Sovereign coins, unlike fiat money, or investments, have a genuine and lasting actual worth. These coins have the inherent security and value of consisting of pure bullion (or precious metal). They may also provide additional economic possibilities because of their aesthetic and historical value. Continue reading to discover more about why investing in gold sovereigns may be beneficial.
3 Reasons Why The Gold Sovereign Coin is Significant
The gold sovereign is a gleaming gold coin issued by the UK. It also has significance in British history. The Gold Sovereign, now a bullion coin, is a collector's item that is admired all over the globe. Here are a few crucial aspects that make them so special:
1. A Rich Past
The sovereign has a rich history and has been minted for over 200 years. These coins feature various monarch images of the last 200 years, with the most recent coins featuring Queen Elizabeth II.
The most well-known aspect of this coin's design, St. George defeating a dragon, came to light in 1817. It was the work of renowned engraver Benedetto Pistrucci. Hundreds of thousands of gold Sovereigns were minted in numerous areas throughout the globe during the 1800s, and early 1900s, particularly in Australia, Canada, and South Africa.
In 2017, the more contemporary gold Sovereign celebrated its 200th anniversary.
2. Tax Exemption
If you are a UK citizen, you can invest in gold sovereign coins tax-free. Capital Gains Tax is not applicable on these coins only for the residents of the United Kingdom. Within the UK, these sovereign coins are legal tender. The government keeps the circulation of legal tender money tax-free.
That implies that, unlike many other famous coins such as the Krugerrand and the Maple Leaf, you retain 100% of your gains when you sell your coins, rather than paying the tax collector 28% of your earnings.
3. Easy Buy and Easy Sell
Though the gold Sovereign has a face value of a single Pound Sterling (GBP), their real value is substantially greater since they contain about 0.23 troy ounces of pure gold.
Due to their modest size, gold sovereign coins are much more popular with investors than other one-ounce coins such as the Britannia and the Krugerrand. It's simple to exchange these coins, and they are also less expensive to acquire and sell than gold bars.
Conclusion
One of the most accepted and finest methods to invest in gold is via gold Sovereign coins. They have a long history, are tax-exempt for residents of the United Kingdom, and are simple to trade. There are also Pre-1604 sovereigns, rare sovereigns, half sovereigns, proof sovereigns, as well as quarter sovereigns, which are just a few of the considerable options of Sovereign coins available.
