Posts Tagged ‘United Kingdom’

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?

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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?

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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.

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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

What’s your coin of the year?

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We have selected our top ten shortlist of the most popular coin designs of the year – which one is your favourite?

Cast your vote now using the poll at the bottom of the page.

A) The Jersey 2014 70th Anniversary of D-Day £5

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Celebrating 70 years since the heroics of D-Day, this £5 coin from Jersey depicted a soldier landing on the beaches during the epic conflict.

B) The Canada 2014 Royal Generations 1oz Silver Coin

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For the first time ever, four generations of the Royal Family were engraved on this Canadian $20 coin. Also of note is the fact that the coin shows the direct line of succession for the throne.

C) The Jersey 2014 ‘100 Poppies’ £5 Coin

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Issued in support of the Royal British Legion, this coin grabbed the headlines with its 100 engraved poppies, one for each year since the outbreak of World War I in 1914.

E) The Guernsey 2014 First World War Centenary £5 Coin

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Issued to commemorate the Centenary of World War I, this emotive coin from Guernsey features lines from Laurence Binyon’s famous poem ‘For the Fallen’ alongside a uniformed soldier.

F) The UK 2014 Commonwealth Games 50p

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In July the Commonwealth Games was held in Glasgow – and the nation really got behind ‘the friendly games.’ The Royal Mint issued this 50p featuring a runner and a cyclist alongside text in the ‘arts and crafts’ style.

G) The Cook Islands 2014 Moldavite Meteorite Impact Coin

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Surely one of the most innovative coins of the year – this remarkable concave coin features a real piece of Moldavite – a mineral created during a meteorite collision with the Earth millions of years ago.

H) The UK 2014 ‘Year of the Horse’ Silver Coin

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In 2014 the Royal Mint decided to copy the other established mints of the world and introduce a ‘lunar’ coin, principally for export to China. An unusual departure for our coinage, it’s nonetheless an energetic and lively depiction of a horse.

I) The Cook Islands 2014 Tyrannosaurus Rex Coin

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Containing a hidden secret, this photographic T-Rex coin reveals the skeleton of the dinosaur when a UV light is shone over the surface.

J) The Guernsey 2014 Reflections of a Reign Coronation Coin

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Looking back at some of the key moments of Queen Elizabeth II’s reign, this Guernsey coin features an engraving of the young Queen, alongside a full colour photograph of her Coronation ceremony.

K) The UK 2014 Lord Kitchener £2 Coin

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One of the most talked about coins of the year, this British £2 coin reproduced the iconic ‘Your Country Needs You’ poster which symbolised the early years of the First World War.

Cast your vote now!