2021 Sovereign gold coins from the Royal Mint are made of 22-carat bullion. With St. George killing the Dragon on the reverse, it attracts no UK Capital Gains Tax (CGT) or VAT.
Coins are attractive and easy to gift, but owning gold in the vault fully insured and ready to sell instantly, 24/7, is cheaper, safer and easier.
Buying coins to keep at home
Buying vaulted gold & silver using BullionVault
All coins start out as large bar 'good delivery' bullion. The costs to manufacture and distribute them are reflected in the large 'spread' between buy & sell prices. This typically costs the coin buyer over 10% of the metal's value, roundtrip. Our coin prices are low but it will always be cheaper to buy vaulted gold.
Vaulted gold is traded in 1 gram* increments of large 'good delivery' bars — as traded on professional markets. This means you can buy and sell on BullionVault's competitive marketplace at very narrow spreads — usually within 0.2% of the spot price. You only pay a 0.5% commission to buy and sell, so roundtrip costs are usually less than 1.5%.
Postage and packing costs are added to the total you pay or hidden in the price per coin. You'll also incur shipping & insurance costs when you sell back to an online dealer, plus a delay in receiving your cash.
All gold bought and sold is already in the vault location of your choice, so there are no delivery fees to pay.
Storing coins at home puts them at greater risk of theft and is costly to add to a home insurance claim. If not declared, it could invalidate your claim. Deposit boxes have limited automatic cover and buying top-up insurance is prohibitively expensive. Keeping gold in your home country also puts it at risk of government confiscation or exchange controls.
Professional vaults are rated as so secure that costs for storage and insurance are usually well below the cost of just insurance at home. Choose from five vaults in countries with strong records of respecting property rights. You can move your property around with a few mouse clicks.
Many major events affecting financial confidence and gold prices are deferred by the banking authorities to weekends. Both buying and selling coins during these critical times is usually impossible.
Trade 24hrs a day, 7 days a week. When you sell, proceeds are available for withdrawal instantly. Money is usually back in your bank account within 48hrs after you've requested it.
VAT is charged on silver & platinum coins.
No VAT or Sales Tax on vaulted silver & platinum, saving up to 20% depending on where you live.
Gold Britannias and Sovereigns are Capital Gains Tax (CGT) exempt.
In the UK, CGT is only payable if your profits exceed £12,000 in the financial year. Most investors will never exceed the threshold where CGT becomes due.
Bullion coins are attractive and easy to gift to loved ones but not the most efficient way of owning gold.
Vaulted bullion with BullionVault is the most efficient way to buy, store and sell gold for investment.
*We recommend avoiding overall investments below $2,000 (roughly 50g) because the minimum monthly storage charge ($4 for gold and $8 for silver or platinum) may make your investment inefficient below this level. Find examples of commission and storage fees with our cost calculator.
Get 4 grams of silver in your Swiss vaulting account, completely FREE, when you open your BullionVault vaulting account now.Open account
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Central bankers have learned to delay publicising banking system problems until Friday evening, so as to avoid the judgment of the markets for as long as possible. Results of referenda and elections also often come out overnight.
It was at best impractical, and generally impossible, for gold coin buyers to trade during this century’s key news flows:-
The best prices for trading gold commonly occur at these unusual (and volatile) times. BullionVault has proven itself capable of smoothly handling high volumes of online transactions when this has happened.
With vaulted gold you buy real physical gold pre-stored and insured in the professional bullion market vault of your choice.
Visit BullionVault to learn more.
The best buying and selling prices in the world are available where the liquidity is deepest - on the international physical bullion market. Centred in London, this is where central banks, bullion banks, investing institutions, gold miners and refiners trade what are called "good delivery" bars.
These gold bars are a standard size: 400 ounces (12.4 kg). They are made by accredited refiners and kept in accredited vaults. Their movement, by accredited couriers, is carefully documented.
Because these bars' entire life is auditable, and because they have never been in private hands, a professional buyer accepts them as "good delivery" by the seller. So the seller achieves the international spot market price and gets paid quickly and efficiently. No fake bars have been detected in the good delivery system in living memory. If they were, the bad bars would be replaced for free without question or hesitation.
Coins are not good delivery. They cannot be sold on professional markets because their life history is not auditable and without specialist knowledge and tools it is surprisingly difficult to ever be 100% sure that a coin is pure gold. Though uncommon, fakes certainly exist. Without that auditability buyers will often need to re-refine, and the expense eats into the price you will get when selling.
Although few customers think to ask, when they transact gold coins with a dealer there should be two prices; both a higher buying price and a lower selling price. The trader makes money by buying from a selling customer at the lower price and selling to a buying customer at the higher price.
In professional markets, the customer will always ask for both prices at the same time – before the dealer knows if they are buying or selling. This forces the dealer to keep the two prices competitive (i.e. close to each other) if they are to win any business.
But in retail markets this dynamic disappears, and the difference between the buying and selling price, known as the ‘spread’ becomes large, while very often remaining hidden.
'Commission free' is not helpful if the hidden spread costs many times what an openly declared commission would cost. A wide spread is the key component of lost value for the retail customer who buys and sells gold coins.
An exchange marketplace lets large numbers of buyers and sellers compete to offer each other the best possible price. Because there are many potential buyers, only the buyers who offer high prices will attract you when you want to sell, and because there are many sellers, only the sellers who offer low prices will attract you when you want to buy. This competition naturally keeps the prices fair and the spreads low.
Usually a coin shop or website will offer you just one counterparty – themselves. Lacking open-exchange competition allows them to buy from you at low prices and sell to you at high prices. Both buyers and sellers are usually better off when they have the choice of counterparties available on an exchange. Show me BullionVault's exchange.
Government controls have destroyed the plans of more gold coin owners than anything else.
When governments over-borrow (Western government borrowing is now at record levels) and their currencies collapse, those same governments tend to apply strict exchange controls. They almost have to, because otherwise millions of people choose gold and foreign currency over the fast depreciating local one.
Ordinarily, exchange controls will outlaw personal possession and/or free trade in gold, and force domestic trade to be with the government itself, at prices far worse than the world price.
Then the financial protection gold coins should offer at such times stops working. Owning gold coins becomes a frightening liability. Possession of even a modest quantity might well get you arrested were you not to surrender it for official and desultory government prices.
But governments cannot easily control gold which is already beyond their reach, secured in a foreign vault.
Thanks to modern technologies overseas vaulted gold ownership is easier than ever for everyone to access. You can own it as your outright property and store it – safely insured - in a politically stable country whose finances are run on a sustainable and prudent basis.
Overseas storage leaves you able to sell your gold at world prices, and benefit from the full value of what you had so prudently bought.