There is no better time than now to invest in gold coin. Historically UK citizens have never been hoarders of gold unlike many other countries in the EU and the rest of the world as we have never suffered the trauma of invading armies, currency crash or totally destroyed economies. In countries where this has happened or threatened, people have turned to gold to protect their wealth knowing that no matter what happened they can exchange their gold coins for essential goods. E.g., French citizens personally hold 10 times the value of gold that is currently held in the UK gold reserve. We also to not inherently have the “survivalist culture” that exist in the USA where apart from arms, food and shelter, it is seen as essential to own tangible liquid assets such as gold eagles.
Uk tax on gold bullion.
Until this century the UK government had discouraged the owning of gold by making it difficult. Until 1971 it was illegal to buy more than four gold coins without a collector’s license and then in 1973, VAT was applied to gold coins, which dampened any new found enthusiasm. In common with the EU, the UK removed VAT from investment gold including specific coins in 2000.
Now in the UK we now have the best environment in the world for owning gold coins and particularly gold coins of legal currency, like Sovereigns as they are now VAT free and provided, they were minted after 1817, free from Capital Gains Tax. Plus, you will own beautiful coins that have historic and aesthetic value to ensure your wealth and provide a tangible asset that has worldwide liquidity.
Is gold high or low right now?
We have seen a steady increase in the gold price this century until the all time high of $1227 in Dec 2009 after which it dropped rapidly by more than 10%. Is this a concern? Any downturn is bound to incline towards nervousness; but this is purely a correction as has been exhibited over the last ten years, where there have been savage corrections, followed by periods of consolidation for a few months then the upward trend continues. Also, when gold reached is last all-time high in 1980 of $850, the equivalent with inflation is $2200 today. Experts agree that the gold price still has a long way to go.
The demand for gold coin over time.
The demand for gold coins rose sharply in 2020. This was a result of investors hedging against financial failure or diversifying portfolios into gold as there is a continuing lack of confidence as economies struggle to pull out of the worst recession in most people’s living memory. They also attract a premium over the value of gold which is dependent on supply and demand and currently world mints cannot keep up with demand. The Royal Mint quadrupled production in the last quarter of 2009 and we have seen increased production in Germany, Austria and US where there was a shortage such that “Gold Eagles” were on allocated supply
It is not just panicky individuals but professional investment advisors and sophisticated traders who are purchasing 50 or more coins at a time.
Gold coins are a tangible asset that can quickly and easily be realized and many such as Gold Sovereigns have liquidity that is recognized worldwide. However, the sophisticated investor should view gold coins as an insurance policy within a diversified portfolio
Experts agree that somewhere between 5-10% of an investment portfolio should be diversified into gold.