Investing in bullion – An overview
Gold is typically considered a safe-haven, with comparatively steady prices during times of economic instability. Silver, on the other hand, is a less stable market, and so whilst investments in silver do generally carry more risk, they also offer the potential for high returns.
Whichever precious metal you’re looking at, the decision on whether to buy bars, coins or rounds often comes down to personal requirements. If you’re making a large investment that you’re confident you won’t need access to in the near future, large bars may be the best way to go as they incur smaller fashion fees (premiums added to cover the cost of packaging and production).
If you’re interested in flexibility and predict that you may need to quickly release some of the capital you have invested in bullion in an emergency, then smaller bars or coins would be more suitable.
One of the main rewards of investing in bullion is that it is, in most cases, exempt from VAT. The added benefit to investing in bullion coins is that they are also exempt from Capital Gains Tax (CGT).
Capital Gains Tax-free bullion coins
To be CGT-free, bullion coins must have been minted after 1800 and have a purity of at least .900. They should be, or have been, legal tender in their country of origin and be normally sold at a price that does not exceed 180 per cent of the face value of gold contained in the coin.
The best gold coins to buy
The Royal Mint, the UK’s producer and distributor of coins and one of the world’s leading export mints, produce investment bullion coins which have a face value and are therefore considered legal tender.
Their Sovereign and Britannia bullion coins are exempt from CGT and VAT and are generally considered to be among some of the best gold coins to buy worldwide.
The Royal Mint are celebrating the 200th anniversary of the modern Sovereign this year, which has been minted in the same weight and fineness since 1817, only changing in design.
Britannia bullion coins are another great option, featuring designs portraying Britannia herself, the female personification of Britain and ‘a symbol of optimism’ that embodies the changing ideals and values of Britain throughout history.
The best place to buy gold coins
Trusted and secure websites, such as UK Bullion, are generally considered the best place to buy gold coins or any form of bullion. But whoever you choose to buy from, look for a distributor with independent customer reviews who stocks bullion coins from the world’s most renowned mints. This is the safest option for ensuring you’re getting a genuine and well-priced deal.
UK Bullion stock a wide range of gold bullion coins from The Royal Mint, all at competitive rates based on the real-time prices of gold. Browse the collection today and make a CGT- and VAT-free investment in your future.