"BRITANNIA" COIN TO SELL AT PREMIUM

  The new British one ounce gold coin, the
  "Britannia," will be priced on the basis of the gold price on the
  day of purchase plus a "competitive premium," Treasury officials
  said.
      Value added tax will be levied on all purchases by members
  of the U.K. Public, as is currently the case with foreign
  coins, although transactions between members of the London Gold
  Market and all exports of the coins will be zero-rated. No
  decision has yet been taken on the face value of the coins.
      Although a number of gold coins, especially the Canadian
  Maple, have been issued elsewhere in an attempt to take the
  place of the South African krugerrand, the British government
  still feels that there is a gap in the market for a British one
  ounce gold coin. The only British gold coin available at
  present is the sovereign, which contains 0.2354 ounces of gold.
      Gold from South Africa or the Soviet Union will not be used
  in the coin, officials said, adding that bullion would be
  bought on the world gold market. But analysts said it would be
  difficult to ascertain the origins of such purchases.
      No details are yet available on how many coins will be
  issued or how much gold will be bought, but traders said that
  the amounts involved would be unlikely to move the gold price.
      There were some enquiries on the "Britannia" from coin
  dealers today, but value added tax would prove a major factor
  in the success of the coin, with the 15 pct tax likely to put
  off many investors, traders said.
      Some said that the "Britannia" had come too late, with the
  Canadian Maple Leaf, the American Eagle and other gold coins
  already well established.
  

