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The Benefits of Investing in Bullion Coins

Bullion coins – An overview

Bullion coins struck from precious metal are popular collector’s items and investment products.

Available in various weights as fractions of a troy ounce (the traditional unit of weight used for precious metals), bullion coins sell for a small premium over the market price of precious metals due to production and packaging costs. But there are also trends at play and unpredictable events that can further push up the value of certain limited edition coins.

Bullion coins are available in both gold and silver. Gold is well-known for holding its value during times of economic uncertainty, while there tends to be more instability in the price of silver perhaps making it more suitable for the adventurous investor.

Coins are given as gifts and are also very popular amongst enthusiasts who collect them in all of their various editions, with rare or commemorative coins proving to be especially alluring. As an example, in 2013 The Royal Mint changed the purity levels of their silver Britannia to .999, making the 2012 silver Britannia the last silver Britannia to be produced with .958 purity, potentially increasing demand among collectors.

The benefits of investing in bullion coins

Compared to gold bars, which offer investors the opportunity to store large amounts of wealth in gold, bullion coins are more popular among those looking to make a modest outlay to preserve their capital in precious metals.

One of the biggest advantages to investing in bullion coins is that many of them are exempt from Capital Gains Tax (CGT). However, not every coin is exempt so do your research before buying.

In order to meet the CGT-free criteria, the coin must be UK legal tender, so gold Sovereigns and gold and silver Britannias meet the requirements, but a South African Krugerrand does not.

The best gold coins to buy

The Royal Mint’s Sovereign and Britannia gold bullion coins are considered to be among some of the best gold coins to buy worldwide.

If you want to keep your taxes to a minimum, consider gold Sovereigns and Britannias, which are exempt from both VAT and CGT, while silver Britannias are CGT-free but still carry VAT.

Best place to buy gold coins

Remember, when you’re buying bullion coins, it’s important you seek out secure and trusted distributors who have an excellent track record and accessible independent customer reviews.

Look for coins from some of the world’s most renowned mints, such as the British Royal Mint, and check that delivery is made by a well-known courier and comes with insurance.

With thousands of positive customer reviews, The Gold Bullion Co. is widely considered to be the best place to buy gold coins in the UK. We’re reliable and offer competitive, real-time pricing based on the live spot price of gold.

Browse The Gold Bullion Co.’s collection of British gold bullion coins today.

Article Last Updated: Friday, June 16, 2017