The Royal Mint is a government-owned company that produces and distributes all the UK’s coins. Whether you are collecting historic coins or commemorative coins produced for specific anniversaries or events such as London 2012, knowledge of the function and history of The Royal Mint will add to your enjoyment.
Origins
By the 7th century Anglo Saxon kings had established mints within their kingdoms. By the time of Aethelred “The Unready” (reigned 978-1016) there were mints in 70 towns and cities. By the end of the 13th century the minting resources of Londonwere housed within the walls of the Tower of London. The coins were struck by holding a metal blank between two engraved dies and striking the top die with a hammer, hence the name “Hammered” coins. In 1660 the restored King Charles II introduced new coin-making technology fromHollandand hammering was replaced by rolling mills and screw presses, which produced better quality coins more quickly – “Milled” coins. In 1696, Sir Isaac Newton became Warden of The Royal Mint and his first task was to address the problems of forgery; he later supervised the great recoinage of 1696. In 1699 he became Master of The Royal Mint.
The move to Tower Hill
In 1797, Matthew Boulton won a contract to produce coins for The Royal Mint. The coins were of outstanding quality, struck using the latest steam presses. The Royal Mint decided to adopt the new technology, but the premises at theTower of London were too small. A new purpose built factory on a 4-acre site of a former Abbey on nearby Tower Hill was commissioned, equipped with the latest steam presses. These two-ton monsters were capable of striking 100 coins a minute of vastly superior quality. They provided The Royal Mint with the capacity to cope with the demands of the great recoinage of 1816.
In the next four years the mint struck 40 million shillings (5 p), 17 million half crowns (12 ½ p) and 1.3 million crowns (25 p). Over the following century the products of The Royal Mint were circulated throughout the British Empire. Branch mints were opened in Sydney, Melbourne, Perth, Ottawa, Bombay and Pretoria, which together produced almost as many gold sovereigns as the Mint itself.
Changing times
In 1816, The Royal Mint had produced the world’s first “token” coinage – coins with a face value higher than their intrinsic worth. In 1917, The Royal Mint stopped production of gold sovereigns, replacing them with paper banknotes. In line with post-war shortages, the silver content was removed altogether in 1947, resulting in cupro-nickel “silver” coinage. The Royal Mint however continued its vigorous commercial approach to the minting and marketing of coins, seeking orders from all over the world. By the second half of the 20th century, The Royal Mint had become one of the world’s most successful coin exporters.
Decimalisation
40th Anniversary of Decimalisation Coin Pack & Medal
After World War II, the next challenge facing The Royal Mint was decimalisation of the UK coinage. Although there had been previous unsuccessful attempts to decimalise our currency and bring us in line with the Continent, during the 1960s the movement gathered momentum. On 1st March 1966, the Government officially announced the changeover to decimal coinage.
In 1968 the Royal Mint introduced 5p and 10p coins and in 1969 came the brand new 50p (or ten shilling) piece, designed to replace the ten-shilling banknote. “D-Day” itself came on 15th December 1971 and went off amazingly smoothly. The old penny and three-penny bit were withdrawn sooner after and the sixpence (2.5 p) followed in 1980. The £1 coin arrived in 1983, while the 5p, 10p and 50p coins were re-sized in the 1990s.
The need to mint hundreds of millions of new coins, and meet the growing demand from overseas customers, meant that the Tower Hill mint was inadequate. In December 1968 the Queen opened the first phase of the new Mint production facility at Llantrisant, South Wales. The last coin, a gold sovereign, was struck at Tower Hill in November 1975.
The Royal Mint today
Today The Royal Mint is one of the world’s foremost producers of coins and medals, renowned for its quality, creativity and integrity. At its state-of-the-art purpose-built plant at Llantrisant, the Mint produces 90 million coins and blanks a week – almost five billion coins a year. It supplies all theUK’s circulating legal tender coins circulating and is the world’s largest exporter of coins. The Royal Mint employs more than 900 people and operates round-the-clock for 52 weeks a year.
The Royal Mint also meets the needs of a growing number of collectors, in Britain and abroad. People have always collected the products of the Mint, of course, but over the past 50 years the Mint has made great efforts to meet the needs of collectors. In 1957 the Royal Mint resumed production of sovereigns and in 1979 struck proof sovereigns, still popular today. The Mint issued a commemorative crown (25p) for the Coronation in 1953 and for Winston Churchill in 1965. Since then Royal Mint commemorative coins, usually crowns, have become eagerly awaited by collectors. London 2012 and the Queen’s Diamond Jubilee have given collectors a huge opportunity to own in 2012 and a chance for The Royal Mint to showcase its product range. The Royal Mint has also been honoured with the task of producing the medals to be awarded at London 2012.
Look at the change in your purse or pocket and you’ll see some coins are bright and new looking, while others look worn and battered. For collectors, the condition of a coin is very important – the difference in price between a “Fine” condition coin and an “Uncirculated” condition coin can be huge. The grading system used in the UK is:
- Poor – considerably worn, of little value to the collector unless of very rare type or date
- Fair – Worn but with dates and legends still visible
- Fine (F) – Considerably worn on raised surfaces, caused by circulation or faulty striking in older coins
- Very Fine (VF) – some limited circulation wear
- Extremely Fine (EF) – very little circulation or wear, only visible on close examination
- Uncirculated (UNC) – in new condition fresh from the mint, probably not absolutely perfect because of mass production and handling methods
- Brilliant Uncirculated (FDC) – absolutely flawless, produced and handled apart from the main coin production line – sometimes known as “Fleur-de-Coin”
- “Proof” coins are produced in limited quantities – called an “Edition Limit” in a separate process from that used to produce circulation coins. They are struck several times with special highly polished dies and usually have a mirror lustre back ground, with frosted relief.
These aren’t hard and fast rules and even experts might disagree on differences but as you build your knowledge and examine more coins, you’ll learn to recognise and assess coin quality. It’s a good idea to get a good magnifying glass to examine your coins for signs of wear and damage and assess their condition.
Displaying and protecting your coin collection
As you add to your coin collection, it’s likely to grow in value so you will want to protect it. Normally your collection should be covered by your household insurance, but if you have high value coins, especially gold coins, these will have soared in value so you should notify your insurers. They might advise you to keep them in a bank but you may want to protect your coins at home where you can enjoy them. Avoid keeping coins jumbled together, as they will become scratched. The Westminster Collection usually supplies coins in some form of protective capsule, sleeve or presentation case, depending on their value.
Albums with protective transparent sleeves, including individual coin envelopes, are a low-cost starting point, protecting your coins while allowing you to examine them. You can later progress to plastic or wooden display cases. When storing copper or bronze coins it’s important to keep them in a dry atmosphere, since damp may turn them green. In fact, avoid cleaning if possible, since even minute abrasion can affect values. Dirty gold and silver can be gently washed in soap and water. Avoid handling coins, but if you need to, handle them by the edges.
Useful coin collecting terms
- Obverse – the side of the coin with the monarch’s head – hence “Heads”
- Reverse – the other side, “Tails”, usually bearing an emblem or other design
- Type – the main design on a coin
- Field – the part of a coin between the Type and Legend or edge
- Legend – the words around the edge of a coin, often the monarch’s name and a motto or title
- Exergue – the section of a coin containing the date, usually on the reverse below the main design
- Die – the block of hardened metal with a design or effigy engraved on it, used to impress the design onto a coin blank
- Hammered Coin – the earliest method of striking a coin, by placing a coin blank between two dies and hammering the top die. Used in Britain up to 1662
- Milled Coin – a machine made coin struck in a coining press. First used in 1560, hand powered, steam powered from c.1800, electrically powered from 1895
- Mint – an organisation authorised to strike coins and medals. The British Royal Mint is one of the oldest and most respected in the world dating back to the 7th century
- Condition – the state of wear on a coin, graded inBritain from “Poor” or very worn, to “Uncirculated”, or fresh from the mint
- Proof – not a coin grade or condition but a type of coin, struck using polished dies in a separate minting process, to produce an immaculate coin
There is a lot of satisfaction in collecting coins, be they ancient or modern, struck from gold, silver or base metal, from the Royal Mint or any other mint. Sign up to The Westminster Collection’s mailing list and you will receive regular information and offers on many different kinds of coins.
You may however specialise in a particular type of coin or choose current UK coins. You’ll be offered the most current non-precious metal coins in uncirculated condition at an affordable cost. You can opt for commemorative coins or special issues from the various mints commemorating great events such as royal weddings, or the London 2012, special anniversaries such as a royal jubilee and even great people such as Winston Churchill.
You could concentrate on historic coins. Although the rarest coins are probably best left to museums and millionaires, some very old coins can be surprisingly affordable. The Romans were great coiners during the four centuries they occupied Britain – and great hoarders of coins. Hoards of Roman coins are still uncovered by archaeologists and metal detectors. Collecting these old coins, handled by legionnaires, wine merchants and peasants almost 2,000 years ago provides a unique insight into and link with the past.
There are many books on general and specialist aspects of coin collecting. The Internet is also an excellent source of information, though the quality and accuracy is sometimes unreliable.
Collecting Sovereigns: risks and rewards
In the past ten years, the price of gold has increased by hundreds of percent. Good news for anyone who has been collecting gold sovereigns, but it has also placed them beyond the reach of many
collectors.
The sovereign was first issued in England in 1489, though the modern sovereign containing 7.988 grams of 22-carat gold dates from 1817. After stopping production in 1917, the Royal Mint started sovereign production in 1957, producing bullion sovereigns mainly for investors. “Bullion” sovereigns are essentially sold for their gold content value.
The Royal Mint strikes “Proof” sovereigns in limited numbers for collectors, often to commemorate a special event. The Royal Mint annually issues limited numbers of full sets of gold coins – half-sovereign, sovereign, £2, and £5 gold coins, which make a spectacular addition to your collection or a once-in-a-lifetime gift.
Next time – Part III – Coin Collecting Made Easy