Why Buy Gold Sovereigns?
Gold Sovereigns have been around for hundreds of years, so clearly their popularity must have good reason. Investing in physical gold is growing in popularity, but the type of coin or bar can be crucial to the performance of that investment. Options vary between gold bars, non-UK coins such as Krugerrands and the popular Royal Mint coins, the Britannia and Sovereign.
We reveal five compelling reasons why Sovereign gold coins should provide the backbone of any investment into physical gold.
In this video I’ll talk about the main reasons investors buy Gold Sovereign coins. If you’re thinking of starting a gold portfolio or even adding gold to an existing collection, this video will explain exactly why Gold Sovereigns play such an important role.
1. Divisibility and balance
With most other bullion coins weighing an ounce, the Sovereign coin provides a complete alternative at just over a quarter of an ounce. We’re strong believers here at Physical Gold that portfolio variety is key to success, so mixing up the size of your coins helps achieve that.
Owning smaller denominated coins also allows for more flexibility when selling gold. Rather than being constrained to selling a minimum of one ounce, owning Sovereigns offers the chance to sell in far smaller sizes. Even the best laid plans change, so having this added flexibility can be hugely beneficial.
2. Affordability and value
Next up is value. For the more modest investor, buying even a one ounce coin
can be a stretch at over £1,000 each time. Sovereigns can be bought at around a quarter of that, granting access to the market for the smaller investor.
One growing gold investment strategy is to buy gold coins on a monthly basis, check out our Monthly Saver to find out how. Saving in gold each month gradually builds a nest egg, but also irons out price fluctuations. Small coins such as Sovereigns are the ideal choice for such saving plans as larger coins are simply too expensive.
One question we do get asked, is whether Sovereigns are an expensive choice per gram. The very simple answer is NO! Due to mass production, Sovereigns are far cheaper per gram than alternatives such as quarter ounce Britannias.
One aspect of buying gold which should never be overlooked is liquidity. Just like developing properties, the more desirable and easy to sell your asset is, the better price you’ll achieve when you sell.
Sovereigns have been around since 1489, with the modern Sovereign thriving for over two centuries now. No other gold coin has a second hand market as established as the gold Sovereign. It’s well-known around the globe, so combined with its affordability, is the most liquid coin in existence.
The saying goes, that there’s a different Sovereign to suit everyone, from price-obsessed investors to passionate coin collectors.
The current year of issue will always be plentiful, so this offers the investor rock bottom prices and a lot of gold for your money. The strong secondary market provides supply of nearly-new Sovereigns from the past 10 years which may even be obtainable at a discount to new coins.
Going back in time, George V Sovereigns remain cheap but with an element of numismatic value and interest. The Edward VII coins are slightly more valuable again. Then finally, the irrepressible Queen Victoria has 3 different Sovereigns minted under her reign, the young head, jubilee head and old head. These are the most expensive of the modern Sovereigns but have the chance of increasing in value more than new ones due to their historical and scarcity factor.
For those wanting even more choice, Sovereigns are also available as Half Sovereigns, Quarter Sovereigns, Double Sovereigns and even a huge Quintuple Sovereign.
5. Tax efficiency
Finally, one of the most important aspects for any serious investor is tax efficiency. With it’s investment grade status, the Sovereign is free from VAT. That’s great, but the real benefit comes when Sovereigns are sold. As legal tender in the UK, the Sovereign is also free from Capital Gains Tax. That means any profits made upon selling are completely tax free. That puts it head and shoulders above most mainstream investments.
So there you have it, Sovereign gold coins form the backbone of any serious precious metals portfolio. They are the go to coin for a majority of our customers as they simply don’t compromise in any way.
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If you’re interested in buying gold Sovereigns, check out our website at www.physicalgold.com where we stock thousands of different Sovereign coins. If you need guidance, don’t hesitate to call our expert team on 020 7060 9992.