The Gold Britannia remains one of the most coveted gold investments, not just in the UK, but worldwide. With such a notable design, it sure stands out.
The Britannia remains the most recognizable coin today. It is made in both silver and gold by the Royal Mint in South Wales. The mint has been in operation since the early 1970s and made the first gold Britannia coin in 1987. Since then, the coin has been produced annually. The mint also produces special anniversary coins. These coins attract a lot of interest from investors and so this article will explain what you need to know when investing in them.
The Britannia gold coin contains one troy ounce of gold. The 1oz gold Britannia coin contains 0.9999 pure gold and this is what gives it its value. When it was first released, it was a 22-carat coin, but the Royal Mint changed this in 2013 to a 24-carat gold coin, which makes it much better than those produced by the Canadian and American mints.
The Britannia gold coin price is determined by the spot price of gold. As with other bullion coins, the Britannia coin has a face value which is £100. It makes it the coin with the highest denomination among all gold British coins, but this is not why it is so valuable.
Seeing that the 1 oz Britannia gold coins contain 1 troy ounce of gold, the coin's value is the same as the spot price of gold. At the time of writing, one 1 oz Britannia gold coin is worth about £1,700. This value is much higher than the spot price of gold. Why is this so? Because there is a dealer markup applied to every Britannia coin sold, and this is something you have to keep in mind when investing in bullion products.
Apart from the 1 oz gold Britannia coin with a face value of £100, the coin is also available in a tenth, quarter, and half-ounce coin. As with the 1 oz variant, the value of these coins is determined by multiplying their weight by the spot price of gold.
Other factors Affecting The Price of a Britannia Gold Coin
Apart from the spot price of gold, other factors can affect the value of a 1 oz Britannia gold coin. First, these coins are larger, which means they contain more gold content than other coins. A higher gold content makes them very attractive to investors because their larger size means they have lower production costs. Investors can acquire their gold at less cost per gram compared to other coins because of this.
Another important factor is scarcity. The Britannia coins are always produced by the Royal Mint, but some pieces are much rarer than others. This is determined by their designs and whether they are commemorative pieces.
For example, the “Two dragons” design found on the 2018 edition makes these coins with that specific design very rare and expensive.
There is also the two-horse chariot design used as proof in the 1997 coin. The original coin is much rarer than the proof sets produced in 2003 and 2009, making it more valuable.
Every Britannia gold coin produced since 2013 uses 24-carat gold, which is 0.999 fine. However, coins released before that contained 22-carat gold that was 0.917 fine. The carat and fineness of the gold used in the later coins make them very lucrative for investors.
Also, the alloy used in the coins before 1990 included copper, which made the gold less valuable. Now, the alloy contains silver, which is much more valuable than copper.
Investors do not have to buy the 1 oz Britannia gold coin, although it remains the most sought-after option. This is because they can invest in coins with different denominations that have a fraction of the face value and gold content than the larger 1-troy-ounce coin contains.
This variety means that investors can invest as much or as little as they like depending on the coins they are interested in.
As with the Sovereign, some sellers consider the condition of the Britannia when they sell it. Coins in better condition typically attract much better prices. However, not all sellers do this, with many of them only sticking to the gold content in the coin to determine value.
Although this does not necessarily affect the price of the Britannia gold coin, it does make it more appealing to investors. This gold coin is legal tender, which makes it Capital Gains Tax (CGT) exempt. This is very attractive for investors because any profits from their sales below £12,000 per tax year do not attract any capital gains tax.
The coin is minted using gold of the same quality you would get if you invested in any other high-quality gold products.
If you are interested in investing in gold Britannia coins, there are several ways to do so. The first is buying the coins from the Royal Mint. The Royal Mint sells these coins as single coins and in packs so you can invest how much or how little you would like. They also sell smaller denomination sizes for investors who just want smaller investments.
The best thing about buying from the Royal Mint is that their prices are typically lower than those from other sellers. This can make a significant difference if you would like to buy many coins.
The second way to buy 1oz Britannia coins is through an online seller. This option is much better if you are looking for a specific coin as they can help you find exactly what you are looking for. Note that there will be a markup that varies depending on the seller.
Some sellers also provide storage services, so you do not have to physically hold the coins. They will then put your coins up for sale when you decide to sell.
Although they have a face value, the value of a Britannia gold coin is determined by the spot price of gold at the time of buying or selling. Investors can also opt for smaller coins if they would like to invest in coins smaller than the 1 oz Britannica gold coin.