Coins and other collectables can give you some diversity in your investment portfolio from a tax point of view. The case for investing and the potential to earn a reasonable return is an issue you should investigate before investing, but if the coins or other collectables that you, as an individual, own are used mainly for purposes other than trade, they may be regarded as personal-use assets, and not subject to capital gains tax when you sell them. Examples of personal-use assets which you own as an individual or in a special trust (for individuals who cannot manage their own affairs) are: • Artwork; • Jewellery; • Private vehicles; • Veteran cars; • Furniture and household appliances; • Boats less than 10m in length; • Stamps; and • Coins. However, you should be aware that coins made mainly from gold or platinum whose value is mainly derived from their metal content are excluded from this exemption. The South African Revenue Service states that the term "mainly" means more than 50...
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