The appeal of Capital Gains Tax-free bullion in the UK...

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Investing in precious metals here in the UK, has seen a significant surge in the first half of 2024, with gold and silver prices in sterling climbing by 13.6% and 19.1% respectively as of July 23, 2024. This rise has attracted a wave of new investors to the market, resulting in a 14% increase in sales of all investment coins year-on-year between April and June 2024. Overall silver bullion sales have jumped by 36% compared to the same period last year.

Amidst the backdrop of geopolitical uncertainty and global economic volatility, investors are increasingly turning to precious metals as a safe haven. Fractional gold and silver bullion Britannias, in particular, have gained popularity due to their lower entry points. Quarter ounce gold bullion Britannia coins, priced between £500-520, and silver Britannia coins, priced between £30-32 excluding VAT, have become more accessible. In the first quarter of the financial year, sales of silver coins soared by 55%, while gold coin sales increased by 9% year-on-year.

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A key advantage of investing in these bullion coins is their classification as Capital Gains Tax (CGT) free investments for UK residents. With the annual exemption allowance for CGT having halved to £3,000 from April this year, more investors are seeking CGT-exempt options like bullion coins. This shift highlights the tax efficiency of these investments, as they allow investors to protect their gains from taxation.

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So far this year, the demand for precious metals has been driven by positive market sentiment and the stable outlook for gold and silver. Despite major central banks holding off on rate cuts, precious metals have benefited from increased allocations to 'safe haven' assets. Additionally, central bank purchases of gold have supported elevated prices, underscoring the strength of the market.

Investors are becoming increasingly savvy in their approach to precious metals investing. The introduction of fractional bullion coins has democratized the market, making it easier for both first-time and experienced investors to enter the market with smaller sums. This accessibility has not only facilitated a broader range of investment strategies but has also strengthened portfolios with the stability and potential of gold and silver.

As interest in precious metals continues to grow, the ability to invest in a tax-efficient manner through fractional bullion coins has provided a smart and strategic pathway for UK investors. The combination of accessibility, tax benefits, and the stability of precious metals makes bullion coins an attractive addition to any investment portfolio.