The Pure Gold Company

Why buy UK gold bullion coins?

The reason UK gold coins such as the gold Britannia and the gold Sovereign are valuable today well after they were in regular circulation is due to the way the value of physical gold is used to protect wealth against uncertainty, and the fact that UK gold coins are viewed as a currency, or legal tender.

When you make gains on investing in British gold coins, you won’t have to pay any tax – a very attractive feature for an investment.

As well as this, gold bullion coins are divisible, meaning that they are easier to liquidate to closer denominations. This fact makes gold bullion coins a more flexible form of precious metal’s investment than, for example, gold bars.

With lower costs demand is also higher for smaller coins, which can often be reflected in buy back prices.

Gold Sovereign investment

Gold sovereigns aren’t just aesthetically pleasing additions to a collection. They can also represent a lucrative investment opportunity and way to safeguard the future of your assets, regardless of stock market fluctuations or financial uncertainty.

Royal Mint gold Sovereigns

The gold sovereign is an iconic British coin that before 1932 was fully circulated within the Gold Standard currency of the time.

• Weight of 7.99 grams.

• Contains 7.32 grams of gold.

• Diameter of 22.05 mm.

• Issued by the Royal Mint in several forms, including half gold sovereign, £2 (or double) gold sovereign and £5 (or quintuple) gold Sovereign.

• Different types of sovereign bear various portraits of different British monarchs, including George V, Queen Victoria, King Edward VII and Elizabeth II.

Royal Mint Gold Sovereign

Why buy gold sovereigns?

Gold sovereigns come in smaller denominations than other coins, meaning that smaller amounts can be purchased, which increases their demand. And, like other UK gold coins, they are tax free.

As a result, gold sovereigns are an attractive proposition for the sensible investor and one that we at The Pure Gold Company believe represent an ideal way to safeguard your assets for the future.

Types of gold sovereigns

The sovereign is an iconic british gold coin, that before 1932 was fully circulated within the Gold Standard currency of the time. It is now used as a bullion coin, meaning it is used as a store of value rather than in day-to-day commerce.

Sovereign portraits

Different types of sovereign bear various portraits of different British monarchs:

  • Charles III (2023 onwards)
  • Elizabeth II(1952-, mintages 1953-1968)
  • George V (1910-1936, mintages 1911-1928, ‘small head’ mintages 1929-1932)
  • King Edward VII (1901-1910, mintages 1902-1910)
  • Queen Victoria(1837-1901)

Victoria sovereigns are also available with Young (1838-1870), Jubilee (1887-1893) and Veiled (1893-1901) depictions of the queen.

The advantages of gold Sovereign investment

Most investments are subject to some form of taxation, but physical gold can be totally free of VAT and capital gains tax.

Gold Sovereign

Tax free precious metals investment

Most important to potential investors is the fact that sovereigns are tax free. As a recognised UK currency and legal tender you will not be made to pay capital gains tax upon seeing your investment grow.


Due to their smaller denominations, sovereigns are far easier to part with piecemeal when it comes time to liquidate them (i.e. sell them). Most gold dealers, will purchase gold Sovereigns in whatever quantity you choose to sell. Bars don’t offer anywhere near the same flexibility in terms of liquidation.


The diminutive size of sovereigns means that they can be easily stored in cases, boxes or tubes. This is especially pertinent if you wish to store them out of sight in a safe, strongbox or other secure hiding place.


While bars are purely worth their weight in gold, sovereigns have the added advantage of numismatic value. In layman’s terms, this means that sovereigns that are part of a set can be an incredibly attractive proposition to a collector, adding significant sums to their value. This value often also increases over time.

Why buy gold Britannias?

Gold Britannia coins are official UK legal tender. They are exempt from the capital gains tax, and can be used for investment purposes in much the same way as all forms of gold bullion.

Gold Britannia

UK legal tender

Gold Britannias are also classed as legal tender, thereby making tax free just like gold sovereigns. This makes them a very attractive and in-demand investment opportunity.

  • Gold Britannias are divisible, which means they can be easily split up when selling.
  • All gold coins sold by The Pure Gold Company are provided with a certificate of authenticity which assures potential buyers that they are genuine.
  • Demand is higher for smaller gold coins as costs are lower, and this is reflected in buy-back prices.
  • UK gold coins like the Britannia are also free from Capital Gains Tax.

Gold Britannia facts

The recent 2015 Gold Britannia coins have a millesimal fineness of .9999 (24 karat gold). Older coins are fractionally less pure, around 91.7% gold with a copper core (in pre 1989 coins) or a silver core (in post 1990 coins). Gold Britannias are legal tender, with a face value of £100, and contain one troy ounce of gold. Although they are legal tender with set face values, most dealers will sell and purchase gold Britannias for much higher sums.

Britannias are also issued in fractional sizes:

  • 1/2 ounce coins with a face value of £50
  • 1/4 ounce coins, face value £25
  • 1/10 ounce coins with a face value of £10
  • 5 ounce coins, with a face value of £500 (introduced 2013)
  • 1/20 ounce coins with a face value of £5

It should be noted when purchasing gold Britannias that the true value of these coins are much greater than their face value.

Royal Mint gold Britannias

Gold Britannias coins

The Gold Britannia coin has been issued by the Royal Mint since 1987.

Contains one troy ounce of gold.

• Issued by the Royal Mint in fractional sizes of one ounce Britannia, half ounce Britannia, quarter ounce Britannia and tenth ounce Britannia.

• Gold Britannia weigh 31.04 g with a diameter of 38.61 mm.

• Britannia minted before 2013 are 22ct gold. Since then, they have been 24ct.

• Britannias are also issued in silver.

Royal Mint Gold Britannia

Hassle free consultation

Any investment is a major decision. You want to be assured that you’re investing in british coins to your fullest advantage, whether you’ve invested in gold before, or looking to do the first time.

As a trusted name backed by leading industry experts, we are able to work with you in identifying your needs, as well as the budget that you wish to allocate, if you decide to commit to purchasing gold coins. We offer both secure storage and insured delivery for all our gold or silver bullion coins as well as gold and silver bars.

Learn more about gold coin investment. Book a consultation today

Want to learn more about physical gold investment?

Call us today on 0207 060 6902 or book a free private consultation with one of our expert gold brokers.

Start growing your savings now by investing in gold

Royal Mint Britannia Gold Coin
  • Completely tax free investment
  • Buy Back Guarantee
  • Gold increases in times of uncertainty
  • 2013 – 2023: 75.98% increase
  • Private investment (outside banking system)
  • Best performing asset over the last 20 years
  • Insured delivery and storage options