Investing is all about building the best portfolio for you. There isn’t a universal portfolio that suits every investor. There are countless investment options for investors to choose from. However, choosing only one or two investments isn't a practical investment strategy in the long term. Investors need to diversify their portfolio as much as they can. A diverse portfolio contains more investment from multiple instruments as well as industries.
One of the most lucrative investment options for investors for centuries has been gold. Gold offers many advantages to an investment portfolio. It offers a hedge against inflation, saves wealth during uncertain times, and is one of the most liquid investment options.
The truth is, a diversified portfolio should contain some precious metals, especially gold. Once you have made up your mind to invest in gold, the next question is what gold should you buy?
Let us make you familiar with Gold sovereigns and explain why it is a good decision to invest in gold sovereigns.
If you have already started thinking about getting your hands on some gold sovereigns, these coins have a lot to offer. They have a history and are well recognised. Here are some reasons why you should consider gold sovereigns to diversify your investment in gold.
- Most of these numismatic coins are rare, and very few are available for you to buy. There is a rich history associated with these coins. The value of these coins is dependent on various factors. The year in which these coins are minted is a strong indicator of their value. The number of coins minted in a particular year and the percentage of those coins still available to buy is a strong indicator of their high price. If the coin you buy is in good condition and is in high demand, you may get lucky enough to receive an offer for coins way more than their intrinsic gold value.
- These gold sovereigns are easily tradable as they are very small as compared to regular ounce coins. Their small size makes it easy for investors to buy these coins.
- From an investment point of view, gold sovereigns are a must to have as you can save tax while trading them. All Britannia coins and British Sovereigns produced after 1837 are exempt from CGT. This is because these coins were classed as legal tender. However, if you sell your coin for more than 180% of its gold content, a VAT will be applied as the coin will be considered as a collector's item in that case.
Investment is all about diversity, and to diversify the gold portion of your investment, and gold sovereigns are a good option to buy.