START-UP ADVICE

INVEST IT
• UNC - Uncirculated
• EF- Extra fine
• VF – Very fine
• F - Fine
Getting to understand coin conditions
takes time and won’t necessarily be
something that an investor understands.
The best thing for investors who are
unsure about coin conditions is to buy
from a reputable dealer who will tell you
what condition the coin is in that he is
selling to you.
If you are buying Sovereigns from
private individuals, be wary of older coins
if they are too shiny and the details are
blurred, as this will mean the coin has
been polished to hide a defect and will
most likely have removed some metal
weight. Be sure to check the weight with
a pair of digital scales and avoid anything
below 7.93 grams.
Fakes
The Sovereign is the oldest bullion coin
in existence and it is also the most faked
so, again it pays to be prudent and buy
from sources you can trust.
A few things to look out for when buying
Sovereigns are:-
• Check the date of your Sovereign to see
if there were any minted that year.
• Feel the quality of the surface. A very
smooth surface with sharp edges could be
a sign of a fake.
• Check diameter, depth and weight –
check that these are what they should be.
Look for: Diameter – 22.05mm, Depth –
1.52mm, Weight – 7.98g
Benefits
Other than being a beautiful coin that
is steeped in history the Sovereign comes
with many benefits to the investor. For
starters, like all gold bullion products, they
are VAT free. VAT can sometime apply to
Sovereigns but that only happens when
the coin is being sold for more than 180%
of its intrinsic gold value. So this only really
impacts those buying rare collectible coins.
Another benefit to investors with a
large portfolio is that all Sovereigns post
1837 are considered legal tender and
are exempt from Capital Gains Tax (CGT)
which could offer a significant tax saving if
liquidating a large amount.
Sovereigns offer an extremely flexible
and liquid investment opportunity with
a coin that is recognised and sought
after across the globe, and can gain in
value ahead of the gold price due to its
collectible nature.
How to Get the Best Value
If you’re not looking for your Sovereigns
to be collectors’ pieces then you have a
better chance of buying them much closer
to the gold price.
Like most thing, the larger volume you
buy in the better discounts people are
prepared to offer you. Be careful however,
not to ask for a large quantity of a specific
year as this will highlight an extra demand
and you could inadvertently push the price
up yourself
If you do want large quantities of a
specific coin then your best bet is to go for
the 2014 Sovereign that can be procured
for you straight from the Royal Mint.
If you are simply looking to take
advantage of the VAT and CGT free
elements of the Sovereign and are
not interested in collectibles then
buying mixed date and lower condition
Sovereigns will offer you the best value for
money.
In summary the gold Sovereign is a form
of investment that offers all the security
of investing in gold bullion along with
fantastic liquidity and flexibility. On top of
that these coins have the potential to offer
additional profits about its gold value due
to its historical and collectible nature.
The Bullion Centre is a company with
many years’ experience of trading in gold
bullion. Not only do they make investing
in gold and silver easy and fantastic value,
but they also want to see their customers
realise their financial goals by offering a
100% of spot buyback promise. Proud
stockists of internationally recognised
products from Bairds & Co, The Royal
Mint, The Canadian Mint and US Mint, The
Bullion Centre also offers mixed Sovereign
packages which are the best value
Sovereigns around.
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