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What are Britannia Silver Coins?

The silver Britannia is an iconic British coin introduced by the Royal Mint. These are 1oz coins minted by The Royal Mint to a purity of 999.9 silver. They were first issued in 1997, 10 years after the gold 1oz Britannia, and have become a very popular choice for physical silver investors. They can be bought at relatively low prices as they’re minted to bullion standard and large numbers. They have a face value of £2 which means they’re legal tender and therefore any rise in value is free from Capital Gains Tax.

In 1987, the Royal Mint introduced the gold Britannia coin. The coin enjoyed popularity amongst investors and the silver Britannia was introduced into the market to replicate the success of its gold counterpart. Although the coin was upgraded to 24-carat silver with a fineness of 99.9% in 2013, the original issue had a fineness of 95.8%. The Royal Mint wanted to create a replica of the gold Britannia in silver.

What are Britannia Silver Coins?
The beautiful Silver Britannia, designed by Jody Clark

The design of the silver Britannia

The silver coin was expected to mirror its gold counterpart in terms of look and feel. So, the well-known coin designer, Jody Clark was commissioned to do the job. The design of the silver Britannia features the image of Britannia, holding her shield and trident. It is now thought that this image originated during Roman times and depicted the spirit and bravery of the British people. The coin portrays the warrior goddess on its reverse and features an image of Queen Elizabeth the second, the longest-reigning British monarch on the coin’s obverse. The upgrade of the fineness of the coin in 2013, increased the demand for the silver Britannia. Importantly, the coin offered investors an avenue to get into the precious metals market at a lower price point than purchasing gold coins.

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Advantages of buying the silver Britannia

The bullion version of the coin carries low premiums since the coin was introduced recently. However, commemorative issues and collectable editions of the coin can attract higher premiums. Availability and affordability are the two pillars that have contributed to the popularity of the silver Britannia. In March 2020, the gold-silver ratio touched an astonishing 125:1. Since then, there have been changes to this ratio, but the price difference between the purchase of the gold Britannia and the silver Britannia has encouraged investors to buy this coin.

What are Britannia Silver Coins?
The image of Britannia has been used earlier in British coinage, like this Edward VII Florin

Tax efficiency

In addition to the advantages offered by the low price of silver, when compared to gold, the silver Britannia is a legal tender coin. In the UK, this means investors can book profits on the sale of this coin, without having to pay Capital Gains Tax (CGT). This exemption can ensure tax-free profits within a single tax year for many investors. The silver Britannia is an excellent coin to purchase, due to its advantages as a tax haven.


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Divisibility and liquidity

The silver Britannia is an extremely popular and liquid coin across the world. This ensures that investors can book profits by selling the coins at any given point in time. The coin is also available in different weights and sizes. So, an investor can benefit from the variety and divisibility that the silver Britannia has to offer.

Contact Physical Gold for the best deals on silver Britannia coins

We are one of the best gold and silver dealers in the UK, with an impeccable reputation. Our investment advisory team are always happy to answer your questions on buying silver coins. Please call us on (020) 7060 9992. Alternatively, you can also get in touch with us online by visiting our website and sending our team an email.

 

Image Credits: Eric Golub and Smabs Sputzer

By Daniel Fisher

Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

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