New tax year offers opportunities for rare coin investors


2015-06-26 12:20:43


New tax year offers opportunities for rare coin investors

Alternative investments could be the perfect way to overcome the government's tax strategy

The new tax year is upon us. And for high worth individuals the government has not been kind.

The Institute for Fiscal Studies (IFS) estimates that 750,000 more people are now higher rate tax payers, after the 40% tax threshold fell from 43,875 to 42,475.

And although that staple for any sound portfolio, the ISA, continues to be a solid money making tool, investors will not find a bank offering better than 3.35% at the time of writing.

So what is an investor to do? With the capital gains tax threshold standing at 10,600 for this year and regular investments still very much in the doldrums, alternative investments, such as coins, are looking increasingly attractive.

At a time of economic hardship it perhaps sounds perverse to suggest investing in coins, but we're talking rare, antique coins here.

Collecting rare coins can provide better returns than traditional investments

A recent study by Noble Investments monitored the appreciation of collectible coins over a seven year period at Spink in London. It found that an 1813 George III Guinea rose from 800 to 1,950 in that time - a growth rate of 144%. Even more inspiring was the performance of the 1723 George I SSC shilling, which grew from 85 to 300 over the same period - an increase of 253%.

Anyone shopping for engagement or wedding rings recently will be aware of the ever increasing price of gold and silver, which has its benefits for collectors owning coins in these metals, as the intrinsic value of the investment is likely to continue to rise.

So it's not all doom and gloom, invest in a rare coin and you could beat the new tax year blues.

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