issues and sizes. The gold Sovereign has many different sizes. Like the quarter Sovereign, the half Sovereign and even a double Sovereign. Investing in these coins can create flexibility for your portfolio, allowing you to sell different amounts of gold at different price points in the market.

Call Physical Gold to get the best advice on buying gold coins

Physical Gold is one of the most reputed gold dealers in the country and our investment team can advise you on making the best purchases in gold coins. Call us on (020) 7060 9992 or reach out to us via our website and a member of our team will contact you right away.

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Gold coins are extremely popular amongst investors and collectors. However, coins, bars and other articles cannot be manufactured using gold in its purest form. This is because gold is a soft and malleable metal and may bend easily during the manufacturing process. So, it needs to be mixed with other metals to achieve a certain level of hardness. Other metals are also mixed with gold to create colours which are popular among buyers.

But how do we know the extent to which other metals have been introduced into the gold? It would reduce the purity of the gold to something like 18 carats. But, it is impossible to ascertain the purity with the naked eye. Therefore, gold hallmarks are required to inform the buyer about the purity of the gold. These gold markings are engraved on the gold by the manufacturer.

What products need to carry gold hallmarks?

In the UK, it is mandatory to have gold markings on all gold products – jewellery, artefacts, etc., that are sold in the country. Sometimes, these gold markings may also carry the date on which the gold hallmarks were created. If the gold hallmarks are approved by the assaying office, this information should be included. Of course, the gold hallmarks would also contain information regarding the purity of the gold.

Standard gold hallmarks will carry a number. For example, 18-carat gold is 750 parts out of 1000 in weight. So, the gold markings will carry the number 750.

History of gold hallmarking

Gold hallmarks were introduced in the UK as early as 1300. At the time, a law was passed regarding the purity of gold items. By this law, gold had to be 80% pure, which meant that it must be 19.2 carats. Under the act of gold hallmarks, gold products were tested by the guardians of the craft, who used a stamp with the leopards head, as a symbol in their gold markings. Later, the task of testing and adding gold hallmarks was assigned to assayers, based in Goldsmiths Hall, London. Currently, assaying offices can be found in London, Sheffield, Birmingham and Edinburgh.

By 1972, the UK joined the International Convention of Hallmarks as a signatory. This convention introduced new gold markings, commonly referred to as CCM (Common Control Mark). The fineness of gold is therefore represented in gold hallmarks as a weighing balance with the purity number written in between. In 1999, the European Court of Justice ruled that dealers in the UK would have to recognise and accept the gold hallmarks of other European countries. These gold markings must carry the maker’s symbol, purity information and the stamp of an assaying office. Currently, the UK recognises the gold hallmarks of Switzerland, Finland, Denmark, Ireland and Portugal.

What should we look for in gold hallmark identification?

Gold hallmark identification is an essential step in ensuring that the gold you purchase is genuine and contains the purity of gold that you are paying for. If we go back in time, gold hallmark identification had five separate elements. These included the mark of the maker, information related to fineness, millesimal fineness, the mark of the assaying office and the date.

However, there were discrepancies in the dates across these gold markings. For example, the initial issuers of gold hallmarks – the ‘Worshipful Company of Goldsmiths’ started each year on St Dunstan’s Day, which is 19^th May. During the reign of Charles II, this was changed to the King’s birthday. In more recent years, the different assaying offices used the start of their financial year. In 1975, the start dates for all gold hallmark identification were brought to the beginning of the calendar year. Today, the date stamp may be omitted altogether from gold markings.

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So, when studying gold hallmark identification, we would find three essential identifiers – the mark of the maker, the standards/fineness mark and the mark indicating the assaying office. The assaying office in Birmingham is considered to be the largest and its symbol is a ship’s anchor on its side.

Gold markings on coins

Gold coins come under the category of investment-grade gold in the UK. This category of gold is exempt from the law of displaying gold hallmarks. This is simply because the purity of investment-grade gold is guaranteed by the London bullion market Association (LBMA). No gold hallmark identification is required. The assaying office in London has also published its guidelines regarding gold hallmark identification, which states that gold coins are exempt. However, refiners will often stamp their gold bars with their mark and purity information. Likewise, mints may also stamp their gold coins with identification marks.

For example, the Royal Mint issues a gold coin set known as the Tower of London collection. This set of coins carries a special mint mark. These gold markings can be used to identify the coin over the years to come, tracing it back to its origins and the mint that has struck the coin. Similarly, US gold coins also carry mint marks. These mint marks are engraved to identify where the coin was made and hold the manufacturer accountable for the purity of the coin. In 1835, mint marks were introduced in the United States by law. In 1838, the first mint marks appeared on US coins from the newly opened branches of the US Mint in Charlotte, Dahlonega and New Orleans. Similarly, gold sovereigns were produced across the British Empire. These coins have a mint mark with a letter, indicating the city or country where the coin had been minted. However, gold markings such as mint marks should not be confused with gold hallmarks.

Get in touch with Physical Gold to know more about gold hallmarks

At Physical Gold, our gold experts can help you find out more about gold hallmark identification for gold products. We can advise you and guide you on your purchase of coins and bars, including the process of finding out about the purity of articles you buy. Call us today on (020) 7060 9992 or get in touch with us online and we would be happy to help you out.

 

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Many gold and silver coins are considered legal tender in the UK. When a coin becomes legal tender, it implies that you can purchase goods and pay for the same, using the coin. Therefore, it is mandatory for any business within the economy to accept this coin as currency.

The Gold Sovereign

The Sovereign has a long history that makes it one of the most iconic coins in British coinage. During the reign of King Henry VII, an English coin called the Sovereign was brought into circulation in 1489. Subsequently, King James I acceded to the English throne by 1603. He also issued a Sovereign to commemorate the year of his coronation. However, by 1660, King Charles II had come into power and the Royal Mint went through a period of reorganisation. During this time, the Sovereign faded away and was replaced by the Guinea.

The modern Sovereigns

By 1816, a new coinage act was instituted across Great Britain, and the gold standard was implemented. It was around this time that the Italian designer, Benedetto Pistrucci arrived in London and was commissioned to design a new coin. He created the design of St George slaying the dragon, and a new gold coin christened the Sovereign was released depicting the head of King George III. Since then, the Gold Sovereign was used throughout the reigns of different monarchs. King George III was succeeded by King George IV and later by his third son, King William IV, whose short reign lasted from 1830 to 1837. Upon his death in 1837, Queen Victoria inherited the throne.

Through the reign of monarchs

The reign of Queen Victoria saw the issuance of three Sovereigns, which are now popularly known as the Young Head, the Jubilee Head and the Old Head. The Sovereign continued to be in circulation throughout the reigns of the Queen’s successors, namely, King Edward VII and King George V. Although the coin was withdrawn from circulation during the earlier part of the 20^th century, it continued to be struck as a bullion coin and continued to be recognised as legal tender in the UK.

Old Sovereigns are legal tender in the UK due to their £1 face value. In theory, you can use the Sovereign to purchase goods up to £1 in value, but the gold content of the coin is worth far more. Its legal tender status is important for gold investors as it deems any profits made from Sovereigns as tax-free.

A timeless classic

The Sovereign’s long history through the centuries has made it a timeless coin that is extremely attractive to collectors and investors alike. Of course, there are other iconic British coins like the Gold Britannia. However, the Britannia was only issued in 1987. The prestige and status enjoyed by the Gold Sovereign lasted throughout the glorious years of the British Empire.

It became synonymous with the status of the British Monarch and propaganda posters were printed during the First World War, depicting a Gold Sovereign, with the head of King George V. The poster carried the tagline, “The British Sovereign will win.” The poster was used to encourage citizens of the Empire to invest money in a government scheme, designed to raise funds for the war.

Talk to us before you buy a gold Sovereign

Physical Gold is one of the nation’s most reputed precious metal dealers. We have a team of experts and researchers who can assist you in getting a great deal on Gold Sovereigns. Please call us on (020) 7060 9992 or get in touch with us online.

 

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Gold Sovereigns versus Britannias

Building a strong gold portfolio can be a challenging task, requiring an investor to study the different gold coins available in the market. Two of the most popular British coins that have stood the test of time are undoubtedly the Gold Britannia and the Gold Sovereign. Either coin holds an important place in your portfolio, so it’s worth finding out the pros and cons of investing in these coins, based on certain key attributes.

Variety

Variety is the key consideration when choosing gold coins for your portfolio. Coins that have a wide range of issues, sizes and denominations are likely to enhance the value of your portfolio. The Sovereign is an obvious choice if variety is to be considered. The iconic British coin has been around for more than 200 years and several issues through the reigns of different monarchs are available in a wide variety of choices. There are plenty of sizes to choose from, including the half, double and quintuple Sovereign.

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If we take a close look at the reign of Queen Victoria, we can find sovereigns that feature the great Queen’s young and old portrait, and also the Jubilee head. Therefore, choosing sovereigns create great value, as well as balance for your portfolio. The Britannia has only ever featured Queen Elizabeth on its obverse, whereas the Sovereign has contained numerous monarchs.

Value

Most investors find it lucrative to purchase coins that offer more quantity of gold for the price.

Gold Britannias provide a lower price per gram than Sovereigns due to being four times the size. Both fetch similar prices per gram when being sold and both are Capital Gains Tax-free due to their legal tender status. It’s also important to note that many issues of the Sovereign carry hefty premiums due to their historical value. However, the gold Britannia is available at far lower premiums, since it is a more recent coin. The Britannia is four times larger than the Sovereign, making it a more expensive coin. Lower stake investors could find its purchase to be way beyond their means, while the Sovereign provides easier access to the gold market for these investors.

Divisibility

The Sovereign’s smaller size offers more divisibility, and their longer existence (200 years versus only 30 years for the Britannia), provides far more variety and choice. If we compare the Sovereign with the Britannia, it becomes increasingly evident that the coin is a winner when it comes to divisibility. The sovereign is easily available in different sizes and denominations, which gives investors the flexibility to cash in at various price points in the market by selling different sizes and denominations, as and when required.

Liquidity

Both the coins enjoy an extremely strong secondary market, making it easy to sell at any point in time. Liquidity is an important consideration when investing in gold coins. Investing in illiquid coins defeats the very purpose of your investment, as you may be unable to realise its value at a time when you need it most.

Choosing the right coin

Daniel Fisher, CEO of Physical Gold provides a guideline to choosing these coins in a fascinating video released by the company. According to him, the choices are guided by the portfolio size. For a smaller portfolio of around £2,000 – £5,000, Sovereigns are a better choice. However, if the portfolio size is in excess of £10,000, the Britannia should be included.

Call the experts at Physical Gold to make the right choice

Our investment experts can help answer all your questions about investing in gold coins, whether you want to buy the gold Britannia or the Sovereign. Call us today on 020) 7060 9992 or simply drop us an email. A member of our team will be in touch with you right away.

 

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Gold Sovereigns have been around for more than two centuries and have an important place in any investor’s portfolio. Gold Sovereigns enjoy tremendous liquidity, as it is one of the best-known British coins in the world. Many collectors and investors are keen to invest in this coin. There are also many different years of issue associated with the Sovereign, at different price points. Older Sovereigns may command more value due to their rarity. However, newer Sovereigns are easily available at low premiums. The decision to invest in gold Sovereigns need to be based on certain factors.

Divisibility and balance

Sovereigns are available as a bullion coin, but a unique quality is their gold content. Most bullion coins typically weigh an ounce. However, Gold Sovereigns weigh a quarter of an ounce. Therefore, investors can explore a wonderful opportunity to build a portfolio with a variety of coins. Buying Sovereigns of different denominations can enhance the divisibility of your portfolio. This simply means that you have greater flexibility when selling. This is a better option than selling a 1-ounce bullion coin at a certain price point in the market. Owning Sovereigns of different dimensions and different years of issue can also help create a balance for your portfolio.

Better affordability

The Sovereign is a more affordable coin due to its smaller size. As an investor, the coin allows you access to the gold market with a lower investment. As a mass-produced coin, Sovereigns are a lot cheaper when compared to the Gold Britannia. Therefore, a great investment strategy is to buy Gold Sovereigns every month. Sovereign bullion coins, present an opportunity to acquire gold at a cheaper price per gram, due to their lower manufacturing costs.

Creating variety for your portfolio

So far, we have covered some important points that will help you select the right gold Sovereign. We have established that gold bullion coins are better for investment. Since the Sovereign is available in smaller denominations, we have also discussed that having a variety of sizes can create an advantage for your gold portfolio.

When buying a Sovereign bullion coin, always look for the current year of issue. These are available in plentiful, at rock bottom prices and low premiums. Apart from new coins, what else should you look for? Gold Sovereigns enjoy a strong supply pipeline and many modern Sovereigns from the past 10 years are easily available. You may be able to obtain some of these coins at better prices than the new ones. Spreading your investment over a variety of modern Sovereigns can be a sensible approach towards creating variety for your portfolio and making it stronger.

Buying old Sovereigns

The best old Sovereign to buy based on price is the current year of issue. Sovereign prices are based more on gold content. If seeking a combination of value and history, the George V and Elizabeth II coins provide the optimum all-round solution. If buying many Sovereigns, a combination with older Victoria coins is best.

The Sovereigns from the reign of King George V are still available at affordable prices, due to their availability. However, these coins do offer enough numismatic value and interest, making them worth collecting. Edward VII Sovereigns are more expensive to buy but worth acquiring if you can get a good deal on them. Queen Victoria have three different Sovereigns that were issued during her reign. These are called the Young Head, Jubilee Head and the Old Head. These are the most expensive coins among the modern Sovereigns, but investing in them can fetch good returns, as their value continues to rise due to rarity.

Our gold experts can advise you on the right Sovereigns to buy

Physical Gold is one of the most reputed gold dealers in the UK. We have a team of gold experts who can help you purchase the best Sovereigns for your investment portfolio. Call us today on (020) 7060 9992, or get in touch online through our website.

 

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Gold Sovereign (Victoria – Present)

Country: Great Britain
Face Value: £1GBP
Gold Content: 0.2354 ounce (7.3224g) – Alloyed with copper, or copper and silver
Purity: 917/1000 (22 karat)
Gross Weight: 7.9881g
Coin Diameter: 22.05mm
First year of issue: Modern Sovereign 1837

The Gold Sovereign coin was first issued in 1489 for Henry VII of England and is still in production today. Sovereign coins are arguably the most famous of all gold coins and should form a part of every gold portfolio. They are desirable to investors and collectors alike. Due to their long history of production Gold Sovereign coins are split into several types, each with their own pricing and nuances. Modern coins will be of the last 10-15 years and probably still be in their plastic blister pack. Older coins, particularly dated pre-1933 tend to exchange hands either loose or in rolls of 50. Physical Gold offers an easy way to buy and sell sovereign coins.

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These British coins typically have a face value of £1 sterling or 20 shillings. When it was first released it was primarily an official piece of bullion with no mark of value on the actual coin itself. The coins were 23 karat gold and weighed 15.552 g, Henry VIII reduced the purity to 22 karats with a weight of 7.322 g.

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The core Full Sovereign coin has spawned several other Gold Sovereigns of varying sizes. These include the 2 Pound coin (or double Sovereign), the Five Pound Coin (you guessed it – a quintuple Sovereign, making it the largest gold content of any British coin), the Half Sovereign and the Quarter Sovereign. Generally, you’ll pay more per/oz for the smaller fractional coins than the full Sovereign or larger coins.

Sovereign coin production ceased in 1604, being replaced by Unites, and later by Laurels, and then Guineas. In 1817 production of Gold Sovereign coins restarted.

Modern Sovereigns are those minted during the reign of Victoria, Edward VII, George V, George VI And Elizabeth II. These Sovereigns feature the monarch who reigned during their production on the obverse side.

The reverse most commonly features Saint George slaying a dragon which was designed by Italian engraver Benedetto Pistrucci. A number of different shields have also featured on the reverse and often attract a higher price tag.

As a coin of the realm in the UK, buying gold sovereigns benefits from being free from Capital Gains Tax for UK residents. You can buy gold sovereign using any of the order, delivery and storage options throughout the Physical Gold website

Sovereign Coins

Alongside the Union Jack, bulldog and red telephone box, the gold sovereign coin is one of the most iconic British symbols, providing the basis of timeless gold investment as well as a treasured lifelong possession.

Another reason for their popularity amongst collectors is their worth. A fantastic way to preserve value against inflation, gold sovereign coins hold their value particularly well over time and provide an excellent all-round investment. This also makes them a popular starting point for those thinking of investing in gold.

Some choose to buy gold sovereigns from recent years, others from hundreds of years ago meaning that the value of gold sovereign coins can be hard to determine. At Physical Gold we are experts in buying and selling sovereign coins and can precisely value new and old coins.

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Gold Sovereign Coins

Those looking to sell sovereign coins often cite their flexibility as one of the motives behind their decision, allowing them to keep their investment in smaller units. Whether to sell or buy gold sovereigns, the consistency of the production quality is often still hailed as one of the finest in the world.

Gold sovereigns are made with 22-carat gold. This consists of 11 parts crown gold out of 12 and one-part copper out of 12. This composition has not changed since the issue of the 1817 sovereigns. This particular composition of the alloy used in making the sovereigns ensures the coin is more durable and protects it against scratches and dents.

With opportunity, lies danger

Gold sovereigns enjoy high demand from numismatists around the world. Due to its great demand, the coin commands a much higher price than its weight in gold. Unfortunately, this has also led to some instances of counterfeit coins appearing in the market. When buying a gold sovereign, it is therefore important to ascertain whether the coin is genuine. Gold coin dealers or brokers use a coin gauge to detect fakes, as well as checking measurements and weight. In one instance, a few fake 9-carat gold sovereigns had started circulating in the market. However, an experienced coin dealer will spot the counterfeit coin immediately due to its discrepancy in weight and thickness. Gold itself is a difficult metal to counterfeit, owing to the density and colour of the metal. Fake gold sovereigns are usually underweight or have the wrong dimensions. Today, the gold sovereign is a protected coin and enjoys protection from the UK government through the forgery and counterfeiting act 1981.

Buy Gold Sovereigns

If you wish to buy gold sovereigns, ensure you purchase from a reputable dealer to ensure the lowest price. If you are looking to sell sovereign coins Physical Gold can make the process easier. As proud members of the British Numismatic Trade Association (BNTA) Physical Gold is committed to dealing coins in a legal and efficient way. In addition to this Physical Gold is a member of the National Association of Pension Funds making it possible to buy and sell gold coins as part of a wider long term investment plan.

 

 

Why buy gold coins?

Genuine gold coins can be a fantastic investment, a treasured heirloom to hand down through the family or an opportunity to protect your wealth for the future. Many people have already heard about these advantages, and more besides, but how do you take the next step to own gold? It’s unlikely that you have a ‘gold coin shop’ at the bottom of your road and, as we’ll discuss below, even if you did it might not be a good idea to buy from there! So, how exactly do you buy gold coins?

The advantages of gold coins

Gold is, first and foremost, a great way to protect your wealth. It’s not linked to stock market prices and so, in times of recession and market crashes, gold will often hold its value & provide a safe haven. This is because Gold is universally recognised as having an intrinsic value, so there’ll always be demand for it, which isn’t always the case with Company stocks and shares.

Coins, in particular, are considered to be a very liquid asset because they’re

smaller, they’re easily divisible. This means that if you required a relatively small amount of cash, you could easily sell a small portion of your holding.

In this way, the appeal of gold coins is enhanced by the fact that some dealers will even offer a buy-back guarantee for these coins due to their liquidity, typically at a higher price for their weight than bars.

As well as the opportunities for selling your coins in the future, there are also immediate purchase advantages. Coins are often available at a lower premium and are extremely tax efficient. This is because UK gold coins are technically legal tender within the UK, so there’s no VAT to pay and no Capital Gains Tax at the point of sale.

The different types of coin

There are many different types of gold coins on the market, but one of the most common UK coins, which benefits from the tax advantages mentioned, is the British Britannia. Like other well recognised gold bullion coins, it’s one ounce in weight and is a sound investment choice, whether you’re just starting or an experienced investor.

You can see a more comprehensive list of your bullion coin options here, including the South African Krugerrand, which is another common option for investors who want to diversify and move away from solely investing in UK coins.

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It’s sensible to buy coins that can be sold easily

A vibrant secondary market is an absolute must when it comes to purchasing coins. This is simply because you will want to sell them at some point in time in order to realise your investment, along with a tidy profit. But, far too many investors buy obscure gold coins because they think it’s rare and has a numismatic value. When they try to sell it, they can’t find a buyer. So, it’s imperative to invest in coins that can add liquidity to your portfolio.

Royal Mint gold coins

These could be well-known gold coins like the Britannia or the Sovereign. Both these coins enjoy a reputation that stretches far and wide across the world and can be sold quickly at any place, any time. It’s also important to note that these coins are easily available and can be purchased in large quantities with bulk discounts. The Britannia, for example, does not command a rarity value as its editions are all fairly recent and do not go back centuries. They are mass-produced and are easily available with low premiums.

Buy gold coins for collection purposes

Investing in old, collectable gold coins (also known as numismatic coins) is a popular hobby for many, and collectors can make decent profits at any point, should they decide to liquidate their collection.

However, numismatics (rare, gold-bullion coins which are not quite at the point of being formal collectables) is a professional discipline of study, and for the casual or even professional gold investor, it’s normally recommended that you stay with modern gold coins.

If you do have a specific interest in numismatic or semi-numismatic coins, however, it is possible to purchase these via the same routes as those described below.

Is it possible to combine a passion for collecting with profits?

Several investors develop a passion for collecting over time. If you are developing a collection, it doesn’t necessarily mean that you should forego profits altogether. There are several collectable sets of coins available in the market that are attractive to investors as well, as collectors. A case in point would be the Queens Beast series of coins, which are released by the Royal Mint.

The set features the legendary Queens Beasts and two new releases are introduced into the market every year. The challenge of collecting the entire set lures several collectors. At the same time, these coins are an excellent investment, as values can go up by as much as 40% in one year. Therefore, they tick both boxes for the buyer – collectability and good profits.

How to buy gold coins in the UK

Once you’ve reviewed the information about gold coins and decided on your approximate purchase requirements, you have several options for the actual purchase itself. The main routes to buy gold coins in the UK are:

• a registered and approved gold dealer
• a jeweller
• an online private seller (using a marketplace such as eBay)
• an online portal seller

Each of these options can have their own strengths and weaknesses.

Registered and approved gold dealer

An approved gold dealer will typically be able to provide you with the best price, the best quality and the best choice of gold coins, due to their position at the heart of the gold marketplace and their associated buying power.

They offer added security with regard to quality, flexibility in the quantity you wish to buy and expertise when it comes to guiding you on which type of coin to purchase. Gold can be purchased for many reasons and a reputable gold dealer will be able to guide you on which type of gold coin will best meet your objectives. They should also have added services such as insured storage of your gold coins – should you prefer not to store them yourself. A reputable dealer should be BNTA accredited. The BNTA oversee the coin trade within the UK and dealers must meet certain criteria before they are awarded accreditation.

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It’s important to discuss your investment objectives with your dealer at your first meeting or call. Once you can secure a place on the dealer’s mailing list, you will get to know about the best deals in advance. If a specific coin that you’re interested in becomes available, you’ll be the first to know. A clever way to purchase gold coins at lower prices is to wait until the market becomes quieter. Needless to say, there could be excessive demand in a busy market and prices would stay up.

Jewellers

Some jewellers will often hold small quantities of gold coins, sometimes with the intention of selling, as they would a ring or necklace.

The coins held at professional & reputable jewellers are likely to be genuine but may not be of the trading quality sold by a gold dealer. They’re also likely to hold a limited quantity and may possibly charge a larger margin, due to the likely intention that the gold is a gift, rather than an investment. Not a bad option if you want to buy gold coins in small quantities.

Private sellers

Gold collectors, and owners, can sometimes turn to marketplaces such as eBay to sell their gold to the mass market.

Whilst it can be tempting to sniff out a bargain on sites such as this, purchases from private sellers come with risks such as being fake, or low-to-middling quality and there is a lack of purchase guidance that you would receive from a reputable dealer.

Online portals

Some bulk sellers now offer automated online portals for gold purchases. This can be an attractive proposition for smaller purchases of perhaps one or two coins.

For larger purchases, however, these portals are usually unable to offer personalised guidance on your chosen gold, which can make all the difference to your returns and the value of your gold holding at a later point.

How to structure your gold coin purchase

Once purchased, you may decide that you wish to keep your coins at your home. If this is this case, we would recommend installing a security solution such as a safe. Alternatively, if purchased from a reputable gold dealer they will probably be able to offer you a secure storage solution.

There are also other options for your gold purchase, which may align with your wider investment objectives. A regular savings plan might be attractive – reducing your initial outlay and helping you save in smaller, manageable contributions to your overall gold coin holding. A gold dealer can discuss the options with you and help decide on the most suitable route forward.

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Getting value for money from your purchase

The ‘secret’ to buy gold coins successfully is simply to understand why you are buying gold and to make a purchase based on your long-term aims.

The reasons for someone in their 50s purchasing a single gold coin to pass to their grandchildren, for example, will be very different from the reasons behind a 30-year-old purchasing to hedge their existing investments.

In each of the above scenarios, experts are there to help ensure your purchase is exactly right for you – furthering your overall aims and benefiting you and your circumstances.

Making tax-efficient investments

Tax efficiency is a key consideration for any investor. UK investors are fortunate to have VAT and CGT savings on UK gold coins. There are VAT exemptions on all investment-grade gold, which includes coins and bars (such as 1oz, 100g and 1 kilo). However, gold coins that are legal tender in the UK are also capital gains tax-free. This means any profits that you make from the sale of your investments in the UK gold Britannia or Sovereign will not be subject to capital gains tax. But, if you were to invest in a non-UK gold coin like the Krugerrand, the profits from its sale can be taxed.

Call Physical Gold for the best advice on buying gold coins

Physical Gold is one of the most reputed online dealers of precious metals such as gold and silver (bars and coins) in the UK. We have investment advisors who can guide you on the best gold coins you can buy. Our team makes recommendations and imparts advice after discussing your investment objectives. Give us a call today on (020) 7060 9992 or contact us through our website. We can help you build a robust portfolio by investing in the right gold coins.

 

Image credits: Michail Nowa and Pxfuel

The sovereign is an iconic British coin that is popular amongst investors and collectors. The modern sovereign has been in existence since 1817, and the coin has witnessed the reigns of several British monarchs.