Is that this new Britannia coin a golden alternative as shares slide?

A brand new ‘high-tech’ Britannia gold coin is being launched this month – on the again of a increase in demand for gold and a surge in its worth.

The brand new 24-carat one troy ounce of gold coin has been produced with ‘micro-detail’ so the waves within the background seem to roll as you have a look at them from totally different angles.

The phantasm of shifting waves is a safety measure launched to make it troublesome for forgers to repeat. 

There are others, together with a disk by the underside of the regal determine’s gown that additionally acts like a hologram so you’ll be able to see both a padlock or trident on it, once more relying on what angle you have a look at it from.

As well as, there’s the inscription ‘Decus et Tutamen’ – Latin for ‘an decoration and a safeguard’ – in tiny print repeated across the coin’s internal circle.

Gross sales of earlier Britannias have greater than trebled up to now six months. The worth of a Britannia gold coin is about £1,600, in comparison with £860 5 years in the past. However traders needs to be conscious that costs can fall.

Key to the present enchantment of such cash is gold’s status for being a ‘secure haven’ asset. With rising issues over the state of the world financial system, many traders have been searching for the consolation of gold.

Previously 12 months, the value of gold has reached document highs. Peaking at £1,574 per troy ounce on August 6, it has slipped again barely to £1,481. Regardless of this, that’s nonetheless up 23 per cent 12 months in a 12 months.

Adrian Ash, director of analysis at metallic dealer BullionVault, says: ‘Although gold has come down from its document excessive, this doesn’t imply the rally is essentially over. Now we have potential financial battle with China looming, the unpredictable fallout of the US election in November and Brexit within the New 12 months to take care of – and nonetheless nobody is aware of the place the Covid disaster will take us. We live in unsure instances and holding gold in a diversified funding portfolio makes good sense.’

The brand new gold coin, like all Britannia cash, is deemed authorized forex by the Inland Income so traders is not going to must pay capital positive factors tax on income. 

There’s additionally no worth added tax to pay. It has a face worth of £100, although it sells for about £1,600, largely due to the worth of gold it accommodates.

Ash warns traders searching for resale worth fairly than novelty worth: ‘Don’t be tempted by cash that include fancy packaging, are backed with slick adverts and are particular editions.’

The Royal Mint provides different one troy ounce gold bullion cash. Its ‘Queen’s Beast’ portfolio contains cash such because the ‘black bull’, which prices about £2,000. And tomorrow it will likely be launching a ‘James Bond bullion bar’.

However most specialists imagine traders ought to keep away from such particular editions due to the mark-up. Ash says a key consideration is promoting the coin additional down the road.

Like different merchants, Royal Mint buys cash for lower than it sells them for. The distinction is named the buying and selling unfold. It means you can be paid about £1,420 for a coin you could possibly purchase for near £1,600.

So when shopping for or promoting bullion cash it is very important store round for the perfect worth earlier than sealing a deal. Merchants to think about along with the Royal Mint embrace Baird & Co, BullionVault and The Gold Bullion Firm.

A Royal Mint spokesman says: ‘The Britannia is our hottest bullion vary coin, which is why we selected it to embrace our revolutionary new safety features.’

A smaller coin – the Sovereign – has a face worth of £1 and sells for about £380. It’s manufactured from 22-carat gold – 22 elements gold and two elements copper alloy – and weighs slightly below 1 / 4 of a troy ounce. 

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