POSTED ON 14TH SEPTEMBER 2018 BY DANIEL FISHER

The word bullion is both widely used and misinterpreted. It basically refers to bars and coins produced in mass for investment purposes. With regards to coins, the term also refers to the standard of production of coins minted after the early 1930s. These coins are generally regarded as the most cost efficient way of purchasing gold coins as their market value is determined almost exclusively by their gold content. In contrast to other types of coins such as proofs, commemorative, or historic coins, you will not pay premiums for packaging, finish or exclusivity. Physical Gold offer an easy way to buy gold coins online in the UK.

The end of using bullion coins as currency

It was around the 1930s that the use of gold coins was lifted from circulation as the major economic powers around the world decided to recall their gold reserves and discontinue the use of gold in coinage. However, this did not stop the minting of gold coins and the major mints around the world continued to issue gold coins for the purpose of collection by numismatists and investors alike. Many of these coins are available at the value of their weight in gold. However, there are also coins from this period that have witnessed a significant escalation in value due to numismatic interest. For example, a 1933 gold double eagle fetched a record £7.5mn at an auction in 2002.

 

Knowing what you’re buying

Numismatists have always enjoyed collecting gold coins of collectable value. Coins that enjoy rarity and historical value have a great propensity to increase in value. This value is based on the demand of the coin itself, and not it’s weight in gold. However, needless to say, counterfeiters and rogue dealers also seize the opportunity of cashing in on such trends and there are a number of fake coins circulating in the market.

Bullion coin authenticity

When investing in bullion coins (including coin sets) as part of a portfolio, it is very important to determine whether the coin is genuine. There are internationally acclaimed coin certification agencies that can ensure that the bullion you are buying is genuine. The well-known ones across the world are the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Corporation (NGC).

Getting your coin certified by one of these organisations is one way of getting it done. PCGS and NGC do appear often at important numismatic events, like the International Numismatic Convention in New York or the London based Coinex event, organised by BNTA, which has its 40^th international convention due in September 2018. Collectors who want to have their coins graded, usually file their submissions in advance and collect them at the event, while networking with other collectors and viewing the displays.

Test for fake bullion coins yourself

However, there are other methods to determine whether the coin you’re buying is a fake. A coin gauge is a handy tool often used by dealers and collectors alike to detect counterfeits. Also, it is important to bear in mind that due to the unique properties of gold, coins are difficult to duplicate. Base metals have a lower density, which means that counterfeit coins would have the wrong dimensions or be underweight. Interestingly, there is even a mobile phone app that can ping the coin with sound and analyse the echo to detect a fake. In the UK, the forgery and counterfeiting act 1981 effectively outlawed the counterfeit trade. At Physical Gold, our team of numismatist experts always ascertain the genuineness of each and every coin we trade-in. We are also happy to help you ascertain the type of gold, authenticity, and the value of your gold coins, as well as guide you on how, where, and when to get the best deals on gold bullion.

Bullion coin sizes

Bullion coins are available in various fractional denominations, but the general rule of thumb is you’ll pay increasingly more as the denomination reduces. We feel the common 1oz coins and the full Sovereigns offer a great balance of divisibility and value. Because we only source the world’s most recognised bullion coins, they are always easy to trade at the tightest margins. Investors also benefit from price savings as the quantity of bullion coins they buy grows.

Sovereign coins are now recognised by the Royal Mint as bullion quality as they’re issued to non-proof finish for investment purposes in laminated sheets. However, many older Sovereign coins are widely traded in today’s investment market alongside the newer coins. These coins pre-dating 1933 encompass the Sovereign heads of early Elizabeth, George V & VI, Edward VII & VIII and Queen Victoria. Due to their age and limited issue, they can be deemed to contain a degree of historical value – and may be classed as semi-numismatic.

In practice the cost of these coins is usually slightly less than their bullion cousins of the past 10-15 years as their historic value is cancelled out by their inferior condition. Just like with new cars, you tend to find that the latest year’s bullion coins may carry a slightly higher premium than ‘nearly new’ coins even though they are of identical design and condition. Our consultants will guide you as to the current premiums on these coins to ensure you assemble the best value portfolio of coins.

Below we list and describe some of the world’s best known bullion coins. The two main tax free bullion coins in the UK are the Britannia and the Sovereign. The Krugerrand is known as the world’s original bullion coin as it was the first to guarantee 1oz of pure gold.

Best UK gold coins ever

British gold coins have always been a great investment as they have a long history of coinage. These coins are an incredible asset to any numismatist and almost always appreciate in value over the years. Although many were issued over the years, they continue to remain a much-sought-after category of coins across the world for both investors and collectors alike. In this article, we will explore ten of the best British gold coins that have consistently delivered great value to buyers worldwide.

1)  George V gold sovereign

The sovereign has a long history, having originally been issued by Henry VII in 1489. The sovereign issued in those years had a diameter of 42mm and weighed 15.55gms. It was initially known as the “double royal” but soon had its name changed to the sovereign. It is thought that at the time, it was too great in value to enjoy circulation, and was retained as a presentation piece for important delegates. The sovereign enjoyed resurrection in later years and in 1871, it was restored by Sir Charles Fremantle, the deputy minister of the Mint at the time. Sir Charles used a design by Benedetto Pistrucci, the Italian designer who passed away in 1855, known as the George and the dragon.

Approval from the Queen

The design was approved by the Queen and was used to strike sovereigns from 1871 to 1874 in Britain. The sovereign featured the head of the reigning monarch. In 1910, after the death of Edward VII necessitated a new obverse of his son, King George V, the design of which was created by designer Bertram Mackennal. This version of the sovereign continued to feature Pistrucci’s design of St George and the dragon on the reverse. It had a nominal value of one pound and is now considered to be a valuable bullion coin that is bought by investors, as well as numismatists as a collector’s item. George V gold sovereigns are available from Physical gold for as little as £390.

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2)  King Edward VII sovereign

The tradition of the sovereigns was of course preceded by King George V’s father, King Edward VII. Edward was the eldest son of Queen Victoria, who was often referred to as the greatest British monarch. He acceded to the throne upon his mother’s death in 1901 at the age of 60. The sovereigns issued upon the monarch’s accession to the throne commenced in 1902. These coins featured an obverse designed by George William De Saulles. These gold coins were issued until he died in 1910. You can purchase these for your collection from Physical Gold.

3)  Queen Victoria sovereign (young head)

Three sovereigns were issued during the reign of Queen Victoria. These coins featured a ‘young head’, ‘jubilee head’ and an ‘old head’ on the obverse. Of course, the ‘old head’ was coined during the later years of the reign of the Queen. The ‘young head’ coins display the Queen in a youthful look. Interestingly, there are two types of obverse sides for these coins. The St. George and dragon is one of the popular issues for the obverse side, however, a rarer and more valuable obverse features a shield back design. Queen Victoria sovereigns were struck at mintage quantities of more than 16mn by 1872. The coins you purchase from Physical Gold will most likely have a St. George and dragon motif on the obverse and would date between 1871 and 1887, but we do sometimes get lucky with the odd Victoria shield back Sovereign.

4)  Gold Britannia 30th anniversary edition 1oz

The Gold Britannia is a bullion coin produced by the Royal Mint. The Britannia 1oz coin was initially launched in 1987. Since then, 2017 marked 30 years of the iconic coin, which has seen several issues, year on year. It is interesting to note that there are very few pre-owned Britannias on the market, which means that investors who buy them, prefer to hold them for a long time as an investment. The famous image of Britannia on the coin represents a tradition that has lasted for centuries. The coin is capital gains tax-free, which is an added impetus for those willing to invest in gold Britannias as a long-term investment of great value.

5)  Half sovereign gold coins

Half sovereigns are an excellent buy, probably second only to the gold sovereign itself. Half sovereigns were issued as a part of the great British coinage with the obverse featuring different monarchs, during their respective reigns. These include Queen Elizabeth, the reigning monarch, as well as George V, Edward VII and Queen Victoria. Most of the coins available today are pre-owned and can be purchased from Physical Gold for as little as  £195.

6)  Queen Victoria Jubilee head sovereign

The sovereign coins featuring the Queen Victoria Jubilee head were minted for only 7 years in limited numbers and are therefore lesser in number and rarer. These coins have mintmarks indicating that they were struck in mints across the erstwhile British Empire, namely London, Melbourne, and Sydney. Select coins are available as tax-free investment from Physical Gold.

7)  The English ‘angel’ gold coin

The angel is considered to be an iconic British gold coin, so famous at one time that the name was used to christen places and venues. The famous ‘Angel Inn’ in Islington, London is named after it, as is the Angel tube station in London. The coin was initially introduced by Edward IV in 1465. The obverse featured an image of the archangel Michael slaying a dragon, while the reverse shows a ship with arms, with sun rays at the masthead. The angel was continued as a part of British coinage through the reign of many monarchs, including Henry VIII, Elizabeth I, James I and Edward VI and had different values from 6 shillings to 11 shillings. Today it is a valuable and rare collector’s item. A gold angel from the reign of Elizabeth I is valued at £7,250 by Stanley Gibbons.

8)  Elizabeth I gold crowns

Queen Elizabeth, I had a substantial gold coinage, although much underrated by numismatists. The gold crowns issued during the Elizabethan era were meant for circulation only in 1601 and 1602. These coins are a great collector’s item today, as limited quantities were minted at the time. The obverse features the Queen’s head, while the reverse displays the royal coat of arms.

9)  Queen’s beasts gold coins

Although a relatively new addition to British coinage history, the series has had a significant impact on buyers and is certainly worthy of mention. The royal mint introduced these in 2016 and the iconic coins form a series, with each coin featuring one of the ten queen’s beast statues that were displayed at the coronation of Queen Elizabeth II, the current reigning monarch.

10)     Lunar gold coins

Lunar gold coins were issued by the royal mint from 2014. It is a series of bullion coins, with a new coin launched each year, featuring a Chinese zodiac animal associated with that particular lunar year. The entire series will be a 12 coin series and the ones already released feature the dog, monkey, sheep, horse, and rooster. You can view these and purchase the ones you love at Physical Gold. Interestingly, in 2014 it was reported that 38,000 coins had been mistakenly struck with the obverse intended for the gold Britannia. These coins would eventually become a rarity and a collector’s item due to the error.

Talk to us for the right guidance on buying British gold coins

If you’re thinking of investing in British gold coins as an investor or a numismatist, look no further. Our team at Physical Gold has both silver and gold investment experts as well as numismatics experts. Call us now on 020 7060 9992 or contact us via our website for guidance on buying gold coins.

 

Image credits: Wikimedia Commons, Public Resource.org and Wikimedia Commons

The Britannia is one of the most famous coins ever released in British coinage history. It is the pride and joy of the Royal Mint and also forms the backbone of any precious metal coin portfolio. The Britannia is available in both gold and silver and offers tremendous liquidity to the portfolio of an investor. Due to its reputation as one of the best-known coins in the world, it is easily saleable for cash.

The Britannia coin

The Britannia gold coin is a 1-ounce coin with a purity of 999.9 and a face value of 100 GBP that was launched by the Royal Mint in 1987. It is available in bullion and proof finishes, as well as fractional sizes. The Royal Mint also introduced a silver Britannia coin in 1997, which has a face value of 2 pounds. The silver Britannia contains one Troy ounce of fine silver. Both the gold and the silver coin feature a portrait of the reigning British monarch, Queen, Elizabeth II on the obverse of the coin. The reverse of the coin features the classic image of Britannia. The event featured on the coins issued from 1987, was designed by Philip Nathan. In 2018, the Royal Mint also released a Platinum version of the Britannia coin that contains one Troy ounce of Platinum and has a face value of £100.

Who was Britannia?

In 43AD Britannia meant Roman Britain. This was an area to the south of what is known today as Scotland. In 197AD Roman Britain was divided into 4 provinces and 2 of these were Britannia Superior and Britannia Inferior. Britannia was the name given to this Island. In the 2nd Century, Roman Britannia was what is recognised today as the goddess armed with a trident and shield. Britannia was featured on all modern British coinage until being redesigned in 2008.

The Romans used the term ‘Britannicae’ to refer to the British Isles. The inhabitants of Britain were called ‘Britons’ at the time. Another name for the people of the British Isles used by the Romans was ‘Britanni’. Since the British Isles represented the furthest territory of the Roman Empire, it became symbolised with the goddess of warfare and water. Roman mythology portrays a goddess called Minerva, who is popularly known as the torchbearer of arts, commerce, strategy and wisdom. The image of Britannia was based on the icon of goddess Minerva and came to personify the British Isles over the years.

Reinforcement of the Britannia image

After the invasion of England by the Anglo-Saxons, the ethnicity of the country changed drastically, with the exodus of the original Celtic Britons. However, years later, as Queen Elizabeth, I combined England, Scotland, Ireland. and Wales and significantly increased the nation’s naval power, the image of Britannia was restored as a representation of the nation’s power and the Queen. This was further reinforced during the reign of the great Queen Victoria when the British Empire became the most powerful empire in the world and Britannia ruled the waves. The iconic image of Britannia was then put firmly in place to represent the power of the British Empire, and its monarch.

Physical Gold can assist you in purchasing Britannia coins

Whether it’s gold Britannias or silver ones that you’re after, our coin experts at Physical Gold can advise you on how to get the best deals. Call us on (020) 7060 9992 or drop us an email and a member of our team will reach out to you at the earliest.

 

Image credits: Alastair Rae and Picryl

The Panda coin

Country: China
Face Value: 100 Yuan
Gold Content: 1 ounce (31.103g)
Purity: 99.99% (24 karat)
Gross Weight: 31.1036g
Coin Diameter: 32.103mm
First year of issue: 1982

The Chinese Panda coin is a series of gold bullion coins issued by the People’s Republic of China. This coin is 24 karat gold and has a face value of 100 Yuan. The mint introduced the Panda gold bullion coins in 1982. Each year of production, other than 2002, the reverse design of the panda coin has changed and has therefore enabled the Chinese to build a steady demand regardless of gold price fluctuations.

Over the last 30 years, Gold Panda Coins have become an established favourite with many collectors, who appreciate their stunning and unusual designs, as well as the coin’s highly distinctive colouring. The coin itself is backed by the Chinese Government which means it has a guaranteed purity level much like the UK Britannia coin or the South African Krugerrand.

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Mintmarks

One area where Panda Coins differ to other bullion coins is that they don’t contain any mintmarks to show the place where they have been produced. Pandas are produced in a number of different Chinese mints including Beijing, Shanghai, and Shenyang. In order to determine the mint, you need to take a careful look at variations between coins such as the colour of the metal or subtle design differences.

Currently, all Gold Panda Coins have a purity of 99.99, making them an ideal option for gold bullion investors. They are also available in a wide range of different denominations, depending on your investment requirements. Up until 2016, the gold Panda was produced in denominations ranging from 1oz to 1/20oz.

Now in metric…

This has now changed, however, and Panda Coins are currently being minted in metric system sizes instead. The reason for this change is purely down to the coins growing popularity with international investors. With many countries replacing the old troy ounce system with modern metrics, the People’s Republic of China felt they could capitalize on the coin’s widespread appeal by following suit. The new and updated coin sizes can be seen below:

• 1 oz coin is now 30 grams
• 1/2 oz coin is now 15 grams
• 1/4 oz coin is now 8 grams
• 1/10 oz coin is now 3 grams and
• 1/20 oz coin is now 1 gram

Since 1983 the Panda Coin has also been available in silver. Like the Gold Panda, the Silver Panda Coin’s design changes every year making them very collectable among investors.

The growing appeal of Panda Coins

Many astute investors believe Panda premiums could rise significantly over the coming years due to growing demand linked into China’s rise as an economic powerhouse. With their modest premiums, these coins can offer a viable bullion alternative. There is also a vast natural market for Panda Coins due to the growing amount of expatriate Chinese ethnics.

The obverse features the Temple of Heaven with Chinese characters on top saying “Zhonghua Renmin Gongheguo” meaning the People’s Republic of China. If the issue is a commemorative issue of the Chinese Panda coin, the theme will be marked below.

Variety….

The Reverse shows different portraits of pandas that change every year, other than the one exception in 2002.

Whilst the value of gold and silver has been in continual fluctuation over the past few years, the value of Panda Coins has continually increased, and the market shows no signs of slowing down. Currently, Panda Coins are growing in value at a much higher rate than other bullion coins. This is partly due to the fact that they are comparatively relatively scarce, and also because they are only produced in fairly small mintages.

Image Credit: Wikipedia