The Royal Mint is aiming to increase bullion investment with the launch of a series of new, smaller, gold coins.
Based on the Britannia one ounce gold coin, currently trading for £791, Royal Mint is releasing three new coins for sale. These include the Britannia half ounce, Britannia quarter ounce and Britannia one tenth ounce. The coins are valued at £410.20, £220.34 and £90.80 respectively. Investors who decide to purchase these coins will automatically become part of the gold market.
BBC News reports that the Royal Mint wants to make gold more accessible to consumers and the coins are a simple way to introduce them to the ups and downs of the gold market. The new coins will be considered legal tender meaning that any increase in value is free of Capital Gains Tax for UK residents.
Those that do choose to invest in the coins have the choice of the currency being delivered to them or stored in the Royal Mint's own vault. The site, situated near Cardiff, is protected by the Ministry of Defence's own police force.
Speaking to the news provider, Shane Bissett, the Royal Mint's director of commemorative coin and bullion, explained that "coins offer a relatively affordable introduction" to the gold. Consumers who purchased gold ten years will have scored a major profit on their investment. In October 2004, gold was priced at just $424 (£265) and has since grown to $1,205.
The latest coins, made from 24 carat gold, are just the latest in a long line of commemorative coins made by the Royal Mint in recent years. For this year's Remembrance Day, the Royal Mint has launched a new £5 coin bearing red petals and the words 'Remember the Fallen' engraved.
Consumers can purchase the coin for £13.
Find out about commodities trading and learn CFD strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.