UK bullion dealers are struggling to provide enough gold sovereign and Britannia coins to keep up with surging demand ahead of an expected increase in capital gains tax in the new government’s budget on June 22. Dealers are reporting a backlog of orders for bullion coins recognized as UG legal tender, exempted from CGT.
According to the managing director of gold dealer Baird and Co Anthony Baird, the company cannot deliver any Britannia coins until August due to lack of supply.
In addition, the supply situation is worse from overseas sources because European sales onto the market of coins and other forms of investment bullion are particularly in a slack
Investors are storing gold because of the eurozone debt crisis. Gold prices highs were also recorded on Tuesday in dollar terms above $1,250 per ounce and have also reached highs in euros, sterling, and Swiss francs because of economic uncertainty. This means that fewer coins are coming back in the market.