Low denominations, and tax-free status means Gold Sovereigns will always be an attractive investment option. Gold Sovereigns are some of the most popular with investors. Because they are available in smaller denominations than other bullion coins, demand tends to be higher. They offer a great way to diversify your portfolio against long term risk.
Should you buy bars or sovereigns?
Gold Sovereign coins do carry a price premium compared to conventional Gold bars, but there are other factors which may influence price, such as the specific demand for a type of coin. The tax advantages of Gold Sovereigns also mean you’ll retain more of your profits than would be the case with Gold bars.
Types of Gold sovereigns
The Gold Sovereign was fully circulated as currency before 1932. However, these days it is used as a bullion coin to store wealth rather than for everyday commerce. They have gained widespread appeal among collectors, with several types of coins carrying portraits of various monarchs.
Types of Sovereign portraits
Different types of sovereign have various portraits of different British monarchs:
Tax free investment
British Gold coins are classed as legal tender which means any profit achieved from your investment into these coins is exempt from CGT.
Gold sovereigns can be bought in smaller amounts than other Gold coins which reduces the risk. Investors and collectors can buy the coins in smaller amounts which make them easier to trade.
Gold Sovereigns are small and easy to store. You might want to store coins in their cases, boxes or tubes. Alternatively, you can store them in a specialist storage facility.
Due to their smaller denominations, sovereigns are much easier to part with piecemeal when the time comes to sell them. Gold dealers will buy Gold sovereigns in any quantity due to their size. In comparison, Gold bars are much bigger and so offer only limited flexibility in trading.
Sovereigns are generally mass-produced, which means you can buy sovereigns at competitive prices unlike Gold bars. However, this is only applicable to those looking to invest lower amounts.
Gold sovereigns benefit from numismatic value as they can be purchased in sets that are rare and are demanded heavily by collectors, which Gold bars don’t.