Investing in Sovereign Gold Coins to Level-Up Your Investment Portfolio

Sovereign Gold CoinsAn investment in gold is among the ideal ways to preserve wealth. There are many forms available and one of them is the buy sovereign gold coins.

In the U.K., there’s always a celebration of the release of the Royal Family’s sovereign gold coins by investors and collectors. Atkinsons Bullion and other dealers noted that the 2015 sovereign in particular has one of the highest values ever. The coin depicts an older Queen Elizabeth II on one side, and St. George killing a dragon on the other.

Whether you want to collect sovereign coins or use them as invest, here are the reasons buying them is beneficial to your investment portfolio:

You Can Save Tax

Some gold coins and bullions have Value Added Tax (VAT) exemptions. In the U.K., people who own sovereign coins made after 1837 are exempted from paying Capital Gains Tax (CGT) because they are legal tender. A legal tender is a coin or banknote recognised by a legal system as a form of payment.

More Expensive Than Other Precious Metals

Surprisingly, sovereign gold coins usually cost more than gold or silver bullions. Investors believe that the limited supply of gold coins, combined with their historical value, makes sovereign coins more valuable. Meanwhile, older sovereign coins cost more because a majority of them is not in a collectable condition.

They are Rare

Rarity can increase the price of any object and this is applicable to sovereign coins, as well. The Royal Mint sees to it that they produce only a limited number of sovereign coins for a particular design and year. Thus, the 2015 sovereign only had 75,000 pieces.

Unlike investing in paper money, buying sovereign coins can offer two ways of building wealth. First, it can provide financial security and second, it can provide an additional profit. There is a constant demand for sovereign coins in the U.K., so you can’t go wrong if you invest in them.