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.
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