The British Royal Mint hopes to trigger a modern day gold rush with the launch of a new online trading platform for bullion coins.
The idea is to expand the market and to provide a trusted market place for gold and silver investors.
The trading platform sells coins struck by the Royal Mint and has a ‘buy back’ facility for investors who want to cash in their coins.
The Royal Mint says the worldwide market for a trusted gold and silver bullion site is huge and that many investors have refrained from buying because they consider many dealers and brokers are unreliable.
The online platform provides an up-to-the-minute price for gold and silver coins at a price linked to the spot prices of the precious metals.
The Mint hopes this will aid investors in choosing the best time to buy and sell.
An extra layer of security is added by the Mint delivering coins to investors via an insured courier service.
Investors who prefer to have their gold and silver held in the Mint’s state-of-the-art vault guarded by the Ministry of Defence can opt for the service at a charge of 1% of the value of the coins on deposit.
The Mint argues opening the platform is a logical step, as according to trade body the World Gold Council, Britain has a pent up demand to buy gold in an untapped market worth nearly £4 billion.
Coin prices start from £20 for a Britannia Silver Bullion coin or £200 for a Sovereign Gold Bullion Coin, although minimum order quantities apply to all purchases.
An added incentive for British investors is that coins which are legal tender attract no capital gains tax on disposal, regardless of how much profit is generated. Purchases are also VAT-free.
Shane Bissett, the Royal Mint’s director of commemorative coin and bullion, said: “Many potential investors end up not buying gold because they are unsure of the market and trading platforms.
“The Royal Mint has reputation stretching back a thousand years and is trusted to issue all the UK’s coins and supplies currencies to more than 60 other countries.
“We wish to widen the market for bullion in the UK and believe the quality of our coins is unrivalled.”
Investors can open a free online trading account with the Royal Mint and can access the latest data on prices and offers.