Gold coins have long held their place as a trusted way to preserve and grow wealth. As financial markets continue to fluctuate and inflation remains a concern for many households, more investors are considering the benefits of owning physical gold. Whether you are new to investing or looking to strengthen your portfolio, choosing to invest in gold coins could offer stability, flexibility, and long-term value.

1. Gold Coins Offer Tangible Security

Unlike shares or bonds, gold coins are a physical asset you can hold in your hand. They are not tied to the digital world, which makes them immune to online threats or technological failures. When you invest in gold coins, you are securing a real-world asset that remains valuable regardless of market volatility.

Key points:

• Physical ownership provides peace of mind

• Gold cannot be hacked, erased or lost digitally

• You control where and how it is stored

This ownership can be reassuring during times when online banking systems face outages or when concerns about cybersecurity are on the rise. Having part of your wealth in a tangible form gives you a level of personal control that few other investments can match.

2. A Reliable Store of Value Across Centuries

Gold has been valued for thousands of years, across different cultures and economies. Its purchasing power has remained relatively stable, even when currencies have collapsed. During periods of inflation or currency devaluation, gold often retains its value or even appreciates.

According to the World Gold Council, central banks increased their gold reserves by over 1,000 tonnes in 2023, a clear sign that even national institutions continue to trust in its enduring value. Private investors are following suit, adding gold coins to their holdings as a long-term hedge.

Unlike stocks, which can be severely affected by corporate scandals or market sentiment, gold’s value is not tied to the success of a single company or government. It is a global standard, recognised and valued everywhere.

3. Investment Coins Offer Tax Benefits

For UK investors, certain gold coins provide important tax advantages. Coins such as the Gold Sovereign and the Gold Britannia are considered legal tender. This means they are exempt from Capital Gains Tax (CGT) in the UK. If you decide to sell your coins later at a profit, you can keep the full gain without handing a portion over to HMRC.

Advantages include:

• No CGT when selling qualifying coins

• VAT-free when purchasing investment-grade gold

This tax efficiency makes investing in gold coins not only appealing but also financially smart, particularly for those looking to build long-term wealth. It can mean a real difference to your returns compared with investments that are taxed heavily.

Choosing coins like the Sovereign and Britannia ensures you benefit from these advantages without needing to navigate complex tax rules later on.

4. Liquidity – Easy to Buy and Sell

Gold coins are highly liquid assets. Whether you need quick access to cash or want to restructure your portfolio, gold coins are easy to sell. There is a strong global market for bullion coins, which helps you secure a fair price when the time comes to sell.

When compared to selling a property or even some stocks, selling gold coins is far more straightforward and immediate. It avoids lengthy paperwork, valuation issues, or the possibility of poor market timing.

In times of personal emergency, owning gold coins can offer a discreet and efficient source of liquidity that can make a real difference.

5. Protection Against Economic Uncertainty

Gold often performs well during times of economic stress. When inflation rises, when currencies weaken, or when stock markets wobble, the price of gold usually increases.

At the start of 2025, gold reached around £1,950 per troy ounce, driven by concerns about rising global debt, stubborn inflation, and ongoing geopolitical tensions. Private investors and central banks alike are buying more gold as a safeguard against uncertainty.

Victoria Hasler, head of fund research at Hargreaves Lansdown, explains:
"When the world starts to look scary, investors often turn to assets they perceive to be safe."

Historically, periods of economic recession, political instability, and rising inflation have all supported higher gold prices. Having gold coins as part of your portfolio can provide a form of insurance against financial turbulence.

When markets are unpredictable, gold can offer a reassuring stability that few other assets match.

6. Diversification for Your Investment Portfolio

A well-balanced investment strategy usually involves spreading your money across different asset classes. Gold offers an excellent way to diversify. It behaves differently to stocks and bonds, often moving upwards when other investments fall.

Diversification matters because it reduces overall risk. If all your money is tied up in one type of asset and it loses value, you stand to lose a lot. Including gold coins in your portfolio can help cushion the impact of economic shocks.

Diversifying with gold coins:

• Reduces dependence on stock market performance

• Helps protect your portfolio during recessions

• Offers steady performance over long periods

Gold’s negative correlation to equities is especially valuable in times of market downturns. During the financial crisis of 2008, for example, the stock market fell sharply while gold prices rose, underlining gold’s role as a safe haven.

Adding gold coins does not mean replacing all your investments, but it means giving your portfolio a foundation of stability in uncertain times.

7. A Legacy to Pass Down

Gold coins are not just an investment for today. They are something tangible you can pass on to future generations. Many families use gold coins as a way of transferring wealth securely, outside of the banking system.

Passing down physical gold can help ensure that your family remains financially secure. In uncertain times, gifting gold coins to loved ones can offer them a valuable resource they can draw upon when needed.

Why gold coins make an excellent legacy:

• Portable and easy to store

• Universally recognised and valued

• Immune from many banking and digital risks

• Likely to hold value through different economic cycles

Unlike paper money, which can become worthless over time, a gold coin will always retain some form of intrinsic value. Whether your heirs decide to keep them, sell them, or use them in times of financial strain, gold coins offer lasting flexibility.

Ready to start your journey?

Choosing to invest in gold coins offers much more than just potential financial gains. It gives you the security of physical ownership, protection against economic downturns, and the opportunity to pass wealth onto future generations. In times of uncertainty, gold has a proven history of holding its value when other assets falter.

If you are considering adding physical gold to your portfolio, Baird & Co. offers a wide selection of gold coins for investors of all levels. Our experienced team is available to help you make the right choice based on your personal goals.