Sovereigns gain lustre as gold price hits fresh record

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Dealers are struggling to source enough gold sovereign and Britannia coins to keep up with surging demand in the UK even as gold prices hit fresh highs.

Demand for coins has surged ahead of an expected hike in capital gains tax as coins recognised as legal tender are exempt from the tax. However, investors in Europe are also buying gold and coins as a safe store of value amid fears over eurozone debt problems.

Gold yesterday hit record highs of $1,251.05 an ounce.