Krugerrand and Britannia coins are among the world's most valuable coins, available in gold, silver, and platinum. Both are renowned for their rich histories and trademarks, and each is significant in its own unique manner. This article will discuss these two coins' historical and investment value.
Investing in Krugerrands
Krugerrands may provide the advantage of both an appreciating and an easily exchangeable asset. This makes the coin a highly appealing investment choice. Here are a few reasons why investors should consider buying gold Krugerrands:
Easy and Straightforward
Investing in Krugerrands is an easy and straightforward way to expand your investment portfolio. At the same time, many investing alternatives demand a high level of expertise, talent, as well as time, which beginner investors may lack. Purchasing Krugerrands is a simple and cost-effective way to invest in Gold.
South African Rand Hedge
Krugerrands may be an excellent hedge in an investment portfolio because, although the Rand continues to decline, Gold remains as an internationally dealt commodity priced in USD and hence unaffected by the Rand's volatility.
Incremental Sizes
The Krugerrand may be purchased and traded in one-ounce and fractional amounts, including half, quarter, and a tenth of an ounce.
This means that investors can purchase Gold bullion incrementally, over time, rather than having to put a single large sum amount into the yellow metal all at once.
Investing in Britannias
The Britannia is a 1 Ounce coin with a higher fineness than the gold Krugerrand (24 karat vs 22 karat). This adds to its appeal as an investment coin. Because manufacturing costs for any coin are essentially the same, the premium of a gold Britannia is essentially the same as a Krugerrand, although the coin has a slightly higher amount of gold in it. Here are some of the benefits of investing in Britannias:
Tax Efficiency
The Britannia is tax-efficient (as it is exempt from VAT and Capital Gains Tax), which makes it an excellent investment. Due to the fact that it is made of investment-grade Gold, the Britannia is VAT exempt worldwide. It is also Capital Gains Tax exempt for UK residents.
Fineness
The 24-carat Britannia gold coin has been produced with a purity of 0.9999 since 2013. Prior to 2012, coins contained 22-carat of Gold with a purity of 0.917. The coin's gold alloy has incorporated silver rather than copper since 1990. (Silver or copper is included in the manufacturing of a coin in order to prevent damage to the coin, as gold is quite a soft metal).
Different Dimensions
The gold Britannia series is available to investors in four different sizes: one ounce, quarter-ounce, half-ounce, and one-tenth. However, a 5-ounce coin was available in 2013.
Conclusion
Krugerrands and Britannias are both popular investment instruments with similar benefits. Investors should analyze these benefits and find the one more suitable for them. It is prudent for bullion investors to purchase some of each type of coin. However, for British residents, the gold Britannia is the clear winner.
