Are gold Britannia coins a good investment?

image of two britannia gold coins overlapping

 

Yes, Gold Britannia Coins are a good investment.  Britannia Coins have gained notoriety as an investment vehicle for several reasons. The most pertinent reason that diversified investors include coins in their portfolios, is that the Britannia design has featured on coinage since AD 119.  This makes it one of the most recognisable and trusted bullion insignia in the world. Its global recognition means it has a strong secondary market, which makes it a very stable and reliable choice for professional investors. 

In this article, we will look at why the Britannia coin is a stable investment and expert opinions on whether its value will continue to grow and how to invest in gold bullion.

What are the factors that can affect the investment value of a gold Britannia?

In addition to the spot price, several other factors can influence the value of a gold Britannia. 

 

Coin Size

 

The larger the coin, the more gold content it offers investors, making it an appealing investment option. The larger size allows investors to obtain more gold at a lower price per gram due to economies of scale in production. 

 

Consequently, the Gold Britannia holds significant allure for investors. Furthermore, the scarcity of certain editions and special commemorative releases can further drive up the value of these specific coins, as discussed previously.

 

Tax Efficiency

 

One of the biggest metrics investors will consider is tax efficiency, and gold bullion coins do not disappoint. Because of its status as legal tender, Britannia coins are exempt from Capital Gains Tax (CGT). Furthermore, If you are a UK resident you will also be free of any Value Added Tax (VAT). 

 

The best thing about investing in coins classed as legal tender is that neither CGT nor VAT is charged regardless of the amount you own. Very few investment vehicles can boast this fact.

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Reassurance

 

Unlike more traditional investment options such as stocks and bonds, gold coins are very tangible. When you purchase coins as an investment they are physically sent to you or to a vault of your choosing. You can hold them in your hands and even use them as legal tender.

 

Another reassurance metric is the ability to authenticate. Thanks to Britannia coin’s latent, micro-text, animated background and tincture lines, Britannia coins can be easily authenticated using sight alone.

 

These intricate features play a crucial role in mitigating the risk of counterfeiting, offering investors a high level of confidence when purchasing or liquidating their assets.

Ability to Liquidate

 

Because the coin is minted in a range of pecuniary denominations, the Britannia coin provides the ability to liquidate with ease. Whereas other gold-based products such as bars are sold in a set weight, Britannia coins can be sold in as little increments as one-twentieth-ounce coins. This ability provides investors with far more flexibility when only wanting to liquidate a limited portion of their overall holdings.

 

Gold Quality & Fineness

 

Up until 1990, the gold alloy that was used to construct the coin was made from silver as opposed to the modern-day copper container.  Which in turn affects the amount investors will pay for a pre-1990 Britannia coin.

 

Another big factor investors will consider is the Gold’s Fineness rating. Up until 2012, every 22-carat Britannia coin was minted with a fineness of 0.917. Since 2013 all Britannia are 24-carat gold with a fineness of 0.999, which is a very real reason to purchase the newer mint of the coin.

 

How to Invest in Britannia Coins?

 

As with any investment vehicle, due diligence is key. Our advice is always to make sure that you use all means available before selecting a supplier. 

 

There are various third-party review sites you can use such as Trustpilot

 

Our Expert Advice 

 

CEO of new capital link Rachel Buscall had this to say when asked if Britannia coins were a good investment: 

 

“I like Gold Britannia coins because they are a hedge against inflation, a stabiliser to the market and an all-around insurance policy on your future savings”

 

 

Gold Britannia Coin Specialist

 

At NCL Bullion, we have one of Europe’s largest back catalogues of commemorative, graded, sovereign and jubilee coins. Not only are these pieces of history, but they’re also one of the most stable investment opportunities available. 

 

The reason gold coins are such an astute investment are:

 

Stability: Gold is a stable investment & a reliable hedge against inflation & economic uncertainty.

 

Untaxed: Gold Coins are not taxed but are still hedged against inflation.

 

Growth: Gold has the potential for significant growth over time.

 

If you want access to our catalogue, fill out your details below and we will email you our extensive range of commemorative gold coins.

 

 

by Rachel Buscall

by Rachel Buscall

Co-Founder & Managing Director at New Capital Link. Having started her career in the financial sector, Rachel demonstrated a natural flair for entrepreneurship.

New Capital Link

Alternative investment specialists offering structured opportunities across the UK & Overseas.

New Capital Link is a boutique London-based introducer that offers unique UK & global investment opportunities worldwide.

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

What are the key risks?

1. You could lose all the money you invest

If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies. 

Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.

These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.

2. You are unlikely to be protected if something goes wrong

The business offering this investment is not regulated by the FCA. Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here. https://www.fscs.org.uk/what-we-cover/investments/ or

Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here. https://www.fscs.org.uk/check/investment-protection-checker/

The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here. https://www.financial-ombudsman.org.uk/consumers

3. You are unlikely to get your money back quickly

This type of business could face cash-flow problems that delay interest payments. It could also fail altogether and be unable to repay investors their money. 

You are unlikely to be able to cash in your investment early by selling it. You are usually locked in until the business has paid you back over the period agreed. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.

4. This is a complex investment

This investment has a complex structure based on other risky investments. A business that raises money like this lends it to, or invests it in, other businesses or property. This makes it difficult for the investor to know where their money is going.

This makes it difficult to predict how risky the investment is, but it will most likely be high.

You may wish to get financial advice before deciding to invest.

5. Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. 

A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest

If you are interested in learning more about how to protect yourself, visit the FCA’s website here: https://www.fca.org.uk/investsmart

For further information about minibonds, visit the FCA’s website here.https://www.fca.org.uk/consumers/mini-bonds