Buying gold Britannia coins

ColdIron

LeadFarmer wrote: »

The novelty factor would be buying one stamped with his year of his birth, but it would be seen as a piece of gold to be sold when the price is right.

You could still achieve a novelty factor with a dated Sovereign or a dated Perth Mint Lunar Series coin (which are very attractive with the Chinese animal that matches his year of birth). You wouldn't have to spend so much as you don't know how much he would appreciate it at 21. When I was 21 my Canadian uncle gave me a proof silver Canadian Dollar. I thanked him at the time but it's just gathering dust at the back of a drawer decades later. You are right that it would be worth the prevailing bullion price at sale so if you go ahead don't buy proof or anything at a premium. To paraphrase Turkish in the Snatch film - You don't want to have your pants pulled down over the price

longleggedhair

I've brought a few of these over the years, they are pretty to look at and as others have said I hold them as a small insurance for a global meltdown. Though don't treat them as a serious investment, the few I hold make up less than 1% of my portfolio.

TheTracker

LeadFarmer wrote: »

Anyone here buy gold, or gold Britannia coins?

LeadFarmer to GoldBuyer? That’s some alchemy.

Apart from all the other advice, I’d consider any behavioural effect this might have on a young person. Gold is a terrible investment. It’s superficial and adds no direct value to the economy. If you want a blingy sentimental gift that will hold some of its value long term, buy a nice watch.

Flobberchops

I''m hoping to buy some precious metals this year, both to liven up my own modest portfolio and also some earmarked as a gift/investment for my children. The Tooth Fairy will be bringing my kids silver Britannias!

I think as long as you make peace with the fact that you'll be making an initial loss at point of sale (buying over spot price) and that raising metal prices are by no means guaranteed, some bullion can be a fun and interesting addition to more mainstream stores of wealth.

A_T

nothing wrong with gold - just don't necessarily expect it to go up in value

LeadFarmer

So are we saying that the price of gold doesn't really increase in value above inflation?

Flobberchops

Alexland wrote: »

If you buy online it's only £2.50 postage - surely this is a generous 'gift to the nation'? They are even quoting the Queen to suggest some hint of approval.

http://www.freeweddingcoin.co.uk/

A "photographic coin"? That's the most disgusting thing I've ever heard of, short of the horrific "3D coins" which were commemorative issues in (I believe) Australia. What horrendous tat.

I'm curious about their legitimacy/legality as coinage though - I'm not aware of any coins being designated as Crowns since 1990; large commemoratives have been mostly £5 coins since then. If it is indeed a Crown then it's a legal tender coin with (not displayed) face value of 25p. I also notice it's a Gibraltar coin, I believe they have a national mint who are licensed to strike their own Sterling coins?

It's all so murky that I can't imagine this coin will have anything other than novelty/curio value if kept in immaculate condition.

Flobberchops

LeadFarmer wrote: »

So are we saying that the price of gold doesn't really increase in value above inflation?

Not reliably. If you had bought in 1980 you would have waited almost 30 years just to break even, and the inflation-adjusted view is even worse! Mind you, there are plenty of years where buying gold would have been a very smart move, in hindsight. We're currently at a relative spike in price, but whether we're due another slump or if values are about to jump again is anyone's guess.

I know some people are of the opinion that gold is overpriced and actually silver is a better investment at the moment. If you buy Silver Britannias they're also CGT free. But ultimately please know that both are a speculative investment rather than a guaranteed or even predictable return.

markj113

Silver is not a great investment in the UK as its subject to VAT like platinum and palladium. You can reduce taxes by buying from Germany for example but the premium is still significantly higher than gold.

If you buy a lot a dealer will only offer a price based on spot value minus the VAT previously paid. You can recoup the VAT paid by selling privately via ebay for example but it will take time and effort to piece out your collection to achieve the best price.

Also I think looking at historic gold price performance is not a good indicator for future price moves due to the ever increasing global debt issues + the amount of extra money pumped into the system via quantitative easing.

unkle

I buy sovereigns from time to time. Basically the value of Gold, but no CGT.