Are gold sovereigns a profitable investment?

People who have ever been lucky enough to own gold coins can understand that there’s something solid and substantial about investing in sovereigns. If you are not one among them, first you need to have some useful information on Gold Sovereigns for sale in the UK.

Being one of the most recognisable coins in the world, gold sovereign symbolises the quality and history which has been associated with the Royal Mint long before. 



The gold sovereign, first minted in 1489, is one of the oldest coins still in production. The 22ct gold coin is considered the most popular investment coin in the UK. Despite its rich historical significance, numismatics sometimes become curious to know whether gold sovereigns is a profitable investment.

To make them understand, we will discuss certain things like - 

  • Why you should prefer to invest in gold 
  • The 3 biggest benefits of investment in gold sovereigns
  • The gold sovereigns you should invest in

Why you should prefer to invest in gold

Financial advisors often recommend buying gold as part of a diverse investment portfolio. The price of gold, pretty alike stocks and shares move up and down. From early days to intense financial crisis times, the value of gold has been high. It's very obvious that people love to invest in gold. 

There are lots of ways through which you can invest in gold such as: 

  • Buying gold sovereigns 
  • Buying gold bars 
  • Gold-mining companies 

Factors responsible for investment in gold sovereigns 

Numismatists collect gold coins and sovereigns and later use them up in cherishing their age, weight, beauty and craftwork with their own hand. Certain factors make the gold sovereigns a desirable asset for investors. 

Let's discuss them. 

1. Historic appeal

During the period of king Henry VII in 1489, the maiden British gold sovereigns were minted. Today's much-loved the Half Sovereign features the fifth-generation portrait of Queen Elizabeth II made by Jody Clark on its obverse, and Pistrucci’s famous St George and the Dragon is on the reverse side of the coin. 

 

2. Easy to trade

The value of gold sovereigns is far higher because they are made from 0.235 troy ounces of gold, which is a bit more than the traditional ounce. Investors love gold sovereigns more than 1oz coins like the Britannia. This is possibly due to the simplicity with which small amounts are traded and the fact they are really more affordable to obtain and realise, and it's more as compared to gold bars. 

3. Tax exempt

Investors see the best thing in gold sovereigns is tax save while trading them. It's to remember that All British sovereigns and Britannia coins produced upon 1837 are exempted from Capital Gains Tax for being classified as a legal tender. 

Even some gold coins are exempt from VAT since the rules regarding this are a bit complex to understand. In case of a coin bought under gold bullion investment, the investors do not have to pay VAT. On the other hand, during a coin sale, if this is over 180% of the gold-content value, it's categorized as a collector's item and VAT needs to be paid. 

Which sovereigns should you invest in? 

Once you have made up your mind to purchase gold sovereigns as an investment, then you should think about the type of coins. Thus it is suggested that you need to diversify your investment. Even though it relies on the personal circumstances, still you choose the amount of investment you are comfortable with. 

Some types of gold coins are given below for your consideration. 

Queen Elizabeth Ii Gold Half Sovereign (Mixed Dates) 

Specifications: 

·         Fine Weight (troy oz): 0.118

·         Fine Weight (grams): 3.66

·         Gross Weight (troy oz): 0.129 

·         Gross Weight (grams): 3.99

·         VAT Exempt

·         CGT Exempt

·         Mixed Dates

·         Country: United Kingdom

Queen Elizabeth Ii Gold Sovereign (2020) 

Specifications: 

·         Fine Weight (troy oz): 0.235

·         Fine Weight (grams): 7.4

·         Gross Weight (troy oz): 0.257

·         Gross Weight (grams): 8

·         VAT Exempt

·         CGT Exempt

·         Country: United Kingdom 

Conclusion 

Before hopping into investment in gold sovereigns, your research must be so intensive. Try to focus on buying a bit of old issues instead of the latest ones. Even the 2020 issues are considered fine. New issues are generally overpriced. Acquiring pre-owned sovereigns also known as bullion coins and secondary market sovereigns will be a wise decision as they offer better value and you can have more gold for your money. 

If you are very keen to invest in gold sovereigns, you can contact the most trustworthy jeweller in the UK.

Location: 186 Ealing Rd, Wembley HA0 4QD, UK

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