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.

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

 

 

Britannia coins are the one-ounce British Bullion coins issued by the Royal Mint since 1987. Both proof and bullion versions have been issued every year to date and fractional versions are commonly available.  The Britannia coin is available in either silver or gold and since 2013 has a purity value of 999.9. It is currently the largest, purest British legal tender coin available on the market.

Britannia coin

County: Great Britain
Face Value: £100 GBP
Gold Content: 1 ounce (31.104g) – Alloyed with copper or silver depending on year (pure from 2013)
Purity: 917 / 1000 (22 karat) (1987-2012) or 999.9/1000 (24 karat) (2013-)
Gross Weight: 34.0500 g (1987-2012) or 31.104g (2013-)
Coin Diameter: 32.69 mm (1987-2012) or 38.61mm (2013-)
First Year of issue: 1987

British coinage history

Britain has a long history of coinage. The first coins that were minted in Britain were Celtic ones around 80 BC. The first gold coins and silver coins in Britain were introduced by the Romans. The gold one was called ‘Aureus’ and the silver ‘Denarius’.

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Why Britannia?

The ‘Britannia’ first appeared on the coins of the Roman Emperor Hadrian in AD119. Britannia represents the strength of the British Isles in female form and she has been depicted as a goddess since the 2nd century. Over the years she has appeared on many coins including every penny issued from 1797 up until decimalisation and all 50p coins issued before 2008. Over the years the image of Britannia has changed with more of an emphasis being placed on her maritime links (She is often referred to as the Queen of the Seas) and images of her brandishing a spear have been replaced by those portraying her with a trident.

Bullion coin market growth

After the 80s saw significant growth in the global bullion market, the Royal Mint introduced Britannia coins to their bullion portfolio. Designed by Philip Nathan, the coin featured a new interpretation of Britannia that was powerful, yet elegant and it caught the imagination of the entire nation. Introduced in 1987, the coin made a worldwide impact and became a classic. Today, 30 years later, the classic design still remains the same – with a small addition. The new design displays a radial sunburst on her back.

The Britannia – Europe’s premier modern coin

The Britannia coin is fast becoming Europe’s premier modern coin and is regarded as one of the world’s most beautiful coins. This coin is admired by collectors, dealers and investors from around the world, and is, therefore, one of the World’s most liquid coins.

With the face value of £100 UK Britannia coin is considered legal tender in Great Britain and it is therefore not subject to Capital Gains Tax when sold for a profit by UK residents. As the law currently stands you are required to pay CGT for any personal goods you have sold or made a profit on over the tax-free allowance rate of £11,300. As gold and silver Britannia’s are CGT exempt, however, you can sell as many as you want over the tax year without having to pay CGT.

Design features

The classic design featured on the 2018 1oz Britannia coin

displays a stroking image of a standing Britannia who is portrayed as a beautiful young woman, wearing a centurion’s helmet and holding her trident aloft. The reverse side of the coin features the most recent portrait of Queen Elizabeth II which was designed by Jody Clark of the Royal Mint and first introduced in 2015. Like previous editions of the Britannia coin, it has a purity of 999.9 and is created in 24 karat gold.

Britannia gold coins originally had a fineness of 91.7% or (22 karats) gold with the alloy being copper until 1989 and silver from 1990. The Royal Mint increased purity to 24 karats from 2013 to appeal to the ever-growing Asian market.

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Collectable and with solid investment potential

These lovely 24 karat coins are an amazing investment for any numismatist or an investor. They are worth their weight in gold and have a purity of 999.9 since 2013. The 2018 edition is an excellent value for money and fitting addition to any coin collection. Investors on the other hand, who want to invest serious money in these coins as an investment in gold, would benefit from purchasing a large number of the coins. This is because it works out considerably cheaper to buy gold bullion in bulk rather than individual coins. The advantage of purchasing gold in small denominations such as a coin also gives the investor an advantage in terms of liquidity. At a later point in time, when the investor wishes to exit gold as an investment strategy, he need not dilute all his investments. He can simply sell the ones he wishes to and transfers a part of that investment to another asset class.

Britannia coins are also currently available in a range of different weights and denominations depending on the amount you wish to invest. These include 1/2, 1/4 and 1/10th troy ounce coins which have face values of £50, £25, and £10 respectively. Since 2013 two additional sizes of Britannia coin have been introduced – a 5-ounce coin and 1/20^th ounce-coin. These have face values of £500 and £5.

Another reason to invest in Britannia Coins is that they present European and UK investors with the opportunity to purchase physical gold totally exempt from VAT.  All of our Britannia coins are available to purchase VAT free and CGT exempt.

The Britannia is a prestigious coin, famous all over the world and makes an excellent companion to gold sovereign coins. It would make an excellent Christmas gift item for someone in the family or a loved one. So, as we can see, investing in a Britannia isn’t just about parking money and hedging risks. The coin is a true work of art and would make a fitting family heirloom to be passed down from one generation to the other. The coins come with their own case and are suitable for display as an outstanding work of art and a great symbol of British history. Call us on 020 7060 9992 to discuss how Physical Gold Limited may help you invest in the Britannia 2017.