British sovereign gold coin

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British sovereign gold coin

With the American dollar slowly losing its credibility as the international reserve currency, it’s not surprising that investors are looking into different hedges against inflation and economic crashes.

If you want to ensure that your investment offers the best profit potential and financial security, you need to diversify your investment portfolio by introducing gold bullion coins. And, without doubt, one of the best gold bullion coins is the British sovereign gold coin.

England’s sovereign gold coins are part of the longest-running gold bullion coinage in the world. It was first introduced in 1489, during the rule of Henry VIII, and was minted until 1604. The sovereign coins were re-introduced in 1816 at the height of the British Empire.

Modern British gold sovereigns, struck after 1817, contain 22 karat gold, 7.3224 grams or 0.2354 troy ounces. Original gold sovereigns were made of 23 karat gold, 15.522 grams or one-half of a troy ounce.

Why invest in British sovereign gold coins?

The value of gold has been rising and is expected to do so in the next decade. Gold is the only time-tested store of wealth and investors are steadily flocking in to purchase gold as a way of saving for rainy days.

Value-wise, the gold price has jumped from USD 260 an ounce to around USD 1,400 in a mere decade. Experts agree that gold is still undervalued and is expected to reach USD 2,300 per ounce in the next ten years.

British gold sovereigns are semi-numismatic coins, bullion coins that are also sought after by collectors. Semi numismatic coins are known to retain their intrinsic precious metal value during economic crises and global geopolitical instability and, at the same time, offer additional value due their aesthetic and historical appeal.

With English gold sovereign coins, not only are you protected by the gold’s melt price, but also with the coin’s potential worth to coin collectors. Both of which have been increasing these past ten years.

The gold sovereigns of Great Britain have an international appeal not enjoyed by other bullion coins. Thus, it’s easy to liquidate your sovereign coins as they are still widely recognized in many parts of the world. In fact, the sovereigns are the most widely-traded semi-numismatic gold coin in the world.

British gold sovereign coins minted after 1837 are exempt from capital gains tax (CGT) because they are still considered legal tenders with face values. Capital gains tax is a tax imposed on the profit made during the sale of an asset that was purchased at a lower price.

The English gold sovereign coins are also not subject to VAT due to the EU Gold Directive that exempts gold bullion and older gold coins from value-added tax.

With this CGT and VAT exemptions, you are free to enjoy the full amount of the profit realized once you sell your coins.

As the Executive Director of Gold & Silver Investments Limited Mark O’Bryne clearly puts it, “They [British gold sovereign coins] contain the intrinsic security of bullion or precious metal in a pure form and can also offer additional profit potential due to their aesthetic and historical appeal.”

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