When it comes to investing in gold coins, two of the most popular options within the UK are Britannia and Sovereign. Both have rich histories and offer unique advantages. But which one should you choose? In this comprehensive guide, we’ll dive into the history of Britannia and Sovereign gold coins, compare them across several key factors, and help you decide which might be the best investment for you.
An overview of Britannia coins
Introduced by the Royal Mint in 1987, the Britannia coin quickly became a favourite among investors and collectors. The coin was created to celebrate the United Kingdom’s rich heritage and is available in various weights, including 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. These coins are known for their 99.99% pure gold content, making them a popular choice for those seeking the highest gold purity.
An overview of Sovereign coins
The Sovereign coin has a much longer history, dating back to 1489. Initially struck under the reign of King Henry VII, the Sovereign became a staple of British currency and has remained a symbol of British heritage. The modern Sovereign coins, first minted in 1817, feature a gold content of 22 carats (91.67% pure gold) and are renowned for their historical value and distinctive design.
Gold Britannia vs Sovereign: A comparison
To make an informed decision between Britannia and Sovereign gold coins, let’s break down the key factors:
Price
Gold Britannia Coins: Due to their 99.99% gold purity, Britannia coins are generally more expensive in terms of the raw gold value. However, their premium can be offset by their higher purity and more recent minting.
Sovereign Coins: Sovereigns are typically less expensive per ounce compared to Britannia coins, primarily due to their lower gold purity (91.67%). However, their historical value and collector appeal can influence their price.
Always check the latest gold price before making your purchase.
Size and weight
Gold Britannia Coins: These coins are available in various weights, allowing for more flexibility depending on your investment strategy and budget. Weighing four times heavier than the gold Sovereign, a single Britannia coin offers a larger gold investment.
Sovereign Coins: In contrast, a standard Sovereign coin weighs 7.98 grams (approximately 1/4 ounce). Although they come in a single weight, their historical significance often makes them a sought-after item.
Design
Gold Britannia Coins: Britannia coins are known for their elegant and evolving designs. The reverse side usually features Britannia, a symbol of British resilience and strength, in various artistic styles. The obverse side features the current reigning monarch.
Sovereign Coins: Sovereign coins have a classic design featuring St. George slaying the dragon, created by the artist Benedetto Pistrucci. This design has remained largely unchanged since 1817 (except for the reigning monarch on the obverse side), making it a symbol of British numismatic heritage.
Liquidity
Gold Britannia Coins: The high gold purity of Britannia coins makes them highly liquid, as they are widely recognised and traded across global markets. Plus, their modern minting ensures they are easy to buy and sell.
Sovereign Coins: Sovereigns are also highly liquid, especially among collectors and investors who appreciate their historical value. Their consistent demand in the market makes them a reliable option for selling.
Tax exemptions
Gold Britannia Coins: In the UK, Britannia coins are exempt from Capital Gains Tax (CGT) due to their status as legal tender. This tax advantage can make them an attractive investment option for UK investors.
Sovereign Coins: Sovereigns also enjoy CGT exemption in the UK for the same reason. This means that, like Britannia coins, any profit from selling Sovereigns will be exempt from tax.
Should I choose Gold Britannia coins or Sovereign?
Choosing between gold Britannia coins and Sovereign coins largely depends on your investment goals and personal preferences. If you prioritise gold purity and modern minting, Britannia coins might be the better choice. They are highly liquid, offer excellent gold content, and come in various weights.
On the other hand, if you are a new investor and value historical significance, Sovereign coins could be more appealing. Their small size and iconic design make them a cherished item among collectors and investors alike. Additionally, their historical appeal can sometimes result in higher premiums over time.
Buy 99.99% pure Britannia coins from Bullion Giant
If you decide that gold Britannia coins are the best fit for your investment strategy, consider purchasing from reputable dealers like Bullion Giant.
We offer 99.99% pure, 24-carat Britannia coins, ensuring that you get a high-quality product that aligns with your goals. With an extensive range and competitive prices, Bullion Giant is a great place to secure your gold Britannia coins. So why wait? Contact us today to learn more about our gold collection. Our friendly team of experts will be on hand to assist you with any queries.
