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British Coins for Investment

Perhaps you’ve landed here because you’re curious to know more about the benefits of buying British coins and whether or not they’d be a valuable asset to you. Or, perhaps you’re already sold on the idea, but with so many old British coins available you’re eager to learn which coins are considered an astute investment so that you can make an informed decision. Whichever it is, you’ve come to the right page.

We’re firm advocates of investing in British gold and silver coins. We believe that being flexible with your wealth and diversifying your investment portfolio as much as possible is one of the very best ways to insure yourself against inflation and protect you in the case of any future financial crisis. Nevertheless, while you may be tempted to buy right away, before investing in coins or bullion, it’s absolutely crucial to do your research, as there are a myriad of factors which might influence potential returns on your investment.

This article takes a look at some of the prime factors to consider when you come to buy coins, to ensure you invest wisely and are likely to achieve the best financial bang for your buck.

The Value of Old British Coins

Investing in rare English coins has long proven one of the securest forms of investment. Perhaps instead of “safe as houses” it should be “safe as silver and gold.” Investing in old British coins provides you with a tangible, controllable form of investment that you can rely on to retain value as steady as a rock and increase in value with time.

With so many Royal Mint coins to buy, it can be incredibly difficult to know which are likely to give you the highest return, but when buying from the Royal Mint rare coins tend to be the advisable choice. This is because such coins tend to offer potential profit resulting from their numismatic value in addition to the intrinsic value of their precious metal. Older and rarer coins usually appreciate in price due to their inherent scarcity.

Gold or Silver?

Should you buy silver or buy gold coins to get the highest value? Truth be told, there are valuable arguments for both. Although silver has historically been more volatile, both silver and gold have been growing in value for years, and their steady increase will only get sweeter as time goes on.

We generally recommend focusing on the individual merit of each coin rather than its metal value alone. However, when it comes to deciding whether to opt for gold or silver, we would also recommend looking at the type of investment and nature of profit you’re hoping to make. Would you consider yourself a low risk or high-risk investor? Are you looking for a long term investment or seeking short term profit?

For those who buy gold coins UK law states that these are VAT exempt, making gold the frequently favourable choice among those buying gold coins for investment, particularly for short term profits. However, silver undoubtedly remains worth considering as a profitable way of investing in bullion, having seen a 248% increase between 2006 and 2011 and consistently favourable growth throughout recent history.

Coins are long term investments

We recommend buying silver coins for longer-term investments, as the value of silver is noticeably more volatile and most silver coins are subject to 20% tax, so there must be enough time for this to be broken even before any profit can be made. Gold can offer a safe, steady investment, while silver is a riskier investment. While a riskier investment may put many off, it’s worth remembering that the higher the volatility, the larger the potential profit made. History has consistently shown that the growth percentage of silver dramatically outperforms gold over the long term, meaning that silver could be a far more lucrative investment choice if purchased wisely. 

The Gold Sovereign

One of the predominant British coins worth money is the Gold Sovereign, recognised as the flagship coin of The Royal Mint, and also notably the most widely traded semi-numismatic gold coin today.

First minted over 500 years ago during under Tudor King Henry VII in 1489, it is estimated that today, only a staggering 1% of all the gold sovereigns ever to have been minted remain in collectible condition. It is precisely this rarity which provides leverage to the overall value of the Gold Sovereign and has allowed the value of these coins when in gold bull markets, to increase by a more significant amount than the actual price of the gold alone.

The beauty of buying gold coins from the Royal Mint is that unlike paper investments or cryptocurrencies, these coins offer tangible, permanent value. Not only does the precious metal contain an intrinsic value which steadily increases with time, but they also tend to possess rare historical significance and aesthetic intrigue, thereby increasing their premium (numismatic value too), and therefore their appeal with investors and numismatics alike.

The tax saving benefits of gold bullion and most gold coins also play a critical factor in their popularity with investors. Gold bullion and gold coins are typically VAT free, and as this was explicitly applied in UK law, this will remain the same after Brexit, furthering the appeal of buying gold coins during this increasingly uncertain time in UK politics. The only exception to this law is if a coin is sold for over 180% of its intrinsic gold value, rendering it a collector’s item, which can then see it subject to VAT.

Additionally, both Britannia coins and British sovereigns are also exempt from Capital Gains Tax, as these post-1837 coins are legal tender. This means that all profit you make on these coins will be automatically free from tax.

Where should I go to buy rare british coins?

Now that we’ve covered some of the many benefits of buying gold coins and British silver coins, and the main things to consider before you purchase, you may be keen to start your search.

If you’re raring to invest and wondering where best to find those rare coins that will rake in a profit, look no further than our link below, which will show you how to find the most valuable British coins in your area.

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