British Gold Coins vs. Other Bullion Coins

If you are considering a gold bullion investment, then you may want to look at British gold bullion coins, and compare them with coins minted in other countries. For a long time the only gold coins that investors were interested in were Gold Krugerrands, but other countries started to follow the suit of South Africa eventually and offer standard gold bullions which were very attractive to investors and quickly became popular. These coins include American Gold Eagles, Canadian Gold Maple Leaf, Chinese Gold Panda, Mexican Gold Libertads and many others. If you are going to compare British gold coins with other types of bullion, you need to make sure that the comparisons are thorough, so you can find the best coins for your investment needs.

Modern day British gold bullion coins are Gold Britannia coins issued in several denominations and sizes. From 1987 through 2012 these coins were being struck in 22 karat purity just like the traditional British Sovereign gold coins in four sizes 1, ½, ¼ and 1/10 of an ounce coins. In 2013 the Royal Mint has made a revolutionary move in the efforts to compete with other world gold bullion coins has introduced Gold Britannia coins of 24 karat purity (0.9999 fineness) and added 2 additional sizes to spike investors’ and collectors’ interest. Currently the denominations of the Gold Britannia coins are as follows: 500 GBP for 5 oz, 100 GBP for 1 oz, 50 GBP for 1/2oz, 25 GBP for ¼oz, 10GBP for 1/10 oz and 5GBP for 1/20 oz.

When it comes to Sovereign gold coins, that’s a more traditional choice more readily recognized by many coin collectors in the world than Gold Britannia varieties. Struck from traditional 22 karat British crown gold, these coins have seen a lot of revivals of their traditional 17th century versions. These coins are weighed in grams and have been produced since 1817 portraying the traditional Queen Elizabeth design on the front and Saint George and the dragon on the reverse side.

When it comes to gold value, British gold bullion coins offer the same benefits that all gold bullion coins from other countries do. However, despite similar benefits there are also other factors to consider like premium charges. British gold bullion coins tend not to boast high popularity compared to comparable bullion coins from other mints perhaps due to higher than average mark ups and premiums. There are some tax considerations to consider as well, and you should research the tax implications on your investments before you choose the right types of coins. British gold bullion coins may be exempt from the VAT, or value added tax, and this can help increase the returns you will see if you choose these coins instead of other similar varieties.

British gold bullion coins have a lot of competitors on the market including American Gold Eagle, Canadian Gold Maple Leaf, Austrian Gold Vienna Philharmonics and Australian Gold Nuggets. These options are minted by the US Mint, Royal Canadian Mint, Austrian Mint and Australian Perth Mint respectively, and they come in standardized sizes to make investing in them easy and worry free. In fact premium charges for these coins are lower compared to their British bullion counterparts making them a more desired choice among investors whose goal is to minimize investment costs.

In addition to higher than average dealer mark ups it may be harder to sell British bullion compared to its American, Canadian and South African counterparts. British coins of older mintages similar to Russian gold coins are considered more collectibles rather than an investment mechanism and are purchased for their rarity factors dictating significantly higher price than their actual metal value.