Posts Tagged ‘Coin Collecting’
Your guide to buying a silver bullion coin
Bullion coins are some of the most sought-after coins in the world, often selling out and causing stock shortages at major national mints. So what do you get for your money? And why should you buy one?
The 2016 Silver Britannia
Well the key reason most people purchase a bullion coin is the precious metal content. For example, the UK £2 Britannia coin contains an ounce of pure 999/1000 silver. Soon enough one coin turns into many and you can find yourself owning a sizeable amount of silver.
But these coins are not just lumps of metal. The silver Britannia is also a real piece of craftsmanship, with a beautifully evocative design struck with all the expertise of the Royal Mint.
Combine this craftsmanship with the silver content and you start to see just why this coin is so collectable.
But why is this any different from a silver bar, or a silver round?
Top tips for buying silver bullion coins
UK bullion coins carry the authority and security of being a government issued coin. There is never any debate about their purity or integrity. In fact they are checked every year at a 734 year old ceremony called the Trial of the Pyx. You can buy one safely in the knowledge that you are getting what you pay for.
This also explains why bullion coins sometimes appear to have a ‘misleading’ face value. The Britannia is a £2 coin, but the silver content is worth much more than that. The truth is the face value is really there to legitimise the coin and prove that it is an official state-authorised issue.
And legal tender British bullion coins have a final bonus – they will never incur any Capital Gains Tax. This makes them the perfect way to pass down silver through the generations.
Phillip Nathan’s ‘Standing Britannia’ design
But you will have to pay VAT. And as with any struck coin, you will have to pay a small premium over the raw metal value to cover production costs. At the time of writing, raw silver is trading at around £10.50 an ounce, but you’d be hard pressed to find a way of buying a single ounce at that price.
Bullion coins facilitate an easy entry into the world of owning silver and coins. They are not about face value or edition limit, but you can still have the satisfaction of securing a collection of genuine, bona fide UK coins – at as close to the raw silver price as you are likely to get.
Top Tips for buying silver bullion coins:
- Pick a country with a strong tradition of issuing bullion coins
- Expect to pay a small premium over the intrinsic silver value
- Remember the face value of your chosen coin is not related to its value
- Buy British silver bullion coins and there’s no Capital Gains Tax to pay
Coins and Stamps in Investment Top 10 List
Coutts – bankers to the Queen – have confirmed coins and stamps as lucrative hobby investments…
The Coutts Passion index tracks the rate at which the price of hobby investments has risen, and its increase of 80% between 2005 and 2014 proves that there is money to be made for those who decide to turn their hobby into an investment.
Stamp and coin collecting both made the top 10 in recent news, despite having been around for hundreds of years these collecting pastimes remain just as popular today…
200 Million Collectors
Postage stamp collecting is still enjoyed by around 200 million people worldwide
In fact, it’s estimated that around 200 million people worldwide still enjoy collecting stamps to this very day. An impressive figure considering the technological advances that the world has seen over the years and new fads and crazes that have developed.
Ranked in 9th place by Coutts – philately is still widely recognised by many as a popular collectible hobby.
Postage stamp collecting began at the same time that stamps were first issued, and by the 1860’s thousands of collectors and stamp dealers were appearing around the world as this new study and hobby spread across Europe.
Collecting stamps for investment purposes is viewed as a hedge against inflation and devalued currencies. Perhaps not as popular for younger audiences as it once was, stamp collecting is still considered to be a worthwhile hobby – which can be both rewarding and profitable to the collector.
Ranked at number 3 in the Coutts top 12 list, is coin collecting. Last year prices for old coins grew at a rate of 9% and over the 10 year period between 2005 and 2014 they have risen a staggering 176%
Top 3 Position
The Kew Gardens 50p often sells for up to £30 (60 times its face value)
People have kept coins for their bullion value for as long as coins have been minted, however, the collection of coins for their artistic value came much later.
Today, coin enthusiasts are still hunting for collectible coins to add to their collections. There are many different areas within numismatics which range from theme, metal, currency, era and country.
Keith Heddle of Stanley Gibbons, puts coins’ enduring popularity down to “their tangibility and literal link to money, wealth and precious metals”.
So, it’s good news for collectors. With coins like the undated 20p and the Kew Gardens 50p which can simply be found in loose change, the return on their investment stands to be even higher in percentage terms.
Stamps, along with coins, are the only two alternative investments on the Telegraph’s list that have not lost money in any given year since 2005.
Whilst it’s always nice to hear about coin and stamp values rising, we always recommend that you collect first and foremost for the enjoyment of the hobby.
The most lucrative ‘hobby investments’ over 10 years
- Classic cars
- Old Master and 19th Century art
- Old coins
- Rare musical instruments
- Post-war and contemporary art
- Jewellery
- Rugs and carpets
- Impressionist and modern art
- Stamps
- Fine wine
- Traditional Chinese works
- Watches
The Westminster Collection offers a variety of collectible stamps and coins.
click here to find out more.
The Story Behind the new Longest Reigning Monarch £5 Coin
The new Longest Reigning Monarch £5 Coin issued by Jersey
This week a new £5 coin will be issued to mark Her Majesty Queen Elizabeth II becoming our longest reigning monarch on 9th September.
One of the very first coins has been issued by Jersey and I’ve been given exclusive access to go behind-the-scenes for the blog.
The new £5 coin has been designed by Timothy Noad, whose work has featured on many UK coins over the years. He has even designed the Gold Sovereign twice, an unprecedented honour which is testament to his passion and understanding of numismatic art.
This passion shows through in his design for the new £5 coin. Featuring an Oak Tree and the Royal Cipher surrounded by the inscription ‘1952 – Long to Reign Over Us – 2015’, the coin has a dignified and prestigious presence. I asked Timothy what gave him his inspiration for the design:
“The oak tree came to mind as an emblem with many relevant associations. The Royal Oak, as well as a popular pub name, is a well-known image and oak branches form part of the heraldic badge of the House of Windsor.
“It is also a symbol of Britain, endurance and longevity, so very appropriate for the Queen. Shields were hung on trees during medieval tournaments, often held in honour of a Queen or noble lady, and this shield bears the Queen’s personal cipher. I enjoy seeing how my drawings are translated into actual coins and I am very happy with this design.”
The process behind the design of the new coin
From Drawing to Finished Coin
But getting from an idea to a struck coin is a time consuming process, a real labour of love.
First of all the design is hand-drawn, and careful consideration has to be given to the shape and size of the engraving so it can be accurately minted. Then the wording has to be laid out, with the added complication of retaining the typesetting within the circular shape.
Finally, the finished drawing is scanned and processed, ready to be made into a die which will eventually be used to produce the commemorative coins you can own.
Limited Edition Versions Available
Detail of the Longest Reigning Monarch £5 Coin design
The most affordable limited edition version of the coin is the Proof Edition, featuring the addition of gold ink. Just 4,950 will be minted and these are sure to be popular.
The coin is also being struck in a range of other formats, from a face value version right up to a staggering 5 ounce gold edition – I’ve held one and its sheer scale took my breath away.
So there’s a type of coin for all collectors – and if there’s one thing I’m sure, it’s that this coin is a truly fitting commemoration of the remarkable reign of Queen Elizabeth II.
If you’re interested…
The Longest Reigning Monarch £5 Proof Coin is available to pre-order now.
***NOW SOLD OUT***