Gold coins are an excellent investment, as they add liquidity and divisibility to your portfolio. British gold coins are extremely tax efficient as they are VAT exempt, as well as exempt from CGT since they are legal tender in the UK. However, many investors stepped into a pitfall when buying them as they are unaware of the right ones to choose.
Always buy gold coins that enjoy a vibrant secondary market
Many investors end up buying obscure gold coins based on their collectability and rarity. However, not all collectable coins can add liquidity to your portfolio. It’s much safer to invest in a well-known gold coin like the Britannia or the Sovereign. These coins are mass-produced and do not attract large premiums. As such, they are easily available and hefty discounts can be negotiated when buying large quantities. Due to their popularity across the world, they can be sold quickly at any point in time. An obscure coin, on the other hand, maybe difficult to sell.
Combining collectability and profits
Buying the best value coins does not necessarily mean picking up bullion coins that are the cheapest. There are many collectable sets produced in large numbers that attract collectors. A good example would be the Queens Beast series of coins, issued by the Royal Mint. The set of coins comes with beautiful designs and two new additions are released each year.
This makes it attractive to collectors as the challenge of collecting the entire set is satisfying. However, these gold coins also promise good returns and values have gone up as much as 40% in a single year.
Developing a relationship with a reputable dealer
Gold coins can be bought from some jewellers or direct from bullion merchants. Jewellers will likely have far less choice as their speciality lies with rings, watches and bracelets. Reputable gold coin dealers will be able to guide you as to the best gold coins to buy. Most will have an online store where you can then order the gold coins for either delivery or professional storage. Leading dealers like Physical Gold are registered with the BNTA and offer transparency, investor advice and great service as part of the buying process.
A combination of strategies
Being on a top dealer’s mailing list also means that you are likely to become aware of the availability of these coins well before others do. An important point to remember is that collectable coins attractive lower premiums when they are first released. As time goes by, they escalate in value on the back of increased demand and shorter supplies. Another important strategy is to buy coins when the market is quieter. That way, you can avail of better prices and deals than buying in a busy market.
Tax efficiency and divisibility
Having a variety of dimensions adds flexibility to your portfolio. You can sell off just the right amount of gold to fund your cash flow requirements. Tax efficiency is another consideration and buying UK gold coins has a distinctive advantage of savings on both VAT and CGT. Buying a non-UK gold coin can attract CGT (Capital Gains Tax), which would apply to any profits you make from your sales.
Call Physical Gold to find out about the best gold coins to buy
Our investment advisory team can help you make the right decision when it comes to buying the best gold coins in the market. Reaching out to the team is very simple. You can contact us by dialling (020) 7060 9992 or simply send out an email. As a reputed UK gold broker, we can assure you of a seamless service during the buying process, as well, as after-sales service, including storage.
Image credit: feiern1