Yes, my friends, I have been buying gold coins as a wealth-preservation strategy.
What you see above is my very first gold coin, minted by the Royal Mint. This isn’t just a shiny piece of gold—it’s my venture into buying gold coins as an investment, and I hope it’s the start of something enduring.
By the time you finish reading, I hope to persuade you that investing in gold coins isn’t as unusual—or “dumb”—as it might sound. I’ll share my personal story, the reasons why buying gold coins makes financial sense, and what I learned about the best and most cost-effective ways to buy them.
Why I Decided to Buy Gold Coins as an Investment
Gold coins have been part of my life since childhood. Growing up, my grandparents’ home was full of treasures—old photographs, broken fountain pens, and, most memorably, a sepia-toned image of my great-grandparents. My great-grandmother was wearing an extraordinary necklace made entirely of gold coins. My grandmother still had some of them in her chest.
As a child, I couldn’t comprehend why anyone would wear such a cumbersome accessory. Years later, I realized it wasn’t just a necklace—it was her portable wealth, her financial security.
Fast forward to today.
I earned money, and I spent it. I got into an obscene amount of debt, and I paid it off. More importantly, I have been investing for close to a decade.
Six years ago, I looked at the world and saw chaos: geopolitical tensions, economic instability, and ecological concerns. It reminded me of my great-grandmother’s gold coin necklace.
That’s when I decided to invest in something tangible and enduring: gold coins.
Initially, I didn’t think of it as an investment—it was about security and peace of mind. But the more I researched, the clearer it became that buying gold coins as an investment is a smart move for anyone seeking to diversify their portfolio and protect their wealth.
Why Buying Gold Coins as an Investment Makes Sense
1. Gold Has Delivered Strong Long-Term Returns
Historically, gold has been a reliable store of value. While it’s true that gold prices have fluctuated in the short term—dropping over 27% between 2012 and 2013—the long-term trend tells a different story.
For example, between 1995 and 2015, the price of gold nearly tripled, rising from $387 to $1,060 per ounce. That’s an annual average return of about 5.17%, comparable to the performance of the FTSE 100 over the same period. But here’s the catch: the average investor in the stock market only earned 2.5% per year, making gold a competitive investment.
2. Gold Bullion Coins Are Tax-Free
Here’s something many people don’t know about investing in gold coins:
- VAT exemption: Bullion gold coins are exempt from VAT in the UK, saving you 20% upfront.
- Capital Gains Tax (CGT) exemption: Certain gold coins, such as Sovereigns and Britannias, are also CGT-free. This means you can hold these investments outside your ISA allowance and still enjoy tax-free gains.
3. Gold Coins Are Highly Liquid
Liquidity is a key principle of investing, and gold coins are one of the most liquid assets you can own. You can sell them quickly, either through dealers or private buyers, and they retain intrinsic value no matter where you are in the world.
4. Gold Coins Offer Security and Peace of Mind
For me, owning gold coins is about more than financial returns. It’s about feeling secure in an uncertain world. Gold coins are tangible, portable, and easy to store—qualities that bring me peace of mind in times of instability.
Where to Buy Gold Coins as an Investment
When I first considered buying gold coins, I visited a local pawn shop that also deals in gold. But when I got serious, I turned to online research.
I bought my first coin directly from the Royal Mint because I wanted assurance of authenticity. However, I later discovered that the Royal Mint tends to be more expensive than other providers. Here’s what I found when comparing prices:
- Royal Mint: Reliable but often the priciest option.
- BullionByPost.com: Offers competitive prices and excellent service.
- CoinInvest.com: Often the cheapest for bullion coins.
If you’re considering buying gold coins as an investment, shop around. Ensure you’re dealing with reputable providers to avoid counterfeit coins.
Is Buying Gold Coins as an Investment Worth It?
I bought my first gold coin for peace of mind in a volatile world.
But as I’ve learned more, it’s clear that buying gold coins as an investment offers tangible benefits:
- Historically strong returns
- Tax advantages
- High liquidity
- Security in uncertain times
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For me, gold coins have become a symbol of stability. They’re not just an investment—they’re a safeguard for the future.
What about you?
Gold coins are a smart investment choice, offering both long-term returns and peace of mind in uncertain times. The tax exemptions and high liquidity are excellent perks too. It’s great to see this detailed guide on how to buy them wisely. Thanks for sharing these valuable insights!
Dear All, Thank you for this opportunity. You speak highly of the possibility of investing in Gold Products. But i have compared this to the opportunity of a cheaper investment for basically the masses as gold is more for the specialists with experience.
Can we not make the buying and selling of coins a profitable investment for the ordinary people.Looking at various sites that sell coins says that there is serious money to be made.How can we make this this more accessible for the ordinary person. Lots of people are hording coins not knowing how to sell them.is there something we can do to promote this business with all participants benefitting.Many Thanks again.
I think buying gold coins quite good in order to gain more profits.