If you have been asking “are gold coins a good investment?”, we at Gold Investments are here to help answer this question. We are always firm believers that gold coins do always make great investments, and below we will explain why and answer some of the most frequently asked questions regarding gold coins. 

To start, investing in gold coins has been a popular choice for people for hundreds of years, as gold is a valuable commodity across the world. Gold is much more valuable and more stable than other forms of currency, such as paper money, which can be affected by economic crises. While the value of your paper money will fluctuate and can actually lose value, gold coins will stay quite stable in comparison, often increasing in value. 

As you can see from the above, gold coins do make a good investment, you just need to do your research before investing. We can help with this at Gold Investments, as we can provide advice on which gold coins to buy for your requirements. 

What Gold Coins Should I Buy?

Gold coins have a long history, dating back to 6000BC with the ancient Egyptians and Turkish. For hundreds of years, gold coins have been a popular form of investment, as gold offers great value and stability across the world. In fact, there are many different types of gold coins for sale, all with different values and qualities. 

The Krugerrand from South Africa is one type of gold coin, and it became the most ubiquitous in the 20th century. The Sovereign is another type of gold coin, first struck by the British in the early 19th century and still produced today. More recently, the highly valuable Britannia gold coin has become popular to investors. You also have the Australian Nugget, the Canadian Maple Leaf, the American Eagle, Chinese Panda, and the Austrian Philharmonic

Choosing which gold coins to invest in can be a daunting decision as there are so many to choose from. The gold coins you buy will depend on your investment purposes and the amount you wish to spend, but we can assist you with your choice at Gold Investments

Many here in the UK do choose to invest in the Sovereign and Britannia gold coins, as these are Capital Gains Tax free too thanks to their status as legal tender. This means the entry point is lower than other gold coins and you won’t be made to pay capital gains tax as your investment grows. 

Are Gold Coins Legal Tender?

Here in the UK, both the Britannia and Sovereign gold coins are classed as legal tender. These gold coins feature Queen Elizabeth on one side of the coin, and a face value. As these coins are minted by The Royal Mint and boast a face value, they are classified as legal tender and can be used as such. 

However, with these gold coins, the face value doesn’t always add up to the actual value of the coin, as this will be determined by the gold content of the coin itself. For example, the face value on a 1oz gold Britannia might be £100, but the gold content makes it worth ten times that. As such, it would be foolish to use this gold coin as legal tender in a store etc.  

The reason that many gold investors choose to invest in gold coins that are legal tender is that it exempts them from capital gains tax. This means that as your investment grows, when the value of your Britannia or Sovereign coin grows, you won’t be taxed for this growth in investment as the coins are capital gains tax free.  

So, while these gold coins are classed as legal tender, it isn’t wise to spend them in shops as the gold content value far outweighs the face value. 

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Can Gold Coins Be Melted Down?

We are often asked “can gold coins be melted down?” and we understand why this is a frequently asked question. With items such as gold jewellery, it can be melted down and bought for the gold content, so it makes sense that people would ask if the same can be done with gold coins. 

However, the answer to whether gold coins can be melted down here in the UK is no, they cannot be melted down. Under the 1971 UK Coinage Act, it is actually illegal to melt down any UK coin with a face value, which includes Britannias and Sovereigns. So, if you have these gold coins and wondered if you could melt them down for the gold content, the answer is that no, you cannot. 

Plus, not only is it illegal to melt your gold coins down but melting the gold coins will actually devalue the gold. Gold coins such as Britannias and Sovereigns are worth much more Minted, and this is due to their status as legal tender and their recognisable trading format. 

So, as you can see from the above, it is illegal to melt down your gold coins here in the UK and, even if it wasn’t, melting down your gold coins will decrease the value of your investment. 

Are Gold Coins Tax Free?

When buying gold as in investment, you will obviously have your mind on potential future sales and profits. The intention is, of course, to make as much profit as possible, maximising the return on investment, and this is where tax free gold coins come in. There are some gold coins in the UK that are capital gains tax free, and these are the Britannia and the Sovereign. These gold coins are exempt from capital gains tax due to their status as legal tender in the UK. 

What does this mean for your investment? Well, capital gains tax is a tax that investors pay beyond a threshold point on profit they make from selling their gold. If you sell your gold for a profit over this threshold, you will pay tax, reducing your potential profit. 

With Britannia and Sovereign gold coins, however, you will be exempt from this tax, as these coins are capital gains tax free. As such, you can sell these gold coins for a profit, without paying the capital gains tax, increasing your return on investment. 

Can Gold Coins Tarnish?

We are quite often asked whether gold coins can tarnish and whether this can affect the value of the gold coins. The simple answer is that no, gold coins don’t tarnish. You don’t need to clean your gold coins to keep them in good condition. In fact, doing so might actually damage a mint finish. 

Gold doesn’t corrode or tarnish, so it will stay bright forever. However, we do recommend that you don’t store your gold coins with silver or any tarnished metals, as this can cause damage. We recommend storing your gold coins in airtight containers or capsules to help protect them, and we also offer our own secure storage

Check Out the Gold Coins We Offer Today

Hopefully after reading the above, you are far more informed regarding gold coins, why they make a good investment, and which gold coins are best to purchase from an investment standpoint. If you are now ready to buy gold coins and make your own investment, reach out to us at Gold Investments for assistance. 

We can help you make your gold investment, as we have years of experience and a wealth of knowledge. You can give us a call today on 020 7283 7752, fill out our contact form, or send an email to [email protected]

You can also take a look through the gold coins we have for sale and make your purchases using our secure checkout process. 

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