Gold bullion continues to be an important financial insurance for investors during economic turbulence. For centuries gold has been the go to inflation protection for traders. So where is a good place to start if you are thinking of investing in gold?
This will depend on your motivation – do you want to use gold as a type of high interest savings account? Are you looking for financial insurance against inflation?
Both are good reason to begin a gold coin portfolio and where better to start than with coins from the trusted Royal Mint, the sovereign. It’s been around since 1817, but not minted every year, and some coins between then and 1980 have produced commemorative products.
These may be rare and hard to get hold of and will fetch a heavy premium. However, since the 1980’s the sovereign has provided a yearly mint, although it has not been over produced so you may still be able to get your hands on some that again fetch a hefty price tag. These prices are hard to predict, because it will depend on the buyers you are up against and you may face an auction style bidding.
Sovereigns are readily available. You can visit coininvest.com to buy right away, where they have a selection of sovereigns available. The starting price is from just under £140 for the half sovereign Edward VII with a weight of 3.66g. Then step up to the full sovereign with prices ranging from £205 to £219, this covers various years from 1902 to new 2013 coins, they have a standard weight of 7.32g.
As a gold investor it is wise to have a range of gold stock, there are various ways to invest. There are very many coins available from pretty much every corner of the globe, however gold bars are a great addition to your stock and you will be paying for mint and weight alone opposed to the premium of coins for design, condition and age. These are all physical gold options. You may also like to consider electronic funds transfer (ETF´s) although these are less secure than physical gold.
Exampt from VAT and Capital Gains Tax
A bonus for investors is that your investment will not be affected by VAT and an added extra for sovereign investors is that coins post 1837 as legal tender they do not face capital gains tax. The sovereign also enjoys international appeal because of the design, Saint George on horseback, slaying the dragon.
The story of Saint George and the Dragon, comes from 275 to 303 AD. He was a Roman Empire soldier from Anatolia, which is now Turkey, and is recognised as an Islamic and Christian Martyr. As patron of many other nations, from Canada to Ethiopia and too many to list, the appeal stretches far and wide.
The gold sovereign coin is held in high regard across the world, and has been distributed amongst many armies over the centuries for emergencies, because it is recognised tender almost everywhere.