We are frequently asked questions about silver coins. This is why we have created this silver coins FAQs page, which is full of questions with model answers.
Are silver coins a good investment?
We have prepared a detailed article to answer this question, please visit by clicking here to learn more.
The American Eagle is an example of a popular silver investment coin
Is silver coinage magnetic?
Genuine coins made from silver are not magnetic. With purity of popular silver investment coins such as Britannias close to 100%, only replica (fake!) coins will be magnetic. Coins made with far lower purities of silver, mainly mixing in steel or iron will show signs of magnetism, so should be avoided. Non-magnetism does not guarantee that the coin is silver though. Metals filled with a core of non-silver will likely not be magnetic either.
Are silver coins worth anything?
Yes, their value is a combination of the underlying silver price, their weight, and the coin’s rarity and desirability. Generally, a silver coin will sell for around 96-98% of the current silver value for its weight. So, a 1oz coin may fetch around £11 or so. If the coin is part of a limited issue and demand is higher, the value is likely to be 5-10% higher.
When to sell silver coins?
It is advised to hold coins for the long term and always hold a portion of your wealth in silver as a balance and hedge against market downturns. Having said that, the amount you hold can vary according to market conditions and the silver price. Timing will depend on the price and time you bought them (was the market high or low), your need to liquidate and the current silver price. Buying low and selling high is the ideal scenario!
Are silver coins legal tender?
Yes, they are legal tender in their country of issue if they possess a face value. In the UK, Silver Britannias and other Royal Mint issued coins have face values and can, in theory, be used in shops. But this would be an uneconomical choice. With a face value of 2 Pounds, the silver content alone is worth at least five times that. Instead, the legal tender status helps silver investors as any capital gains made upon selling the coins are free from tax.
Will silver coins go up in value?
We have provided a detailed answer to this question, at this separate page.
Silver rounds vs coins
Choosing silver coins vs silver rounds will depend (ultimately) upon your objectives. Silver rounds can generally be bought at lower prices for their weight as they are produced by private companies rather than national mints. With less liquidity, rounds are likely to be sold as scrap in the future. Certain legal tender coins are also CGT free, so any profits are tax exempt.
How to store silver coins?
The best way is first to keep them in the plastic capsules or tunes they arrived in. If they came loose, then purchase some coin tubes. Large orders of 250 coins or more can come in monster boxes of 20 tubes or more and can help with neat stacking. Try to handle your coins as little as possible. Placing carbon pieces from a pet shop in the box can help prevent the hydrogen sulphide from tarnishing the coins.
Silver coins can be stored in boxes like this one available from Physical Gold Limited
Will a silver coin purify water?
Silver acts as a preserver for many substances. As a colloidal metal, it can help prevent diseases and be anti-bacterial. Certainly, adding a clean silver coin to some water will help with its purity. However, simply dropping a silver coin into a glass of dirty water will not rid it of all its nasty elements.
Read our detailed article, where we explore this topic here.
Are silver bullion coins worth buying?
Currently, they are incredibly cheap relative to their historical ratio to gold. This would suggest that their value is set to rise in the future. Coins offer superb divisibility rather than buying silver bars but still offer quantity discounts. UK coins can be CGT free, which foreign silver bars and coins cannot. With industrial demand for silver in computers on the rise, the future looks bright for silver.
Silver bars like the one above do not offer the tax advantages that UK silver coins do
The number of banks offering a retail service is dwindling. It is now only possible to buy from certain banks such as Scotiabank in some countries, but not in the UK. This is because the banks do not want to commit the necessary resource for dealing in precious metals. For this reason, many banks who can source your silver coins from, will not buyback. The price they sell at will be relatively high, reflecting their lack of appetite for the business.
Why do silver coins tarnish?
A natural by-product of silver is its reaction to chemicals and humidity in the air. Tarnishing occurs when the silver atoms encounter oxygen, forming a silver oxide. Unlike rust, this protective layer does not infiltrate into the silver. Tarnishing, also known as toning, can be removed by using a coin cleaning solution and minimised by keeping coins in airtight containers.
We have provided a detailed answer to this question, at this separate page.
Will a silver coin keep milk from spoiling?
Placing a silver coin into milk will delay the time it takes to go off. The coin has to be 99.9% pure rather than a lower mix alloy to work. The natural anti-bacterial qualities of colloidal silver will not prevent the milk from spoiling entirely but can prolong its life for 5-10 days. Infact, before refrigeration, silver was used regularly to achieve longer life milk and keep water pure.
Silver is far cheaper than gold, making it more accessible to the modest investor. The current price ratio between the two metals is at its widest point in history, suggesting silver has far more potential upside. Gold acts more like a classic safe haven to protect investors in economic downturns. While silver also acts in a similar way it also benefits from industrial demand due to its conductive qualities. Silver can be more volatile and dealer spreads are slightly wider than the gold market.
Are silver coins in circulation?
Our 50p and 5p coins are known as silver. However, they no longer contain any silver at all. Instead, they consist of cupronickel, a mix of nickel and copper. This is far cheaper and more resilient than using silver. Silver investment coins like the Britannia consist of 99.99% pure silver. While they have a face value, they are not actively in circulation. In theory, you can legally spend this coin in the shops, but its £2 face value is less than a fifth of its silver value.
Will vinegar clean silver coins?
Vinegar can be used to clean non-valuable coins but is not recommended for pure silver coinage. The use of vinegar could lower the value of the coin. The best bet to clean is with warm soapy water. Avoid using a brush as silver can be soft and scratch. Instead, use a cloth and fingers to rub any dirt away after soaking.
What are silver coins made of?
Silver investment coins are made from pure silver (99.99% purity usually). Silver currency coins such as the fifty pence piece or 5p are made from a mixture of nickel and copper. The alloy consists of 75% copper and 25% nickel, which when combined form a resilient metal known as cupronickel. UK coins were made from 92.5% sterling silver until 1920 and then this reduced to around 50% purity until 1947. Cupronickel was introduced in 1971.
The best coins to invest in for UK investors are the Royal Mint produced coins. The silver Britannia should form the backbone of the investment as the standard coin is cheap but very liquid. Combining this with some more limited issue coins such as the Queen’s Beasts and Lunar series will provide portfolio balance and create the chance to benefit from these coins rising in value quicker due to limited issue. All UK Silver manufactured coins have the advantage of being Capital Gains Tax-free.
Certain silver coins like this 1 oz Marvel’s Thor Silver Coin 2018 are highly collectable
Will banks buy silver coins?
Your average high street bank will not buy them from you. It is possible they would exchange the coins for their face value but that would be a foolish strategy as these values fall well short of the actual value. It is far better to seek the help of a reputable silver dealer who specialises in precious metals and will pay well for them as they can sell them on to other customers.
Can silver coins conduct electricity?
In theory, yes, they can conduct electricity. But we are only talking about the pure silver investment coins that contain 99.9% silver. Silver is by far the most conductive of all elements, to the point, where all other metals are benchmarked against silver to gauge conductivity. Silver currency coins that contain no silver at all will conduct electricity at a far lower level.
Where to sell silver coins?
If you have old coins with a value far greater than their simple silver weight, then sell them through an auction of a specialist dealer. Silver dealers will provide the best price and trustworthy service. If you have time on your hands, then you can try selling privately through portals such as eBay, but this poses risks. For scrap coins, local jewellers are easy to sell to but be prepared for low prices.
Silver coins proof vs uncirculated
Silver uncirculated coins are recommended for investors. They are far cheaper than proof coins so you can get more silver for your money. Silver dealers will not pay much more for silver proof coins when you come to sell. If you are a coin collector, then proof coins can add a higher sense of finish and exclusivity to the coin.
How do I clean silver metal coins?
The best way to clean valuable coins made from silver is with warm soapy water. Soak the coins for 10 to 15 minutes turning them occasionally. The coins can then be rubbed dry with a cloth, paying attention to removing any surface dirt. Avoid using a brush that could scratch the silver or chemicals like vinegar that could detract from the coin’s lustre.
When to buy silver coins?
Silver coins should ideally be bought when the economy is quiet, and the stock markets are doing well. This usually means a low silver price so you can secure coins at this level. The value of coins rises with the underlying silver price and should be considered a medium to long term hold due to short term volatility. Buying silver regularly is another strategy to gradually accumulate a substantial holding by averaging out buy prices.
Can I buy silver coins directly from the US mint?
Yes, they can be bought directly from the US Mint’s website. In a similar way to the Royal Mint, you are restricted to buying coins only produced by the mint. They will not sell 3rd party coins. Due to their reputation, the mint does not need to be super competitive on prices and will not generally offer quantity discounts. There is a focus on boxed proof coins rather than bullion coins. Better deals will be had from buying from a silver dealer, who will offer to buy back the coins, provide lower prices and more choice.
Where to store silver coins?
If you want hassle-free storage, it is best to store coins with the silver dealer from whom you bought. This usually entails storage in a specialist warehouse to maintain the silver’s integrity and includes insurance. If you want to store yourself, then the coins should be kept somewhere secure and be insured against theft. Reducing the amount of handling and oxygen to the coins will help prevent tarnishing. Keep the coins in their tube and keep them airtight if possible. If bought in large quantities, silver coin tubes can be stored in monster boxes (of 20-25 tubes), and the boxes conveniently stacked.
A very quick way to test silver coins is to place an ice cube on top of the coin. As the world’s best conductor of electricity, the ice cube should start to melt immediately compared to one placed on a wooden surface. Testing the silver coin for magnetism cannot prove it is genuine, but any sign of sticking to the magnet will prove it is a fake. When looking at well-known silver coins, careful visual comparisons with a real silver coin will usually unearth some straightforward differences with finish, detail, and edging.
Which silver investment coins are the best to buy?
Silver Britannias are the best silver-based coins to buy for investment. They are mass-produced bullion coins so offer a high degree of value. Limited issue coins tend to command a premium. Britannias are 1oz in weight so provide divisibility. Any profits made on selling silver Britannia coins are CGT exempt as the coins are legal tender in the UK. There is a strong second-hand demand for the coins so selling prices are high.
Are silver Britannia coins a good investment?
Britannia coins are an excellent investment for the medium to long term. Silver is currently unbelievably cheap compared to historical values. Industrial demand for silver is rising with advances in technology as silver is used for its conductive qualities. Silver Britannias are an excellent option is they are highly liquid, world-renowned, and tax-free for UK investors.
Buy silver Britannias direct from Physical Gold Limited
Why buy silver investment coins?
Buying silver coins is an excellent option for those seeking a tangible asset with no counterparty risks. The value of silver can rise with industrial and investment demand, but supply is limited due to its precious metals status. Coins can be a better option to buy than silver bars as they can be tax-free and can be sold in small sizes. Discounts are available for buying in larger quantities of coins.
Where to buy silver coins online UK?
Do not be tempted to buy coins from online shops like eBay and Craigslist. Authenticity can be a huge problem if you buy privately. Stick to buying from prominent silver dealers so you can rest assured that the silver is real. They will also provide the facility to store the silver if you wish, deliver it to your door, and buy it back in the future.
Call Physical Gold Limited with your further questions
We appreciate that you may have additional unanswered questions, if that is the case why not contact us? Simply call us now on 020 7060 9992 or complete our contact form and we will seek to help clarify any questions you may have.
Investors have shown a healthy interest in purchasing silver coins over the last few years. One of the factors for investors who opt to invest in silver is simply the gold-silver ratio. Silver is a lot cheaper than gold, allowing investors who are starting to enter the precious metals market and buy the white metal.
Investors can also expect capital appreciation on silver investments, due to the rising demand and falling supplies of the white metal. Of course, buying physical silver, like any other precious metal is devoid of counterparty risks, as the owner holds the asset in its physical form. Silver coins are a better investment for many investors, as their legal tender status in the country circumvents the need to pay Capital Gains Tax (CGT). Of all the silver coins in the market, possibly the best investment option is the silver Britannia.
A close-up of the intricate design elements of the Silver Britannia
History of the coin
The coin was introduced in 1997, ten years later than its gold counterpart – the gold Britannia. Since its release, the coin has been minted in different dimensions and has enjoyed immense popularity amongst investors. Although the silver market is fairly volatile, it is lucrative for investors to purchase this coin at current prices, and book profits in later years, once the spot price of silver rises. The low price of silver, when compared to gold is only one of the factors that have spurred investors to buy the silver Britannia. The intricate design of the coin is very attractive and features the iconic image of Britannia, with the shield and trident on the coin. The other side of the coin features the image of our reigning Queen, Elizabeth II.
How to buy the silver Britannia?
They are best purchased through a professional precious metals broker. Reputable dealers can be found on bnta.net. Most will offer discounts for quantity purchases, so it’s best to buy in one go to achieve the best discounts, rather than little and often. Certain online portals are structured to deliver them without the need to charge VAT, saving a further 20%.
The iconic image of Britannia depicted here in a statue
When identifying a reputed dealer, it is important to assess the company’s market reputation and the years in business. The best precious metal dealers in the country have a formidable track record of being in business for many years and will display good customer testimonials. All of this can be verified online. Most reputed dealers are registered with the British Numismatic Trade Association (BNTA). If you visit their website, you can access a full list of registered dealers in the UK. From here on, the best strategy is to build a relationship with the dealer. If you let the dealer know that you are keen to invest in silver Britannia coins, their team can advise you on the best deals available in the market. Discussing your investment objectives with the dealer can also be helpful, as they can guide you to the best deals available.
Tax considerations
The silver Britannia is considered to be legal tender in the UK. This means the coin has a face value and it qualifies for Capital Gains Tax exemption. So, the silver Britannia can be an excellent addition to your precious metals portfolio.
Get in touch with us for all your silver investments
Physical Gold is one of the U.K.’s most reputed precious metals dealers and is registered with the BNTA. We have a great team of investment advisors who can guide you, and help you acquire the best deals on silver Britannia coins. Call us today on (020) 7060 9992 or drop us a line, so we can get in touch with you and discuss your investment plans.
Investors often buy silver coins expecting the prices of silver to rise in the future. The other reason that investors are often interested in buying the white metal, is that it provides them with an easy route to enter the precious metals market. This is because silver is a lot cheaper than purchasing gold and large quantities of silver can be bought at the same price that one would pay when buying a small amount of gold. However, the silver market is not limited to only those coins whose value is decided by the spot price of silver. There are plenty of rare and old silver coins that command large premiums based on their scarcity and history. Today, we will explore some of the best and rarest silver coins in the market
Rare coins with history are always worth more than coins based on weight alone. Collectors are willing to pay huge premiums for scarcity. Some Morgan Silver Dollar coins worth 1$ Face value and £8 melt value, are actually worth over £300k due to their scarcity. Based on weight alone, the popular 1kilo coins such as the Perth Mint Koalas and Kookaburra coins are worth around £500 each.
The Flowing Hair Dollar was the first dollar minted in the US
The American Flowing Hair Dollar 1794
The coin was the first dollar coin to be minted by the US Mint. In the US, the coinage act of 1792, paved the way for the establishment of a new Mint. At the time, the Spanish silver dollars were already being used in the US. The Flowing Hair Dollar contained 0.773 ounces of 90% silver. The coin is valuable due to its rarity and one of these coins fetched $10 million at an auction in 2013.
The American Half Dollar (1797)
Popularly known as the Draped Bust Half Dollar, the coin was minted by the US Mint as a replacement for the flowing hair dollar, due to its unpopularity. The Draped Bust Half Dollars were minted in 1796 and 1797. These coins featured a new design, called the ‘Small Eagle’. Since the coins were minted in two subsequent years, most collectors prefer to complete their set by acquiring the half dollars, with the Small Eagle from both years. It must be noted that the scarcity of this coin is because very limited numbers were ever minted. 1796 witnessed only 934 of these coins being made, while a further 3,000 were minted in the next year. A 1797 Draped Bust Half Dollar fetched US$1,527,500 in an auction in 2015.
The Morgan Silver Dollar is one of the rarest and most valuable silver dollars
The 1870 Seated Liberty Dollar
This historic coin became a part of US coinage for a little more than 30 years from 1840 to 1873. It is considered historic since it was the last silver dollar minted by the US Mint prior to the coinage act of 1873. The coinage act was an important milestone for the United States, as it would put the country on the gold standard. Well, by 1870, the production of these coins had been moved to other cities like San Francisco. These are very rare and an 1870 Seated Liberty Dollar produced in San Francisco was priced at US$1,092,500 in 2003.
1889 Morgan Silver Dollar
Despite the nation being on a gold standard, a financial crisis prompted the US Mint to produce the Morgan silver dollars. These were minted from 1878 to 1904. It was named after the design of the coin, George T Morgan. Due to the limited numbers of production, the coin is considered to be very rare and one of these was sold for $ 881,250 in 2013.
Talk to our silver experts to buy the best silver coins
Physical Gold is a highly reputed precious metals dealer in the country. Our advisors are best placed to discuss your silver investments and identify the best silver coins for you to buy. Please call us today on (020) 7060 9992 or get in touch with us online, via our website.
Silver coins are a popular choice for collectors and investors alike. As many silver coins are legal tender in the UK, they provide an opportunity to invest, without having to carry the burden of Capital Gains Tax (CGT). However, when investing in silver coins, one needs to make the right choice. Silver coins are available as proof sets, bullion coins and rare/ collectable coins.
These US Mint proof coins in silver are great for collectors
What are silver proof coins?
Proof coins were originally produced before the actual issue of a coin. They were used for securing approvals from the Ministry of Finance and the administration of the mint. Checking the proof coins is also a method used for verification of the dies used during the production process. Finally, they were retained for archival. Proof coins are usually produced by polishing the dies. This results in a high-quality finish, with a polished look and feel and sharp edges and design. The polished areas of the coin take on an almost mirror-like finish, especially in silver coins. Additionally, the dies used for production are often chemically treated to create a frosty appearance in some areas of the coin.
Due to their high-quality finish and attractiveness, silver proof coins have become extremely popular over the years and enjoys healthy demand from the general public. As a result of this, the Royal Mint has been issuing limited edition sets of proof coins. Of course, these coins can be bought at hefty premiums and are usually purchased by numismatists.
Silver proof coins as an investment
If an investment is a primary focus, then buying bullion coins is a better bet. Bullion coins finished to brilliant uncirculated finish are cheaper per gram than a silver proof coin. Most silver dealers will not pay you the same premium when you come to sell the proof silver coin. Proof coins are better suited to collectors or as presents.
The premiums you would pay for buying a proof coin set is more or less the same as that of a commemorative issue. One needs to bear in mind that the higher price being charged for a proof coin is simply on account of production costs and limited availability. This does not change the price of the silver contained within the coin. Bullion coins, on the other hand, are freely available with low premiums. As an investor, you can secure great deals from dealers on bulk purchases of bullion coins. So, if you are buying silver coins as an investment, steer clear of buying silver proof coin sets. Buy current issues of silver bullion coins like the silver Britannia and you can land yourself a much better deal.
Call our silver investment team to discuss your silver coin purchases
Our investment experts offer you free and impartial advice on buying silver coins and bars (such as this 1KG bar). By connecting with the Physical Gold team, you can stay abreast of the latest deals and find out everything you need to know about buying silver coins. Call us today on (020) 7060 9992 or contact us online to speak to a member of the team.
If you’re going to invest in gold coins, you will need to ensure they are the genuine article, rather than fake. But how can you tell if a coin is nothing more than a convincing counterfeit? Here are eight techniques to help you avoid being scammed.
Gold coins
How Do I Detect Counterfeit Coins?
1) Check gold and silver coins with a magnet
Anyone who knows a little about precious metals will already be familiar with the fact that gold and silver do not interact with magnetic forces. This means that a high quality, genuine coin should remain unmoved if exposed to a magnet.
If a coin that is claimed to have a high gold or silver content is attracted to a magnet, then it is likely a counterfeit that contains more steel or iron than advertised.
It’s worth remembering that for this reason, some counterfeiters use other non-magnetic metals like copper and lead. This means the magnet test should be carried out alongside the other techniques if it proves inconclusive.
Even the best counterfeiters in the world make mistakes, and with a well-trained eye, you should be able to spot the difference between the real deal and a fake. This applies to counterfeits of mainstream coins as well as rare collectable coins for investment.
To do this most accurately, pick up a magnifying glass, or go a step further and invest in a specialised loupe used by jewellers to get a closer look at the surface.
If you don’t have a genuine coin to hand, find a high-resolution image of the coin online and use this to make your comparison.
3) Weigh and measure coins
From modern silver Britannia coins to vintage gold half sovereigns, all high quality coins will have been struck consistently and only put into circulation if they adhere to strict standards for their dimensions and weight.
Because major mints are so reliable in these terms, spotting a fake coin is fairly easy. You just need a calliper and a set of electronic scales.
A standard set of kitchen scales will not offer sufficiently accurate measurements, so buy a scale that displays weights to at least two decimal places. Weigh the suspicious coin and if it is out of kilter with official figures by a significant margin, reject it.
Even a coin that is on the ball in terms of weight can still be a fake. By using a calliper to measure its depth and diameter, you will be able to spot any inconsistencies.
Counterfeiters find it almost impossible to create the perfect phoney coin which both weighs the same as the currency it is spoofing and also has the same dimensions. With the right kit, you can steer clear of dodgy deals.
4) Stack suspicious coins
Another obvious sign that a coin is not of sound origin can be seen in the relief. Even small variations in the height of the relief can become apparent with a straightforward stacking test.
All you need to do is place the coin in a small stack with other examples of similar heritage. Real coins will stack neatly and remain stable, while fakes that are not struck with the same attention to detail or high-quality craftsmanship will teeter, totter and tumble over.
Identifying uneven relief height using this technique does require that you have access to real coins of the same age and denomination. This might limit its usefulness if you are new to investing in or collecting coins, but will help those who are expanding an existing hoard.
Find fake coins with the stack test
5) Ping silver and gold coins
This technique is specific to gold and silver coins as a result of the properties of the metals and the noise that coins make when they collide with a hard surface.
Pinging is a straightforward test for valuable coins, as the sound produced by silver and gold as they hit a tabletop, or are struck against another coin, is unique. While coins made with lesser metals, including counterfeits, will sound dull when dropped, a genuine coin will ring out for longer and produce an unforgettable high-frequency sound.
Prepare yourself to scrutinise potential coin purchases by performing the ping test on a gold or silver coin you know to be genuine, or check audio examples online. That way you’ll have a fixed idea of what to listen out for later on.
6) Place an ice cube on the coins
Gold is a great conductor of heat, silver even more so. That means as soon as an ice cube comes in contact with the surface of a gold or silver coin, it will begin to turn back into liquid water.
If a coin is made of a less conductive and less valuable metal, this process will not begin as quickly. Try this test out with genuine gold and collectable silver coins to see what the reaction should look like.
Historic gold coins
7) Check the specific gravity of gold and silver coins
This is a far more technically advanced test than the others covered so far, which makes it a little harder to recommend to the average coin investor. However, arming yourself with as much knowledge as possible is always a good thing, so understanding the specific gravity test will be helpful for everyone.
The specific gravity of gold and silver will be unique and thus different from that of other metals. You can calculate the expected relative density of a coin made of a precious metal, then test it in real time using a set of scales, a container and some distilled water.
Weigh the coin, then fill the container with the water and place it on the scales, before resetting the measurement to zero. Tie a small length of thread around the coin and slowly place it into the water until it is entirely beneath the surface, but not touching the bottom of the container. Take a note of the weight that has been added and then divide it by the ‘dry’ weight of the coin you took earlier.
For gold, the specific gravity you are looking for is 19.3 for a completely pure sample. For silver, it’s 10.49.
8) Work with respected silver and gold coin dealers
If you want to avoid all of the complications that come with trying to detect counterfeit coins under your own steam, the best option is to only buy from dealers that have a good reputation.
This isn’t just about avoiding first-hand contact with con artists, but also about building up a trusting relationship with a company like Physical Gold which you can rely on for all your future precious metal investment needs.
Most of all you should avoid coins that are being sold well below their market value, or being pushed upon you by a dealer who seems eager to get the sale over with as quickly as possible. The signals of an attempt to shift fake coins should be clear, so long as you are willing to look for them and don’t fall for a deal that’s too good to be true.
Call or email Physical Gold for more coin advice
Our experts know everything there is to know about gold and silver coins, such as Sovereigns and Britannias. So, if you are thinking about investing and want more information, then the best option is to get in touch. Make a quick phone call to 020 7060 9992 or email us for outstanding coin advice.
Numismatics. It’s not a word many people will have heard of before. Perhaps you have heard in a quiz “What do you call a coin collector?” Numismatics refers to a steadily growing group of people who are totally fascinated by coins; all sorts of coins, old and new and from all different currencies.A Numismatist is a coin collector. Numismatics involves the appreciation of craftsmanship, finish and features – when you look closely at a coin it’s surprising what you can learn. Learn more in our article about Numismatics – the study or collecting of coins medals and paper money.
Adult and child counting coins
What is numismatics?
Numismatics is actually far more interesting than you’d think. Numismatics is the study of and collection of coins, notes and other forms of currency, it’s a huge and varied topic with plenty to keep you interested.
The word “numismatics” itself comes from the Greek word “nomisma”, which means “coin”, its first known use was back in 1790. The “nom” part you may also recognise from our own word “denomination”. The numismatic art itself refers simply to the study of coins and historic money, but nowadays numismatists are also interested in medals, online currency and paper currency too. Numismatics also concerns items that are similar to coins but don’t necessarily have any economic function: things like tokens, religious items or badges.
Numismatics vs Coin Collecting – How do the Two Compare?
So, do you want to be a Numismatist or coin collector? Well, don’t worry, you can actually be both! You can be an avid coin collector without practising the study of coins (history etc). behind them, or you can learn about the field without actually doing any collecting. We compare the difference between the two below.
What is coin collecting?
Conversely, coin collectors often take enjoyment in gathering together full sets of coins depending on what they are personally interested in. These could be Beatrix Potter or London Olympics 2012 celebration coins for example, or coins marking special times in history for the Royal Family.
What does a Numismatist study or collect?
A “true” numismatist goes well beyond mere collecting, it’s a passion and takes on the form of the study of coins and education. We go on to discuss subcategories of numismatics below, but essentially a Numismatist collects and studies coins, tokens, paper money, and a range of related objects. As a general rule, a numismatist will study currency from a social, artistic or historical viewpoint.
What are the Different Subcategories of Numismatics?
Numismatics is essentially about the value of a currency, the study of currency, how we use it and exchange it, as well as the physical currency itself. It’s about rarity, methods of manufacture and history of the coins. So, what does a Numismatist collect? Numismatics can be broken down into different categories, which we discuss below:
What is Notaphily?
Notaphily – this is the collecting, study and learning of paper money such as banknotes. The word is formed from “Nota” – a Latin word for “paper Money and “Phily” a Greek word for love – so essentially it’s the “love of paper money”. In more recent times Notaphily has also started to include collecting and studying of plastic notes too.
What is Exonumia?
Exonumia – “Exo” is the Greek for “out of” and Nummus is the Latin for “coin”. These include a broad range of items such as the collecting and study of coins as well as badges, key tags, medals, military coins, tokens (e.g. arcade, bank, casino, communion, membership) and toy money. These are just a few examples of aspects of collecting and studying Exonumia.
Here at Physical Gold, we go well beyond the study of coins and make Exonumia, investment-friendly too. Why not make money from your study of coins, by speaking to us?
What is Scripophily?
Scripophily – this is the collecting and study of securities such as bond certificates, stock certificates and other negotiable financial instruments. Scripophilists will often collect based on the antiquity, scarcity and aesthetic appeal of an item. Investment principles are often in the background, but undoubtedly if managed correctly Scripophily in the long-term can make attractive investment properties. Modern Scripophily is becoming trickier as the financial services industry moves away from paper-based to electronic systems.
What coins are worth collecting?
We now analyse some of the coins, which we believe are most worth collecting.
Royal Mail coins
For a lot of British coin collectors, the Royal Mint is where it’s at. Planning for new releases and eagerly awaiting the chance to get their hands on the latest designs, they jostle to be the first to place an order for a new coin and prepare to add it to the other Royal Mint coins in their collection. Infact, did you know that the Royal Mint website ground to a halt when it made available its phenomenally popular 2017 Peter Rabbit 50p coin?
Limited Edition Collectable Coins
When it comes to collecting coins, the ones which are most sought after are ones which were only in circulation for a short time, i.e. are limited edition coins. Historically significant or especially attractive coins are also popular, and excitement is further heightened by mints that are limited in numbers or metal type, for example, a gold coin that’s usually silver. A particularly famous limited edition mint includes the recent Star Wars: The Empire Strike Back silver coin which had a mintage across the globe of just 10,000.
The 1 oz Landmarks of Britain – Trafalgar Square Silver Coin (2018) is a 50,000 mintage limited edition Royal Mail coin
Minting Error Coins
Another category of collectable coins are minting errors, these are coins, which had some sort of error during the minting process. The main categories of minting errors are:
Hub and die errors – these include double printing, die-setting errors, areas missing from the design, die breaks as well as cracks and chips, as well as many other types too
Planchet preparation errors – these include minting blank coins, clipped coins, minting coins with varying thicknesses as well as cladding and lamination flaws
Strike errors – a range of errors in the striking process
Buying minting error coins can make a great investment. This is especially the case if these coins are bought early when premiums are often lower. As the years go by and error coins become scarcer and more sought after, the premiums paid can often rise dramatically.
Coins in a jar
Is Coin Collecting a Good Investment?
When it comes to coin collecting as a way of building an investment or pension fund there are no shortcuts. It’s not a quick way to “flip” some money or make a fast buck – it’s much more long term. Old and rare coins are pretty much always worth far more than their face value.
A lot of financial advisors are even suggesting you keep between 5-10% of your investments in precious metals and rare coins. Not only will this offer a little extra security but it will give a good foundation for building future wealth. Even if the stock market was to totally flop, your collected coins will retain their value and actually likely increase as investors plump more towards commodities. It’s potentially a fascinating yet lucrative hobby.
Is it Worth Seeking Dealer Advice About Which Coins to Buy?
If you’re interested in beginning a personal coin collection or in getting into numismatics, in particular, there are many coins which are very highly regarded, so if there are particular items you have in mind it’s important to get your order in as quickly as possible.
In our opinion, it’s essential to take advice and there’s plenty available from Numismatic publications and websites as well as through talking to dealers such as Physical Gold Limited.
How Can I Invest with Physical Gold today?
So, are you interested in the study or collection of coins and perhaps starting a fantastic new coin collection of your own? In our opinion, Numismatics is more than coins study or the collecting of coins medals and paper money – it should be an investment too!
Let us get you started. Whether you’ve been collecting for years or you’re just starting to dabble, Physical Gold can help with any advice about collecting or investing in gold. Speak to us on 020 7060 9992 or send us an email so we can help.
Investing in silver coins may be attractive, but there are certain important points we need to consider first. In this article we explore “Are silver coins a good investment?”
Size and investment options
Silver coins are available in a variety of sizes. Apart from the normal sizes up to an ounce, they are now available in larger versions of 10 ounces and 1 kg. There has been speculation in the market for a while that the prices of silver are likely to go up significantly. With the spot price currently hovering around £11 per ounce, there are great profits to be made if it rises threefold. The other reason that silver is attractive to investors is that it is 85 times cheaper than gold. Gold can be prohibitively expensive for retail investors. Silver offers access to the precious metals market at an unbelievable price point.
The industrial demand for silver
Silver has a huge industrial demand. It is widely used for the manufacture of electronics, computers, solar panels, and has a range of other industrial applications. Reducing supplies of the white metal has prompted investment experts to speculate about a possible hike in prices. If you are thinking of silver coins investment and taking a calculated risk on its price, you may have to wait for at least 3 to 5 years before you can get a reasonable return.
They can be a great investment if bought in the right way at the right time. Silver is significantly undervalued compared to historical levels, so a medium to long term holding is advised to maximise returns.
Silver coins can be a great investment if the right coins are chosen
Need for liquidity and buying coins which can be resold
Your investment is only as good as its liquidity. If you cannot take advantage of the right price point in the market by selling easily and quickly, the investment is useless. Therefore, always buy silver coins with a mass appeal and avoid purchasing obscure and rare coins. Well-known coins enjoy a vibrant secondary market, which makes it much easier to sell when the time is right. 1-ounce silver coins like the silver Krugerrand is an ideal choice.
How about collectable coins?
You may be able to extract better value from your investment if you choose a collectable coin. The premiums on these coins usually rise very quickly and investing in them can be an excellent strategy to get quick returns. Likewise, a popular coin like the 1-ounce silver Britannia makes an excellent addition to your investment portfolio. It ticks all the boxes for divisibility, liquidity and collectability. So, it’s evident that investing in silver coins can be a great idea as long as you plan properly and buy the right coins which are likely to meet your investment goals.
Understand purity levels
When choosing coins, purity is an important factor. Many silver coins are available with 95.8% purity. But, if you do your research well and choose a coin like the Canadian Silver Maple Leaf, you have a coin with 99.9% purity. There can be different strategies for choosing the right silver coins for your investment. Purity, divisibility, variety and value are important considerations.
Tax advantages and efficiencies
From a tax perspective, silver coins which are legal tender in the UK will automatically be CGT free.
Prior to the UK leaving the EU, Physical Gold were the only silver dealer in the UK who could provide VAT free silver. Post-Brexit this is no longer possible. Due to the following reasons though, we are able to sell silver coins and bars at similar “all in” prices to previous:
Free delivery – we can now provide free delivery, previously this was chargeable
Reduced product range – we now provide a reduced range of silver products. This means we have negotiated better prices for the products we supply, we pass this discount on to our customers!
The overall net result is that the price difference when you buy silver coins and bars the price difference even with paying VAT is negligible and certainly competitive with other UK dealers.
We also can now accept orders for mixed gold and silver purchases, whereas previously we could only process “silver only” orders to obtain VAT free silver.
Contacting Physical Gold for Advice
Please visit the Physical Gold website for more information on how to profit from your investment in silver coins. Speak to us today on 020 7060 9992, leave an instant message or complete our contact form. We look forward to being of service and support.
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.
The iconic image of Britannia above Somerset House in London
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.
A World War 1 Poster depicting Britannia
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.
Live Gold Spot Price in Sterling.
Gold is one of the densest of all metals. It is a good conductor of heat and electricity. It is also soft and the most malleable and ductile of the elements; an ounce (31.1 grams; gold is weighed in troy ounces) can be beaten out to 187 square feet (about 17 square metres) in extremely thin sheets called gold leaf.
Silver Information
Live Silver Spot Price in Sterling.
Silver (Ag), chemical element, a white lustrous metal valued for its decorative beauty and electrical conductivity. Silver is located in Group 11 (Ib) and Period 5 of the periodic table, between copper (Period 4) and gold (Period 6), and its physical and chemical properties are intermediate between those two metals.
